FINAL BILL REPORT

                 SHJM 4014

Brief Description:  Requesting that federal law be amended to allow foreign‑flagged cruise ships between U.S. ports.

Sponsors:  By House Committee on Trade & Economic Development (originally sponsored by Representatives Valle, Van Luven, Sheldon, D. Schmidt, Mason, Hickel, Veloria, Hatfield, Kessler, Blanton and Radcliff).

House Committee on Trade & Economic Development

Senate Committee on Labor, Commerce & Trade

Background:  The Federal Passenger Service Act of 1886 prohibits foreign-flagged vessels from transporting passengers between United States ports.  The original intent  of the act was to protect domestic passenger vessels from foreign competition.

Washington's economy is heavily dependent upon international trade and tourism.  The state has an opportunity to increase tourism in Washington through the expanding cruise ship industry.  The direct impact of the Federal Passenger Service Act of 1886 is that the northwest cruise ship trade, which features Alaska, does not include ports in the state of Washington.

Congress is considering legislation to establish a United States coastal cruise ship trade through the use of financial incentives and operating provisions.

Summary:   The President and Congress are requested to establish a United States cruise ship industry using necessary financial incentives and operating provisions.

Votes on Final Passage:

House     97 0

Senate    47 0