SECTION 1. SHORT TITLE.

    This Act may be cited as the ``United States Merchant Marine 
Utilization and Preference Act of 1993''.

SEC. 2. FINDINGS AND POLICY.

    (a) Findings.--The Congress finds that, for national defense, it is 
in the interest of the United States that a clear understanding exists 
among the Department of Transportation and the Department of Defense, 
in particular, and all other Federal departments and agencies, that all 
Federal departments and agencies have complementary interests in the 
control and utilization of ocean-going merchant vessels that are 
registered or documented under the laws of the United States.
    (b) Policy.--It is the policy of the United States that--
            (1) the Federal Maritime Administration and its wartime 
        counterpart have broad powers of control over ocean-going 
        United States-flag merchant vessels; and
            (2) the Secretary of Defense, operating under the national 
        policy promulgated in section 101 of the Merchant Marine Act, 
        1936 (46 App. U.S.C. 1101), ensure that military drafts of 
        United States-flag merchant vessels (including breakbulk, roll-
        on-roll-off, lift-on lift-off (cellularized and containerized), 
        multipurpose carriers, tankers, and various auxiliaries), are 
        operated in conformity with the requirements and plans of the 
        Department of Defense and military exigencies.

SEC. 3. PURPOSE.

    The purpose of this Act is to--
            (1) clarify the Department of Defense cargoes transported 
        by water that are required to be transported on privately owned 
        United States-flag vessels;
            (2) clarify the Department of Defense cargoes transported 
        by water that may be transported on vessels that are owned, 
        controlled, or chartered by the Government of the United 
        States; and
            (3) reduce to a minimum the number of cargo transport 
        vessels maintained and operated by the Military Sealift Command 
        in order to give preference to privately owned United States-
        flag vessels for transportation by water of Department of 
        Defense cargoes.

SEC. 4. TRANSPORTATION BY WATER OF DEPARTMENT OF DEFENSE CARGOES.

    Section 2631 of title 10, United States Code, is amended to read as 
follows:
``Sec. 2631. Transportation by water of Department of Defense cargoes
    ``(a) Except as otherwise provided in this section, under 
conditions other than full or partial mobilization declared by the 
President, transportation by water for Department of Defense cargoes 
shall be obtained, consistent with military requirements and prudent 
management, in the following order of priority:
            ``(1) To the maximum extent practicable, use of privately 
        owned United States-flag vessels that are--
                    ``(A) operating in United States liner or tramp 
                trades, and
                    ``(B) not chartered to the Government.
            ``(2)(A) Time charter or voyage charter of suitable 
        privately owned United States-flag vessels--
                    ``(i) operating in liner service providing partial 
                or total space available, or
                    ``(ii) operating in tramp service,
        to the extent those vessels are voluntarily made available to 
        the Department of Defense.
            ``(B) Time charters and voyage charters pursuant to this 
        paragraph shall be kept to the minimum necessary to meet 
        requirements which, barring reasonable foresight, cannot be met 
        by United States-flag liner or tramp operators.
            ``(3)(A) In the event suitable United States-flag vessels 
        are not available in accordance with paragraphs (1) and (2), 
        and upon the written approval of the Secretary of 
        Transportation, use of--
                    ``(i) vessels in the nucleus fleet established 
                under section 2631a; and
                    ``(ii) to the extent vessels in the nucleus fleet 
                are not available, as determined by the Secretary of 
                Defense, foreign-flag vessels to the extent necessary 
                to meet urgent military requirements.
            ``(B) Any use of a foreign-flag vessel pursuant to this 
        paragraph shall be limited to a single voyage.
    ``(b)(1) Except as provided in paragraph (2), any appropriate 
tariff that a person has filed with the Federal Maritime Commission 
under either the Shipping Act of 1916 or the Shipping Act of 1984 shall 
apply to transportation of Department of Defense cargo on any United 
States-flag vessel that is operated by that person.
    ``(2)(A) This section does not prohibit an agency that is 
responsible for procuring transportation of Department of Defense cargo 
from procuring that transportation from a person at a negotiated rate 
that is more favorable to the United States Government than a tariff 
filed by that person that is otherwise applicable under paragraph (1).
    ``(B) Any rate that is negotiated under this subparagraph shall be 
filed with the Federal Maritime Commission in the manner prescribed by 
the Commission.
    ``(c)(1) The Office of the Chief of Naval Operations shall be 
solely responsible in the Department of Defense for obtaining, 
providing, operating, and controlling Government-owned or Government-
chartered vessels--
            ``(A) to transport Department of Defense cargoes in areas 
        that are not served by privately owned United States-flag 
        merchant vessels; and
            ``(B) for purposes of any partial or full mobilization 
        conducted for any reason declared by the President.
    ``(2)(A) The Military Sealift Command is the sole manager for ocean 
transportation of Department of Defense cargoes.
    ``(B) The purpose of any ocean transportation provided by the 
Department of Defense is to support and augment persons who provide 
transportation by water in commercial service to the extent those 
persons cannot provide the vessels or services required by the 
Department of Defense.
    ``(C) Except as provided in this section and section 2631a, the 
Department of Defense shall not engage in competition with private 
persons in the provision of transportation by water in commercial 
service.''.

SEC. 5. NUCLEUS FLEET.

    Chapter 157 of title 10, United States Code, is amended by 
inserting after section 2631 the following:
``Sec. 2631a. Nucleus fleet
    ``(a)(1) The Secretary of Defense shall establish and maintain at 
all times under the exclusive custody, jurisdiction, and control of the 
Department of Defense, a fleet of vessels, of a size and composition 
appropriate to meet military requirements. Such fleet shall be known as 
the `nucleus fleet'.
    ``(2) The nucleus fleet may be comprised of--
            ``(A) Government-owned vessels, operated by either--
                    ``(i) the Military Sealift Command or other 
                Department of Defense agency with civil service 
                employees, or
                    ``(ii) companies that are citizens of the United 
                States under section 2 of the Shipping Act, 1916, with 
                commercial crews; or
            ``(B) privately owned United States-flag vessels that are 
        chartered by the Department of Defense.
    ``(b)(1) Under conditions other than full mobilization, the nucleus 
fleet--
            ``(A) shall consist of such number and types of vessels as 
        is appropriate to respond to changes in the military situation, 
        as determined by the Secretary of Defense; and
            ``(B) may include transport, cargo, tanker, roll-on roll-
        off, lift-on lift-off, geared, and nongeared vessels and 
        auxiliaries in appropriate numbers--
                    ``(i) to carry out logistic needs of the military 
                departments which cannot be met by private United 
                States commercial interests;
                    ``(ii) to provide immediate capability in an 
                emergency; and
                    ``(iii) to provide an adequate base for necessary 
                expansion to meet emergency or mobilization 
                requirements in support of approved plans for national 
                defense, national emergency, national mobilization, or 
                national interest.
    ``(2)(A) Under conditions other than full mobilization, that 
portion of the nucleus fleet maintained for purposes of transportation 
by water shall remain within close tolerance to the following numbers 
of vessels by types:
            ``(i) 10 dry cargo vessels.
            ``(ii) 22 tanker vessels.
    ``(B) The numbers set forth in subparagraph (A)(i) and (ii)--
            ``(i) shall be reduced by one for each vessel deactivated 
        under subsection (c)(2)(A) or for which a contract of charter 
        is terminated under subsection (c)(2)(B); and
            ``(ii) are subject to review and redetermination by the 
        Secretary of Defense in accordance with military operation 
        requirements.
    ``(C) Any change in the composition of the nucleus fleet from the 
numbers and types of vessels specified in subparagraph (A)(i) and (ii) 
shall not be effective unless--
            ``(i) a request for that change is submitted by the 
        Secretary of the Navy to the Secretary of Defense;
            ``(ii) the change is approved by the Secretary of Defense; 
        and
            ``(iii) the change is reported to the Congress with 
        supporting rationale.
    ``(3) In addition to the numbers of vessels specified under 
paragraph (2), the nucleus fleet may include such miscellaneous service 
support vessels and naval fleet auxiliary vessels as the Military 
Sealift Command determines to be necessary to retain and operate for 
purposes of providing indirect support of other vessels of the 
Department of the Navy.
    ``(c)(1) If a vessel in the nucleus fleet is inactive for a period 
of 30 days, it shall be placed in reduced operating status.
    ``(2) If vessel in the nucleus fleet is inactive for 120 days--
            ``(A) in the case of a vessel that is owned by the United 
        States, it shall be deactivated and placed in reserve or 
        disposed of, as considered appropriate by the Secretary of 
        Defense; and
            ``(B) in the case of a privately owned vessel, the contract 
        under which it is chartered shall be terminated on the earliest 
        possible date.
    ``(d)(1) Under conditions of full mobilization, in addition to the 
numbers and types of vessels authorized under subsections (a), (b), and 
(c)--
            ``(A) the nucleus fleet may be augmented by those types and 
        numbers of vessels determined to be appropriate by the 
        Secretary of Defense, in accordance with the priority 
        established under section 2631(a);
            ``(B) the specific types of vessels to be added to the 
        nucleus fleet, and an appropriate schedule for their transfer 
        to or acquisition for the nucleus fleet, shall be determined 
        only by the Chief of Naval Operations.
    ``(2)(A) Any vessels to be added to the nucleus fleet pursuant to 
paragraph (1) shall be provided by the Secretary of Transportation in 
accordance with mobilization procedures approved by the Secretary of 
Defense.
    ``(B) In addition to additional vessels provided under subparagraph 
(A) for the nucleus fleet, the Secretary of Transportation shall 
provide to the Secretary of Defense such additional miscellaneous 
service support vessels and naval fleet auxiliary vessels as the 
Secretary of Defense determines to be necessary for purposes of 
providing indirect support of other vessels of the Department of the 
Navy for purposes of a full mobilization.
    ``(3) During periods of full or partial mobilization, the Secretary 
of Defense shall--
            ``(A) continuously review the number of merchant vessels 
        under the control of the Department of Defense;
            ``(B) determine any of those vessels that are excess to the 
        needs of the department; and
            ``(C) transfer to the Secretary of Transportation such 
        excess vessels.
    ``(4)(A) Upon the termination of hostilities or in the event of a 
partial demobilization prior to the termination of hostilities, the 
nucleus fleet shall be reduced to the numbers and types of vessels in 
the fleet before full mobilization, as determined by the Secretary of 
Defense.
    ``(B) In the event of a reduction in the nucleus fleet under this 
paragraph, any vessels in the fleet that are retained as part of either 
the active or laid-up permanent operating forces of the Department of 
the Navy shall be released from control by the Department of Defense in 
the following order of priority:
            ``(i) Foreign-flag vessels that are under charter.
            ``(ii) United States-flag vessels that are under charter 
        from private owners.
            ``(iii) United States Government-owned merchant vessels 
        that are desired for sale or charter by United States citizens 
        for United States-flag operation in commercial service.
    ``(C) Vessels that are sold or chartered pursuant to subparagraph 
(B)(iii) are deemed to be war-built vessels for purposes of the 
Merchant Ship Sales Act of 1946 (50 App. U.S.C. 1735 et seq.).''.

SEC. 6. CLERICAL AMENDMENT.

    The table of sections at the beginning of chapter 157 of title 10, 
United States Code, is amended by striking the item relating to section 
2631 and inserting the following:

``2631. Transportation by water of Department of Defense cargoes.
``2631a. Nucleus fleet.''.

SEC. 7. READY RESERVE FORCE.

    Section 11 of the Merchant Ship Sales Act of 1946 (50 App. U.S.C. 
1744) is amended by adding at the end the following:
    ``(e) Use of Vessels in Ready Reserve Force.--
            ``(1) Use in peacetime.--Vessels in the Ready Reserve Force 
        component of the National Defense Reserve Fleet may be used in 
        peacetime for routine movements of cargo as part of military 
        exercises only if that use does not compete with United States-
        flag commercial vessel operators.
            ``(2) Deactivation following national emergency.--A vessel 
        in the Ready Reserve Force component of the National Defense 
        Reserve Fleet that is activated to meet military sealift 
        requirements associated with a national emergency shall be 
        deactivated in an expeditious manner if those requirements no 
        longer exist.''.
United States Merchant Marine Utilization and Preference Act of 1993 - Requires Department of Defense (DOD) cargoes to be transported by water in the following order of priority under conditions other than full or partial mobilization declared by the President:  (1) use of privately owned U.S. flag vessels that operate in U.S. liner or tramp trades and not chartered by the Government; (2) time or voyage charter of privately owned U.S. flag vessels operating in liner service providing partial or total space available or in tramp service if they are voluntarily made available to DOD; (3) vessels in the nucleus fleet; and (4) foreign flag vessels. 
Limits the use of time and voyage charters to a minimum necessary to meet requirements which can not be met by U.S. flag liner or tramp operators. 
Applies the tariff filed by a person with the Federal Maritime Commission under the Shipping Act of 1916 or of 1984 to transportation of DOD cargo on any U.S. flag-vessel that is operated by that person, with exceptions. 
Makes the Military Sealift Command the sole manager for ocean transportation of DOD cargoes. 
Prohibits DOD from engaging in competition with private persons in the provision of transportation by water in commercial service except as provided under this Act. 
Directs the Secretary of Defense to maintain a fleet of vessels (the "nucleus fleet") to meet military requirements. 
Places a vessel in the nucleus fleet in reduced operating status if it is inactive for a 30-day period.  Sets forth additional requirements for the deactivation of vessels. 
Prescribes guidelines for the inclusion of additional numbers and types of vessels in the nucleus fleet under conditions of full mobilization. 
 Amends the Merchant Ship Sales Act of 1946 to authorize the use of Ready Reserve Force vessels of the National Defense Reserve Fleet in peacetime for routine movements of cargo as part of military exercises only if such use does not compete with U.S. flag commercial vessel operators.
United States Merchant Marine Utilization and Preference Act of 1993