A bill to eliminate Federal documentation of pleasure vessels.

Repeals the law: (1) providing for issuance by the Commissioner of Customs of certificates to sail for pleasure in any designated yacht; (2) providing for prescription by the Secretary of the Navy of signals for all licensed yachts; and (3) providing that no licensed yacht shall engage in trade nor violate the revenue laws of the United States, and requiring every licensed yacht to comply with the laws in all respects.

Revises specified provisions of law governing pleasure yachts, including granting the authority to issue certificates declaring a vessel to be a pleasure vessel to the Secretary of the department in which the Coast Guard is operating. States that such certificates shall be used to identify a vessel to a foreign government as a vessel owned by a United States citizen. Sets forth the requirements to be met by applicants for certificates and the form of such certificates.

States that a pleasure vessel may not be documented under any law of the United States. Provides an exception for retention of documentation for vessels with preferred mortgages perfected before January 1, 1977.

Grants certified pleasure vessel crew members all rights, privileges, and benefits they otherwise would have if the vessel were documented under the laws of the United States.

Changes existing law governing the reciprocal exemption of foreign yachts from charges and tonnage taxes to encompass "vessels". Makes additional conforming amendments.