Elijah E. Cummings Merchant Mariner Workforce Development Act

I 116TH CONGRESS 2D SESSION H. R. 7464 To amend title 46, United States Code, to direct the Secretary of Transpor- tation 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 Sec- retary of Transportation to establish a merchant mariner education loan program, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Elijah E. Cummings 4 Merchant Mariner Workforce Development Act’’. 5 VerDate Sep 11 2014 00:30 Jul 25, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H7464.IH H7464 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 7464 IH SEC. 2. CENTERS OF EXCELLENCE FOR DOMESTIC MARI- 1 TIME WORKFORCE TRAINING AND EDU- 2 CATION: TECHNICAL AMENDMENTS. 3 (a) REDESIGNATION AND TRANSFER OF SECTION.— 4 Section 54102 of title 46, United States Code, is redesig- 5 nated as section 51706 of such title and transferred to 6 appear after section 51705 of such title. 7 (b) CLERICAL AMENDMENTS.—Title 46, United 8 States Code, is amended— 9 (1) in the analysis for chapter 541, by striking 10 the item relating to section 54102; and 11 (2) in the analysis for chapter 517, by striking 12 the item relating to section 51705 and inserting the 13 following: 14 ‘‘51705. Training for use of force against piracy. ‘‘51706. Center of excellence for domestic maritime workforce training and edu- cation’’. SEC. 3. MERCHANT MARINER EDUCATION LOAN PROGRAM. 15 (a) IN GENERAL.—Chapter 517 of title 46, United 16 States Code, as amended by section 2 of this Act, is fur- 17 ther amended by adding at the end the following: 18 ‘‘§ 51707. Merchant mariner career training loan pro- 19 gram 20 ‘‘(a) ESTABLISHMENT.—The Secretary of Transpor- 21 tation shall establish the Elijah E. Cummings Merchant 22 Mariner Career Training Loan Program (in this section 23 VerDate Sep 11 2014 00:30 Jul 25, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H7464.IH H7464 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 7464 IH referred to as the ‘program’) in accordance with the re- 1 quirements of this section. 2 ‘‘(b) PURPOSE.—The purpose of the program shall 3 be to make merchant mariner career training loans avail- 4 able to eligible students to provide for the training of 5 United States merchant mariners, including those working 6 to receive a Standards of Training, Certification and 7 Watchkeeping endorsement under subchapter B of chapter 8 I of title 46, Code of Federal Regulations. 9 ‘‘(c) ADMINISTRATION.—The program shall be car- 10 ried out by the Secretary, acting through the Adminis- 11 trator of the Maritime Administration. 12 ‘‘(d) DUTIES.—The Secretary shall— 13 ‘‘(1) allocate, on an annual basis, the award of 14 loans under the program based on the needs of stu- 15 dents; 16 ‘‘(2) develop an application process and eligi- 17 bility criteria for the award of loans under the pro- 18 gram; 19 ‘‘(3) approve applications for loans under the 20 program based on the eligibility criteria and alloca- 21 tions made under paragraph (1); and 22 ‘‘(4) designate maritime training institutions at 23 which loans made under the program may be used. 24 VerDate Sep 11 2014 00:30 Jul 25, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H7464.IH H7464 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 7464 IH ‘‘(e) DESIGNATION OF MARITIME TRAINING INSTITU- 1 TIONS.— 2 ‘‘(1) IN GENERAL.—In designating maritime 3 training institutions under subsection (d)(4), the 4 Secretary— 5 ‘‘(A) may include Federal, State, and com- 6 mercial training institutions and nonprofit 7 training organizations, including centers of ex- 8 cellence designated under section 51706; 9 ‘‘(B) shall designate institutions based on 10 geographic diversity and scope of classes of- 11 fered; 12 ‘‘(C) shall ensure that designated institu- 13 tions have the ability to administer the pro- 14 gram; and 15 ‘‘(D) shall ensure that designated institu- 16 tions meet requirements to provide training in- 17 struction for appropriate Coast Guard-approved 18 training instruction. 19 ‘‘(2) EXCLUSIONS.—The Secretary— 20 ‘‘(A) may exclude from participation in the 21 program a maritime training institution that 22 has had severe performance deficiencies, includ- 23 ing deficiencies demonstrated by audits or pro- 24 VerDate Sep 11 2014 00:30 Jul 25, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H7464.IH H7464 kjohnson on DSK79L0C42PROD with BILLS 5 •HR 7464 IH gram reviews conducted during the 5 calendar 1 years immediately preceding the present year; 2 ‘‘(B) shall exclude from participation in 3 the program a maritime training institution 4 that has delinquent or outstanding debts to the 5 United States, unless such debts are being re- 6 paid under or in accordance with a repayment 7 arrangement satisfactory to the United States, 8 or the Secretary in the Secretary’s discretion 9 determines that the existence or amount of any 10 such debts has not been finally determined by 11 the appropriate Federal agency; 12 ‘‘(C) may exclude from participation in the 13 program a maritime training institution that 14 has failed to comply with quality standards es- 15 tablished by the Department of Labor, the 16 Coast Guard, or a State; and 17 ‘‘(D) may establish such other criteria as 18 the Secretary determines will protect the finan- 19 cial interest of the United States and promote 20 the purposes of this section. 21 ‘‘(f) STATE MARITIME ACADEMIES.— 22 ‘‘(1) USE OF FUNDS FOR LOANS TO STUDENTS 23 ATTENDING STATE MARITIME ACADEMIES.—The 24 Secretary may obligate not more than 50 percent of 25 VerDate Sep 11 2014 00:30 Jul 25, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H7464.IH H7464 kjohnson on DSK79L0C42PROD with BILLS 6 •HR 7464 IH the amounts appropriated to carry out this section 1 for a fiscal year for loans to undergraduate students 2 attending State maritime academies receiving assist- 3 ance under chapter 515 of this title. 4 ‘‘(2) ACADEMIC STANDARDS FOR STUDENTS.— 5 Students at State maritime academies receiving 6 loans under the program shall maintain satisfactory 7 progress toward the completion of their course of 8 study as evidenced by the maintenance of a cumu- 9 lative C average, or its equivalent, or academic 10 standing consistent with the requirements for grad- 11 uation, as determined by the institution. 12 ‘‘(g) LOAN AMOUNTS AND USE.— 13 ‘‘(1) MAXIMUM AMOUNTS.— 14 ‘‘(A) IN GENERAL.—The Secretary may 15 not make loans to a student under the program 16 in an amount that exceeds $30,000 in a cal- 17 endar year or $120,000 in the aggregate. 18 ‘‘(B) ADJUSTMENT FOR INFLATION.—The 19 Secretary shall, every 5 years for the life of a 20 loan under the program, adjust the maximum 21 amounts described in subparagraph (A) in ac- 22 cordance with any change in the Consumer 23 Price Index for All Urban Consumers published 24 by the Bureau of Labor Statistics of the De- 25 VerDate Sep 11 2014 00:30 Jul 25, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H7464.IH H7464 kjohnson on DSK79L0C42PROD with BILLS 7 •HR 7464 IH partment of Labor that occurs since the pre- 1 vious adjustment. 2 ‘‘(2) USE OF LOAN PROCEEDS.—A student who 3 receives a loan under the program may use the pro- 4 ceeds of the loan only for postsecondary expenses in- 5 curred at an institution designated by the Secretary 6 under subsection (d)(4) for books, tuition, required 7 fees, travel to and from training facilities, and room 8 and board. 9 ‘‘(h) STUDENT ELIGIBILITY.— 10 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 11 to be eligible to receive a loan under the program, 12 a student shall— 13 ‘‘(A) be eligible to hold a license or mer- 14 chant mariner document issued by the Coast 15 Guard; 16 ‘‘(B) provide to the Secretary such infor- 17 mation as the Secretary may require, including 18 all current Coast Guard documents, certifi- 19 cations, proof of United States citizenship or 20 permanent legal status, and a statement of in- 21 tent to enter a maritime career; 22 ‘‘(C) meet the enrollment requirements of 23 a maritime training institution designated by 24 the Secretary under subsection (d)(4); and 25 VerDate Sep 11 2014 00:30 Jul 25, 2020 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H7464.IH H7464 kjohnson on DSK79L0C42PROD with BILLS 8 •HR 7464 IH ‘‘(D) sign an agreement to— 1 ‘‘(i) complete a course of instruction 2 at such a maritime training institution; 3 and 4 ‘‘(ii) maintain a license or document 5 and work under the authority of the license 6 or document and any associated endorse- 7 ments for at least 18 months following the 8 date of graduation from the maritime pro- 9 gram for which the loan proceeds will be 10 used. 11 ‘‘(2) LIMITATION.—An undergraduate student 12 at the United States Merchant Marine Academy 13 shall not be eligible for a loan under the program. 14 ‘‘(i) ADMINISTRATION OF LOANS.— 15 ‘‘(1) CONTENTS OF LOAN AGREEMENTS.—Any 16 agreement between the Secretary and a student bor- 17 rower for a loan under the program shall— 18 ‘‘(A) be evidenced by a note or other writ- 19 ten instrument that provides for the repayment 20 of the principal amount of the loan and any 21 origination fee, together with interest thereon, 22 in equal installments (or, if the student bor- 23 rower so requests, in graduated periodic install- 24 ments determined in accordance with such 25 VerDate Sep 11 2014 00:30 Jul 25, 2020 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H7464.IH H7464 kjohnson on DSK79L0C42PROD with BILLS 9 •HR 7464 IH schedules as may be approved by the Secretary) 1 payable quarterly, bimonthly, or monthly, at the 2 option of the student borrower, over a period 3 beginning 9 months from the date on which the 4 student borrower completes study or discon- 5 tinues attendance at the maritime program for 6 which the loans are used at the institution ap- 7 proved by the Secretary and not exceeding 10 8 years; 9 ‘‘(B) include provision for acceleration of 10 repayment of the whole, or any part, of such 11 loan, at the option of the student borrower; 12 ‘‘(C) provide the loan without security and 13 without endorsement; 14 ‘‘(D) provide that the liability to repay the 15 loan shall be canceled upon the death of the 16 student borrower, or if the student borrower be- 17 comes permanently and totally disabled, as de- 18 termined in accordance with regulations to be 19 issued by the Secretary; 20 ‘‘(E) contain a notice of the system of dis- 21 closure of information concerning default on 22 such loan to credit bureau organizations; and 23 ‘‘(F) include provisions for deferral of re- 24 payment, as determined by the Secretary. 25 VerDate Sep 11 2014 00:30 Jul 25, 2020 Jkt 099200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H7464.IH H7464 kjohnson on DSK79L0C42PROD with BILLS 10 •HR 7464 IH ‘‘(2) RATE OF INTEREST.—A student borrower 1 who receives a loan under the program shall be obli- 2 gated to repay the loan amount to the Secretary, to- 3 gether with interest beginning in the period referred 4 to in paragraph (1)(A), at a rate of interest deter- 5 mined by the Secretary, in consultation with the 6 Secretary of Education, in accordance with section 7 455 of the Higher Education Act of 1965 (20 8 U.S.C. 1087e). 9 ‘‘(3) DISCLOSURE REQUIRED PRIOR TO DIS- 10 BURSEMENT.— 11 ‘‘(A) IN GENERAL.—The Secretary shall at 12 or prior to the time the Secretary makes a loan 13 to a student borrower under the program, pro- 14 vide thorough and adequate loan information on 15 such loan to the student borrower. The disclo- 16 sures required by this paragraph may be made 17 as part of the written application material pro- 18 vided to the student borrower, as part of the 19 promissory note evidencing the loan, or on a 20 separate written form provided to the student 21 borrower. 22 ‘‘(B) CONTENTS.—The disclosures shall 23 include— 24 VerDate Sep 11 2014 00:30 Jul 25, 2020 Jkt 099200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H7464.IH H7464 kjohnson on DSK79L0C42PROD with BILLS 11 •HR 7464 IH ‘‘(i) the address to which communica- 1 tions and payments should be sent; 2 ‘‘(ii) the principal amount of the loan; 3 ‘‘(iii) the amount of any charges col- 4 lected at or prior to the disbursal of the 5 loan and whether such charges are to be 6 deducted from the proceeds of the loan or 7 paid separately by the student borrower; 8 ‘‘(iv) the stated interest rate on the 9 loan; 10 ‘‘(v) the yearly and cumulative max- 11 imum amounts that may be borrowed; 12 ‘‘(vi) an explanation of when repay- 13 ment of the loan will be required and when 14 the student borrower will be obligated to 15 pay interest that accrues on the loan; 16 ‘‘(vii) a statement as to the minimum 17 and maximum repayment term that the 18 Secretary may impose, and the minimum 19 monthly payment required by law and a 20 description of any penalty imposed as a 21 consequence of default, such as liability for 22 expenses reasonably incurred in attempts 23 by the Secretary to collect on a loan; 24 VerDate Sep 11 2014 00:30 Jul 25, 2020 Jkt 099200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H7464.IH H7464 kjohnson on DSK79L0C42PROD with BILLS 12 •HR 7464 IH ‘‘(viii) a statement of the total cumu- 1 lative balance, including the loan applied 2 for, owed by the student borrower to the 3 Secretary, and an estimate of the projected 4 monthly payment, given such cumulative 5 balance; 6 ‘‘(ix) an explanation of any special op- 7 tions the student borrower may have for 8 loan consolidation or other refinancing of 9 the loan; 10 ‘‘(x) a statement that the student bor- 11 rower has the right to prepay all or part 12 of the loan, at any time, without penalty; 13 ‘‘(xi) a statement summarizing cir- 14 cumstances in which repayment of the loan 15 or interest that accrues on the loan may be 16 deferred, and a brief notice of the program 17 for repayment of loans, on the basis of 18 military service, pursuant to the Depart- 19 ment of Defense educational loan repay- 20 ment program (10 U.S.C. 16302); 21 ‘‘(xii) a definition of default and the 22 consequences to the student borrower if 23 the student borrower defaults, together 24 with a statement that the disbursement of, 25 VerDate Sep 11 2014 00:30 Jul 25, 2020 Jkt 099200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H7464.IH H7464 kjohnson on DSK79L0C42PR [Text truncated for display. 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