I 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 pe- riod to be subsequently determined by the Speaker, in each case for con- sideration of such provisions as fall within the jurisdiction of the com- mittee concerned A BILL To amend title 46, United States Code, to allow transpor- tation of merchandise in noncontiguous trade on foreign- flag vessels, 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 ‘‘Noncontiguous Ship- 4 ping Relief Act of 2023’’. 5 SEC. 2. TRANSPORTATION OF CERTAIN MERCHANDISE. 6 (a) IN GENERAL.—Section 55102 of title 46, United 7 States Code, is amended by redesignating subsection (c) 8 VerDate Sep 11 2014 00:59 Apr 15, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2588.IH H2588 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 2588 IH as subsection (d) and by inserting after subsection (b) the 1 following: 2 ‘‘(c) NONCONTIGUOUS TRADE EXEMPTION.— 3 ‘‘(1) IN GENERAL.—Subsection (b) shall not 4 apply with respect to transportation in noncontig- 5 uous trade of merchandise on a foreign qualified 6 freight vessel for which the Secretary of Transpor- 7 tation has issued a certificate of documentation 8 under chapter 121. 9 ‘‘(2) DEFINITIONS.—In this subsection: 10 ‘‘(A) FOREIGN QUALIFIED FREIGHT VES- 11 SEL.—The term ‘foreign qualified freight vessel’ 12 means a freight vessel (as that term is defined 13 in section 2101) of not less than 1,000 gross 14 tons that— 15 ‘‘(i) was not built in the United States 16 (or if rebuilt, not rebuilt in the United 17 States); 18 ‘‘(ii) is registered in a foreign country; 19 and 20 ‘‘(iii) employs United States citizens 21 to the extent required of vessels registered 22 under section 12102. 23 VerDate Sep 11 2014 00:59 Apr 15, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2588.IH H2588 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 2588 IH ‘‘(B) NONCONTIGUOUS TRADE.—The term 1 ‘noncontiguous trade’ has the meaning given 2 such term in section 53501.’’. 3 (b) COASTWISE ENDORSEMENTS.—Section 4 12112(a)(2)(B) of title 46, United States Code, is amend- 5 ed— 6 (1) in clause (ii), by striking ‘‘or’’; 7 (2) in clause (iii), by striking ‘‘and’’ and insert- 8 ing ‘‘or’’; and 9 (3) by adding at the end the following: 10 ‘‘(iv) is a foreign qualified freight vessel 11 (as defined in section 55102(c)) used for trans- 12 portation referred to in section 55102(c) for 13 which the Secretary of Transportation has 14 issued a certificate of documentation; and’’. 15 (c) FOREIGN TRANSFER.—Section 56101(a)(2) of 16 title 46, United States Code, is amended— 17 (1) by striking ‘‘Paragraph (1)(A)’’ and insert- 18 ing: 19 ‘‘(A) FISHING VESSEL.—Paragraph 20 (1)(A)’’; and 21 (2) by adding at the end the following: 22 ‘‘(B) FOREIGN QUALIFIED FREIGHT VES- 23 SEL.—Paragraph (1) does not apply with re- 24 spect to a foreign qualified freight vessel for 25 VerDate Sep 11 2014 00:59 Apr 15, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2588.IH H2588 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 2588 IH which the Secretary has issued a certificate of 1 documentation after the date of enactment of 2 the Noncontiguous Shipping Relief Act of 2023 3 and that is used solely for transportation re- 4 ferred to in section 55102(c). 5 ‘‘(C) FOREIGN REGISTRY.—A foreign 6 qualified freight vessel may be placed under for- 7 eign registry without the approval of the Sec- 8 retary at any time after such vessel is issued a 9 certificate of documentation. At such time as 10 such vessel is placed under foreign registry, the 11 Secretary shall revoke the certificate of docu- 12 mentation issued by the Secretary.’’. 13 SEC. 3. CITIZENSHIP AND TRANSFER PROVISIONS. 14 (a) CITIZENSHIP OF CORPORATIONS, PARTNERSHIPS, 15 AND ASSOCIATIONS.—Section 50501 of title 46, United 16 States Code, is amended by adding at the end the fol- 17 lowing: 18 ‘‘(e) EXCEPTIONS.—Subsection (c) and paragraphs 19 (2) and (3) of subsection (b) shall not apply to a foreign 20 qualified freight vessel (as such term is defined in section 21 55102(c)) used for transportation referred to in section 22 55102(c)(2)(B).’’. 23 (b) APPROVAL OF TRANSFER OF REGISTRY OR OP- 24 ERATION UNDER AUTHORITY OF A FOREIGN COUNTRY OR 25 VerDate Sep 11 2014 00:59 Apr 15, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H2588.IH H2588 kjohnson on DSK79L0C42PROD with BILLS 5 •HR 2588 IH FOR SCRAPPING IN A FOREIGN COUNTRY; PENALTIES.— 1 Section 56101 of title 46, United States Code, is amended 2 by adding at the end the following: 3 ‘‘(f) TRANSFER OF FOREIGN QUALIFIED FREIGHT 4 VESSELS.—To promote the transfer of foreign qualified 5 freight vessels to be documented under chapter 121 of this 6 title for use for transportation referred to in section 7 55102(c)(2)(B) of this title, the Secretary may grant ap- 8 proval under subsection (a) with respect to such a vessel 9 before the date the vessel is documented. 10 ‘‘(g) FOREIGN QUALIFIED FREIGHT VESSEL DE- 11 FINED.—In this section, the term ‘foreign qualified freight 12 vessel’ has the meaning given such term in section 13 55102(c) of this title.’’. 14 SEC. 4. LABOR PROVISIONS. 15 (a) LIABILITY FOR INJURY OR DEATH OF MASTER 16 OR CREW MEMBER.—Section 30104(a) of title 46, United 17 States Code, is amended by adding at the end the fol- 18 lowing: ‘‘In an action brought under this section against 19 a defendant employer that does not reside or maintain an 20 office in the United States (including any territory or pos- 21 session of the United States) and that engages in any en- 22 terprise that makes use of one or more ports in the United 23 States (as defined in section 2101 of this title) jurisdiction 24 shall be under the district court most proximate to the 25 VerDate Sep 11 2014 00:59 Apr 15, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H2588.IH H2588 kjohnson on DSK79L0C42PROD with BILLS 6 •HR 2588 IH place of the occurrence of the personal injury or death that 1 is the subject of the action.’’. 2 (b) ELECTION TO UNDER PARTICIPATE LONGSHORE 3 AND HARBOR WORKERS’ COMPENSATION ACT.—Section 4 30104 of title 46, United States Code, is amended by add- 5 ing at the end the following: 6 ‘‘(c) PARTICIPATION IN AN AUTHORIZED COMPENSA- 7 TION PLAN.—The employer of a master or member of the 8 crew of a vessel may participate in an authorized com- 9 pensation plan under the Longshore and Harbor Workers’ 10 Compensation Act (33 U.S.C. 901 et seq.). An employer 11 that participates in such a plan is subject to such Act. 12 If an employer participates in an authorized compensation 13 plan under such Act— 14 ‘‘(1) a master or crew member employed by 15 such employer shall be considered to be an employee 16 for the purposes of such Act; and 17 ‘‘(2) the liability of that employer under such 18 Act to the master or crew member, or to any person 19 otherwise entitled to recover damages from the em- 20 ployer based on the injury, disability, or death of the 21 master or crew member, shall be exclusive and in 22 lieu of all other liability.’’. 23 (c) MINIMUM REQUIREMENTS.—All vessels, whether 24 documented in the United States or not, operating in the 25 VerDate Sep 11 2014 00:59 Apr 15, 2023 Jkt 039200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H2588.IH H2588 kjohnson on DSK79L0C42PROD with BILLS 7 •HR 2588 IH coastwise trade of the United States shall be subject to 1 minimum international labor standards for seafarers 2 under international agreements in force for the United 3 States, as determined by the Secretary of Transportation 4 on the advice of the Secretaries of Labor and Defense. 5 SEC. 5. REGULATIONS REGARDING VESSELS. 6 (a) APPLICABLE MINIMUM REQUIREMENTS.—Except 7 as provided in subsection (b), the minimum requirements 8 for vessels engaging in the transportation of cargo or mer- 9 chandise in the United States coastwise trade shall be the 10 recognized international standards in force for the United 11 States (as determined by the Secretary of the department 12 in which the Coast Guard is operating, in consultation 13 with any other official of the Federal Government that the 14 Secretary determines to be appropriate). 15 (b) CONSISTENCY IN APPLICATION OF STAND- 16 ARDS.—In any case in which any minimum requirement 17 for vessels referred to in subsection (a) establishes a lower 18 standard than a minimum that is applicable to vessels that 19 are documented in a foreign country and that are admit- 20 ted to engage in the transportation of cargo and merchan- 21 dise in the United States coastwise trade, the standard 22 applicable to such vessels that are documented in a foreign 23 country shall be the standard to be applied to United 24 States documented vessels. 25 VerDate Sep 11 2014 00:59 Apr 15, 2023 Jkt 039200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H2588.IH H2588 kjohnson on DSK79L0C42PROD with BILLS 8 •HR 2588 IH SEC. 6. ENVIRONMENTAL STANDARDS. 1 All vessels, whether documented under the laws of the 2 United States or not, engaging in the United States coast- 3 wise trade shall comply with all applicable United States 4 and international environmental standards in force for the 5 United States. 6 SEC. 7. REQUIREMENTS FOR CERTAIN NONCITIZENS IR- 7 REGULARLY ENGAGING IN DOMESTIC COAST- 8 WISE TRADE. 9 (a) IN GENERAL.—Each person or entity that is not 10 a citizen of the United States, as defined in section 104 11 of title 46, United States Code, that owns or operates ves- 12 sels that irregularly engage in the United States domestic 13 coastwise trade shall— 14 (1) name an agent upon whom process may be 15 served; 16 (2) abide by all applicable laws of the United 17 States, including applicable environmental and tax 18 laws; and 19 (3) post evidence of documentation and en- 20 dorsements aboard such vessel indicating the owner 21 or owners of such vessel, including any person con- 22 trolling vessels and the number of port calls and 23 coastwise trips made during that calendar year. 24 (b) PERSONS TREATED AS SINGLE EMPLOYER.—For 25 purposes of paragraph (3) of subsection (a), all persons 26 VerDate Sep 11 2014 00:59 Apr 15, 2023 Jkt 039200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H2588.IH H2588 kjohnson on DSK79L0C42PROD with BILLS 9 •HR 2588 IH treated as a single employer under subsection (a) or (b) 1 of section 52 of the Internal Revenue Code of 1986 shall 2 be treated as 1 person. 3 Æ VerDate Sep 11 2014 00:59 Apr 15, 2023 Jkt 039200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6301 E:\BILLS\H2588.IH H2588 kjohnson on DSK79L0C42PROD with BILLS