PENALTY FOR VIOLATION OF INTERNATIONAL SAFETY CONVENTION.

SEC. 408. PENALTY FOR VIOLATION OF INTERNATIONAL SAFETY CONVENTION. (a) In General.— Section 2302 of title 46, United States Code, is amended by adding at the end the following new subsection: “(e) (1) A vessel may not transport Government-impelled cargoes if— “(A) the vessel has been detained and determined to be substandard by the Secretary for violation of an international safety convention to which the United States is a party, and the Secretary has published notice of that detention and determination in an electronic form, including the name of the owner of the vessel; or “(B) the operator of the vessel has on more than one occasion had a vessel detained and determined to be substandard by the Secretary for violation of an international safety convention to which the United States is a party, and the Secretary has published notice of that detention and determination in an electronic form, including the name of the owner of the vessel. “(2) The prohibition in paragraph (1) expires for a vessel on the earlier of— “(A) 1 year after the date of the publication in electronic form on which the prohibition is based; or “(B) any date on which the owner or operator of the vessel prevails in an appeal of the violation of the relevant international convention on which the detention is based. “(3) As used in this subsection, the term ‘Government-impelled cargo’ means cargo for which a Federal agency contracts directly for shipping by water or for which (or the freight of which) a Federal agency provides financing, including financing by grant, 112 STAT. 3431loan, or loan guarantee, resulting in shipment of the cargo by water,”. (b) Effective Date.— The amendment made by subsection (a) takes effect January 1, 1999.