b'LEGISLATIVE REPORTLEGISLATIVE Passenger Vessel Services Act a Law of Great Importance to PVAED WELCH // PVA LEGISLATIVE DIRECTORA merica has several maritime cabotage(a) In General.Except as otherwise provid- fine is $873 for each passenger carried in viola-laws.Themostwellknownistheed, a vessel may not transport passengers be- tion of the PVSA.Jones Act. It reserves the carriage oftween ports or places in the United States to cargo between two points in the United Stateswhich the coastwise laws apply, either direct- In rare instances, the PVSA can be administra-to coastwise-qualified U.S.-flagged vessels. Butly or via a foreign port, unless the vessel (1) istively waived, but only for purposes of nation-the maritime cabotage statute of most impor- wholly owned by citizens of the United Statesal defense. See section 501 of title 46 United tance to the Passenger Vessel Association is thefor purposes of engaging in the coastwise trade;States Code. Of course, Congress has the abil-Passenger Vessel Services Act. and (2) has been issued a certificate of docu- ity to enact legislative waivers. This is typically mentationwithacoastwideendorsement.done by approving legislative language confer-ThePassengerVesselServicesActisconse- For a vessel to obtain a certificate of documen- ring coastwise privileges on a specific named quential to PVA and its members because ittation with a coastwise endorsement, it mustvessel. Suggestions for legislative waivers come preserves the U.S. market for American com- be built in the United States. up rather regularly, arguably because there are panies. It protects PVA vessel companies from unfaircompetitionfromforeigncompaniesStated simply, as a general rule, for a vessel to and foreign-flagged passenger vessels that maycarrypassengersforhirebetweentwoU.S.Stated simply, as not be subject to U.S. tax, wage, safety, envi- ports or places, it must be U.S.-flagged, U.S.-ronmental, and civil rights laws. It also ensuresbuilt,U.S.-owned,andU.S.-crewed.Tobea general rule, for that associate member shipyards (and the com- U.S.-owned, at least 75 percent of the stock paniesthatprovidethemwithequipment,must be held by U.S. citizens. a vessel to carry components, and services) dont have to fend off unfair inroads by foreign competitors. The statute imposes a fine of $300 for each pas- passengers for hire The Passenger Vessel Services Act is found atsenger carried in violation. The enforcementbetween two U.S. agencyU.S.CustomsandBorderProtec-section 55013 of Title 46 United States Code.tionperiodically adjusts the dollar figure toports or places, it must It reads, in part: Transportation of passengers.account for inflation. For the year 2022, thebe U.S.-flagged, U.S.-built, U.S.-owned, and U.S.-crewed.specialcircumstances,butthesearevery rarely acted upon by Congress. The Passenger Vessel Association nearly always opposes pro-posals for legislative waivers.Thereisanexceptionforforeign-built, small-capacity passenger vessels. As part of the Coast Guard Authorization Act of 1998 (Pub-lic Law 105-383, Title V), the late Senator John McCain successfully advocated an amendment giving authority to the U.S. Maritime Admin-istration (MARAD) to administratively waive the normal U.S.-build requirement and grant coastwise privileges to a small passenger vessel if certain conditions are satisfied. To be eligible for a Small Vessel Waiver, the vessel must (1) in-tend to carry passengers only; (2) carry no more than 12 passengers at a time when in service; (3) be owned by a U.S. citizen or organization; FOGHORN 26'