A bill to amend the Merchant Marine Act, 1920, and for other purposs.

(Measure passed Senate, amended)

Amends the Merchant Marine Act, 1920 to modify the penalty for transportation of merchandise between points in the United States in other than domestically built or rebuilt and documented vessels to permit the imposition of a penalty in the amount of the actual cost of the transportation provided, if that penalty is greater than the currently-imposed penalty of forfeiture of the merchandise or its value. Applies such provision to the transportation of valueless material, or any dredged material, regardless of whether it has commercial value, from a point in the United States, or on the high seas within the Exclusive Economic Zone (EEZ), to another point in the United States or on the high seas within the EEZ. Declares that the transportation of any platform jacket in or on a launch barge between two points in the United States, at one of which there is an installation or other device attached to the seabed in connection with exploring for, developing, or producing resources therefrom, as described in specified provisions of the Outer Continental Shelf Lands Act, shall not be deemed transportation which is subject to this provision if the barge meets certain requirements, including having a launch capacity of 12,000 long tons or more. Directs the Secretary of Transportation to develop, maintain, and update an inventory of launch barges which have a launch capacity of less than 12,000 long tons and which meet other criteria.

Amends Federal law to make applicable to the towing of a vessel transporting valueless material, and any dredged material, from a point in the United States or on the high seas within the EEZ to a point in the United States or on the high seas within the EEZ current provisions prohibiting the towing of vessels by vessels not owned by a citizen of the United States and documented under provisions of Federal law.

Permits a documented vessel to transport municipal sewage sludge provided such vessel, regardless of where it was built, as of enactment of this Act, is in use by or under contract with a municipality for the transportation of sewage sludge.

Declares that, for purposes of a provision of the Merchant Marine Act, 1936 regarding forbidden practices in coastwise service, a vessel documented under U.S. laws and under contract with a municipality for the transportation of sewage sludge as of enactment of this Act is not a vessel engaged in domestic intercoastal or coastwise service. Provides that such vessels are bound by a provision prohibiting the diversion of any money, property, or other thing of value, used in foreign-trade operations, for which a subsidy is paid by the United States, into any coastwise or intercoastal operations.

Authorizes the Secretary of the department in which the Coast Guard is operating to issue a coastwise certificate of documentation to a vessel which meets certain requirements, provided the certificate is endorsed to restrict the use of the vessel to the transportation of valueless material in the coastwise trade, and to the transportation of dredged material, whether or not of value, between specified types of points.