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115th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 115-1017
======================================================================
FEDERAL MARITIME COMMISSION AUTHORIZATION ACT OF 2017
_______
November 13, 2018.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Shuster, from the Committee on Transportation and Infrastructure,
submitted the following
R E P O R T
[To accompany H.R. 2593]
[Including cost estimate of the Congressional Budget Office]
The Committee on Transportation and Infrastructure, to whom
was referred the bill (H.R. 2593) to authorize appropriations
for the Federal Maritime Commission for fiscal years 2018 and
2019, and for other purposes, having considered the same,
report favorably thereon with an amendment and recommend that
the bill as amended do pass.
CONTENTS
Page
Purpose of Legislation........................................... 5
Background and Need for Legislation.............................. 5
Hearings......................................................... 6
Legislative History and Consideration............................ 6
Committee Votes.................................................. 6
Committee Oversight Findings..................................... 7
New Budget Authority and Tax Expenditures........................ 7
Congressional Budget Office Cost Estimate........................ 7
Performance Goals and Objectives................................. 9
Advisory of Earmarks............................................. 10
Duplication of Federal Programs.................................. 10
Disclosure of Directed Rule Makings.............................. 10
Federal Mandate Statement........................................ 10
Preemption Clarification......................................... 10
Advisory Committee Statement..................................... 10
Applicability of Legislative Branch.............................. 10
Section-by-Section Analysis of Legislation....................... 11
Changes in Existing Law Made by the Bill, as Reported............ 13
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Federal Maritime
Commission Authorization Act of 2017''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--FEDERAL MARITIME COMMISSION
Sec. 101. Authorization.
Sec. 102. Port services.
Sec. 103. Information.
Sec. 104. Ocean transportation intermediaries.
Sec. 105. Interrelated agreements.
TITLE II--OTHER MATTERS
Sec. 201. Fishing safety grants.
Sec. 202. Assistance for small shipyards.
Sec. 203. Treatment of fishing permits.
Sec. 204. Centers of excellence.
TITLE I--FEDERAL MARITIME COMMISSION
SEC. 101. AUTHORIZATION.
Section 308 of title 46, United States Code, is amended by striking
``$24,700,000 for each of fiscal years 2016 and 2017'' and inserting
``$28,012,310 for fiscal year 2018 and $28,544,543 for fiscal year
2019''.
SEC. 102. PORT SERVICES.
(a) Definitions.--Section 40102 of title 46, United States Code, is
amended by adding at the end the following:
``(26) Port services.--The term `port services' means
intermediary services provided to an ocean carrier at a United
States port to facilitate vessels operated by such a carrier to
operate and load and unload cargo at such port, including
towage, cargo handling, and bunkering.''.
(b) Concerted Action.--Section 41105 of title 46, United States Code,
is amended--
(1) in paragraph (7) by striking ``or'' at the end;
(2) in paragraph (8) by striking the period at the end and
inserting ``;''; and
(3) by adding at the end the following:
``(9) negotiate with a provider of port services, other than
a provider of towing vessel services, on any matter relating to
rates or services provided within the United States by such
provider, unless advance notice is provided to the Federal
Maritime Commission of the intent and need for the negotiation,
the negotiation and any resulting agreement are not in
violation of the antitrust laws and are consistent with the
purposes of this part, and, as determined by the Commission,
the negotiation and any resulting agreement will not
substantially lessen competition in the purchasing of port
services provided at United States ports (this paragraph does
not prohibit the setting and publishing of a joint through rate
by a conference, joint venture, or association of common
carriers); or
``(10) negotiate with a provider of towing vessel services on
any matter relating to rates or services provided within the
United States by towing vessels.''.
(c) Injunctive Relief Sought by the Commission.--Section 41307(b) of
title 46, United States Code, is amended--
(1) in paragraph (1) by striking ``produce an unreasonable
reduction in transportation service or an unreasonable increase
in transportation cost'' and inserting ``produce an
unreasonable reduction in transportation service, produce an
unreasonable increase in transportation cost, or substantially
lessen competition in the purchasing of port services''; and
(2) by adding at the end the following:
``(4) Competition factors.--In making a determination under
this subsection, the Commission may consider any relevant
competition factors in affected markets, including, without
limitation, the competitive effect of agreements other than the
agreement under review.''.
SEC. 103. INFORMATION.
(a) Reports Filed With the Commission.--Section 40104(a) of title 46,
United States Code, is amended--
(1) by inserting ``, marine terminal operator, or ocean
transportation intermediary,'' after ``common carrier'';
(2) by inserting ``, operator, or intermediary,'' after
``employee of the carrier''; and
(3) by inserting ``, operator, or intermediary'' after
``business of the carrier''.
(b) Commission Action.--Section 40304 of title 46, United States
Code, is amended--
(1) in subsection (a) by inserting ``, and interested persons
may submit relevant information and documents to the
Commission'' after ``publication''; and
(2) in subsection (d) by striking ``to make the
determinations required by this section''.
SEC. 104. OCEAN TRANSPORTATION INTERMEDIARIES.
(a) License Requirement.--Section 40901(a) of title 46, United States
Code, is amended by inserting ``advertise, hold oneself out, or'' after
``may not''.
(b) Financial Responsibility.--Section 40902(a) of title 46, United
States Code, is amended by inserting ``advertise, hold oneself out,
or'' after ``may not''.
(c) Common Carriers.--Section 41104(11) of title 46, United States
Code, is amended by striking ``a tariff as required by section 40501 of
this title and''.
SEC. 105. INTERRELATED AGREEMENTS.
(a) Common Carriers.--Section 41104 of title 46, United States Code,
is amended--
(1) in paragraph (11) by striking ``or'' at the end;
(2) in paragraph (12) by striking the period at the end and
inserting ``; or''; and
(3) by adding at the end the following:
``(13) participate in a rate discussion agreement and a
vessel sharing agreement, slot sharing agreement, space sharing
agreement, or similar agreement for use of vessels by two or
more ocean common carriers, unless the Commission has granted
the parties an exemption pursuant to section 40103.''.
(b) Applicability.--Participants in an agreement in effect on the
date of enactment of this Act and prohibited as a result of the
amendment made in subsection (a) shall have 1 year from such date of
enactment to--
(1) obtain an exemption from the application of section
41104(13) of title 46, United States Code, pursuant to section
40103 of such title; or
(2) withdraw from the agreement as necessary to comply with
such section 41104(13).
TITLE II--OTHER MATTERS
SEC. 201. FISHING SAFETY GRANTS.
Section 4502 of title 46, United States Code, is amended--
(1) in subsections (i) and (j), by striking ``Secretary''
each place it appears and inserting ``Secretary of Commerce'';
(2) in subsection (i)(3), by striking ``75'' and inserting
``50'';
(3) in subsection (i)(4), by striking ``$3,000,000 for each
of fiscal years 2015 through 2017'' and inserting ``$3,000,000
for each of fiscal years 2018 through 2019'';
(4) in subsection (j)(3), by striking ``75'' and inserting
``50''; and
(5) in subsection (j)(4), by striking ``$3,000,000 for each
fiscal years 2015 through 2017'' and inserting ``$3,000,000 for
each of fiscal years 2018 through 2019''.
SEC. 202. ASSISTANCE FOR SMALL SHIPYARDS.
(a) In General.--Section 54101 of title 46, United States Code, is
amended--
(1) in the section heading, by striking ``and maritime
communities'';
(2) in subsection (a)(2), by striking ``in communities'' and
all that follows through the period and inserting ``relating to
shipbuilding, ship repair, and associated industries.'';
(3) in subsection (b), by amending paragraph (1) to read as
follows:
``(1) consider projects that foster--
``(A) efficiency, competitive operations, and quality
ship construction, repair, and reconfiguration; and
``(B) employee skills and enhanced productivity
related to shipbuilding, ship repair, and associated
industries; and'';
(4) in subsection (c)(1)--
(A) by inserting ``to'' after ``may be used''; and
(B) by striking subparagraphs (A), (B), and (C) and
inserting the following:
``(A) make capital and related improvements in small
shipyards; and
``(B) provide training for workers in shipbuilding,
ship repair, and associated industries.'';
(5) in subsection (d), by striking ``unless'' and all that
follows before the period;
(6) in subsection (e)--
(A) by striking paragraph (2);
(B) by redesignating paragraph (3) as paragraph (2);
and
(C) in paragraph (1) by striking ``Except as provided
in paragraph (2),''; and
(7) in subsection (i), by striking ``2015'' and all that
follows before the period and inserting ``2018 and 2019 to
carry out this section $30,000,000''.
(b) Clerical Amendment.--The analysis for chapter 541 of title 46,
United States Code, is amended by striking the item relating to section
54101 and inserting the following:
``54101. Assistance for small shipyards.''.
SEC. 203. TREATMENT OF FISHING PERMITS.
(a) In General.--Subchapter I of chapter 313 of title 46, United
States Code, is amended by adding at the end the following:
``Sec. 31310. Treatment of fishing permits
``(a) Limitation on Maritime Liens.--This chapter--
``(1) does not establish a maritime lien on a fishing permit;
and
``(2) does not authorize any civil action to enforce a
maritime lien on a fishing permit.
``(b) Treatment of Fishing Permits Under State and Federal Law.--A
fishing permit--
``(1) is governed solely by the State or Federal law under
which it is issued; and
``(2) shall not be treated as part of a vessel, or as an
appurtenance or intangible of a vessel, for any purpose under
Federal law.
``(c) Authority of Secretary of Commerce Not Affected.--Nothing in
this section shall be construed as imposing any limitation upon the
authority of the Secretary of Commerce--
``(1) to modify, suspend, revoke, or impose a sanction on any
fishing permit issued by the Secretary of Commerce; or
``(2) to bring a civil action to enforce such a modification,
suspension, revocation, or sanction.
``(d) Fishing Permit Defined.--In this section the term `fishing
permit' means any authorization of a person or vessel to engage in
fishing that is issued under State or Federal law.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by inserting after the item relating to section
31309 the following:
``31310. Treatment of fishing permits.''.
SEC. 204. CENTERS OF EXCELLENCE.
(a) In General.--Chapter 541 of title 46, United States Code, is
amended by adding at the end the following:
``Sec. 54102. Centers of excellence for domestic maritime workforce
training and education
``(a) Designation.--The Secretary of Transportation may designate as
a center of excellence for domestic maritime workforce training and
education a covered training entity located in a State that borders on
the--
``(1) Gulf of Mexico;
``(2) Atlantic Ocean;
``(3) Long Island Sound;
``(4) Pacific Ocean;
``(5) Great Lakes; or
``(6) Mississippi River System.
``(b) Assistance.--The Secretary may enter into a cooperative
agreement (as that term is used in section 6305 of title 31) with a
center of excellence designated under subsection (a) to support
maritime workforce training and education at the center of excellence,
including efforts of the center of excellence to--
``(1) admit additional students;
``(2) recruit and train faculty;
``(3) expand facilities;
``(4) create new maritime career pathways; or
``(5) award students credit for prior experience, including
military service.
``(c) Covered Training Entity Defined.--In this section, the term
`covered training entity' means an entity that is--
``(1) a community or technical college; or
``(2) a maritime training center--
``(A) operated by, or under the supervision of, a
State; and
``(B) with a maritime training program in operation
on the date of enactment of this section.''.
(b) Clerical Amendment.--The analysis for chapter 541 of title 46,
United States Code, is amended by inserting after the item relating to
section 54101 the following:
``54102. Centers of excellence for domestic maritime workforce training
and education.''.
Purpose of Legislation
H.R. 2593, the Federal Maritime Commission Authorization
Act of 2017, authorizes funding for the Federal Maritime
Commission (FMC or Commission) for fiscal years 2018 and 2019
at increased levels and includes reforms to Commission
authorities under Subtitle IV, Regulation of Ocean Shipping, of
title 46, United States Code, regarding reviews of carrier
agreements.
Background and Need for Legislation
The Shipping Act of 1984 (46 United States Code
Sec. Sec. 40101-41309) establishes a regulatory process for the
common carriage of goods by water in the foreign commerce of
the United States. This process is to be carried out by the
Commission. The FMC is tasked with reviewing agreements filed
by ocean carriers with the Commission to ensure open
competition among carriers and fair pricing for shipping
services to U.S. importers and exporters. Ocean carriers that
comply with the policies of the Act are granted a limited
antitrust exemption pursuant to agreements filed with the FMC.
In general, the fair competition and anti-trust standards under
the Subtitle IV are comparable to other anti-trust statutes
(e.g., the Sherman Anti-Trust Act (26 Stat. 209, 15 United
States Code Sec. Sec. 1-7), the Clayton Act (15 United States
Code Sec. Sec. 12-27, 29 United States Code Sec. Sec. 52-53)
and Federal Trade Commission Act (15 United States Code
Sec. Sec. 41-58)).
Additionally, Subtitle IV creates a regulatory process with
minimal government intervention and regulatory costs.
Nevertheless, when carriers discuss, fix, or regulate
transportation rates, as well as other conditions of service,
agreements must be filed with the Commission for review. During
the Commission's review, the terms of an agreement may be
adjusted to address concerns raised by the Commission. The
Commission does not have, however, explicit authority to
disapprove of an agreement. Rather, the Commission must seek
injunctive relief in federal court to stay an agreement from
going into effect. Filing for injunctive relief by the
Commission is exceedingly rare and the vast majority of
agreements (modified to address Commission concerns)
automatically become effective 45 days after filing.
The liner shipping industry has not yet recovered from the
global recession that began in 2008. The continuing weakness in
global trade growth, intense competition, a mismatch between
the supply of vessel capacity and the demand to move cargo, the
need for more energy efficient vessels, and historically low
freight rates led industry to make fundamental changes to
continue to provide ocean transportation services. Industry has
worked to find efficiencies wherever they could. Efficiency
measures have included technological innovations such as highly
fuel efficient new vessels and vessel sharing agreements,
commonly referred to ``alliances''. The alliances allow
carriers to share vessel assets to move cargo to reduce the
oversupply of capacity. While the Commission testified that the
international ocean liner industry is not concentrated, the
ability to form an alliance and collectively negotiate has
raised concerns about carrier consolidation and impacts it may
have on shippers and port service providers.
The Commission allowed an amendment to a roll-on roll-off
carrier agreement\1\ which went into effect on January 23,
2017. American maritime industry stakeholders raised concerns
with the amendment due to the inclusion of language allowing
ocean carriers to collectively negotiate rates with American
maritime service providers, including tugboat operators, which
industry stakeholders claim would be disadvantaged by such
negotiations. In March 2017, the Commission received another
agreement,\2\ which also would permit ocean carrier alliances
to jointly negotiate with American maritime service providers.
American maritime stakeholders again raised concerns regarding
maritime service providers having no counterbalancing ability
to take collective action.
---------------------------------------------------------------------------
\1\WWL/EUKOR/ARC/GLOVIS Cooperative Working Agreement (FMC No.
012309-001).
\2\The Tripartite Agreement (FMC Agreement No. 012475).
---------------------------------------------------------------------------
Hearings
On May 3, 2017, the Subcommittee on Coast Guard and
Maritime Transportation held a hearing on maritime
transportation regulatory issues. The Subcommittee heard
testimony from the Commission, American Waterways Operators,
and the World Shipping Council. Concerns were raised regarding
the existing Commission review process of ocean carrier
alliance agreements and the impact such agreements may have on
American port service providers.
Legislative History and Consideration
On May 23, 2017, H.R. 2593 was introduced by Congressman
Duncan Hunter (R-CA) and cosponsored by Congressman John
Garamendi (D-CA), Congressman Bill Shuster (R-PA), and
Congressman Peter DeFazio (D-OR). The bill was referred solely
to the Committee on Transportation and Infrastructure.
On May 24, 2017, the Committee on Transportation and
Infrastructure met in open session to consider H.R. 2593.
Congressman Hunter offered an amendment to the bill that would
further clarify that ocean carrier alliances could not
negotiate with providers of tug vessel services. The amendment
was adopted by voice vote. The Committee ordered the bill, as
amended, reported favorably to the House by voice vote with a
quorum present.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires each committee report to include the
total number of votes cast for and against on each record vote
on a motion to report and on any amendment offered to the
measure or matter, and the names of those Members voting for
and against. There were no recorded votes taken in connection
with consideration of H.R. 2593. A motion to order H.R. 2593,
as amended, reported favorably to the House was agreed to by
voice vote with a quorum present.
Committee Oversight Findings
With respect to the requirements of clause 3(c)(1) of rule
XIII of the Rules of the House of Representatives, the
Committee's oversight findings and recommendations are
reflected in this report.
New Budget Authority and Tax Expenditures
Clause 3(c)(2) of rule XIII of the Rules of the House of
Representatives does not apply where a cost estimate and
comparison prepared by the Director of the Congressional Budget
Office under section 402 of the Congressional Budget Act of
1974 has been timely submitted prior to the filing of the
report and is included in the report. Such a cost estimate is
included in this report.
Congressional Budget Office Cost Estimate
With respect to the requirement of clause 3(c)(3) of rule
XIII of the Rules of the House of Representatives and section
402 of the Congressional Budget Act of 1974, the Committee has
received the enclosed cost estimate for H.R. 2593 from the
Director of the Congressional Budget Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, October 12, 2017.
Hon. Bill Shuster,
Chairman, Committee on Transportation and Infrastructure,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 2593, the Federal
Maritime Commission Authorization Act of 2017.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Megan
Carroll.
Sincerely,
Keith Hall,
Director.
Enclosure.
H.R. 2593--Federal Maritime Commission Authorization Act of 2017
Summary: H.R. 2593 would authorize appropriations totaling
$129 million over the 2018-2019 period for activities related
to waterborne transportation and commerce. Assuming
appropriation of the authorized amounts, CBO estimates that
enacting the bill would cost $129 million over the 2018-2022
period.
Enacting H.R. 2593 would decrease revenues by an
insignificant amount; therefore, pay-as-you-go procedures
apply. Enacting the bill would not affect direct spending.
CBO estimates that enacting H.R. 2593 would not increase
net direct spending or significantly affect on-budget deficits
in any of the four consecutive 10-year periods beginning in
2028.
H.R. 2593 would impose intergovernmental and private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA).
CBO estimates that the cost of the mandate on public entities
would fall below the annual threshold established in UMRA for
intergovernmental mandates ($78 million in 2017, adjusted
annually for inflation). CBO cannot determine whether the cost
of the mandates on private-entities would exceed the annual
threshold established in UMRA for private-sector mandates ($156
million in 2017, adjusted annually for inflation).
Estimated cost to the Federal Government: The estimated
budgetary effect of H.R. 2593 is shown in the following table.
The costs of this legislation fall within budget function 400
(transportation).
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-------------------------------------------------------
2018 2019 2020 2021 2022 2018-2022
----------------------------------------------------------------------------------------------------------------
INCREASES IN SPENDING SUBJECT TO APPROPRIATION
Authorization Level..................................... 64 65 0 0 0 129
Estimated Outlays....................................... 41 52 20 13 3 129
----------------------------------------------------------------------------------------------------------------
Basis of estimate: H.R. 2593 would authorize appropriations
totaling $64 million in 2018 and $65 million in 2019 for
activities related to waterborne transportation and commerce.
(CBO estimates that funding for those activities in 2017 totals
$37 million.) Those authorizations include:
$30 million in each year for the Maritime
Administration to make grants to support capital and
related improvements at small shipyards;
$28 million in 2018 and $29 million in 2019
for expenses of the Federal Maritime Commission, which
regulates oceanborne transportation related to U.S.
foreign commerce; and
$6 million in each year for the Department
of Commerce to make grants to support efforts to
improve the safety of commercial fishing.
Based on historical spending patterns for existing and
similar activities, CBO estimates that implementing H.R. 2593
would cost $129 million over the 2018-2022 period, assuming
appropriation of the authorized amounts.
Pay-As-You-Go Considerations: The bill would specify a
different treatment of commercial fishing permits under federal
laws, which could reduce the scope of civil actions pursued
through federal courts to enforce maritime liens. Such a change
in scope would reduce revenues from court filing fees;
therefore, pay-as-you-go procedures apply. Based on the
relatively small number of cases likely to be affected, CBO
estimates that any decrease in revenues would be insignificant.
(The federal costs to administer court proceedings would be
insignificant and subject to appropriation.)
Increase in long-term direct spending and deficits: CBO
estimates that enacting H.R. 2593 would not increase net direct
spending or on-budget deficits in any of the four consecutive
10-year periods beginning in 2028.
Intergovernmental and private-sector impact: H.R. 2593
would impose intergovernmental and private-sector mandates as
defined in UMRA. CBO estimates that the cost of the mandate on
public entities would fall below the annual threshold
established in UMRA for intergovernmental mandates ($78 million
in 2017, adjusted annually for inflation). Because the cost of
the private-sector mandates would depend, in part, on the
outcome of hearings held by the Federal Maritime Commission
(FMC), CBO cannot determine whether the cost of the mandates on
private-entities would exceed the annual threshold established
in UMRA for private-sector mandates ($156 million in 2017,
adjusted annually for inflation).
Mandates that apply to both public and private entities
The bill would impose intergovernmental and private-sector
mandates on ocean transportation intermediaries and operators
of marine terminals such as port authorities by requiring those
entities to submit reports on their business activities to the
FMC if requested. CBO estimates that the cost of complying with
the reporting requirement would be small.
Mandates that apply to private entities only
The bill also would impose a mandate on ocean carriers by
prohibiting a carrier from participating in a vessel sharing
agreement and a rate discussion agreement without an exemption
from the FMC. The cost of the mandate would include the cost of
preparing for an administrative hearing and any losses of
income the carrier would incur because the carrier may no
longer participate in a vessel sharing agreement if no
exemption is granted. Based on information from industry
sources, CBO estimates that the administrative costs would be
small, particularly if the FMC provides an exemption to classes
of agreements that meet certain criteria. However, the costs of
the prohibition could be substantial, totaling hundreds of
millions of dollars, if a carrier could not obtain an exemption
and would have to terminate an agreement. CBO cannot determine
the likelihood or frequency of potential exceptions that would
be granted by FMC. Consequently, we cannot estimate whether the
costs of the mandate would be substantial relative to the
annual threshold established in UMRA.
The bill also would impose a mandate on ocean carriers by
prohibiting them from jointly negotiating agreements with tug
operators and subjecting other joint negotiations to antitrust
laws, which could result in higher costs. That is, the bill
would prohibit ocean carriers from jointly negotiating with
providers of some services at ports unless those negotiations
meet the criteria of federal antitrust laws. Currently, only
one group of ocean carriers has the authority to jointly
negotiate with tug operators, and that authority has not yet
been used. Based on those facts and information from industry
sources, CBO estimates that the costs of those mandates would
not be substantial in the first few years the mandate is in
effect.
Estimate prepared by: Federal costs: Megan Carroll; Impact
on state, local, and tribal governments: Jon Sperl; Impact on
the private sector: Amy Petz.
Estimate approved by: H. Samuel Papenfuss, Deputy Assistant
Director for Budget Analysis.
Performance Goals and Objectives
With respect to the requirement of clause 3(c)(4) of rule
XIII of the Rules of the House of Representatives, the
performance goals and objectives of this legislation are to
authorize appropriations for the FMC and modify FMC's
authorities with regard to ocean carrier alliance agreements
and negotiations with U.S. port service providers that may
result from such agreements.
Advisory of Earmarks
Pursuant to clause 9 of rule XXI of the Rules of the House
of Representatives, the Committee is required to include a list
of congressional earmarks, limited tax benefits, or limited
tariff benefits as defined in clause 9(e), 9(f), and 9(g) of
rule XXI of the Rules of the House of Representatives. No
provision in the bill includes an earmark, limited tax benefit,
or limited tariff benefit under clause 9(e), 9(f), or 9(g) of
rule XXI.
Duplication of Federal Programs
Pursuant to clause 3(c)(5) of rule XIII of the Rules of the
House of Representatives, the Committee finds that no provision
of H.R. 2593 establishes or reauthorizes a program of the
federal government known to be duplicative of another federal
program, a program that was included in any report from the
Government Accountability Office to Congress pursuant to
section 21 of Public Law 111-139, or a program related to a
program identified in the most recent Catalog of Federal
Domestic Assistance.
Disclosure of Directed Rule Makings
Pursuant to section 3(i) of H. Res. 5, 115th Cong. (2017),
the Committee finds that enacting H.R. 2593 does not direct the
completion of a specific rule making within the meaning of
section 551 of title 5, United States Code.
Federal Mandate Statement
The Committee adopts as its own the estimate of federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act (Public Law 104-4).
Preemption Clarification
Section 423 of the Congressional Budget Act of 1974
requires the report of any Committee on a bill or joint
resolution to include a statement on the extent to which the
bill or joint resolution is intended to preempt state, local,
or tribal law. The Committee states that H.R. 2593 does not
preempt any state, local, or tribal law.
Advisory Committee Statement
No new advisory committees within the meaning of section
5(b) of the Federal Advisory Committee Act are created by this
legislation.
Applicability of Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act (Public Law
104-1).
Section-by-Section Analysis of Legislation
Section 101. Authorization
This section amends section 308 of title 46, United States
Code, to authorize funding levels for the Commission for fiscal
years 2018 and 2019 that match the fiscal year 2017
appropriation of $27.4 million adjusted annually for inflation.
Section 102. Port services
This section amends section 40102 of title 46, United
States Code, to include a new paragraph (26) which defines port
services as an intermediary services provider to an ocean
carrier at an American port to facilitate vessels operated by
such carrier to operate, and load and unload cargo at the port.
This amendment expands the scope of Subtitle IV to now include
consideration of American port service providers.
This section also amends section 41105 of title 46, United
States Code, the concerted actions section, to include new
paragraphs (9) and (10). The new paragraph (9) stipulates that
a conference or group of two or more carriers may not negotiate
with a provider of port services on any matter relating to
rates or service provided. The paragraph does provide an
exception to allow negotiations, if advance notice is provided
to the Commission, the negotiation and resulting agreement are
not in violation of anti-trust laws and are consistent with the
Shipping Act, and the resulting agreement will not lessen
competition, as determined by the Commission. Towing vessels
are not included in the exception language. The new paragraph
(10) states that a conference or group of two or more carriers
may not negotiate with providers of towing vessel services.
This section additionally amends section 41307(b) of title
46, United States Code, to strike ``produce an unreasonable
reduction in transportation service or an unreasonable increase
in transportation cost''. Inserted in its place is ``produce an
unreasonable reduction in transportation service or an
unreasonable increase in transportation cost, or substantially
lessen competition in the purchasing of port services.'' A new
paragraph (4) is added at the end regarding competition
factors. It would allow the Commission to consider any relevant
competition factors in affected markets, including other
agreements, other than the agreement under review. These
amendments broaden the scope of the Commission's competition
analysis to ensure the maintenance of fair competition in the
purchasing and pricing of U.S. port services.
Section 103. Information
This section amends the report section, section 40101(a) of
title 46, United States Code, to include ``marine terminal
operator or ocean transportation intermediary'' and employees
of these two entities in the list of entities the Federal
Maritime Commission may require a report, account, record,
rate, or charge, or a memorandum of facts and transactions
related to the business of such entities.
The section also amends section 40304 of title 46, United
States Code, to include ``, and interested persons may submit
relevant information and documents to the Commission'' after
``publication''. In 40304(d) the language ``to make the
determination required by this section'' is removed.
Both amendments should bolster the ability of the
Commission to gather additional information to best evaluate
conditions in affected markets and factors affecting
competition among carriers and American port service providers.
Section 104. Ocean transportation intermediaries
This section amends the license requirement section,
section 40901(a) of title 46, United States Code, and the
financial responsibility section, section 40902(a) of title 46,
United States Code, to insert ``advertise, hold oneself out,
or'' after ``may not''.
This section also amends section 41104(11) of title 46,
United States Code, to strike ``a tariff as required by section
40501 of this title and''. These amendments were requested by
the Commission.
Section 105. Interrelated agreements
This section amends section 41104 of title 46, United
States Code, to include language that says a common carrier
alone, or in conjunction with any other person, may not
participate in any agreements (i.e., rate discussions, vessel
sharing, slot-sharing, or space-sharing) unless the Commission
has granted a waiver under section 40103.
The section also allows participants in agreements that
would be prohibited due to amendments made in subsection (a) to
obtain an exemption or withdraw from such agreement. These
amendments also were requested by the Commission.
Title II--Other Matters
Section 201. Fishing safety grants
This section amends section 4502 of title 46, United States
Code, to transfer each the grant program from the Coast Guard
to the Secretary of Commerce. Authorized funding for each grant
programs is $3 million which matches the fiscal year 2017
appropriated levels and the level at which the program was
previously authorized. The cost share for each grant program is
reduced from 75 percent to 50 percent.
Section 202. Assistance for small shipyards
This section amends section 54101 of title 46, United
States Code, to clarify that training provided under the
section is related to shipbuilding, ship repair, and associated
industries. The section reauthorizes $30 million for each
fiscal year 2018 and 2019.
Section 203. Treatment of fishing permits
This section adds a new section 31310 in chapter 313 of
title 46, United States Code. The new section would clarify
that chapter 313 does not establish a maritime lien on a
fishing permit and does not authorize any civil action to
enforce a maritime lien on a fishing permit. It also clarifies
that a fishing permit is governed solely by a State or federal
law under which it was issued and shall not be treated as part
of a vessel, or as an appurtenance or intangible of a vessel,
for any purpose under federal law.
This section also clarifies that the authorities of the
Secretary of Commerce are not affected and ``fishing permit''
means ``any authorization of a person or vessel to engage in a
fishery that is issued under State or federal law''.
Section 204. Centers of excellence
This section adds a section 54102 at the end of chapter 541
of title 46, United States Code, which would allow the
Secretary of Transportation to designate a covered trained
entity as a center for excellence for domestic maritime work
force training and education through the use of a cooperative
agreement.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, and existing law in which no
change is proposed is shown in roman):
TITLE 46, UNITED STATES CODE
* * * * * * *
SUBTITLE I--GENERAL
* * * * * * *
CHAPTER 3--FEDERAL MARITIME COMMISSION
* * * * * * *
Sec. 308. Authorization of appropriations
There is authorized to be appropriated to the Federal
Maritime Commission [$24,700,000 for each of fiscal years 2016
and 2017] $28,012,310 for fiscal year 2018 and $28,544,543 for
fiscal year 2019 for the activities of the Commission
authorized under this chapter and subtitle IV.
* * * * * * *
SUBTITLE II--VESSELS AND SEAMEN
* * * * * * *
PART B--INSPECTION AND REGULATION OF VESSELS
* * * * * * *
CHAPTER 45--UNINSPECTED COMMERCIAL FISHING INDUSTRY VESSELS
* * * * * * *
Sec. 4502. Safety standards
(a) The Secretary shall prescribe regulations which require
that each vessel to which this chapter applies shall be
equipped with--
(1) readily accessible fire extinguishers capable of
promptly and effectively extinguishing a flammable or
combustible liquid fuel fire;
(2) at least one readily accessible life preserver or
other lifesaving device for each individual on board;
(3) an efficient flame arrestor, backfire trap, or
other similar device on the carburetors of each inboard
engine which uses gasoline as fuel;
(4) the means to properly and efficiently ventilate
enclosed spaces, including engine and fuel tank
compartments, so as to remove explosive or flammable
gases;
(5) visual distress signals;
(6) other equipment required to minimize the risk of
injury to the crew during vessel operations, if the
Secretary determines that a risk of serious injury
exists that can be eliminated or mitigated by that
equipment; and
(7) a placard as required by regulations prescribed
under section 10603(b) of this title.
(b)(1) In addition to the requirements of subsection (a) of
this section, the Secretary shall prescribe regulations
requiring the installation, maintenance, and use of the
equipment in paragraph (2) of this subsection for vessels to
which this chapter applies that--
(A) operate beyond 3 nautical miles from the
baseline from which the territorial sea of the
United States is measured or beyond 3 nautical
miles from the coastline of the Great Lakes;
(B) operate with more than 16 individuals on
board; or
(C) in the case of a fish tender vessel,
engage in the Aleutian trade.
(2) The equipment to be required is as follows:
(A) alerting and locating equipment,
including emergency position indicating radio
beacons;
(B) a survival craft that ensures that no
part of an individual is immersed in water
sufficient to accommodate all individuals on
board;
(C) at least one readily accessible immersion
suit for each individual on board that vessel
when operating on the waters described in
section 3102 of this title;
(D) marine radio communications equipment
sufficient to effectively communicate with
land-based search and rescue facilities;
(E) navigation equipment, including
compasses, nautical charts, and publications;
(F) first aid equipment and medical supplies
sufficient for the size and area of operation
of the vessel; and
(G) ground tackle sufficient for the vessel.
(c)(1) In addition to the requirements described in
subsections (a) and (b) of this section, the Secretary may
prescribe regulations establishing the standards in paragraph
(2) of this subsection for vessels to which this chapter
applies that--
(A)(i) were built after December 31, 1988, or
undergo a major conversion completed after that
date; and
(ii) operate with more than 16
individuals on board; or
(B) in the case of a fish tender vessel,
engage in the Aleutian trade.
(2) The standards shall be minimum safety standards,
including standards relating to--
(A) navigation equipment, including radars
and fathometers;
(B) lifesaving equipment, immersion suits,
signaling devices, bilge pumps, bilge alarms,
life rails, and grab rails;
(C) fire protection and firefighting
equipment, including fire alarms and portable
and semiportable fire extinguishing equipment;
(D) use and installation of insulation
material;
(E) storage methods for flammable or
combustible material; and
(F) fuel, ventilation, and electrical
systems.
(d)(1) The Secretary shall prescribe regulations for the
operating stability of a vessel to which this chapter applies--
(A) that was built after December 31, 1989;
or
(B) the physical characteristics of which are
substantially altered after December 31, 1989,
in a manner that affects the vessel's operating
stability.
(2) The Secretary may accept, as evidence of
compliance with this subsection, a certification of
compliance issued by the person providing insurance for
the vessel or by another qualified person approved by
the Secretary.
(e) In prescribing regulations under this chapter, the
Secretary--
(1) shall consider the specialized nature and
economics of the operations and the character, design,
and construction of the vessel; and
(2) may not require the alteration of a vessel or
associated equipment that was constructed or
manufactured before the effective date of the
regulation.
(f) To ensure compliance with the requirements of this
chapter, the Secretary--
(1) shall require the individual in charge of a
vessel described in subsection (b) to keep a record of
equipment maintenance, and required instruction and
drills;
(2) shall examine at dockside a vessel described in
subsection (b) at least once every 5 years, and shall
issue a certificate of compliance to a vessel meeting
the requirements of this chapter; and
(3) shall complete the first dockside examination of
a vessel under this subsection not later than October
15, 2015.
(g)(1) The individual in charge of a vessel described in
subsection (b) must pass a training program approved by the
Secretary that meets the requirements in paragraph (2) of this
subsection and hold a valid certificate issued under that
program.
(2) The training program shall--
(A) be based on professional knowledge and
skill obtained through sea service and hands-on
training, including training in seamanship,
stability, collision prevention, navigation,
fire fighting and prevention, damage control,
personal survival, emergency medical care,
emergency drills, and weather;
(B) require an individual to demonstrate
ability to communicate in an emergency
situation and understand information found in
navigation publications;
(C) recognize and give credit for recent past
experience in fishing vessel operation; and
(D) provide for issuance of a certificate to
an individual that has successfully completed
the program.
(3) The Secretary shall prescribe regulations
implementing this subsection. The regulations shall
require that individuals who are issued a certificate
under paragraph (2)(D) must complete refresher training
at least once every 5 years as a condition of
maintaining the validity of the certificate.
(4) The Secretary shall establish an electronic
database listing the names of individuals who have
participated in and received a certificate confirming
successful completion of a training program approved by
the Secretary under this section.
(h) A vessel to which this chapter applies shall be
constructed in a manner that provides a level of safety
equivalent to the minimum safety standards the Secretary may
establish for recreational vessels under section 4302, if--
(1) subsection (b) of this section applies to the
vessel;
(2) the vessel is less than 50 feet overall in
length; and
(3) the vessel is built after January 1, 2010.
(i)(1) The [Secretary] Secretary of Commerce shall establish
a Fishing Safety Training Grants Program to provide funding to
municipalities, port authorities, other appropriate public
entities, not-for-profit organizations, and other qualified
persons that provide commercial fishing safety training--
(A) to conduct fishing vessel safety training
for vessel operators and crewmembers that--
(i) in the case of vessel operators,
meets the requirements of subsection
(g); and
(ii) in the case of crewmembers,
meets the requirements of subsection
(g)(2)(A), such requirements of
subsection (g)(2)(B) as are appropriate
for crewmembers, and the requirements
of subsections (g)(2)(D), (g)(3), and
(g)(4); and
(B) for purchase of safety equipment and
training aids for use in those fishing vessel
safety training programs.
(2) The [Secretary] Secretary of Commerce shall award
grants under this subsection on a competitive basis.
(3) The Federal share of the cost of any activity
carried out with a grant under this subsection shall
not exceed [75] 50 percent.
(4) There is authorized to be appropriated
[$3,000,000 for each of fiscal years 2015 through 2017]
$3,000,000 for each of fiscal years 2018 through 2019
for grants under this subsection.
(j)(1) The [Secretary] Secretary of Commerce shall establish
a Fishing Safety Research Grant Program to provide funding to
individuals in academia, members of non-profit organizations
and businesses involved in fishing and maritime matters, and
other persons with expertise in fishing safety, to conduct
research on methods of improving the safety of the commercial
fishing industry, including vessel design, emergency and
survival equipment, enhancement of vessel monitoring systems,
communications devices, de-icing technology, and severe weather
detection.
(2) The [Secretary] Secretary of Commerce shall award
grants under this subsection on a competitive basis.
(3) The Federal share of the cost of any activity
carried out with a grant under this subsection shall
not exceed [75] 50 percent.
(4) There is authorized to be appropriated
[$3,000,000 for each fiscal years 2015 through 2017]
$3,000,000 for each of fiscal years 2018 through 2019
for activities under this subsection.
* * * * * * *
SUBTITLE III--MARITIME LIABILITY
* * * * * * *
CHAPTER 313--COMMERCIAL INSTRUMENTS AND MARITIME LIENS
SUBCHAPTER I--GENERAL
Sec.
31301. Definitions.
* * * * * * *
31310. Treatment of fishing permits.
SUBCHAPTER I--GENERAL
* * * * * * *
Sec. 31310. Treatment of fishing permits
(a) Limitation on Maritime Liens.--This chapter--
(1) does not establish a maritime lien on a fishing
permit; and
(2) does not authorize any civil action to enforce a
maritime lien on a fishing permit.
(b) Treatment of Fishing Permits Under State and Federal
Law.--A fishing permit--
(1) is governed solely by the State or Federal law
under which it is issued; and
(2) shall not be treated as part of a vessel, or as
an appurtenance or intangible of a vessel, for any
purpose under Federal law.
(c) Authority of Secretary of Commerce Not Affected.--Nothing
in this section shall be construed as imposing any limitation
upon the authority of the Secretary of Commerce--
(1) to modify, suspend, revoke, or impose a sanction
on any fishing permit issued by the Secretary of
Commerce; or
(2) to bring a civil action to enforce such a
modification, suspension, revocation, or sanction.
(d) Fishing Permit Defined.--In this section the term
``fishing permit'' means any authorization of a person or
vessel to engage in fishing that is issued under State or
Federal law.
* * * * * * *
SUBTITLE IV--REGULATION OF OCEAN SHIPPING
* * * * * * *
PART A--OCEAN SHIPPING
* * * * * * *
CHAPTER 401--GENERAL
* * * * * * *
Sec. 40102. Definitions
In this part:
(1) Agreement.--The term ``agreement''--
(A) means a written or oral understanding,
arrangement, or association, and any
modification or cancellation thereof; but
(B) does not include a maritime labor
agreement.
(2) Antitrust laws.--The term ``antitrust laws''
means--
(A) the Sherman Act (15 U.S.C. 1 et seq.);
(B) sections 73 and 74 of the Wilson Tariff
Act (15 U.S.C. 8, 9);
(C) the Clayton Act (15 U.S.C. 12 et seq.);
(D) the Act of June 19, 1936 (15 U.S.C. 13,
13a, 13b, 21a);
(E) the Federal Trade Commission Act (15
U.S.C. 41 et seq.);
(F) the Antitrust Civil Process Act (15
U.S.C. 1311 et seq.); and
(G) Acts supplementary to those Acts.
(3) Assessment agreement.--The term ``assessment
agreement'' means an agreement, whether part of a
collective bargaining agreement or negotiated
separately, to the extent the agreement provides for
the funding of collectively bargained fringe-benefit
obligations on other than a uniform worker-hour basis,
regardless of the cargo handled or type of vessel or
equipment used.
(4) Bulk cargo.--The term ``bulk cargo'' means cargo
that is loaded and carried in bulk without mark or
count.
(5) Chemical parcel-tanker.--The term ``chemical
parcel-tanker'' means a vessel that has--
(A) a cargo-carrying capability consisting of
individual cargo tanks for bulk chemicals
that--
(i) are a permanent part of the
vessel; and
(ii) have segregation capability with
piping systems to permit simultaneous
carriage of several bulk chemical
cargoes with minimum risk of cross-
contamination; and
(B) a valid certificate of fitness under the
International Maritime Organization Code for
the Construction and Equipment of Ships
Carrying Dangerous Chemicals in Bulk.
(6) Common carrier.--The term ``common carrier''--
(A) means a person that--
(i) holds itself out to the general
public to provide transportation by
water of passengers or cargo between
the United States and a foreign country
for compensation;
(ii) assumes responsibility for the
transportation from the port or point
of receipt to the port or point of
destination; and
(iii) uses, for all or part of that
transportation, a vessel operating on
the high seas or the Great Lakes
between a port in the United States and
a port in a foreign country; but
(B) does not include a carrier engaged in
ocean transportation by ferry boat, ocean
tramp, or chemical parcel-tanker, or by vessel
when primarily engaged in the carriage of
perishable agricultural commodities--
(i) if the carrier and the owner of
those commodities are wholly-owned,
directly or indirectly, by a person
primarily engaged in the marketing and
distribution of those commodities; and
(ii) only with respect to the
carriage of those commodities.
(7) Conference.--The term ``conference''--
(A) means an association of ocean common
carriers permitted, pursuant to an approved or
effective agreement, to engage in concerted
activity and to use a common tariff; but
(B) does not include a joint service,
consortium, pooling, sailing, or transshipment
agreement.
(8) Controlled carrier.--The term ``controlled
carrier'' means an ocean common carrier that is, or
whose operating assets are, directly or indirectly,
owned or controlled by a government, with ownership or
control by a government being deemed to exist for a
carrier if--
(A) a majority of the interest in the carrier
is owned or controlled in any manner by that
government, an agency of that government, or a
public or private person controlled by that
government; or
(B) that government has the right to appoint
or disapprove the appointment of a majority of
the directors, the chief operating officer, or
the chief executive officer of the carrier.
(9) Deferred rebate.--The term ``deferred rebate''
means a return by a common carrier of any freight money
to a shipper, where the return is--
(A) consideration for the shipper giving all
or any portion of its shipments to that or any
other common carrier over a fixed period of
time;
(B) deferred beyond the completion of the
service for which it was paid; and
(C) made only if the shipper has agreed to
make a further shipment with that or any other
common carrier.
(10) Forest products.--The term ``forest products''
includes lumber in bundles, rough timber, ties, poles,
piling, laminated beams, bundled siding, bundled
plywood, bundled core stock or veneers, bundled
particle or fiber boards, bundled hardwood, wood pulp
in rolls, wood pulp in unitized bales, and paper and
paper board in rolls or in pallet or skid-sized sheets.
(11) Inland division.--The term ``inland division''
means the amount paid by a common carrier to an inland
carrier for the inland portion of through
transportation offered to the public by the common
carrier.
(12) Inland portion.--The term ``inland portion''
means the charge to the public by a common carrier for
the non-ocean portion of through transportation.
(13) Loyalty contract.--The term ``loyalty contract''
means a contract with an ocean common carrier or
agreement providing for--
(A) a shipper to obtain lower rates by
committing all or a fixed portion of its cargo
to that carrier or agreement; and
(B) a deferred rebate arrangement.
(14) Marine terminal operator.--The term ``marine
terminal operator'' means a person engaged in the
United States in the business of providing wharfage,
dock, warehouse, or other terminal facilities in
connection with a common carrier, or in connection with
a common carrier and a water carrier subject to
subchapter II of chapter 135 of title 49.
(15) Maritime labor agreement.--The term ``maritime
labor agreement''--
(A) means--
(i) a collective bargaining agreement
between an employer subject to this
part, or a group of such employers, and
a labor organization representing
employees in the maritime or
stevedoring industry;
(ii) an agreement preparatory to such
a collective bargaining agreement among
members of a multi-employer bargaining
group; or
(iii) an agreement specifically
implementing provisions of such a
collective bargaining agreement or
providing for the formation, financing,
or administration of a multi-employer
bargaining group; but
(B) does not include an assessment agreement.
(16) Non-vessel-operating common carrier.--The term
``non-vessel-operating common carrier'' means a common
carrier that--
(A) does not operate the vessels by which the
ocean transportation is provided; and
(B) is a shipper in its relationship with an
ocean common carrier.
(17) Ocean common carrier.--The term ``ocean common
carrier'' means a vessel-operating common carrier.
(18) Ocean freight forwarder.--The term ``ocean
freight forwarder'' means a person that--
(A) in the United States, dispatches
shipments from the United States via a common
carrier and books or otherwise arranges space
for those shipments on behalf of shippers; and
(B) processes the documentation or performs
related activities incident to those shipments.
(19) Ocean transportation intermediary.--The term
``ocean transportation intermediary'' means an ocean
freight forwarder or a non-vessel-operating common
carrier.
(20) Service contract.--The term ``service contract''
means a written contract, other than a bill of lading
or receipt, between one or more shippers, on the one
hand, and an individual ocean common carrier or an
agreement between or among ocean common carriers, on
the other, in which--
(A) the shipper or shippers commit to
providing a certain volume or portion of cargo
over a fixed time period; and
(B) the ocean common carrier or the agreement
commits to a certain rate or rate schedule and
a defined service level, such as assured space,
transit time, port rotation, or similar service
features.
(21) Shipment.--The term ``shipment'' means all of
the cargo carried under the terms of a single bill of
lading.
(22) Shipper.--The term ``shipper'' means--
(A) a cargo owner;
(B) the person for whose account the ocean
transportation of cargo is provided;
(C) the person to whom delivery is to be
made;
(D) a shippers' association; or
(E) a non-vessel-operating common carrier
that accepts responsibility for payment of all
charges applicable under the tariff or service
contract.
(23) Shippers' association.--The term ``shippers'
association'' means a group of shippers that
consolidates or distributes freight on a nonprofit
basis for the members of the group to obtain carload,
truckload, or other volume rates or service contracts.
(24) Through rate.--The term ``through rate'' means
the single amount charged by a common carrier in
connection with through transportation.
(25) Through transportation.--The term ``through
transportation'' means continuous transportation
between origin and destination for which a through rate
is assessed and which is offered or performed by one or
more carriers, at least one of which is a common
carrier, between a United States port or point and a
foreign port or point.
(26) Port services.--The term ``port services'' means
intermediary services provided to an ocean carrier at a
United States port to facilitate vessels operated by
such a carrier to operate and load and unload cargo at
such port, including towage, cargo handling, and
bunkering.
* * * * * * *
Sec. 40104. Reports filed with the Commission
(a) In General.--The Federal Maritime Commission may require
a common carrier, marine terminal operator, or ocean
transportation intermediary, or an officer, receiver, trustee,
lessee, agent, or employee of the carrier, operator, or
intermediary, to file with the Commission a periodical or
special report, an account, record, rate, or charge, or a
memorandum of facts and transactions related to the business of
the carrier, operator, or intermediary. The report, account,
record, rate, charge, or memorandum shall be made under oath if
the Commission requires, and shall be filed in the form and
within the time prescribed by the Commission.
(b) Conference Minutes.--Conference minutes required to be
filed with the Commission under this section may not be
released to third parties or published by the Commission.
* * * * * * *
CHAPTER 403--AGREEMENTS
* * * * * * *
Sec. 40304. Commission action
(a) Notice of Filing.--Within 7 days after an agreement is
filed, the Federal Maritime Commission shall transmit a notice
of the filing to the Federal Register for publication, and
interested persons may submit relevant information and
documents to the Commission.
(b) Preliminary Review and Rejection.--After preliminary
review, the Commission shall reject an agreement that it finds
does not meet the requirements of sections 40302 and 40303 of
this title. The Commission shall notify in writing the person
filing the agreement of the reason for rejection.
(c) Review and Effective Date.--Unless rejected under
subsection (b), an agreement (other than an assessment
agreement) is effective--
(1) on the 45th day after filing, or on the 30th day
after notice of the filing is published in the Federal
Register, whichever is later; or
(2) if additional information or documents are
requested under subsection (d)--
(A) on the 45th day after the Commission
receives all the additional information and
documents; or
(B) if the request is not fully complied
with, on the 45th day after the Commission
receives the information and documents
submitted and a statement of the reasons for
noncompliance with the request.
(d) Request for Additional Information.--Before the
expiration of the period specified in subsection (c)(1), the
Commission may request from the person filing the agreement any
additional information and documents the Commission considers
necessary [to make the determinations required by this
section].
(e) Modification of Review Period.--
(1) Shortening.--On request of the party filing an
agreement, the Commission may shorten a period
specified in subsection (c), but not to a date that is
less than 14 days after notice of the filing of the
agreement is published in the Federal Register.
(2) Extension.--The period specified in subsection
(c)(2) may be extended only by the United States
District Court for the District of Columbia in a civil
action brought by the Commission under section 41307(c)
of this title.
(f) Fixed Terms.--The Commission may not limit the
effectiveness of an agreement to a fixed term.
* * * * * * *
CHAPTER 409--OCEAN TRANSPORTATION INTERMEDIARIES
Sec. 40901. License requirement
(a) In General.--A person in the United States may not
advertise, hold oneself out, or act as an ocean transportation
intermediary unless the person holds an ocean transportation
intermediary's license issued by the Federal Maritime
Commission. The Commission shall issue a license to a person
that the Commission determines to be qualified by experience
and character to act as an ocean transportation intermediary.
(b) Exception.--A person whose primary business is the sale
of merchandise may forward shipments of the merchandise for its
own account without an ocean transportation intermediary's
license.
Sec. 40902. Financial responsibility
(a) In General.--A person may not advertise, hold oneself
out, or act as an ocean transportation intermediary unless the
person furnishes a bond, proof of insurance, or other surety--
(1) in a form and amount determined by the Federal
Maritime Commission to insure financial responsibility;
and
(2) issued by a surety company found acceptable by
the Secretary of the Treasury.
(b) Scope of Financial Responsibility.--A bond, insurance, or
other surety obtained under this section--
(1) shall be available to pay any penalty assessed
under section 41109 of this title or any order for
reparation issued under section 41305 of this title;
(2) may be available to pay any claim against an
ocean transportation intermediary arising from its
transportation-related activities--
(A) with the consent of the insured ocean
transportation intermediary and subject to
review by the surety company; or
(B) when the claim is deemed valid by the
surety company after the ocean transportation
intermediary has failed to respond to adequate
notice to address the validity of the claim;
and
(3) shall be available to pay any judgment for
damages against an ocean transportation intermediary
arising from its transportation-related activities, if
the claimant has first attempted to resolve the claim
under paragraph (2) and the claim has not been resolved
within a reasonable period of time.
(c) Regulations on Court Judgments.--The Commission shall
prescribe regulations for the purpose of protecting the
interests of claimants, ocean transportation intermediaries,
and surety companies with respect to the process of pursuing
claims against ocean transportation intermediary bonds,
insurance, or sureties through court judgments. The regulations
shall provide that a judgment for monetary damages may not be
enforced except to the extent that the damages claimed arise
from the transportation-related activities of the insured ocean
transportation intermediary, as defined by the Commission.
(d) Resident Agent.--An ocean transportation intermediary not
domiciled in the United States shall designate a resident agent
in the United States for receipt of service of judicial and
administrative process, including subpoenas.
* * * * * * *
CHAPTER 411--PROHIBITIONS AND PENALTIES
* * * * * * *
Sec. 41104. Common carriers
A common carrier, either alone or in conjunction with any
other person, directly or indirectly, may not--
(1) allow a person to obtain transportation for
property at less than the rates or charges established
by the carrier in its tariff or service contract by
means of false billing, false classification, false
weighing, false measurement, or any other unjust or
unfair device or means;
(2) provide service in the liner trade that is--
(A) not in accordance with the rates,
charges, classifications, rules, and practices
contained in a tariff published or a service
contract entered into under chapter 405 of this
title, unless excepted or exempted under
section 40103 or 40501(a)(2) of this title; or
(B) under a tariff or service contract that
has been suspended or prohibited by the Federal
Maritime Commission under chapter 407 or 423 of
this title;
(3) retaliate against a shipper by refusing, or
threatening to refuse, cargo space accommodations when
available, or resort to other unfair or unjustly
discriminatory methods because the shipper has
patronized another carrier, or has filed a complaint,
or for any other reason;
(4) for service pursuant to a tariff, engage in any
unfair or unjustly discriminatory practice in the
matter of--
(A) rates or charges;
(B) cargo classifications;
(C) cargo space accommodations or other
facilities, with due regard being given to the
proper loading of the vessel and the available
tonnage;
(D) loading and landing of freight; or
(E) adjustment and settlement of claims;
(5) for service pursuant to a service contract,
engage in any unfair or unjustly discriminatory
practice in the matter of rates or charges with respect
to any port;
(6) use a vessel in a particular trade for the
purpose of excluding, preventing, or reducing
competition by driving another ocean common carrier out
of that trade;
(7) offer or pay any deferred rebates;
(8) for service pursuant to a tariff, give any undue
or unreasonable preference or advantage or impose any
undue or unreasonable prejudice or disadvantage;
(9) for service pursuant to a service contract, give
any undue or unreasonable preference or advantage or
impose any undue or unreasonable prejudice or
disadvantage with respect to any port;
(10) unreasonably refuse to deal or negotiate;
(11) knowingly and willfully accept cargo from or
transport cargo for the account of an ocean
transportation intermediary that does not have [a
tariff as required by section 40501 of this title and]
a bond, insurance, or other surety as required by
section 40902 of this title; [or]
(12) knowingly and willfully enter into a service
contract with an ocean transportation intermediary that
does not have a tariff as required by section 40501 of
this title and a bond, insurance, or other surety as
required by section 40902 of this title, or with an
affiliate of such an ocean transportation
intermediary[.]; or
(13) participate in a rate discussion agreement and a
vessel sharing agreement, slot sharing agreement, space
sharing agreement, or similar agreement for use of
vessels by two or more ocean common carriers, unless
the Commission has granted the parties an exemption
pursuant to section 40103.
Sec. 41105. Concerted action
A conference or group of two or more common carriers may
not--
(1) boycott or take any other concerted action
resulting in an unreasonable refusal to deal;
(2) engage in conduct that unreasonably restricts the
use of intermodal services or technological
innovations;
(3) engage in any predatory practice designed to
eliminate the participation, or deny the entry, in a
particular trade of a common carrier not a member of
the conference, a group of common carriers, an ocean
tramp, or a bulk carrier;
(4) negotiate with a non-ocean carrier or group of
non-ocean carriers (such as truck, rail, or air
operators) on any matter relating to rates or services
provided to ocean common carriers within the United
States by those non-ocean carriers, unless the
negotiations and any resulting agreements are not in
violation of the antitrust laws and are consistent with
the purposes of this part, except that this paragraph
does not prohibit the setting and publishing of a joint
through rate by a conference, joint venture, or
association of ocean common carriers;
(5) deny in the export foreign commerce of the United
States compensation to an ocean freight forwarder or
limit that compensation to less than a reasonable
amount;
(6) allocate shippers among specific carriers that
are parties to the agreement or prohibit a carrier that
is a party to the agreement from soliciting cargo from
a particular shipper, except as--
(A) authorized by section 40303(d) of this
title;
(B) required by the law of the United States
or the importing or exporting country; or
(C) agreed to by a shipper in a service
contract;
(7) for service pursuant to a service contract,
engage in any unjustly discriminatory practice in the
matter of rates or charges with respect to any
locality, port, or person due to the person's status as
a shippers' association or ocean transportation
intermediary; [or]
(8) for service pursuant to a service contract, give
any undue or unreasonable preference or advantage or
impose any undue or unreasonable prejudice or
disadvantage with respect to any locality, port, or
person due to the person's status as a shippers'
association or ocean transportation intermediary[.];
(9) negotiate with a provider of port services, other
than a provider of towing vessel services, on any
matter relating to rates or services provided within
the United States by such provider, unless advance
notice is provided to the Federal Maritime Commission
of the intent and need for the negotiation, the
negotiation and any resulting agreement are not in
violation of the antitrust laws and are consistent with
the purposes of this part, and, as determined by the
Commission, the negotiation and any resulting agreement
will not substantially lessen competition in the
purchasing of port services provided at United States
ports (this paragraph does not prohibit the setting and
publishing of a joint through rate by a conference,
joint venture, or association of common carriers); or
(10) negotiate with a provider of towing vessel
services on any matter relating to rates or services
provided within the United States by towing vessels.
* * * * * * *
CHAPTER 413--ENFORCEMENT
* * * * * * *
Sec. 41307. Injunctive relief sought by the Commission
(a) General Violations.--In connection with an investigation
under section 41301 or 41302 of this title, the Federal
Maritime Commission may bring a civil action to enjoin conduct
in violation of this part. The action must be brought in the
district court of the United States for any judicial district
in which the defendant resides or transacts business. After
notice to the defendant, and a showing that the standards for
granting injunctive relief by courts of equity are met, the
court may grant a temporary restraining order or preliminary
injunction for a period not to exceed 10 days after the
Commission has issued an order disposing of the issues under
investigation.
(b) Reduction in Competition.--
(1) Action by commission.--If, at any time after the
filing or effective date of an agreement under chapter
403 of this title, the Commission determines that the
agreement is likely, by a reduction in competition, to
[produce an unreasonable reduction in transportation
service or an unreasonable increase in transportation
cost] produce an unreasonable reduction in
transportation service, produce an unreasonable
increase in transportation cost, or substantially
lessen competition in the purchasing of port services,
the Commission, after notice to the person filing the
agreement, may bring a civil action in the United
States District Court for the District of Columbia to
enjoin the operation of the agreement. The Commission's
sole remedy with respect to an agreement likely to have
such an effect is an action under this subsection.
(2) Remedies by court.--In an action under this
subsection, the court may issue--
(A) a temporary restraining order or a
preliminary injunction; and
(B) a permanent injunction after a showing
that the agreement is likely to have the effect
described in paragraph (1).
(3) Burden of proof and third parties.--In an action
under this subsection, the burden of proof is on the
Commission. The court may not allow a third party to
intervene.
(4) Competition factors.--In making a determination
under this subsection, the Commission may consider any
relevant competition factors in affected markets,
including, without limitation, the competitive effect
of agreements other than the agreement under review.
(c) Failure To Provide Information.--If a person filing an
agreement, or an officer, director, partner, agent, or employee
of the person, fails substantially to comply with a request for
the submission of additional information or documents within
the period provided in section 40304(c) of this title, the
Commission may bring a civil action in the United States
District Court for the District of Columbia. At the request of
the Commission, the Court--
(1) may order compliance;
(2) shall extend the period specified in section
40304(c)(2) of this title until there has been
substantial compliance; and
(3) may grant other equitable relief that the court
decides is appropriate.
(d) Representation.--The Commission may represent itself in a
proceeding under this section in--
(1) a district court of the United States, on notice
to the Attorney General; and
(2) a court of appeals of the United States, with the
approval of the Attorney General.
* * * * * * *
SUBTITLE V--MERCHANT MARINE
* * * * * * *
PART C--FINANCIAL ASSISTANCE PROGRAMS
* * * * * * *
CHAPTER 541--MISCELLANEOUS
Sec
[54101. Assistance for small shipyards and maritime communities]
54101. Assistance for small shipyards.
54102. Centers of excellence for domestic maritime workforce training
and education.
Sec. 54101. Assistance for small shipyards [and maritime communities]
(a) Establishment of Program.--Subject to the availability of
appropriations, the Administrator of the Maritime
Administration shall execute agreements with shipyards to
provide assistance--
(1) in the form of grants, loans, and loan guarantees
to small shipyards for capital improvements; and
(2) for maritime training programs to foster
technical skills and operational productivity [in
communities whose economies are related to or dependent
upon the maritime industry.] relating to shipbuilding,
ship repair, and associated industries.
(b) Awards.--In providing assistance under the program, the
Administrator shall--
[(1) take into account--
[(A) the economic circumstances and
conditions of maritime communities;
[(B) projects that would be effective in
fostering efficiency, competitive operations,
and quality ship construction, repair, and
reconfiguration; and
[(C) projects that would be effective in
fostering employee skills and enhancing
productivity; and]
(1) consider projects that foster--
(A) efficiency, competitive operations, and
quality ship construction, repair, and
reconfiguration; and
(B) employee skills and enhanced productivity
related to shipbuilding, ship repair, and
associated industries; and
(2) make grants within 120 days after the date of
enactment of the appropriations Act for the fiscal year
concerned.
(c) Use of Funds.--
(1) In general.--Assistance provided under this
section may be used to--
[(A) to make capital and related improvements
in small shipyards located in or near maritime
communities;
[(B) to provide training for workers in
communities whose economies are related to the
maritime industry; and
[(C) for such other purposes as the
Administrator determines to be consistent with
and supplemental to such activities.]
(A) make capital and related improvements in
small shipyards; and
(B) provide training for workers in
shipbuilding, ship repair, and associated
industries.
(2) Administrative costs.--Not more than 2 percent of
amounts made available to carry out the program may be
used for the necessary costs of grant administration.
(d) Prohibited Uses.--Grants awarded under this section may
not be used to construct buildings or other physical facilities
or to acquire land [unless such use is specifically approved by
the Administrator in support of subsection (c)(1)(C)].
(e) Matching Requirements; Allocation.--
(1) Federal funding.--[Except as provided in
paragraph (2),] Federal funds for any eligible project
under this section shall not exceed 75 percent of the
total cost of such project.
[(2) Exception.--If the Administrator determines that
a proposed project merits support and cannot be
undertaken without a higher percentage of Federal
financial assistance, the Administrator may award a
grant for such project with a lesser matching
requirement than is described in paragraph (1).]
[(3)] (2) Allocation of funds.--The Administrator may
not award more than 25 percent of the funds
appropriated to carry out this section for any fiscal
year to any small shipyard in one geographic location
that has more than 600 employees.
(f) Applications.--
(1) In general.--To be eligible for assistance under
this section, an applicant shall submit an application,
in such form, and containing such information and
assurances as the Administrator may require, within 60
days after the date of enactment of the appropriations
Act for the fiscal year concerned.
(2) Minimum standards for payment or reimbursement.--
Each application submitted under paragraph (1) shall
include--
(A) a comprehensive description of--
(i) the need for the project;
(ii) the methodology for implementing
the project; and
(iii) any existing programs or
arrangements that can be used to
supplement or leverage assistance under
the program.
(3) Procedural safeguards.--The Administrator, in
consultation with the Office of the Inspector General,
shall issue guidelines to establish appropriate
accounting, reporting, and review procedures to ensure
that--
(A) grant funds are used for the purposes for
which they were made available;
(B) grantees have properly accounted for all
expenditures of grant funds; and
(C) grant funds not used for such purposes
and amounts not obligated or expended are
returned.
(4) Project approval required.--The Administrator may
not award a grant under this section unless the
Administrator determines that--
(A) sufficient funding is available to meet
the matching requirements of subsection (e);
(B) the project will be completed without
unreasonable delay; and
(C) the recipient has authority to carry out
the proposed project.
(g) Audits and Examinations.--All grantees under this section
shall maintain such records as the Administrator may require
and make such records available for review and audit by the
Administrator.
(h) Small Shipyard Defined.--In this section, the term
``small shipyard'' means a shipyard facility in one geographic
location that does not have more than 1,200 employees.
(i) Authorization of Appropriations.--There are authorized to
be appropriated to the Administrator of the Maritime
Administration for each of fiscal years [2015 through 2017 to
carry out this section--]
[(1) $5,000,000 for training grants; and]
[(2) $25,000,000 for capital and related
improvements] 2018 and 2019 to carry out this section
$30,000,000.
Sec. 54102. Centers of excellence for domestic maritime workforce
training and education
(a) Designation.--The Secretary of Transportation may
designate as a center of excellence for domestic maritime
workforce training and education a covered training entity
located in a State that borders on the--
(1) Gulf of Mexico;
(2) Atlantic Ocean;
(3) Long Island Sound;
(4) Pacific Ocean;
(5) Great Lakes; or
(6) Mississippi River System.
(b) Assistance.--The Secretary may enter into a cooperative
agreement (as that term is used in section 6305 of title 31)
with a center of excellence designated under subsection (a) to
support maritime workforce training and education at the center
of excellence, including efforts of the center of excellence
to--
(1) admit additional students;
(2) recruit and train faculty;
(3) expand facilities;
(4) create new maritime career pathways; or
(5) award students credit for prior experience,
including military service.
(c) Covered Training Entity Defined.--In this section, the
term ``covered training entity'' means an entity that is--
(1) a community or technical college; or
(2) a maritime training center--
(A) operated by, or under the supervision of,
a State; and
(B) with a maritime training program in
operation on the date of enactment of this
section.
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