[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 414 Engrossed in Senate (ES)]

  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
105th CONGRESS
  2d Session
                                 S. 414

_______________________________________________________________________

                                 AN ACT


 
     To amend the Shipping Act of 1984 to encourage competition in 
  international shipping and growth of United States exports, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Ocean Shipping Reform Act of 1998''.

SEC. 2. EFFECTIVE DATE.

    Except as otherwise expressly provided in this Act, this Act and 
the amendments made by this Act take effect May 1, 1999.

            TITLE I--AMENDMENTS TO THE SHIPPING ACT OF 1984

SEC. 101. PURPOSE.

    Section 2 of the Shipping Act of 1984 (46 U.S.C. App. 1701) is 
amended by--
            (1) striking ``and'' after the semicolon in paragraph (2);
            (2) striking ``needs.'' in paragraph (3) and inserting 
        ``needs; and'';
            (3) adding at the end thereof the following:
            ``(4) to promote the growth and development of United 
        States exports through competitive and efficient ocean 
        transportation and by placing a greater reliance on the 
        marketplace.''.

SEC. 102. DEFINITIONS.

    Section 3 of the Shipping Act of 1984 (46 U.S.C. App. 1702) is 
amended by--
            (1) striking ``the government under whose registry the 
        vessels of the carrier operate;'' in paragraph (8) and 
        inserting ``a government;'';
            (2) striking paragraph (9) and inserting the following:
            ``(9) `deferred rebate' means a return by a common carrier 
        of any portion of freight money to a shipper as a consideration 
        for that shipper giving all, or any portion, of its shipments 
        to that or any other common carrier over a fixed period of 
        time, the payment of which is deferred beyond the completion of 
        service for which it is paid, and is made only if the shipper 
        has agreed to make a further shipment or shipments with that or 
        any other common carrier.'';
            (3) striking paragraph (10) and redesignating paragraphs 
        (11) through (27) as paragraphs (10) through (26);
            (4) striking ``in an unfinished or semifinished state that 
        require special handling moving in lot sizes too large for a 
        container,'' in paragraph (10), as redesignated;
            (5) striking ``paper board in rolls, and paper in rolls.'' 
        in paragraph (10) as redesignated and inserting ``paper and 
        paper board in rolls or in pallet or skid-sized sheets.'';
            (6) striking ``conference, other than a service contract or 
        contract based upon time-volume rates,'' in paragraph (13) as 
        redesignated and inserting ``agreement'';
            (7) striking ``conference.'' in paragraph (13) as 
        redesignated and inserting ``agreement and the contract 
        provides for a deferred rebate arrangement.'';
            (8) by striking ``carrier.'' in paragraph (14) as 
        redesignated and inserting ``carrier, or in connection with a 
        common carrier and a water carrier subject to subchapter II of 
        chapter 135 of title 49, United States Code.'';
            (9) striking paragraph (16) as redesignated and 
        redesignating paragraphs (17) through (26) as redesignated as 
        paragraphs (16) through (25), respectively;
            (10) striking paragraph (17), as redesignated, and 
        inserting the following:
            ``(17) `ocean transportation intermediary' means an ocean 
        freight forwarder or a non-vessel-operating common carrier. For 
        purposes of this paragraph, the term--
                    ``(A) `ocean freight forwarder' means a person 
                that--
                            ``(i) 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
                            ``(ii) processes the documentation or 
                        performs related activities incident to those 
                        shipments; and
                    ``(B) `non-vessel-operating common carrier' means a 
                common carrier that does not operate the vessels by 
                which the ocean transportation is provided, and is a 
                shipper in its relationship with an ocean common 
                carrier.'';
            (11) striking paragraph (19), as redesignated and inserting 
        the following:
            ``(19) `service contract' means a written contract, other 
        than a bill of lading or a receipt, between one or more 
        shippers and an individual ocean common carrier or an agreement 
        between or among ocean common carriers in which the shipper or 
        shippers makes a commitment to provide a certain volume or 
        portion of cargo over a fixed time period, and 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. The 
        contract may also specify provisions in the event of 
        nonperformance on the part of any party.''; and
            (12) striking paragraph (21), as redesignated, and 
        inserting the following:
            ``(21) `shipper' means--
                    ``(A) a cargo owner;
                    ``(B) the person for whose account the ocean 
                transportation is provided;
                    ``(C) the person to whom delivery is to be made;
                    ``(D) a shippers' association; or
                    ``(E) an ocean transportation intermediary, as 
                defined in paragraph (17)(B) of this section, that 
                accepts responsibility for payment of all charges 
                applicable under the tariff or service contract.''.

SEC. 103. AGREEMENTS WITHIN THE SCOPE OF THE ACT.

    (a) Ocean Common Carriers.--Section 4(a) of the Shipping Act of 
1984 (46 U.S.C. App. 1703(a)) is amended by--
            (1) striking ``operators or non-vessel-operating common 
        carriers;'' in paragraph (5) and inserting ``operators;'';
            (2) striking ``and'' in paragraph (6) and inserting ``or''; 
        and
            (3) striking paragraph (7) and inserting the following:
            ``(7) discuss and agree on any matter related to service 
        contracts.''.
    (b) Marine Terminal Operators.--Section 4(b) of that Act (46 U.S.C. 
App. 1703(b)) is amended by--
            (1) striking ``(to the extent the agreements involve ocean 
        transportation in the foreign commerce of the United States)'';
            (2) striking ``and'' in paragraph (1) and inserting ``or''; 
        and
            (3) striking ``arrangements.'' in paragraph (2) and 
        inserting ``arrangements, to the extent that such agreements 
        involve ocean transportation in the foreign commerce of the 
        United States.''.

SEC. 104. AGREEMENTS.

    (a) In General.--Section 5 of the Shipping Act of 1984 (46 U.S.C. 
App. 1704) is amended by--
            (1) striking subsection (b)(8) and inserting the following:
            ``(8) provide that any member of the conference may take 
        independent action on any rate or service item upon not more 
        than 5 calendar days' notice to the conference and that, except 
        for exempt commodities not published in the conference tariff, 
        the conference will include the new rate or service item in its 
        tariff for use by that member, effective no later than 5 
        calendar days after receipt of the notice, and by any other 
        member that notifies the conference that it elects to adopt the 
        independent rate or service item on or after its effective 
        date, in lieu of the existing conference tariff provision for 
        that rate or service item;
            (2) redesignating subsections (c) through (e) as 
        subsections (d) through (f); and
            (3) inserting after subsection (b) the following:
    ``(c) Ocean Common Carrier Agreements.--An ocean common carrier 
agreement may not--
            ``(1) prohibit or restrict a member or members of the 
        agreement from engaging in negotiations for service contracts 
        with 1 or more shippers;
            ``(2) require a member or members of the agreement to 
        disclose a negotiation on a service contract, or the terms and 
        conditions of a service contract, other than those terms or 
        conditions required to be published under section 8(c)(3) of 
        this Act; or
            ``(3) adopt mandatory rules or requirements affecting the 
        right of an agreement member or agreement members to negotiate 
        and enter into service contracts.
An agreement may provide authority to adopt voluntary guidelines 
relating to the terms and procedures of an agreement member's or 
agreement members' service contracts if the guidelines explicitly state 
the right of members of the agreement not to follow the guidelines. 
These guidelines shall be confidentially submitted to the 
Commission.''.
    (b) Application.--
            (1) Subsection (e) of section 5 of that Act, as 
        redesignated, is amended by striking ``this Act, the Shipping 
        Act, 1916, and the Intercoastal Shipping Act, 1933, do'' and 
        inserting ``this Act does''; and
            (2) Subsection (f) of section 5 of that Act, as 
        redesignated, is amended by--
                    (A) striking ``and the Shipping Act, 1916, do'' and 
                inserting ``does'';
                    (B) striking ``or the Shipping Act, 1916,''; and
                    (C) inserting ``or are essential terms of a service 
                contract'' after ``tariff''.

SEC. 105. EXEMPTION FROM ANTITRUST LAWS.

    Section 7 of the Shipping Act of 1984 (46 U.S.C. App. 1706) is 
amended by--
            (1) inserting ``or publication'' in paragraph (2) of 
        subsection (a) after ``filing'';
            (2) striking ``or'' at the end of subsection (b)(2);
            (3) striking ``States.'' at the end of subsection (b)(3) 
        and inserting ``States; or''; and
            (4) adding at the end of subsection (b) the following:
            ``(4) to any loyalty contract.''.

SEC. 106. TARIFFS.

    (a) In General.--Section 8(a) of the Shipping Act of 1984 (46 
U.S.C. App. 1707(a)) is amended by--
            (1) inserting ``new assembled motor vehicles,'' after 
        ``scrap,'' in paragraph (1);
            (2) striking ``file with the Commission, and'' in paragraph 
        (1);
            (3) striking ``inspection,'' in paragraph (1) and inserting 
        ``inspection in an automated tariff system,'';
            (4) striking ``tariff filings'' in paragraph (1) and 
        inserting ``tariffs'';
            (5) striking ``freight forwarder'' in paragraph (1)(C) and 
        inserting ``transportation intermediary, as defined in section 
        3(17)(A),'';
            (6) striking ``and'' at the end of paragraph (1)(D);
            (7) striking ``loyalty contract,'' in paragraph (1)(E);
            (8) striking ``agreement.'' in paragraph (1)(E) and 
        inserting ``agreement; and'';
            (9) adding at the end of paragraph (1) the following:
                    ``(F) include copies of any loyalty contract, 
                omitting the shipper's name.''; and
            (10) striking paragraph (2) and inserting the following:
            ``(2) Tariffs shall be made available electronically to any 
        person, without time, quantity, or other limitation, through 
        appropriate access from remote locations, and a reasonable 
        charge may be assessed for such access. No charge may be 
        assessed a Federal agency for such access.''.
    (b) Service Contracts.--Subsection (c) of that section is amended 
to read as follows:
    ``(c) Service Contracts.--
            ``(1) In general.--An individual ocean common carrier or an 
        agreement between or among ocean common carriers may enter into 
        a service contract with one or more shippers subject to the 
        requirements of this Act. The exclusive remedy for a breach of 
        a contract entered into under this subsection shall be an 
        action in an appropriate court, unless the parties otherwise 
        agree. In no case may the contract dispute resolution forum be 
        controlled by or in any way affiliated with a controlled 
        carrier as defined in section 3(8) of this Act, or by the 
        government which owns or controls the carrier.
            ``(2) Filing requirements.--Except for service contracts 
        dealing with bulk cargo, forest products, recycled metal scrap, 
        new assembled motor vehicles, waste paper, or paper waste, each 
        contract entered into under this subsection by an individual 
        ocean common carrier or an agreement shall be filed 
        confidentially with the Commission. Each service contract shall 
        include the following essential terms--
                    ``(A) the origin and destination port ranges;
                    ``(B) the origin and destination geographic areas 
                in the case of through intermodal movements;
                    ``(C) the commodity or commodities involved;
                    ``(D) the minimum volume or portion;
                    ``(E) the line-haul rate;
                    ``(F) the duration;
                    ``(G) service commitments; and
                    ``(H) the liquidated damages for nonperformance, if 
                any.
            ``(3) Publication of certain terms.--When a service 
        contract is filed confidentially with the Commission, a concise 
        statement of the essential terms described in paragraphs 2 (A), 
        (C), (D), and (F) shall be published and made available to the 
        general public in tariff format.
            ``(4) Disclosure of certain terms.--
                    ``(A) An ocean common carrier, which is a party to 
                or is subject to the provisions of a collective 
                bargaining agreement with a labor organization, shall, 
                in response to a written request by such labor 
                organization, state whether it is responsible for the 
                following work at dock areas and within port areas in 
                the United States with respect to cargo transportation 
                under a service contract described in paragraph (1) of 
                this subsection--
                            ``(i) the movement of the shipper's cargo 
                        on a dock area or within the port area or to or 
                        from railroad cars on a dock area or within the 
                        port area;
                            ``(ii) the assignment of intraport carriage 
                        of the shipper's cargo between areas on a dock 
                        or within the port area;
                            ``(iii) the assignment of the carriage of 
                        the shipper's cargo between a container yard on 
                        a dock area or within the port area and a rail 
                        yard adjacent to such container yard; and
                            ``(iv) the assignment of container freight 
                        station work and container maintenance and 
                        repair work performed at a dock area or within 
                        the port area.
                    ``(B) The common carrier shall provide the 
                information described in subparagraph (A) of this 
                paragraph to the requesting labor organization within a 
                reasonable period of time.
                    ``(C) This paragraph requires the disclosure of 
                information by an ocean common carrier only if there 
                exists an applicable and otherwise lawful collective 
                bargaining agreement which pertains to that carrier. No 
                disclosure made by an ocean common carrier shall be 
                deemed to be an admission or agreement that any work is 
                covered by a collective bargaining agreement. Any 
                dispute regarding whether any work is covered by a 
                collective bargaining agreement and the responsibility 
                of the ocean common carrier under such agreement shall 
                be resolved solely in accordance with the dispute 
                resolution procedures contained in the collective 
                bargaining agreement and the National Labor Relations 
                Act, and without reference to this paragraph.
                    ``(D) Nothing in this paragraph shall have any 
                effect on the lawfulness or unlawfulness under this 
                Act, the National Labor Relations Act, the Taft-Hartley 
                Act, the Federal Trade Commission Act, the antitrust 
                laws, or any other Federal or State law, or any 
                revisions or amendments thereto, of any collective 
                bargaining agreement or element thereof, including any 
                element that constitutes an essential term of a service 
                contract under this subsection.
                    ``(E) For purposes of this paragraph the terms 
                `dock area' and `within the port area' shall have the 
                same meaning and scope as in the applicable collective 
                bargaining agreement between the requesting labor 
                organization and the carrier.''.
    (c) Rates.--Subsection (d) of that section is amended by--
            (1) striking the subsection caption and inserting ``(d) 
        Tariff Rates.--'';
            (2) striking ``30 days after filing with the Commission.'' 
        in the first sentence and inserting ``30 calendar days after 
        publication.'';
            (3) inserting ``calendar'' after ``30'' in the next 
        sentence; and
            (4) striking ``publication and filing with the 
        Commission.'' in the last sentence and inserting 
        ``publication.''.
    (d) Refunds.--Subsection (e) of that section is amended by--
            (1) striking ``tariff of a clerical or administrative 
        nature or an error due to inadvertence'' in paragraph (1) and 
        inserting a comma; and
            (2) striking ``file a new tariff,'' in paragraph (1) and 
        inserting ``publish a new tariff, or an error in quoting a 
        tariff,'';
            (3) striking ``refund, filed a new tariff with the 
        Commission'' in paragraph (2) and inserting ``refund for an 
        error in a tariff or a failure to publish a tariff, published a 
        new tariff'';
            (4) inserting ``and'' at the end of paragraph (2); and
            (5) striking paragraph (3) and redesignating paragraph (4) 
        as paragraph (3).
    (e) Marine Terminal Operator Schedules.--Subsection (f) of that 
section is amended to read as follows:
    ``(f) Marine Terminal Operator Schedules.--A marine terminal 
operator may make available to the public, subject to section 10(d) of 
this Act, a schedule of rates, regulations, and practices, including 
limitations of liability for cargo loss or damage, pertaining to 
receiving, delivering, handling, or storing property at its marine 
terminal. Any such schedule made available to the public shall be 
enforceable by an appropriate court as an implied contract without 
proof of actual knowledge of its provisions.''.
    (f) Automated Tariff System Requirements; Form.--Section 8 of that 
Act is amended by adding at the end the following:
    ``(g) Regulations.--The Commission shall by regulation prescribe 
the requirements for the accessibility and accuracy of automated tariff 
systems established under this section. The Commission may, after 
periodic review, prohibit the use of any automated tariff system that 
fails to meet the requirements established under this section. The 
Commission may not require a common carrier to provide a remote 
terminal for access under subsection (a)(2). The Commission shall by 
regulation prescribe the form and manner in which marine terminal 
operator schedules authorized by this section shall be published.''.

SEC. 107. AUTOMATED TARIFF FILING AND INFORMATION SYSTEM.

    Section 502 of the High Seas Driftnet Fisheries Enforcement Act (46 
U.S.C. App. 1707a) is repealed.

SEC. 108. CONTROLLED CARRIERS.

    Section 9 of the Shipping Act of 1984 (46 U.S.C. App. 1708) is 
amended by--
            (1) striking ``service contracts filed with the 
        Commission'' in the first sentence of subsection (a) and 
        inserting ``service contracts, or charge or assess rates,'';
            (2) striking ``or maintain'' in the first sentence of 
        subsection (a) and inserting ``maintain, or enforce'';
            (3) striking ``disapprove'' in the third sentence of 
        subsection (a) and inserting ``prohibit the publication or use 
        of''; and
            (4) striking ``filed by a controlled carrier that have been 
        rejected, suspended, or disapproved by the Commission'' in the 
        last sentence of subsection (a) and inserting ``that have been 
        suspended or prohibited by the Commission'';
            (5) striking ``may take into account appropriate factors 
        including, but not limited to, whether--'' in subsection (b) 
        and inserting ``shall take into account whether the rates or 
        charges which have been published or assessed or which would 
        result from the pertinent classifications, rules, or 
        regulations are below a level which is fully compensatory to 
        the controlled carrier based upon that carrier's actual costs 
        or upon its constructive costs. For purposes of the preceding 
        sentence, the term `constructive costs' means the costs of 
        another carrier, other than a controlled carrier, operating 
        similar vessels and equipment in the same or a similar trade. 
        The Commission may also take into account other appropriate 
        factors, including but not limited to, whether--'';
            (6) striking paragraph (1) of subsection (b) and 
        redesignating paragraphs (2), (3), and (4) as paragraphs (1), 
        (2), and (3), respectively;
            (7) striking ``filed'' in paragraph (1) as redesignated and 
        inserting ``published or assessed'';
            (8) striking ``filing with the Commission.'' in subsection 
        (c) and inserting ``publication.'';
            (9) striking ``Disapproval of Rates.--'' in subsection (d) 
        and inserting ``Prohibition of Rates.--Within 120 days after 
        the receipt of information requested by the Commission under 
        this section, the Commission shall determine whether the rates, 
        charges, classifications, rules, or regulations of a controlled 
        carrier may be unjust and unreasonable.'';
            (10) striking ``filed'' in subsection (d) and inserting 
        ``published or assessed'';
            (11) striking ``may issue'' in subsection (d) and inserting 
        ``shall issue'';
            (12) striking ``disapproved.'' in subsection (d) and 
        inserting ``prohibited.'';
            (13) striking ``60'' in subsection (d) and inserting 
        ``30'';
            (14) inserting ``controlled'' after ``affected'' in 
        subsection (d);
            (15) striking ``file'' in subsection (d) and inserting 
        ``publish'';
            (16) striking ``disapproval'' in subsection (e) and 
        inserting ``prohibition'';
            (17) inserting ``or'' after the semicolon in subsection 
        (f)(1);
            (18) striking paragraphs (2), (3), and (4) of subsection 
        (f); and
            (19) redesignating paragraph (5) of subsection (f) as 
        paragraph (2).

SEC. 109. PROHIBITED ACTS.

    (a) Section 10(b) of the Shipping Act of 1984 (46 U.S.C. App. 
1709(b)) is amended by--
            (1) striking paragraphs (1) through (3);
            (2) redesignating paragraph (4) as paragraph (1);
            (3) inserting after paragraph (1), as redesignated, the 
        following:
            ``(2) provide service in the liner trade that--
                    ``(A) is not in accordance with the rates, charges, 
                classifications, rules, and practices contained in a 
                tariff published or a service contract entered into 
                under section 8 of this Act unless excepted or exempted 
                under section 8(a)(1) or 16 of this Act; or
                    ``(B) is under a tariff or service contract which 
                has been suspended or prohibited by the Commission 
                under section 9 of this Act or the Foreign Shipping 
                Practices Act of 1988 (46 U.S.C. App. 1710a);'';
            (4) redesignating paragraphs (5) and (6) as paragraphs (3) 
        and (4), respectively;
            (5) striking ``except for service contracts,'' in paragraph 
        (4), as redesignated, and inserting ``for service pursuant to a 
        tariff,'';
            (6) striking ``rates;'' in paragraph (4)(A), as 
        redesignated, and inserting ``rates or charges;'';
            (7) inserting after paragraph (4), as redesignated, the 
        following:
            ``(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;'';
            (8) redesignating paragraphs (7) and (8) as paragraphs (6) 
        and (7), respectively;
            (9) striking paragraph (6) as redesignated and inserting 
        the following:
            ``(6) use a vessel or vessels in a particular trade for the 
        purpose of excluding, preventing, or reducing competition by 
        driving another ocean common carrier out of that trade;'';
            (10) striking paragraphs (9) through (13) and inserting the 
        following:
            ``(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) redesignating paragraphs (14), (15), and (16) as 
        paragraphs (11), (12), and (13), respectively;
            (12) striking ``a non-vessel-operating common carrier'' in 
        paragraphs (11) and (12) as redesignated and inserting ``an 
        ocean transportation intermediary'';
            (13) striking ``sections 8 and 23'' in paragraphs (11) and 
        (12) as redesignated and inserting ``sections 8 and 19'';
            (14) striking ``or in which an ocean transportation 
        intermediary is listed as an affiliate'' in paragraph (12), as 
        redesignated;
            (15) striking ``Act;'' in paragraph (12), as redesignated, 
        and inserting ``Act, or with an affiliate of such ocean 
        transportation intermediary;''
            (16) striking ``paragraph (16)'' in the matter appearing 
        after paragraph (13), as redesignated, and inserting 
        ``paragraph (13)''; and
            (17) inserting ``the Commission,'' after ``United States,'' 
        in such matter.
    (b) Section 10(c) of the Shipping Act of 1984 (46 U.S.C. App. 
1709(c)) is amended by--
            (1) striking ``non-ocean carriers'' in paragraph (4) and 
        inserting ``non-ocean carriers, unless such negotiations and 
        any resulting agreements are not in violation of the antitrust 
        laws and are consistent with the purposes of this Act'';
            (2) striking ``freight forwarder'' in paragraph (5) and 
        inserting ``transportation intermediary, as defined by section 
        3(17)(A) of this Act,'';
            (3) striking ``or'' at the end of paragraph (5);
            (4) striking ``contract.'' in paragraph (6) and inserting 
        ``contract;''; and
            (5) adding at the end the following:
            ``(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 persons due to 
        those persons' status as shippers' associations or ocean 
        transportation intermediaries; 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 persons due to those persons' status as 
        shippers' associations or ocean transportation 
        intermediaries;''.
    (c) Section 10(d) of the Shipping Act of 1984 (46 U.S.C. App. 
1709(d)) is amended by--
            (1) striking ``freight forwarders,'' and inserting 
        ``transportation intermediaries,'';
            (2) striking ``freight forwarder,'' in paragraph (1) and 
        inserting ``transportation intermediary,'';
            (3) striking ``subsection (b)(11), (12), and (16)'' and 
        inserting ``subsections (b)(10) and (13)''; and
            (4) adding at the end thereof the following:
            ``(4) No marine terminal operator may give any undue or 
        unreasonable preference or advantage or impose any undue or 
        unreasonable prejudice or disadvantage with respect to any 
        person.
            ``(5) The prohibition in subsection (b)(13) of this section 
        applies to ocean transportation intermediaries, as defined by 
        section 3(17)(A) of this Act.''.

SEC. 110. COMPLAINTS, INVESTIGATIONS, REPORTS, AND REPARATIONS.

    Section 11(g) of the Shipping Act of 1984 (46 U.S.C. App. 1710(g)) 
is amended by--
            (1) striking ``section 10(b)(5) or (7)'' and inserting 
        ``section 10(b)(3) or (6)''; and
            (2) striking ``section 10(b)(6)(A) or (B)'' and inserting 
        ``section 10(b)(4)(A) or (B).''.

SEC. 111. FOREIGN SHIPPING PRACTICES ACT OF 1988.

    Section 10002 of the Foreign Shipping Practices Act of 1988 (46 
U.S.C. App. 1710a) is amended by--
            (1) striking ```non-vessel-operating common carrier','' in 
        subsection (a)(1) and inserting ```ocean transportation 
        intermediary','';
            (2) striking ``forwarding and'' in subsection (a)(4);
            (3) striking ``non-vessel-operating common carrier'' in 
        subsection (a)(4) and inserting ``ocean transportation 
        intermediary services and'';
            (4) striking ``freight forwarder,'' in subsections (c)(1) 
        and (d)(1) and inserting ``transportation intermediary,'';
            (5) striking ``filed with the Commission,'' in subsection 
        (e)(1)(B) and inserting ``and service contracts,'';
            (6) inserting ``and service contracts'' after ``tariffs'' 
        the second place it appears in subsection (e)(1)(B); and
            (7) striking ``(b)(5)'' each place it appears in subsection 
        (h) and inserting ``(b)(6)''.

SEC. 112. PENALTIES.

    (a) Section 13(a) of the Shipping Act of 1984 (46 U.S.C. App. 
1712(a)) is amended by adding at the end thereof the following: ``The 
amount of any penalty imposed upon a common carrier under this 
subsection shall constitute a lien upon the vessels operated by that 
common carrier and any such vessel may be libeled therefore in the 
district court of the United States for the district in which it may be 
found.''.
    (b) Section 13(b) of the Shipping Act of 1984 (46 U.S.C. App. 
1712(b)) is amended by--
            (1) striking ``section 10(b)(1), (2), (3), (4), or (8)'' in 
        paragraph (1) and inserting ``section 10(b)(1), (2), or (7)'';
            (2) by redesignating paragraphs (4), (5), and (6) as 
        paragraphs (5), (6), and (7), respectively;
            (3) inserting before paragraph (5), as redesignated, the 
        following:
            ``(4) If the Commission finds, after notice and an 
        opportunity for a hearing, that a common carrier has failed to 
        supply information ordered to be produced or compelled by 
        subpoena under section 12 of this Act, the Commission may 
        request that the Secretary of the Treasury refuse or revoke any 
        clearance required for a vessel operated by that common 
        carrier. Upon request by the Commission, the Secretary of the 
        Treasury shall, with respect to the vessel concerned, refuse or 
        revoke any clearance required by section 4197 of the Revised 
        Statutes of the United States (46 U.S.C. App. 91).''; and
            (4) striking ``paragraphs (1), (2), and (3)'' in paragraph 
        (6), as redesignated, and inserting ``paragraphs (1), (2), (3), 
        and (4)''.
    (c) Section 13(f)(1) of the Shipping Act of 1984 (46 U.S.C. App. 
1712(f)(1)) is amended by--
            (1) striking ``or (b)(4)'' and inserting ``or (b)(2)'';
            (2) striking ``(b)(1), (4)'' and inserting ``(b)(1), (2)''; 
        and
            (3) adding at the end thereof the following ``Neither the 
        Commission nor any court shall order any person to pay the 
        difference between the amount billed and agreed upon in writing 
        with a common carrier or its agent and the amount set fourth in 
        any tariff or service contract by that common carrier for the 
        transportation service provided.''.

SEC. 113. REPORTS AND CERTIFICATES.

    Section 15 of the Shipping Act of 1984 (46 U.S.C. App. 1714) is 
amended by--
            (1) striking ``and certificates'' in the section heading;
            (2) striking ``(a) Reports.--'' in the subsection heading 
        for subsection (a); and
            (3) striking subsection (b).

SEC. 114. EXEMPTIONS.

    Section 16 of the Shipping Act of 1984 (46 U.S.C. App. 1715) is 
amended by striking ``substantially impair effective regulation by the 
Commission, be unjustly discriminatory, result in a substantial 
reduction in competition, or be detrimental to commerce.'' and 
inserting ``result in substantial reduction in competition or be 
detrimental to commerce.''.

SEC. 115. AGENCY REPORTS AND ADVISORY COMMISSION.

    Section 18 of the Shipping Act of 1984 (46 U.S.C. App. 1717) is 
repealed.

SEC. 116. OCEAN FREIGHT FORWARDERS.

    Section 19 of the Shipping Act of 1984 (46 U.S.C. App. 1718) is 
amended by--
            (1) striking ``freight forwarders'' in the section caption 
        and inserting ``transportation intermediaries'';
            (2) striking subsection (a) and inserting the following:
    ``(a) License.--No person in the United States may act as an ocean 
transportation intermediary unless that person holds a license issued 
by the Commission. The Commission shall issue an intermediary's license 
to any person that the Commission determines to be qualified by 
experience and character to act as an ocean transportation 
intermediary.'';
            (3) redesignating subsections (b), (c), and (d) as 
        subsections (c), (d), and (e), respectively;
            (4) inserting after subsection (a) the following:
    ``(b) Financial Responsibility.--
            ``(1) No person may act as an ocean transportation 
        intermediary unless that person furnishes a bond, proof of 
        insurance, or other surety in a form and amount determined by 
        the Commission to insure financial responsibility that is 
        issued by a surety company found acceptable by the Secretary of 
        the Treasury.
            ``(2) A bond, insurance, or other surety obtained pursuant 
        to this section--
                    ``(A) shall be available to pay any order for 
                reparation issued pursuant to section 11 or 14 of this 
                Act, or any penalty assessed pursuant to section 13 of 
                this Act;
                    ``(B) may be available to pay any claim against an 
                ocean transportation intermediary arising from its 
                transportation-related activities described in section 
                3(17) of this Act with the consent of the insured ocean 
                transportation intermediary and subject to review by 
                the surety company, or 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
                    ``(C) shall be available to pay any judgment for 
                damages against an ocean transportation intermediary 
                arising from its transportation-related activities 
                under section 3(17) of this Act, provided the claimant 
                has first attempted to resolve the claim pursuant to 
                subparagraph (B) of this paragraph and the claim has 
                not been resolved within a reasonable period of time.
            ``(3) 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.
            ``(4) 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.'';
            (5) striking, each place such term appears--
                    (A) ``freight forwarder'' and inserting 
                ``transportation intermediary'';
                    (B) ``a forwarder's'' and inserting ``an 
                intermediary's'';
                    (C) ``forwarder'' and inserting ``intermediary''; 
                and
                    (D) ``forwarding'' and inserting ``intermediary'';
            (6) striking ``a bond in accordance with subsection 
        (a)(2).'' in subsection (c), as redesignated, and inserting ``a 
        bond, proof of insurance, or other surety in accordance with 
        subsection (b)(1).'';
            (7) striking ``Forwarders.--''  in the caption of 
        subsection (e), as redesignated, and inserting 
        ``Intermediaries.--'';
            (8) striking ``intermediary'' the first place it appears in 
        subsection (e)(1), as redesignated and as amended by paragraph 
        (5)(A), and inserting ``intermediary, as defined in section 
        3(17)(A) of this Act,'';
            (9) striking ``license'' in paragraph (1) of subsection 
        (e), as redesignated, and inserting ``license, if required by 
        subsection (a),'';
            (10) striking paragraph (3) of subsection (e), as 
        redesignated, and redesignating paragraph (4) as paragraph (3); 
        and
            (11) adding at the end of subsection (e), as redesignated, 
        the following:
            ``(4) No conference or group of 2 or more ocean common 
        carriers in the foreign commerce of the United States that is 
        authorized to agree upon the level of compensation paid to an 
        ocean transportation intermediary, as defined in section 
        3(17)(A) of this Act, may--
                    ``(A) deny to any member of the conference or group 
                the right, upon notice of not more than 5 calendar 
                days, to take independent action on any level of 
                compensation paid to an ocean transportation 
                intermediary, as so defined; or
                    ``(B) agree to limit the payment of compensation to 
                an ocean transportation intermediary, as so defined, to 
                less than 1.25 percent of the aggregate of all rates 
                and charges which are applicable under a tariff and 
                which are assessed against the cargo on which the 
                intermediary services are provided.''.

SEC. 117. CONTRACTS, AGREEMENTS, AND LICENSES UNDER PRIOR SHIPPING 
              LEGISLATION.

    Section 20 of the Shipping Act of 1984 (46 U.S.C. App. 1719) is 
amended by--
            (1) striking subsection (d) and inserting the following:
    ``(d) Effects on Certain Agreements and Contracts.--All agreements, 
contracts, modifications, licenses, and exemptions previously issued, 
approved, or effective under the Shipping Act, 1916, or the Shipping 
Act of 1984, shall continue in force and effect as if issued or 
effective under this Act, as amended by the Ocean Shipping Reform Act 
of 1998, and all new agreements, contracts, and modifications to 
existing, pending, or new contracts or agreements shall be considered 
under this Act, as amended by the Ocean Shipping Reform Act of 1998.'';
            (2) inserting the following at the end of subsection (e):
            ``(3) The Ocean Shipping Reform Act of 1998 shall not 
        affect any suit--
                    ``(A) filed before the effective date of that Act; 
                or
                    ``(B) with respect to claims arising out of conduct 
                engaged in before the effective date of that Act filed 
                within 1 year after the effective date of that Act.
            ``(4) Regulations issued by the Federal Maritime Commission 
        shall remain in force and effect where not inconsistent with 
        this Act, as amended by the Ocean Shipping Reform Act of 
        1998.''.

SEC. 118. SURETY FOR NON-VESSEL-OPERATING COMMON CARRIERS.

    Section 23 of the Shipping Act of 1984 (46 U.S.C. App. 1721) is 
repealed.

  TITLE II--AUTHORIZATION OF APPROPRIATIONS FOR THE FEDERAL MARITIME 
                               COMMISSION

SEC. 201. AUTHORIZATION OF APPROPRIATIONS FOR FISCAL YEAR 1998.

    There are authorized to be appropriated to the Federal Maritime 
Commission, $15,000,000 for fiscal year 1998.

SEC. 202. FEDERAL MARITIME COMMISSION ORGANIZATION.

    Section 102(d) of Reorganization Plan No. 7 of 1961 (75 Stat. 840) 
is amended to read as follows:
    ``(d) A vacancy or vacancies in the membership of Commission shall 
not impair the power of the Commission to execute its functions. The 
affirmative vote of a majority of the members serving on the Commission 
is required to dispose of any matter before the Commission.''.

SEC. 203. REGULATIONS.

    Not later than March 1, 1999, the Federal Maritime Commission shall 
prescribe final regulations to implement the changes made by this Act.

       TITLE III--AMENDMENTS TO OTHER SHIPPING AND MARITIME LAWS

SEC. 301. AMENDMENTS TO SECTION 19 OF THE MERCHANT MARINE ACT, 1920.

    (a) In General.--Section 19 of the Merchant Marine Act, 1920 (46 
U.S.C. App. 876) is amended by--
            (1) striking ``forwarding and'' in subsection (1)(b);
            (2) striking ``non-vessel-operating common carrier 
        operations,'' in subsection (1)(b) and inserting ``ocean 
        transportation intermediary services and operations,'';
            (3) striking ``methods or practices'' and inserting 
        ``methods, pricing practices, or other practices'' in 
        subsection (1)(b);
            (4) striking ``tariffs of a common carrier'' in subsection 
        7(d) and inserting ``tariffs and service contracts of a common 
        carrier'';
            (5) striking ``use the tariffs of conferences'' in 
        subsections (7)(d) and (9)(b) and inserting ``use tariffs of 
        conferences and service contracts of agreements'';
            (6) striking ``tariffs filed with the Commission'' in 
        subsection (9)(b) and inserting ``tariffs and service 
        contracts'';
            (7) striking ``freight forwarder,'' each place it appears 
        and inserting ``transportation intermediary,''; and
            (8) striking ``tariff'' each place it appears in subsection 
        (11) and inserting ``tariff or service contract''.
    (b) Stylistic Conformity.--Section 19 of the Merchant Marine Act, 
1920 (46 U.S.C. App. 876), as amended by subsection (a), is further 
amended by--
            (1) redesignating subdivisions (1) through (12) as 
        subsections (a) through (l), respectively;
            (2) redesignating subdivisions (a), (b), and (c) of 
        subsection (a), as redesignated, as paragraphs (1), (2), and 
        (3);
            (3) redesignating subdivisions (a) through (d) of 
        subsection (f), as redesignated, as paragraphs (1) through (4), 
        respectively;
            (4) redesignating subdivisions (a) through (e) of 
        subsection (g), as redesignated, as paragraphs (1) through (5), 
        respectively;
            (5) redesignating clauses (i) and (ii) of subsection 
        (g)(4), as redesignated, as subparagraphs (A) and (B), 
        respectively;
            (6) redesignating subdivisions (a) through (e) of 
        subsection (i), as redesignated, as paragraphs (1) through (5), 
        respectively;
            (7) redesignating subdivisions (a) and (b) of subsection 
        (j), as redesignated, as paragraphs (1) and (2), respectively;
            (8) striking ``subdivision (c) of paragraph (1)'' in 
        subsection (c), as redesignated, and inserting ``subsection 
        (a)(3)'';
            (9) striking ``paragraph (2)'' in subsection (c), as 
        redesignated, and inserting ``subsection (b)'';
            (10) striking ``paragraph (1)(b)'' each place it appears 
        and inserting ``subsection (a)(2)'';
            (11) striking ``subdivision (b),'' in subsection (g)(4), as 
        redesignated, and inserting ``paragraph (2),'';
            (12) striking ``paragraph (9)(d)'' in subsection (j)(1), as 
        redesignated, and inserting ``subsection (i)(4)''; and
            (13) striking ``paragraph (7)(d) or (9)(b)'' in subsection 
        (k), as redesignated, and inserting ``subsection (g)(4) or 
        (i)(2)''.

SEC. 302. TECHNICAL CORRECTIONS.

    (a) Public Law 89-777.--Sections 2 and 3 of the Act of November 6, 
1966 (46 U.S.C. App. 817d and 817e) are amended by striking ``they in 
their discretion'' each place it appears and inserting ``it in its 
discretion''.
    (b) Tariff Act of 1930.--Section 641(i) of the Tariff Act of 1930 
(19 U.S.C. 1641) is repealed.

                  TITLE IV--MERCHANT MARINER BENEFITS.

 SEC. 401. MERCHANT MARINER BENEFITS.

    (a) Benefits.--Part G of subtitle II, title 46, United States Code, 
is amended by adding at the end the following new chapter:

                              ``CHAPTER 112--MERCHANT MARINER BENEFITS
``Sec.
``11201. Qualified service.
``11202. Documentation of qualified service.
``11203. Eligibility for certain veterans' benefits.
``11204. Processing fees.
``Sec. 11201. Qualified service
    ``For purposes of this chapter, a person engaged in qualified 
service if, between August 16, 1945, and December 31, 1946, the 
person--
            ``(1) was a member of the United States merchant marine 
        (including the Army Transport Service and the Naval 
        Transportation Service) serving as a crewmember of a vessel 
        that was--
                    ``(A) operated by the War Shipping Administration 
                or the Office of Defense Transportation (or an agent of 
                the Administration or Office);
                    ``(B) operated in waters other than inland waters, 
                the Great Lakes, other lakes, bays, and harbors of the 
                United States;
                    ``(C) under contract or charter to, or property of, 
                the Government of the United States; and
                    ``(D) serving the Armed Forces; and
            ``(2) while so serving, was licensed or otherwise 
        documented for service as a crewmember of such a vessel by an 
        officer or employee of the United States authorized to license 
        or document the person for such service.
``Sec. 11202. Documentation of qualified service
    ``(a) Record of Service.--The Secretary, or in the case of 
personnel of the Army Transport Service or the Naval Transport Service, 
the Secretary of Defense, shall, upon application--
            ``(1) issue a certificate of honorable discharge to a 
        person who, as determined by the respective Secretary, engaged 
        in qualified service of a nature and duration that warrants 
        issuance of the certificate; and
            ``(2) correct, or request the appropriate official of the 
        Federal Government to correct, the service records of the 
        person to the extent necessary to reflect the qualified service 
        and the issuance of the certificate of honorable discharge.
    ``(b) Timing of Documentation.--The respective Secretary shall take 
action on an application under subsection (a) not later than one year 
after the respective Secretary receives the application.
    ``(c) Standards Relating to Service.--In making a determination 
under subsection (a)(1), the respective Secretary shall apply the same 
standards relating to the nature and duration of service that apply to 
the issuance of honorable discharges under section 401(a)(1)(B) of the 
GI Bill Improvement Act of 1977 (38 U.S.C. 106 note).
    ``(d) Correction of Records.--An official of the Federal Government 
who is requested to correct service records under subsection (a)(2) 
shall do so.
``Sec. 11203. Eligibility for certain veterans' benefits
    ``(a) Eligibility.--
            ``(1) In general.--The qualified service of an individual 
        referred to in paragraph (2) is deemed to be active duty in the 
        Armed Forces during a period of war for purposes of eligibility 
        for benefits under chapters 23 and 24 of title 38.
            ``(2) Covered individuals.--Paragraph (1) applies to an 
        individual who--
                    ``(A) receives an honorable discharge certificate 
                under section 11202 of this title; and
                    ``(B) is not eligible under any other provision of 
                law for benefits under laws administered by the 
                Secretary of Veterans Affairs.
    ``(b) Reimbursement for Benefits Provided.--The Secretary shall 
reimburse the Secretary of Veterans Affairs for the value of benefits 
that the Secretary of Veterans Affairs provides for an individual by 
reason of eligibility under this section.
    ``(c) Prospective Applicability.--An individual is not entitled to 
receive, and may not receive, benefits under this chapter for any 
period before the date of enactment of this chapter.
``Sec. 11204. Processing fees
    ``(a) Collection of Fees.--The Secretary, or in the case of 
personnel of the Army Transport Service or the Naval Transport Service, 
the Secretary of Defense, shall collect a fee of $30 from each 
applicant for processing an application submitted under section 
11202(a) of this title.
    ``(b) Treatment of Fees Collected.--Amounts received by the 
respective Secretary under this section shall be deposited in the 
general fund of the Treasury as offsetting receipts of the department 
in which the Coast Guard is operating and ascribed to Coast Guard 
activities, or in the case of fees collected for processing discharges 
from the Army Transport Service or the Naval Transport Service, 
deposited in the general fund of the Treasury as offsetting receipts of 
the Department of Defense, and shall be available subject to 
appropriation for the administrative costs for processing such 
applications.''.
    (b) Clerical Amendment.--The table of chapters at the beginning of 
subtitle II of title 46, United States Code, is amended by inserting 
after the item relating to chapter 111 the following:

``112. Merchant mariner benefits.............11201''.

            TITLE V--CERTAIN LOAN GUARANTEES AND COMMITMENTS

SEC. 501. CERTAIN LOAN GUARANTEES AND COMMITMENTS.

    (a) The Secretary of Transportation may not issue a guarantee or 
commitment to guarantee a loan for the construction, reconstruction, or 
reconditioning of a liner vessel under the authority of title XI of the 
Merchant Marine Act, 1936 (46 U.S.C. App. 1271 et seq.) after the date 
of enactment of this Act unless the Chairman of the Federal Maritime 
Commission certifies that the operator of such vessel--
            (1) has not been found by the Commission to have violated 
        section 19 of the Merchant Marine Act, 1920 (46 U.S.C. App. 
        876), or the Foreign Shipping Practices Act of 1988 (46 U.S.C. 
        App. 1701a), within the previous 5 years; and
            (2) has not been found by the Commission to have committed 
        a violation of the Shipping Act of 1984 (46 U.S.C. App. 1701 et 
        seq.), which involves unjust or unfair discriminatory treatment 
        or undue or unreasonable prejudice or disadvantage with respect 
        to a United States shipper, ocean transportation intermediary, 
        ocean common carrier, or port within the previous 5 years.
    (b) The Secretary of Commerce may not issue a guarantee or a 
commitment to guarantee a loan for the construction, reconstruction, or 
reconditioning of a fishing vessel under the authority of title XI of 
the Merchant Marine Act, 1936 (46 U.S.C. App. 1271 et seq.) if the 
fishing vessel operator has been--
            (1) held liable or liable in rem for a civil penalty 
        pursuant to section 308 of the Magnuson-Stevens Fishery 
        Conservation and Management Act (16 U.S.C. 1858) and not paid 
        the penalty;
            (2) found guilty of an offense pursuant to section 309 of 
        the Magnuson-Stevens Fishery Conservation and Management Act 
        (16 U.S.C. 1859) and not paid the assessed fine or served the 
        assessed sentence;
            (3) held liable for a civil or criminal penalty pursuant to 
        section 105 of the Marine Mammal Protection Act of 1972 (16 
        U.S.C. 1375) and not paid the assessed fine or served the 
        assessed sentence; or
            (4) held liable for a civil penalty by the Coast Guard 
        pursuant to title 33 or 46, United States Code, and not paid 
        the assessed fine.

            Passed the Senate April 21, 1998.

            Attest:

                                                             Secretary.
105th CONGRESS

  2d Session

                                 S. 414

_______________________________________________________________________

                                 AN ACT

     To amend the Shipping Act of 1984 to encourage competition in 
  international shipping and growth of United States exports, and for 
                            other purposes.

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