Bill Summary
This legislation amends Section 1151 of Title 14 of the United States Code, which governs the construction of U.S. Coast Guard vessels. The key changes allow for greater flexibility in using foreign shipyards for vessel construction under certain conditions.
1. **General Prohibition with Exceptions**: The bill reinforces the general prohibition against constructing Coast Guard vessels in foreign shipyards but introduces specific exceptions based on national security interests.
2. **Presidential Authority**: The President can authorize exceptions if deemed necessary for national security, provided they notify Congress beforehand. Contracts cannot proceed until 30 days after Congress receives this notice.
3. **Criteria for Exceptions**: The exceptions can only be granted if:
- The foreign shipyard is in a NATO country or a U.S. defense treaty partner in the Indo-Pacific.
- Using the foreign shipyard is more cost-effective than a domestic alternative.
- The timeline for construction is shorter (by at least 18 months) at the foreign shipyard than at a domestic yard.
- The foreign shipyard has a proven track record of delivering vessels capable of performing specified missions at a lower cost and within the required timeframe.
4. **Acquisition of Completed Vessels**: The legislation also allows the Secretary of the Coast Guard to acquire completed vessels from foreign shipyards under similar conditions as above, including a warranty agreement with the host country.
Overall, this amendment seeks to enhance the Coast Guard's operational capabilities while maintaining a focus on national security, cost-effectiveness, and timely delivery of vessels.
Possible Impacts
The proposed legislation to amend the restriction on the construction of Coast Guard vessels in foreign shipyards could affect people in several ways:
1. **Job Impact in Domestic Shipyards**: The modification may lead to a decrease in orders for domestic shipyards, potentially resulting in job losses or reduced hours for workers in the shipbuilding industry. If contracts are awarded to foreign shipyards due to cost or timeline advantages, local economies dependent on these jobs could face economic challenges.
2. **National Security Considerations**: The ability for the President to authorize exceptions for constructing vessels in foreign shipyards could enhance national security by allowing faster procurement of necessary vessels. This may ensure that the Coast Guard and other maritime forces are better equipped and able to respond to emerging threats, potentially benefiting the safety and security of all citizens.
3. **Increased Competition and Innovation**: Allowing the construction of vessels in foreign shipyards might foster competition, encouraging domestic shipyards to innovate and improve efficiency in order to remain competitive. This could lead to advancements in shipbuilding technology and practices, ultimately benefiting the Coast Guard and the broader maritime industry, including potentially lower costs for taxpayers if domestic shipyards respond effectively to the competitive pressures.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1577 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 1577
To amend section 1151 of title 14, United States Code, to modify the
restriction on construction of Coast Guard vessels in foreign
shipyards.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 1, 2025
Ms. Murkowski introduced the following bill; which was read twice and
referred to the Committee on Commerce, Science, and Transportation
_______________________________________________________________________
A BILL
To amend section 1151 of title 14, United States Code, to modify the
restriction on construction of Coast Guard vessels in foreign
shipyards.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. MODIFICATION OF RESTRICTION ON CONSTRUCTION OF VESSELS IN
FOREIGN SHIPYARDS.
Section 1151 of title 14, United States Code, is amended--
(1) in subsection (a), by striking ``Except'' and inserting
the following:
``(a) In General.--Except''; and
(2) by amending subsection (b) to read as follows:
``(b) Exceptions.--
``(1) National security interest.--
``(A) In general.--The President may authorize
exceptions to the prohibition in subsection (a) when
the President determines that it is in the national
security interest of the United States to do so.
``(B) Notification.--The President shall transmit
notice to Congress of any such determination, and no
contract may be made pursuant to the exception
authorized until the end of the 30-day period beginning
on the date the notice of such determination is
received by Congress.
``(C) Certification.--The President may only
authorize an exception under this paragraph if the
President, in coordination with the Commandant, has
certified to Congress that--
``(i) the foreign shipyard concerned is--
``(I) a member of the North
Atlantic Treaty Organization; or
``(II) party to an active United
States defense treaty in the Indo-
Pacific region;
``(ii) the cost to the United States
Government of using such foreign shipyard for
construction described in subsection (a) is
less than the cost to the United States
Government of using a domestic shipyard for
such construction;
``(iii) the timeline for the design,
construction, and delivery of a vessel or major
component described in subsection (a) from a
domestic shipyard is more than 18 months later
than the timeline for the design, construction,
and delivery of such vessel or major component
from such foreign shipyard; and
``(iv) during the 5-year period ending on
the date on which the certification is
submitted, the foreign shipyard concerned has
demonstrated the capacity to design, construct,
and deliver a vessel capable of performing the
missions specified in section 888(a) of the
Homeland Security Act of 2002 (8 U.S.C.
468(a))--
``(I) at a cost to the United
States Government that is less than the
cost of using a domestic shipyard; and
``(II) within a timeline for
design, construction, and delivery that
is less than 18 months later than such
a timeline from a domestic shipyard.
``(2) Acquisition of completed vessel.--The Secretary may
acquire from a foreign shipyard a completed vessel if--
``(A) the foreign shipyard is--
``(i) a member of the North Atlantic Treaty
Organization; or
``(ii) party to an active United States
defense treaty in the Indo-Pacific region; and
``(B) the government of the country in which the
foreign shipyard is located enters into a warranty
agreement with the United States Government with
respect to such vessel.''.
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