Maritime Promotion Act of 1987

Maritime Promotion Act of 1987 - Amends the Merchant Marine Act, 1936 to create a new title concerning United States-flag liner vessels and operating-differential subsidies.

Authorizes and directs the Secretary of Transportation, within one year of enactment of this title, to: (1) consider, and approve or disapprove, the application for a Grant Agreement for the payment of operating-differential subsidy (ODS) for liner operations submitted by any U.S. citizen meeting certain criteria; or (2) offer an Amended ODS Contract to the holder of an Existing ODS Contract for liner operations.

Prohibits, subject to exception, after the first year after enactment of this title, consideration of an application for expansion of a Grant Agreement or an ODS Contract if the resulting ODS Program costs will exceed those associated with Amended ODS Contracts entered into and applications for Grant Agreements received and awarded within one year after enactment of this title.

Sets forth requirements for approval of an application for a Grant Agreement.

Authorizes the Secretary, if the Secretary approves the application, to enter into an Amended ODS Contract or a Grant Agreement with the applicant and to make payments pursuant to the Amended ODS Contract or Grant Agreement of ODS, for a period not exceeding ten years. Requires that, subsequent to the ten-year period, renewals of Amended ODS Contracts and Grant Agreements be in the form of Grant Agreements only and at the sole discretion of the Secretary under criteria set forth in specified provisions.

Authorizes appropriations for the payment of ODS pursuant to a Grant Agreement and for the liquidation of obligations pursuant to an Amended ODS Contract.

Limits the maximum number of ship years of subsidized operation, subject to exception. Authorizes, subject to provisions relating to selling, assigning, or transferring an Amended ODS Contract or Grant Agreement: (1) increases in the ship year ceiling through acquisitions of, mergers with, and capital asset purchases from, and otherwise unrelated entity which at the time of acquisition, merger, or purchase is a party to a Grant Agreement of Amended ODS Contract; and (2) subsidized operators to sell or acquire ship year authorizations among themselves and others who would otherwise be eligible to receive ODS.

Requires the amount of the ODS to be specified in the Grant Agreement and determined according to a specified formula. Requires Amended ODS Contracts to conform to such requirements, except during the first 2 years after enactment of this provision.

Declares that, subject to the approval of the Secretary, nothing in the Merchant Marine Act, 1936 shall restrict the world-wide acquisition of any vessel operated or to be operated under a Grant Agreement or Amended ODS Contract. Requires, in the event such a vessel is constructed or reconstructed in a foreign shipyard, certain conditions to be met.

Requires, subject to exception, the provisions of title VI (Operating-Differential Subsidy) of the Merchant Marine Act, 1936 to be applicable to bulk cargo vessels only. Prohibits such provisions from restricting: (1) the non-subsidized operation of any liner vessel owned or operated by a Contractor or Holder, whether or not subject to an Amended ODS Contract or a Grant Agreement; or (2) the subsidized operation of any liner vessel under an Amended ODS Contract or a Grant Agreement.

Prohibits ODS from being paid for the operation of: (1) any vessel on a voyage on which it engages in coastwise or intercoastal trade, subject to exception; and (2) a vessel that is more than 25 years of age.

Sets forth elements for which every Amended ODS Contract or Grant Agreement awarded under this title must provide.

Provides for continuation, by a Holder or Contractor, of domestic liner services which were provided or approved as of enactment of this title. Requires any additional domestic liner services by a Contractor or Holder to be established only as permitted under specified provisions of the Merchant Marine Act, 1936, subject to exception.

Prohibits, without the consent of the Secretary: (1) the selling, assigning, or transferring of an Amended ODS Contract or Grant Agreement; or (2) the making of an agreement by a Contractor or Holder for the maintenance, management, or operation of a vessel to be performed by any other person. Provides, if such actions are taken without the Secretary's consent, or if the operation of a vessel passes out of the control of the Holder or Contractor by voluntary or involuntary receivership or bankruptcy proceedings, that the Secretary: (1) may modify or rescind the Amended ODS Contract or Grant Agreement; and (2) is vested with exclusive jurisdiction to determine the purposes for which any payments made by him under such contract shall be expended.

Specifies requirements a vessel must meet in order that ODS payments may be made.

Declares transfer to foreign registry to be the sole remedy of a Contractor or Holder for cancellation of an Amended ODS Contract or a Grant Agreement without just cause. States that failure of the Congress to appropriate funds shall be considered just cause. Requires a Contractor or Holder desiring such transfer to apply to the Secretary regarding the lack of just cause. Provides for judicial review of a denial by the Secretary of the application. Prohibits transfer to foreign registry from becoming effective until any indebtedness to the Government or any U.S. citizen secured by the vessel is paid or discharged. Allows the Secretary, within 90 days after final determination by the Secretary: (1) with the consent of the Contractor or Holder, to purchase the vessel; or (2) reinstate the Amended ODS Contract or Grant Agreement.

Amends title III (American Seamen) of the Merchant Marine Act, 1936 to remove provisions relating to investigation of wages and working conditions, establishment of wage and manning scales, and incorporation in subsidy contracts.

Amends title IV (Ocean Mail Contracts) of the Merchant Marine Act, 1936 to remove from conditions precedent to granting ODS provisions relating to vessels built in the United States, or documented or under construction in the United States before February 1, 1928. Replaces provisions relating to monthly payment of wage subsidies and procedures for calculation and payment of subsidies on certain expenses with provisions requiring semimonthly subsidy payments. Repeals provisions relating to monthly percentage payment of other than wage subsidies, security for refund of overpayments, and payment of the remainder after an audit of voyage accounts.

Revises provisions relating to the elements which must be provided for in ODS contract.

Removes from provisions relating to eligibility for ODS contracts requirements that vessels be built in a domestic yard, or documented under U.S. laws or under construction by February 1, 1928. Requires owners to enter into a contract with the United States for the inclusion in the vessel of enhanced military features, the cost of which is required to be paid by the owner up to 2 percent of the vessel construction contract price. Requires alterations, repairs, or rebuilding necessary to bring existing vessels into compliance with provisions relating to inspection and regulation of vessels to be performed in the United States.

Amends title VIII (Contract Provisions) of the Merchant Marine Act, 1936 to make provisions relating to various recordkeeping requirements and audits apply to the new title added by this Act as well as to specified existing titles.

Revises provisions prohibiting oprating a competing foreign-flag vessel to make the provisions applicable to a Contractor or Holder under the new title added by this Act and to declare that such provisions do not preclude certain types of acts by a Contractor under an Amended ODS Contract or the Holder of a Grant Agreement. Revises provisions allowing the Secretary to waive such provisions to eliminate the authority of the Secretary to waive them as to any contractor.

Makes applicable to the new title added by this Act: (1) prohibitions of paying subsidies to a contractor who owns or operates a vessel engaged in the domestic intercoastal or coastwise service; (2) provisions relating to supervision by the Secretary of the number and compensation of officers and employees of a contractor in default with respect to any obligation to the Secretary; (3) prohibitions of employing other persons as managing or operating agents; and (4) provisions relating to ineligibility for subsidies because of conviction of a misdemeanor under Merchant Marine Act, 1936.

Repeals provisions relating to employment of persons to appear before the Congress or governmental agencies. Requires that, if a vessel subsidized under title VI (Operating-Differential Subsidy), or under the new title added by this Act, earns any gross revenue on cargoes reserved by the Cargo Preference Act of 1904, by Public Resolution 17, or by specified provisions of the Merchant Marine Act, 1936, the owner shall repay the portion of the ODS attributable to the reserved cargoes.

Makes applicable to the new title added by this Act provisions relating to discrimination by a contractor receiving ODS so as to give preference to cargo in which the contractor has an interest.

Repeals provisions relating to agreements between contractors receiving ODS and other carriers which are unjustly discriminatory or unfair to any other U.S. citizen who operates certain water common carriers.

Amends title IX (Miscellaneous Provisions) of the Merchant Marine Act, 1936 to revise provisions relating to cargo preference to require equitable participation of U.S.-flag vessels under terms and conditions prescribed by the Secretary. (Current law requires fair and reasonable participation of U.S.-flag vessels by geographic areas.)

Declares that, one year after enactment of this Act, all existing ODS contracts for liner operations shall expire, and prohibits payment of ODS for liner operations other than to a Holder of a Grant Agreement or a Contractor under an Amended ODS Contract, subject to exception for voyages in progress.

States that specified provisions of Federal law requiring the use of U.S.-flag vessels shall be deemed fulfilled, except for certain Defense Department shipments, if the actual ocean transportation consists of transportation of the cargo by a combination of United States and foreign-flag vessels.