S. 2537: Open America's Ports Act

This bill, titled the Open America's Ports Act, proposes significant changes to the current laws governing passenger vessels in the United States. It aims to repeal certain restrictions and modify existing requirements for passenger transportation between U.S. ports. Below are the key aspects of the proposed legislation:

Repeal of the Passenger Vessel Services Act (PVSA)

The bill seeks to repeal the Passenger Vessel Services Act of 1886, which has historically imposed regulations on passenger vessels operating in U.S. waters, particularly concerning the ownership and operation of these vessels.

Amendments to the Jones Act

The legislation proposes amendments to the Jones Act (Chapter 121 of Title 46, United States Code), which generally restricts maritime commerce in U.S. waters to U.S.-built, owned, and crewed vessels. The proposed changes include:

• Nonapplicability of Jones Act Requirements: The bill introduces a clause indicating that the requirements of the Jones Act will not apply to any vessel transporting passengers between U.S. ports, even if the journey involves a foreign port.
• Clarifications on Vessel Qualifications: Adjustments to the definitions and requirements for vessels that transport passengers, which will make it easier for foreign-flagged vessels to operate in certain contexts without having to meet all traditional Jones Act stipulations.

Adjustments to Citizenship and Navy Reserve Requirements

Another key provision clarifies that certain citizenship and Navy Reserve requirements will not apply to passenger vessels transporting passengers between specific U.S. destinations, either directly or indirectly. This change effectively lowers barriers for operators of passenger vessels, allowing for more flexibility in personnel and ownership structures.

Conforming Amendments

The bill includes several conforming amendments aimed at ensuring that the repeal of the PVSA and modifications to the Jones Act are smoothly integrated into other existing laws and regulations. This includes the removal of obsolete sections and clarifications in the legal text concerning passenger vessels.

Rule of Construction

The legislation includes a rule stating that nothing in the bill should be interpreted as exempting passenger vessels from other applicable U.S. laws unless explicitly stated. This means that while the bill aims to relax certain requirements, compliance with other legal obligations remains necessary.

Overall Impact

The intent of the Open America's Ports Act is to modernize regulations governing passenger vessels, potentially making it easier for various operators, including foreign-flagged vessels, to offer services within U.S. waters. This change could spur competition and provide consumers with more travel options while simplifying the regulatory landscape for vessel operators.

Relevant Companies

• RCL (Royal Caribbean Group): The company may see benefits due to reduced operational restrictions for their cruise fleets.
• CCL (Carnival Corporation): Similar to Royal Caribbean, this company could gain from more favorable regulations affecting cruise services.
• NCLH (Norwegian Cruise Line Holdings): Could potentially expand operations more easily in U.S. waters given the proposed amendments.