Maritime service employment reimbursement

Chapter 517 of title 46, United States Code, is amended by adding at the end the following: 51708. Maritime service employment reimbursement (a) In general The Secretary of Transportation may make an agreement with a maritime center of excellence to make payments to the maritime center of excellence for the cost of reimbursing an individual for costs incurred to obtain, renew, or upgrade a merchant mariner credential or other credentials required for working ashore in the maritime industry. (b) Eligible individual To receive assistance under this section, an individual must be a United States citizen. (c) Covered costs Costs that are eligible for reimbursement under this section are costs incurred directly by an eligible individual to obtain, renew, or upgrade a merchant mariner credential or credentials required for working ashore in the maritime industry, including— (1) training tuition and fees; (2) credentialing fees; (3) medical screening and examination fees; and (4) other fees as determined by the Secretary. (d) Payments Subject to subsection (e), the Secretary of Transportation may provide payments to a maritime center of excellence for— (1) reimbursements provided by the maritime center of excellence to an eligible individual for covered costs incurred by the individual at the maritime center of excellence; (2) the costs of canceling or waiving payments on loans issued by the maritime center of excellence to an eligible individual, including interest on the loan of up to 5 percent per annum; or (3) other payments as determined by the Secretary. (e) Authorized uses Payments under subsection (d) may be used for covered costs incurred by an eligible individual who— (1) incurred the covered costs at the maritime center of excellence; and (2) has completed— (A) 150 sea service days on a U.S.-flag vessel of greater than 10,0000 gross register tons within 2 years of completing the course of instruction; or (B) 1 year of shoreside employment at a maritime facility that directly supports the construction, repair, or maintenance of U.S. vessels, as determined by the Secretary. (f) Prohibited uses Funds provided to a maritime center of excellence pursuant to this section may not be used to reimburse an eligible individual— (1) if the individual has already received reimbursements for the covered costs from an entity other than the maritime center of excellence; (2) if an entity other than the maritime center of excellence has paid for covered costs or provided training at no cost to the individual; (3) if the individual incurs covered costs associated with a degree program at a State maritime academy as defined in section 51501 of this title; (4) if the individual is a participant in a program under sections 51509, 51512, or 51513 of this title; or (5) for any expenses that exceed $10,000 per calendar year. (g) Administrative expenses (1) In general A maritime center of excellence may retain not more than 3 percent of the annual funding provided by the Secretary to the maritime center of excellence under this section for administrative expenses incurred in providing reimbursements or payments under this section. (2) Administrative and oversight costs The Secretary may retain not more than 2 percent of the amounts appropriated for each fiscal year to make payments under this section for the administrative and oversight costs incurred by the Secretary in implementing this section. (h) Funding availability Not to exceed 10 percent of the amounts appropriated for any fiscal year for payments authorized under this section may be transferred or reprogrammed and made available for the purpose of making payments authorized under sections 51509, 51512, and 51513, as determined by the Secretary. (i) Maritime center of excellence defined In this section, the term maritime center of excellence means— (1) an American Maritime Center of Excellence, as designated under section 51501 of this title; or (2) a Center of Excellence for Domestic Maritime Workforce Training and Education, as designated under section 51706 of this title..