[Senate Report 112-246]
[From the U.S. Government Publishing Office]
112th Congress } { Report
2d Session } SENATE { 112-246
_______________________________________________________________________
AMERICA'S CUP ACT OF 2011
__________
R E P O R T
OF THE
COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
on
S. 1759
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
December 5, 2012.--Ordered to be printed
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U.S. GOVERNMENT PRINTING OFFICE
29-010 PDF WASHINGTON : 2012
SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
one hundred twelfth congress
second session
JOHN D. ROCKEFELLER IV, West Virginia, Chairman
DANIEL K. INOUYE, Hawaii KAY BAILEY HUTCHISON, Texas
JOHN F. KERRY, Massachusetts OLYMPIA J. SNOWE, Maine
BARBARA BOXER, California JIM DeMINT, South Carolina
BILL NELSON, Florida JOHN THUNE, South Dakota
MARIA CANTWELL, Washington ROGER F. WICKER, Mississippi
FRANK R. LAUTENBERG, New Jersey JOHNNY ISAKSON, Georgia
MARK PRYOR, Arkansas ROY BLUNT, Missouri
CLAIRE McCASKILL, Missouri JOHN BOOZMAN, Arkansas
AMY KLOBUCHAR, Minnesota PATRICK J. TOOMEY, Pennsylvania
TOM UDALL, New Mexico MARCO RUBIO, Florida
MARK WARNER, Virginia KELLY AYOTTE, New Hampshire
MARK BEGICH, Alaska DEAN HELLER, Nevada
Ellen Doneski, Staff Director
James Reid, Deputy Staff Director
John Williams, General Counsel
Richard Russell, Republican Staff Director
David Quinalty, Republican Deputy Staff Director
Rebecca Seidel, Republican General Counsel
112th Congress } { Report
2d Session } SENATE { 112-246
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AMERICA'S CUP ACT OF 2011
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December 5, 2012.--Ordered to be printed
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Mr. Rockefeller, from the Committee on Commerce, Science, and
Transportation, submitted the following
REPORT
[To accompany S. 1759]
The Committee on Commerce, Science, and Transportation, to
which was referred the bill (S. 1759) to facilitate the hosting
in the United States of the 34th America's Cup by authorizing
certain eligible vessels to participate in activities related
to the competition, having considered the same, reports
favorably thereon without amendment and recommends that the
bill do pass.
Purpose of the Bill
The America's Cup Act of 2011 is intended to address a
technicality under coastwise trade law that would prohibit
foreign competitors in the America's Cup competition from being
able to come within U.S. navigable waters. Under current law,
foreign-flagged vessels are prohibited from sailing between two
U.S. ports. The America's Cup competition will move between
multiple locations in the United States as part of a sailing
competition. The bill is intended to make those movements
between ports legal.
Background and Needs
The America's Cup is a 160 year old series of ocean races
between teams of sailing boats. The 34th America's Cup is being
held in California and Rhode Island throughout 2011 and 2012,
and will culminate in a final race in San Francisco Bay in
2013. This is the first America's Cup race to be held within
the three-mile territorial sea limits of the United States.
Previous America's Cup races had been held outside the
territorial limits and thus did not require support vessels to
enter U.S. ports.
Coastwise trade law, which stems from the Jones Act (also
known as the Merchant Marine Act, 1920) bans vessels engaged in
coastwise trade from being foreign-flagged. The America's Cup
race raises issues under sections 55102, 55103, and 55111 of
title 46 of the United States Code because the support vessels
for sailing ships will be transporting passengers and supplies
between U.S. ports during the lead-in to the final competition.
The Coast Guard is granting special permits to America's Cup
vessels for Marine Events of National Significance in regard to
vessel inspection laws. However, for foreign vessels to fully
participate in the America's Cup, legislation is necessary to
make them compliant with coastwise laws. Previous races in the
United States had occurred far from the coastal waters of the
United States and thus did not require the waivers.
Summary of Provisions
The America's Cup Act of 2011 would allow specified foreign
boats recognized for their official participation in America's
Cup events to operate domestically, but only in direct
connection with official America's Cup events and subject to an
eligibility certification by the Maritime Administration
(MARAD). Further, it limits participating boats to those that
do not carry more than 25 individuals outside the crew, and
boats that are not employed in the transportation of
individuals from point to point for hire. The legislation thus
leaves a role for the U.S. flag fleet of harbor cruise boats,
dinner cruise boats, local ferries, and locally qualified
vessels, while still allowing the crews and support staff of
competing vessels to support their team in the race. The bill
also assists the Coast Guard and the Customs and Border Patrol
with their waivers for the event, by making the MARAD
Administrator the judge of what constitutes an eligible vessel.
Legislative History
The legislation was introduced by Senator Feinstein on
October 20, 2011, with Senators Boxer, Reed, and Whitehouse as
original cosponsors. S. 1759 was approved by the Committee in
an Executive Session by a voice vote. S. 1759 was passed by
unanimous consent by the full Senate later on November 3, 2011.
A House companion measure, H.R. 3321, was passed by the House
and sent to the Senate. H.R. 3321 was amended by the Senate to
include a series of unrelated waivers at the end, but kept the
language of S. 1759 intact. H.R. 3321 was enacted on November
29, 2011.
Estimated Costs
In compliance with subsection (a)(3) of paragraph 11 of rule
XXVI of the Standing Rules of the Senate, the Committee states
that, in its opinion, it was necessary to dispense with the
requirements of paragraphs (1) and (2) of that subsection in
order to expedite the business of the Senate.
Regulatory Impact Statement
In accordance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee provides the
following evaluation of the regulatory impact of the
legislation, as reported:
NUMBER OF PERSONS COVERED
The bill is limited in scope to foreign-flagged boats
competing in the 34th America's Cup.
ECONOMIC IMPACT
The bill's economic impact is limited to the races associated
with the 34th America's Cup.
PRIVACY
This bill will not have any adverse impact on the personal
privacy of individuals.
PAPERWORK
This bill will require boats eligible for a waiver to receive
certification by MARAD.
Congressionally Directed Spending
In compliance with paragraph 4(b) of rule XLIV of the
Standing Rules of the Senate, the Committee provides that no
provisions contained in the bill, as reported, meet the
definition of congressionally directed spending items under the
rule.
Section-by-Section Analysis
Section 1. Short title
Section 1 would state the short title, the ``America's Cup
Act of 2011''.
Section 2. Definitions
Section 2 would define 34th America's Cup, America's Cup Race
Management, and Eligibility Certification in the bill.
Section 2 would define an ``eligible vessel'' as a competing
or supporting vessel that is recognized by America's Cup Race
Management, transports no more than 25 individuals, is not a
ferry, does not transport individuals in point-to-point
service, and does not transport merchandise between ports in
the United States.
A ``supporting vessel'' would be defined as a vessel that
positions competing vessels on the race course, transports
equipment and supplies for the competition, and transports
individuals who did not purchase tickets who are engaged in the
staging of the competition.
Section 3. Authorization of eligible vessels
This section would allow eligible vessels to position
competing vessels, equipment, and supplies around ports in the
United States.
Section 4. Certification
Section 4 would require all ships operating to receive an
Eligibility Certification from the Administrator of MARAD. The
Eligibility Certification would be based solely on the
Administrator's discretion of whether boats meet the bill's
standards of an eligible vessel.
Section 5. Enforcement
Section 5 would stipulate that an Eligibility Certification
issued by MARAD can be considered conclusive evidence to the
Department of Homeland Security that a vessel has been
authorized to participate in the 34th America's Cup.
Section 6. Penalty
Section 6 would state that participating vessels that have
not received Eligibility Certifications or are not in
compliance shall be subject to penalties provided in chapters
221 and 551 of title 46, United States Code.
Changes in Existing Law
In compliance with paragraph 12 of rule XXVI of the Standing
Rules of the Senate, the Committee states that the bill as
reported would make no change to existing law.