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







105th CONGRESS
  1st Session
                                 S. 414

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 10, 1997

  Mrs. Hutchison (for herself, Mr. Lott, Mr. Breaux, and Mr. Gorton) 
introduced the following bill; which was read twice and referred to the 
           Committee on Commerce, Science, and Transportation

_______________________________________________________________________

                                 A BILL


 
     To amend the Shipping Act of 1984 to encourage competition in 
international shipping and growth of United States imports and 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 1997'' 

SEC. 2. EFFECTIVE DATE.

     Except as otherwise expressly provided in this Act, this Act and 
the amendments made by this Act take effect on March 1, 1998.

            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''; 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.

    (a) In General.--Section 3 of the Shipping Act of 1984 (46 U.S.C. 
App. 1702) is amended by--
            (1) striking paragraph (5) and redesignating paragraph (4) 
        as paragraph (5);
            (2) inserting after paragraph (3) the following:
            ``(4) `Board' means the Intermodal Transportation Board.'';
            (3) striking ``the government under whose registry the 
        vessels of the carrier operate;'' in paragraph (8) and 
        inserting ``a government;'';
            (4) 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.'';
            (5) striking ``in an unfinished or semifinished state that 
        require special handling moving in lot sizes too large for a 
        container'' in paragraph (11);
            (6) striking ``paper board in rolls, and paper in rolls.'' 
        in paragraph (11) and inserting ``paper and paper board in 
        rolls or in pallet or skid-sized sheets.'';
            (7) striking ``conference, other than a service contract or 
        contract based upon time-volume rates,'' in paragraph (14) and 
        inserting ``conference'';
            (8) striking ``conference.'' in paragraph (14) and 
        inserting ``conference and the contract provides for a deferred 
        rebate arrangement.'';
            (9) by striking ``carrier.'' in paragraph (15) 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.''.
            (10) striking paragraph (17) and redesignating paragraphs 
        (18) through (27) as paragraphs (17) through (26), 
        respectively;
            (11) striking paragraph (18), as redesignated, and 
        inserting the following:
            ``(18) `ocean freight forwarder' means a person that--
                    ``(A)(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; or
                    ``(B) acts as 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.'';
            (12) striking paragraph (20), as redesignated and inserting 
        the following:
            ``(20) `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.'';
            (13) striking paragraph (22), as redesignated, and 
        inserting the following:
            ``(22) `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 freight forwarder, as defined in 
                paragraph (18)(B) of this section, that accepts 
                responsibility for payment of all charges applicable 
                under the tariff or service contract.''.
    (b) Special Effective Date.--The amendments made by subsection (a) 
take effect on the date of enactment, except that the amendments made 
by paragraphs (1) and (2) take effect on January 1, 1999.

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 upon 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)''; 
        and
            (2) 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.

    Section 5(b) of the Shipping Act of 1984 (46 U.S.C. App. 1704(b)) 
is amended by--
            (1) striking ``and'' at the end of paragraph (7);
            (2) striking paragraph (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; and
            ``(9) prohibit the conference from--
                    ``(A) prohibiting or restricting the members of the 
                conference from engaging in negotiations for individual 
                service contracts under section 8(c)(3) of this Act 
                with 1 or more shippers;
                    ``(B) requiring a member of the conference to 
                disclose the existence of a confidential individual 
                service contract under section 8(c)(3) of this Act, or 
                a negotiation on an individual service contract under 
                section 8(c)(3) of this Act, except when the conference 
                enters into negotiations with the same shipper; and
                    ``(C) issuing mandatory rules or requirements 
                affecting individual service contracts under section 
                8(c)(3) of this Act, except as provided in subparagraph 
                (B).
A conference may issue voluntary guidelines relating to the terms and 
procedures of individual service contracts under section 8(c)(3) of 
this Act if the guidelines explicitly state the right of members of the 
conference not to follow the guidelines.''.

SEC. 105. EXEMPTION FROM ANTITRUST LAWS.

    (a) In General.--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) inserting ``Federal Maritime'' before ``Commission'' in 
        paragraph (6) of subsection (a);
            (3) striking ``or'' at the end of subsection (b)(2);
            (4) striking ``States.'' at the end of subsection (b)(3) 
        and inserting ``States; or''; and
            (5) adding at the end of subsection (b) the following:
            ``(4) to any loyalty contract.''.
    (b) Special Effective Date.--The amendments made by subsection (a) 
take effect on the date of enactment except the amendment made by 
paragraph (2) of subsection (a) takes effect on January 1, 1999.

SEC. 106. TARIFFS.

    (a) In General.--Subsection (a) of section 8 of the Shipping Act of 
1984 (46 U.S.C. App. 1707) 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 ``and'' at the end of paragraph (1)(D);
            (6) striking ``loyalty contract,'' in paragraph (1)(E);
            (7) striking ``agreement.'' in paragraph (1)(E) and 
        inserting ``agreement; and'';
            (8) adding at the end of paragraph (1) the following:
                    ``(F) include copies of any loyalty contract, 
                omitting the shipper's name.''; and
            (9) 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.
            ``(2) Agreement service contracts.--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 agreement shall be filed confidentially with the 
        Commission, and at the same time, a concise statement of its 
        essential terms shall be published and made available to the 
        general public in tariff format, and those essential terms 
        shall be available to all shippers similarly situated. The 
        essential terms shall include--
                    ``(A) the origin and destination port ranges in the 
                case of port-to-port movements, and the origin and 
                destination geographic areas in the case of through 
                intermodal movements;
                    ``(B) the commodity or commodities involved;
                    ``(C) the minimum volume;
                    ``(D) the line-haul rate;
                    ``(E) the duration;
                    ``(F) service commitments; and
                    ``(G) the liquidated damages for nonperformance, if 
                any.
            ``(3) Individual service contracts.--Notwithstanding 
        subsection (a) of this section and paragraph (2) of this 
        subsection, service contracts entered into under this 
        subsection between 1 or more shippers and an individual ocean 
        common carrier--
                    ``(A) may be made on a confidential basis;
                    ``(B) are not required to be filed with the 
                Commission; and
                    ``(C) shall be retained by the parties to the 
                contract for 3 years subsequent to the expiration of 
                the contract.'';
    (c) Rates.--Subsection (d) of that section is amended by--
            (1) striking ``30 days after filing with the Commission.'' 
        in the first sentence and inserting ``21 calendar days after 
        publication.'';
            (2) striking ``less than 30'' in the next sentence and 
        inserting ``less than 21 calendar''; and
            (3) striking ``publication and filing with the 
        Commission.'' in the last sentence and inserting 
        ``publication.''.
    (d) Marine Terminal Operator Schedules.--Subsection (e) of that 
section is amended to read as follows:
    ``(e) Marine Terminal Operator Schedules.--A marine terminal 
operator may make available to the public 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 as an implied contract, 
subject to section 10 of this Act, without proof of actual knowledge of 
its provisions.''.
    (e) Automated Tariff System Requirements; Form.--Subsection (f) of 
that section is amended to read as follows:
    ``(f) 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 ``filed with the Commission'' in the first 
        sentence of subsection (a) and inserting a comma and ``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'' each place it appears in subsection 
        (b) and inserting ``published or assessed'';
            (8) striking ``filing with the Commission'' in subsection 
        (c) and inserting ``publication'';
            (9) striking ``Disapproval.--'' 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.'';
            (15) striking ``60'' in subsection (d) and inserting 
        ``30'';
            (16) inserting ``controlled'' after ``affected'' in 
        subsection (d);
            (17) striking ``file'' in subsection (d) and inserting 
        ``publish''.
            (18) striking ``disapproval'' in subsection (e) and 
        inserting ``prohibition'';
            (19) inserting ``or'' after the semicolon in subsection 
        (f)(1);
            (20) striking paragraphs (2), (3), and (4) of subsection 
        (f); and
            (21) 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 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 or 11a of this Act;'';
            (4) redesignating paragraphs (5) through (8) as paragraphs 
        (3) through (6), respectively;
            (5) striking paragraph (9) and redesignating paragraphs 
        (10) through (16) as paragraphs (7) through (13), respectively;
            (6) in paragraph (7), as redesignated, inserting ``except 
        for service contracts,'' before ``demand,'';
            (7) in paragraph (9), as redesignated --
                    (A) inserting ``port, class or type of shipper, 
                ocean freight forwarder,'' after ``locality,''; and
                    (B) inserting a comma and ``except for service 
                contracts,'' after ``deal or'';
            (8) striking ``a non-vessel-operating common carrier'' each 
        place it appears in paragraphs (11) and (12), as redesignated, 
        and inserting ``an ocean freight forwarder'';
            (9) striking ``sections 8 and 23'' in paragraphs (11) and 
        (12), as redesignated, and inserting ``sections 8 and 19'';
            (10) striking ``paragraph (16)'' in the matter appearing 
        after paragraph (13), as redesignated, and inserting 
        ``paragraph (13)''; and
            (11) inserting ``the Commission,'' after ``United States,'' 
        in such matter.
    (b) Section 10(c)(5) of the Shipping Act of 1984 (46 U.S.C. App. 
1709(c)(5)) is amended by inserting ``as defined by section 3(18)(A) of 
this Act,'' before ``or limit''.
    (c) Section 10(d)(3) of the Shipping Act of 1984 (46 U.S.C. App. 
1709(d)(3)) is amended by striking ``subsection (b)(11), (12), and 
(16)'' and inserting ``subsections (b)(8), (9), and (13)''.

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 (5)''; 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) by striking ``non-vessel-operating common carrier,'' in 
        paragraph (1) and inserting ``ocean freight forwarder,'';
            (2) by striking ``non-vessel-operating common carrier 
        operations,'' in paragraph (4);
            (3) by inserting ``and service contracts'' after 
        ``tariffs'' each place it appears in subsection (e)(1)(B);
            (4) by striking ``filed with the Commission'' in subsection 
        (e)(1)(B); and
            (5) by striking ``section 13(b)(5) of the Shipping Act of 
        1984 (46 App. U.S.C. 1712(b)(5)'' in subsection (h) and 
        inserting ``section 13(b)(6) of the Shipping Act of 1984 (46 
        App. U.S.C. 1712(b)(6))''.

SEC. 112. SUBPOENAS AND DISCOVERY.

    Section 12(a)(2) of the Shipping Act of 1984 (46 U.S.C. App. 1711 
(a)(2)) is amended by striking ``evidence.'' and inserting ``evidence, 
including individual service contracts described in section 8(c)(3) of 
this Act.''.

SEC. 113. 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 of the common 
carrier and any such vessel may be libeled therefor 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 (6)'';
            (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 striking ``or (b)(4)'' and inserting ``or 
(b)(2)''.

SEC. 114. 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. 115. 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 substantial reduction 
in competition, or be detrimental to commerce.'' and inserting ``result 
in substantial reduction in competition or be detrimental to 
commerce.''.

SEC. 116. AGENCY REPORTS AND ADVISORY COMMISSION.

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

SEC. 117. OCEAN FREIGHT FORWARDERS.

    Section 19 of the Shipping Act of 1984 (46 U.S.C. App. 1718) is 
amended by--
            (1) striking subsection (a) and inserting the following:
    ``(a) License.--No person in the United States may act as an ocean 
freight forwarder unless that person holds a license issued by the 
Commission. The Commission shall issue a forwarder's license to any 
person that the Commission determines to be qualified by experience and 
character to act as an ocean freight forwarder.'';
            (2) redesignating subsections (b), (c), and (d) as 
        subsections (c), (d), and (e), respectively;
            (3) inserting after subsection (a) the following:
    ``(b) Financial Responsibility.--
            ``(1) No person may act as an ocean freight forwarder 
        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 judgment for 
                damages against an ocean freight forwarder arising from 
                its transportation-related activities under section 
                3(18) of this Act, or 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; 
                and
                    ``(B) may be available to pay any claim against an 
                ocean freight forwarder arising from its 
                transportation-related activities under section 3(18) 
                of this Act that is deemed valid by the surety company 
                after providing the ocean freight forwarder the 
                opportunity to address the validity of the claim.
            ``(3) An ocean freight forwarder 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.'';
            (4) 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)'';
            (5) striking ``forwarder'' in paragraph (1) of subsection 
        (e) and inserting ``forwarder, as described in section 
        3(18),'';
            (6) striking ``license'' in paragraph (1) of subsection (e) 
        and inserting ``license, if required by subsection (a),'';
            (7) striking paragraph (3) of subsection (e), as 
        redesignated, and redesignating paragraph (4) as paragraph (3); 
        and
            (8) 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 freight forwarder, as defined in section 3(18)(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 freight forwarder, as so 
                defined; or
                    ``(B) agree to limit the payment of compensation to 
                an ocean freight forwarder, 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 forwarding 
                services are provided.''.

SEC. 118. 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, 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 1997, 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 1997.'';
            (2) inserting the following at the end of subsection (e):
            ``(3) The Ocean Shipping Reform Act of 1997 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 
        1997.''.

SEC. 119. SURETY FOR NON-VESSEL-OPERATING COMMON CARRIERS.

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

SEC. 120. REPLACEMENT OF FEDERAL MARITIME COMMISSION WITH INTERMODAL 
              TRANSPORTATION BOARD.

    (a) In General.--The Shipping Act of 1984 (46 U.S.C. App. 1701 et 
seq.) is amended by--
            (1) striking ``Federal Maritime Commission'' each place it 
        appears, except in sections 7(a)(6) and 20, and inserting 
        ``Intermodal Transportation Board'';
            (2) striking ``Commission'' each place it appears 
        (including chapter and section headings), except in sections 
        7(a)(6) and 20, and inserting ``Board''; and
            (3) striking ``Commission's'' each place it appears and 
        inserting ``Board's''.
    (b) Effective Date.--The amendments made by subsection (a) take 
effect on January 1, 1999.

 TITLE II--TRANSFER OF FUNCTIONS OF THE FEDERAL MARITIME COMMISSION TO 
                  THE INTERMODAL TRANSPORTATION BOARD

SEC. 201. TRANSFER TO THE INTERMODAL TRANSPORTATION BOARD.

    (a) Change of Name of Surface Transportation Board to Intermodal 
Transportation Board.--The ICC Termination Act of 1995 (Pub. L. 104-88) 
is amended by striking ``Surface Transportation Board'' each place it 
appears and inserting ``Intermodal Transportation Board''.
    (b) Functions of the Federal Maritime Commission.--All functions, 
powers and duties vested in the Federal Maritime Commission shall be 
administered by the Intermodal Transportation Board.
    (c) Regulations.--No later than January 1, 1998, the Federal 
Maritime Commission, in consultation with the Surface Transportation 
Board, shall prescribe final regulations to implement the changes made 
by this Act.
    (d) Authorization of Appropriations for Fiscal Year 1998.--There is 
authorized to be appropriated to the Federal Maritime Commission, 
$15,000,000 for fiscal year 1998.
    (e) Commissioners of the Federal Maritime Commission.--Subject to 
the political party restrictions of section 701(b) of title 49, United 
States Code, the 2 Commissioners of the Federal Maritime Commission 
whose terms have the latest expiration dates shall become members of 
the Intermodal Transportation Board. Of the 2 members of the Intermodal 
Transportation Board first appointed under this subsection, the one 
with the first expiring term (as a member of the Federal Maritime 
Commission) shall serve for a term ending December 31, 2000, and the 
other shall serve for a term ending December 31, 2002. Effective 
January 1, 1999, the right of any Federal Maritime Commission 
commissioner other than those designated under this subsection to 
remain in office is terminated.
    (f) Membership of the Intermodal Transportation Board.--
            (1) Number of members.--Section 701(b)(1) of title 49, 
        United States Code, is amended by--
                    (A) striking ``3 members'' and inserting ``5 
                members''; and
                    (B) striking ``2 members'' and inserting ``3 
                members''.
            (2) Qualifications.--Section 701(b)(2) of title 49, United 
        States Code, is amended by inserting after ``sector.'' the 
        following: ``Effective January 1, 1999, at least 2 members 
        shall be individuals with--
                    ``(A) professional standing and demonstrated 
                knowledge in the fields of maritime transportation or 
                its regulation; or
                    ``(B) professional or business experience in the 
                maritime transportation private sector, including 
                marine terminal or public port operation.''.
    (g) Effective Date.--The amendments made by this section shall take 
effect on January 1, 1999, except as otherwise provided.

       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 ``Federal Maritime Commission'' each place it 
        appears and inserting ``Intermodal Transportation Board'';
            (2) inserting ``ocean freight'' after ``solicitations,'' in 
        subsection (1)(b);
            (3) striking ``non-vessel-operating common carrier 
        operations,'' in subsection (1)(b);
            (4) striking ``methods or practices'' and inserting 
        ``methods, pricing practices, or other practices'' in 
        subsection (1)(b);
            (5) striking ``tariffs filed with the Commission'' in 
        subsection (9)(b) and inserting ``tariffs and service 
        contracts''; and
            (6) striking ``Commission'' each place it appears 
        (including the heading) and inserting ``Board''.
    (b) Special Effective Date.--The amendments made by subsection (a) 
take effect on the date of enactment of this Act, except that the 
amendments made by paragraphs (1) and (6) of that subsection take 
effect on January 1, 1999.

SEC. 302. TECHNICAL CORRECTIONS.

    (a) Public Law 89-777.--The Act of November 6, 1966, (Public Law 
89-777; 80 Stat. 1356; 46 U.S.C. App. 817 et seq.) is amended by--
            (1) striking ``Federal Maritime Commission'' each place it 
        appears and inserting ``Intermodal Transportation Board''; and
            (2) striking ``Commission'' each place it appears and 
        inserting ``Board''.
    (b) Title 28, United States Code, and Cross Reference.--
            (1) Section 2341 of title 28, United States Code, is 
        amended by--
                    (A) striking ``Commission, the Federal Maritime 
                Commission,'' in paragraph (3)(A); and
                    (B) striking ``Surface'' in paragraph (3)(E) and 
                inserting ``Intermodal''.
            (2) Section 2342 of such title is amended by--
                    (A) striking paragraph (3) and inserting the 
                following:
            ``(3) all rules, regulations, or final orders of the 
        Secretary of Transportation issued pursuant to section 2, 9, 
        37, 41, or 43 of the Shipping Act, 1916 (46 U.S.C. App. 802, 
        803, 808, 835, 839, or 841a) or pursuant to part B or C of 
        subtitle IV of title 49 (49 U.S.C. 13101 et seq. or 15101 et 
        seq.);''; and
                    (B) striking paragraph (5) and inserting the 
                following:
            ``(5) all rules, regulations, or final orders of the 
        Intermodal Transportation Board--
                    ``(A) made reviewable by section 2321 of this 
                title; or
                    ``(B) pursuant to--
                            ``(i) section 19 of the Merchant Marine 
                        Act, 1920 (46 U.S.C. App. 876);
                            ``(ii) section 14 or 17 of the Shipping Act 
                        of 1984 (46 U.S.C. App. 1713 or 1716); or
                            ``(iii) section 2(d) or 3(d) of the Act of 
                        November 6, 1966 (46 U.S.C. App. 817d(d) or 
                        817e(d));''.
    (c) Foreign Shipping Practices Act of 1988.--Section 10002(i) of 
the Foreign Shipping Practices Act of 1988 (46 U.S.C. 1710a(i)) is 
amended by striking ``2342(3)(B)'' and inserting ``2342(5)(B)''.
    (d) Tariff Act of 1930.--Section 641(i) of the Tariff Act of 1930 
(19 U.S.C. 1641) is repealed.
    (e) Effective Dates.--
            (1) The amendments made by subsections (a), (b), and (c) 
        take effect January 1, 1999.
            (2) The repeal made by subsection (d) takes effect March 1, 
        1998.
                                 <all>