[Congressional Record Volume 144, Number 42 (Friday, April 3, 1998)]
[Senate]
[Pages S3192-S3202]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
OCEAN SHIPPING REFORM ACT OF 1997
Mrs. HUTCHISON. Mr. President, on behalf of the leader, I ask
unanimous consent that the Senate now proceed to the consideration of
S. 414, and it be considered under the following limitations: A
substitute amendment offered by Senator Hutchison and an amendment to
the substitute on application of the act to be offered by Senator
Gorton.
The PRESIDING OFFICER. Without objection, it is so ordered. The clerk
will report.
The assistant legislative clerk read as follows:
A bill (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.
The Senate proceeded to consider the bill, which had been reported
from the Committee on Commerce, Science, and Transportation, with an
amendment to strike all after the enacting clause and inserting in lieu
thereof the following:
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--
[[Page S3193]]
(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.
(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 paragraph (10) and redesignating paragraphs
(11) through (27) as paragraphs (10) through (26);
(6) 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;
(7) 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.'';
(8) striking ``conference, other than a service contract or
contract based upon time-volume rates,'' in paragraph (13) as
redesignated and inserting ``agreement'';
(9) striking ``conference.'' in paragraph (13) as
redesignated and inserting ``agreement and the contract
provides for a deferred rebate arrangement.'';
(10) 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.''.
(11) striking paragraph (16) as redesignated and
redesignating paragraphs (17) through (26) as redesignated as
paragraphs (16) through (25), respectively;
(12) 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.'';
(13) 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 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 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.'';
(14) 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.''.
(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;'';
and
(2) striking ``and'' in paragraph (6) and inserting ``or''.
(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.
(a) In General.--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 agreement from--
``(A) prohibiting or restricting the members of the
agreement from engaging in negotiations for service contracts
with 1 or more shippers;
``(B) requiring a member of the agreement to disclose a
negotiation on a service contract, or the terms and
conditions of a service contract, other than those specified
by section 8(c)(3) of this Act; and
``(C) issuing mandatory rules or requirements affecting an
agreement member's right to negotiate and enter into service
contracts.
An agreement may issue voluntary guidelines relating to the
terms and procedures of agreement members' service contracts
if the guidelines explicitly state the right of members of
the agreement not to follow the guidelines and the guidelines
are filed with the agreement.''.
(b) Application.--Section 5(d) of that Act (46 U.S.C. App.
1704(d)) is amended by striking ``this Act, the Shipping Act,
1916, and the Intercoastal Shipping Act, 1933,'' and
inserting ``this Act and the Shipping Act, 1916,''.
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.--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 ``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 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 affiliated with, or controlled by, any
party to the contract.
``(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 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;
[[Page S3194]]
``(E) the line-haul rate;
``(F) the duration;
``(G) service commitments; and
``(H) the liquidated damages for nonperformance, if any.
``(3) Publication of certain essential terms.--When a
service contract is filed confidentially with the Commission,
a concise statement of the terms described in paragraphs
(2)(C), (D), and (F) and the United States port range shall
be published and made available to the public in tariff
format.
``(4) Disclosure of certain unpublished terms.--A party to
a collective-bargaining agreement may petition the Commission
for the disclosure of any service contract terms not required
to be published by paragraph (3) which that party considers
to be in violation of that agreement. The petition shall
include evidence demonstrating that
``(A) a specific ocean common carrier is a party to a
collective-bargaining agreement with the petitioner;
``(B) the ocean common carrier may be violating the terms
and conditions of that agreement; and
``(C) the alleged violation involves the moment of cargo
subject to this Act.
``(5) Action by Commission.--The Commission, after
reviewing a petition under paragraph (4), the evidence
provided with the petition, and the filed service contracts
of the carrier named in the petition, may disclose to the
petitioner only such unpublished terms of that carrier's
service contracts that the Commission reasonably believes may
constitute a violation of the collective-bargaining
agreement. The Commission may not disclose any unpublished
service contract terms with respect to a collective-
bargaining agreement term or condition determined by the
Commission to be in violation of this Act.''.
(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 ``30 calendar days after
publication.'';
(2) inserting ``calendar'' after ``30'' in the next
sentence; 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, subject
to section 10(d) of this Act, a schedule of rates,
regulations, and practices 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.''.
(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 ``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.'';
(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 services, facilities, or privileges, other
than in accordance with the rates or terms in its tariffs or
service contracts in effect when the service was provided;'';
(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), as redesignated,
and inserting ``rates or charges;'';
(7) inserting ``(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 location, port, class or type of shipper or ocean
transportation intermediary, or description of traffic;''
after paragraph (4);
(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 in a particular trade to drive 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 location, port, class or type of shipper or ocean
transportation intermediary, or description of traffic;
``(10) unreasonably refuse to deal or negotiate;'';
(10) redesignating paragraphs (14), (15), and (16) as
paragraphs (11), (12), and (13), respectively;
(11) striking ``a non-vessel-operating common carrier'' in
paragraphs (11) and (12) as redesignated and inserting ``an
ocean transportation intermediary'';
(12) striking ``sections 8 and 23'' in paragraphs (11) and
(12) as redesignated and inserting ``sections 8 and 19'';
(13) striking ``or in which an ocean transportation
intermediary is listed as an affiliate'' in paragraph (11),
as redesignated;
(14) striking ``Act;'' in paragraph (12), as redesignated,
and inserting ``Act, or with an affiliate of such ocean
transportation intermediary;''
(15) striking ``paragraph (16)'' in the matter appearing
after paragraph (13), as redesignated, and inserting
``paragraph (13)''; and
(16) 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 striking ``freight forwarder''
and inserting ``transportation intermediary, as defined by
section 3(17)(A) of this Act,''.
(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) (8), (9), (10), and (13)''; and
(4) adding at the end thereof the following:
``(4) 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);
[[Page S3195]]
(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 of the 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)''; and
(2), striking ``(b)(1), (4)'' and inserting ``(b)(1),
(2)''.
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 judgment for damages
against an ocean transportation intermediary arising from its
transportation-related activities described in section 3(17)
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
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, 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.
``(3) 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, 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. 118. SURETY FOR NON-VESSEL-OPERATING COMMON CARRIERS.
Section 23 of the Shipping Act of 1984 (46 U.S.C. App.
1721) is repealed.
SEC. 119. 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 Surface Transportation
Board shall be known as the Intermodal Transportation Board
after December 31, 1998.
(b) Transfer of Functions, Personnel, and Assets of the
Federal Maritime Commission.--
(1) Functions; powers; duties.--All functions, powers, and
duties vested in the Federal Maritime Commission are hereby
transferred to and shall be administered by the Intermodal
Transportation Board.
(2) Transfer of Assets and Personnel.--Any personnel,
property, or records employed, used, held, available, or to
be made available in connection with a function transferred
to the Board under paragraph (1) shall be transferred to the
Board for use in connection with the function transferred,
and unexpended balances of appropriations, allocations, and
other funds of the Federal Maritime Commission shall be
transferred to the Board. Those unexpended balances,
allocations, and other funds, together with any unobligated
balances from fees collected by the Commission during fiscal
year 1999, may be used to pay for the closedown of
[[Page S3196]]
the Commission and severance costs for Commisssion personnel,
regardless of whether those costs are incurred at the
Commission or at the 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.--
Effective January 1, 1999, the right of any Federal Maritime
Commission commissioner 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) Initial terms.--Of the 2 additional members of the
Intermodal Transportation Board first appointed under section
701(b)(1) of title 49, United States Code, as amended by
paragraph (1), one shall serve for a term ending December 31,
2000, and the other shall serve for a term ending December
31, 2002.
(3) Qualifications.--Section 701(b)(2) of title 49, United
States Code, is amended to read as follows:
``(2) At any given time, at least 3 members of the Board
shall be individuals with professional standing and
demonstrated knowledge in the fields of surface or maritime
transportation or their regulation, and at least 2 members
shall be individuals with professional or business experience
(including agriculture, surface or maritime transportation,
or marine terminal or port operation) in the private sector.
At any given time, at least 2 members of the Board shall be
individuals with professional standing and demonstrated
knowledge in maritime transportation or its regulation or
professional or business experience in maritime
transportation or marine terminal or port operation in the
private sector, and at least 2 members of the Board shall be
individuals with professional standing and demonstrated
knowledge in surface transportation or its regulation or
professional or business experience in agriculture or surface
transportation in the private sector. Neither of the 2
individuals appointed as surface transportation members under
the preceding sentence, and neither of the 2 individuals
appointed as maritime transportation members under that
sentence, may be members of the same political party.''.
SEC. 202. SAVING PROVISIONS.
(a) Legal Documents.--All orders, determinations, rules,
regulations, permits, grants, loans, contracts, agreements,
certificates, licenses, and privileges--
(1) that have been issued, made, granted, or allowed to
become effective by the Federal Maritime Commission or the
Surface Transportation Board, any officer or employee of the
Surface Transportation Board that are in effect on December
31, 1998, (or become effective after such date pursuant to
their terms as in effect on such effective date), shall
continue in effect according to their terms until modified,
terminated, superseded, set aside, or revoked in accordance
with law by the Intermodal Transportation Board, any other
authorized official, a court of competent jurisdiction, or
operation of law. .
(b) Proceedings.-- The provisions of this title shall not
affect any proceedings or any application for any license
pending before the Federal Maritime Commission or the Surface
Transportation Board at the time this Section takes effect,
but such proceedings and applications shall be continued
before the Intermodal Transportation Board. Orders shall be
issued in such proceedings, appeals shall be taken therefrom,
and payments shall be made pursuant to such orders, as if
this Act had not been enacted; and orders issued in any such
proceedings shall continue in effect until modified,
terminated, superseded, or revoked by a duly authorized
official, by a court of competent jurisdiction, or by
operation of law. Nothing in this subsection shall be deemed
to prohibit the discontinuance or modification of any such
proceeding under the same terms and conditions and to the
same extent that such proceeding could have been discontinued
or modified if this Act had not been enacted.
(c) Suits.--(1) This Act shall not affect suits commenced
before the date of the enactment of this Act, except as
provided in paragraphs (2) and (3). In all such suits,
proceeding shall be had, appeals taken, and judgments
rendered in the same manner and with the same effect as if
this Act had not been enacted.
(2) Any suit by or against the Federal Maritime Commission
or the Surface Transportation Board begun before the
effective date of this Act shall be continued with the
Intermodal Transportation Board.
(3) If the court in a suit described in paragraph (1)
remands a case to the Board, subsequent proceedings related
to such case shall proceed in accordance with applicable law
and regulations as in effect at the time of such subsequent
proceedings.
(d) Continuance of Actions Against Officers.--No suit,
action, or other proceeding commenced by or against any
officer in his official capacity as an officer of the Federal
Maritime Commission or the Surface Transportation Board shall
abate by reason of the enactment of this Act. No cause of
action by or against the Federal Maritime Commission or the
Surface Transportation Board, or by or against any officer
thereof in his official capacity, shall abate by reason of
enactment of this Act.
SEC. 203. REFERENCES.
Any reference to the Surface Transportation Board in any
other Federal law, Executive order, rule, regulation, or
delegation of authority, or any document of or pertaining to
the Surface Transportation Board or an officer or employee of
the Surface Transportation Board, is deemed to refer to the
Intermodal Transportation Board, or a member or employee of
the Board, as appropriate.
SEC. 204. EFFECTIVE DATE.
This title, and the amendments made by this section shall
take effect on January 1, 1999, except as otherwise provided.
Subtitle B--Conforming Amendments to United States Code
SEC. 221. TITLE 5 AMENDMENTS.
(a) Compensation for Positions at Level III.--Section 5314
of title 5, United States Code, is amended by striking
``Chairman, Surface Transportation Board.'' and inserting in
lieu thereof ``Chairman, Intermodal Transportation Board.''.
(b) Compensation for Positions at Level IV.--Section 5315
of title 5, United States Code, is amended by striking
``Members, Surface Transportation Board.'' and inserting in
lieu thereof ``Members, Intermodal Transportation Board.''.
SEC. 222. TITLE 11 AMENDMENTS.
Subchapter IV of chapter 11 of title 11, United States
Code, is amended--
(1) by striking section 1162 and inserting in lieu thereof
the following:
``SEC. 1162. DEFINITION
``In this subchapter, `Board' means the `Intermodal
Transportation Board'.''; and
(2) by striking ``Commission'' each place it appears and
inserting in lieu thereof ``Board''.
SEC. 223. TITLE 18 AMENDMENT.
Section 6001(1) of title 18, United States Code, is amended
by striking ``Surface Transportation Board'' and inserting in
lieu thereof ``Intermodal Transportation Board''.
SEC. 224. INTERNAL REVENUE CODE OF 1986 AMENDMENTS.
(a) Section 3231.--Section 3231(a) of the Internal Revenue
Code of 1986 is amended by striking ``Surface Transportation
Board'' and inserting in lieu thereof ``Intermodal
Transportation Board''.
(b) Section 7701.--Section 7701(a)(33)(c)(i) of such Code
is amended by striking ``Surface Transportation Board'' and
inserting in lieu thereof ``Intermodal Transportation
Board''.
SEC. 225. TITLE 28 AMENDMENTS.
(a) Chapter 85.--Chapter 85 of title 28, United States
Code, is amended--
(1) in the section heading to section 1336 by striking
``Surface Transportation Board's'' and inserting in lieu
thereof ``Intermodal Transportation Board's'';
(2) in section 1336 by striking ``Surface Transportation
Board'' each place it appears and inserting in lieu thereof
``Intermodal Transportation Board'';
(4) in the item relating to section 1336 of the table of
sections by striking ``Surface Transportation Board's'' and
inserting in lieu thereof ``Intermodal Transportation
Board's''.
(b) Chapter 157 Amendments.--
(1) In general.-- Chapter 157 of such title is amended--
(A) by striking ``SURFACE TRANSPORTATION BOARD'' in the
chapter heading and inserting in lieu thereof ``INTERMODAL
TRANSPORTATION BOARD''; and
(B) by striking ``Surface Transportation Board'' each place
it appears and inserting in lieu thereof ``Intermodal
Transportation Board''.
(2) Table of chapters.-- The item relating to chapter 157
in the table of chapters of such title is amended by striking
``Surface Transportation Board'' and inserting in lieu
thereof ``Intermodal Transportation Board''.
(c) Chapter 158 Amendments.--
SEC. 226. TITLE 31 AMENDMENTS.
Section 3726(b)(2) of title 31, United States Code, is
amended by striking ``Surface'' and inserting ``Intermodal''.
SEC. 227. TITLE 39 AMENDMENTS.
Title 39, United States Code, is amended--
(1) in section 5005(b)(3) by striking ``Surface
Transportation Board'' and inserting in lieu thereof
``Intermodal Transportation Board'';
(2) in section 5201(1) by striking ``Surface'' and
inserting ``Intermodal''
(3) in the section heading to section 5207 by striking
``Surface Transportation Board'' and inserting in lieu
thereof ``Intermodal Transportation Board; and
(4) in the item relating to section 5207 of the table of
sections of chapter 52, by striking ``Surface Transportation
Board'' and inserting in lieu thereof ``Intermodal
Transportation Board''.
SEC. 228. TITLE 49 AMENDMENTS.
(a) Chapter 7.--Chapter 7 of title 49, United States Code,
is amended by striking ``Surface Transportation Board'' each
place it appears, and inserting ``Intermodal Transportation
Board''.
(b) Chapter 221.--Chapter 221 of such title is amended--
(1) in section 22101(a)(1) by striking ``Surface
Transportation Board'' and inserting in lieu thereof
``Intermodal Transportation Board'';
(2) in section 22103(b)(1) by striking ``Surface
Transportation Board'' and inserting in lieu thereof
``Intermodal Transportation Board'';
(3) in section 22107(c) by striking ``Surface
Transportation Board'' and inserting in lieu thereof
``Intermodal Transportation Board''.
(c) Section 24301.--Section 24301(c)(2)(B) of such title is
amended by striking ``Surface'' and inserting ``Intermodal''.
(d) Subtitle IV of such title is amended by striking
``Surface Transportation Board'' each place it appears and
inserting ``Intermodal Transportation Board''.
[[Page S3197]]
Subtitle C--Other Amendments
SEC. 241. AGRICULTURAL ADJUSTMENT ACT OF 1938 AMENDMENTS.
Section 201 of the Agricultural Adjustment Act of 1938 (7
U.S.C. 1291) is amended by striking ``Surface Transportation
Board'' each place it appears and inserting in lieu thereof
``Intermodal Transportation Board''.
SEC. 242. ANIMAL WELFARE ACT AMENDMENT.
Section 15(a) of the Animal Welfare Act (7 U.S.C. 6145(a))
is amended by striking ``Surface Transportation Board'' and
inserting in lieu thereof ``Intermodal Transportation
Board''.
SEC. 243. FEDERAL ELECTION CAMPAIGN ACT OF 1971 AMENDMENTS.
Section 401 of the Federal Election Campaign Act of 1971 is
amended by striking ``Surface'' and inserting ``Intermodal''.
SEC. 244. FAIR CREDIT REPORTING ACT AMENDMENT.
Section 621(b)(4) of the Fair Credit Reporting Act (15
U.S.C. 1681s(b)(4)) is amended by striking ``Surface'' and
inserting ``Intermodal.''
SEC. 245. EQUAL CREDIT OPPORTUNITY ACT AMENDMENT.
Section 704(a)(4) of the Equal Credit Opportunity Act (15
U.S.C. 1691c(a)(4)) is amended by striking ``Surface'' and
inserting ``Intermodal''
SEC. 246. FAIR DEBT COLLECTION PRACTICES ACT AMENDMENT.
Section 814(b)(4) of the Fair Debt Collection Practices Act
(15 U.S.C. 1692l(b)(4)) is amended by striking ``Surface''
and inserting ``Intermodal''.
SEC. 247. NATIONAL TRAILS SYSTEM ACT AMENDMENTS.
Sections 8(d) and 9(b) of the National Trails System Act
are each amended by striking ``Surface'' and inserting
``Intermodal''
SEC. 248. CLAYTON ACT AMENDMENTS.
Sections 7, 11(a), and 16 of the Clayton Act (15 U.S.C. 18,
2l(a), and (22)) is amended
SEC. 249. ENERGY POLICY ACT OF 1992 AMENDMENTS.
Subsections (a) and (d) of section 1340 of the Energy
Policy Act of 1992 (42 U.S.C. 13369 (a) and (d)) are each
amended by striking ``Interstate Commerce Commission'' and
inserting in lieu thereof ``Intermodal Transportation
Board''.
SEC. 250. ADDITIONAL MERCHANT MARINE ACT, 1920, AMENDMENTS.
Sections 8 and 28 of Merchant Marine Act, 1920 (46 U.S.C.
App. 867 and 883-1) are each amended by striking ``Surface''
and inserting ``Intermodal''.
SEC. 251. RAILWAY LABOR ACT AMENDMENTS.
The first and fifth paragraphs of section 1 of the Railway
Labor Act (45 U.S.C. 151) are each amended by striking
``Surface'' and inserting ``Intermodal''.
SEC. 252. RAILROAD RETIREMENT ACT OF 1974 AMENDMENTS.
Subsections (a)(1)(i), (a)(2)(ii), and (o) of section 1 of
the Railroad Retirement Act of 1974 (45 U.S.C. 231) are each
amended by striking ``Surface'' and inserting ``Intermodal''.
SEC. 253. RAILROAD UNEMPLOYMENT INSURANCE ACT AMENDMENTS.
Sections 1(a), a(b), and 2(h)(3) of the Railroad
Unemployment Insurance Act (45 U.S.C. 351(a), 351(b), and
352(h)(3) are each amended by striking ``Surface'' and
inserting ``Intermodal''.
SEC. 254. EMERGENCY RAIL SERVICES ACT OF 1970 AMENDMENTS.
Section 2(2) of the Emergency Rail Services Act of 1970 (45
U.S.C. 661(2)) is amended by striking ``Surface'' and
inserting ``Intermodal''.
SEC. 255. REGIONAL RAIL REORGANIZATION ACT OF 1973
AMENDMENTS.
Section 713 of the Regional Rail Reorganization Act of 1973
is amended by striking ``Surface'' and inserting
``Intermodal''.
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) striking ``forwarding and'' in subsection (1)(b);
(3) striking ``non-vessel-operating common carrier
operations,'' in subsection (1)(b) and inserting ``ocean
transportation intermediary services and operations,'';
(4) striking ``methods or practices'' and inserting
``methods, pricing practices, or other practices'' in
subsection (1)(b);
(5) striking ``tariffs of a common carrier'' in subsection
7(d) and inserting ``tariffs and service contracts of a
common carrier'';
(6) striking ``use the tariffs of conferences'' in
subsections (7)(d) and (9)(b) and inserting ``use tariffs of
conferences and service contracts of agreements'';
(7) striking ``tariffs filed with the Commission'' in
subsection (9)(b) and inserting ``tariffs and service
contracts''; and
(8) striking ``freight forwarder,'' each place it appears
and inserting ``transportation intermediary,'';
(9) striking ``tariff'' each place it appears in subsection
(11) and inserting ``tariff or service contract''; and
(10) striking ``Commission'' each place it appears
(including the heading) and inserting ``Board''.
(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)'';
striking ``paragraph (1)(b)'' each place it appears and
inserting ``subsection (a)(2)'';
(10) striking ``subdivision (b),'' in subsection (g)(4), as
redesignated, and inserting ``paragraph (2),'';
(11) striking ``paragraph (9)(d)'' in subsection (j)(1), as
redesignated, and inserting ``subsection (i)(4)''; and
(12) striking ``paragraph (7)(d) or (9)(b)'' in subsection
(k), as redesignated, and inserting ``subsection (g)(4) or
(i)(2)''.
(c) Special Effective Date.--The amendments made by this
section take effect on the date of enactment of this Act,
except that the amendments made by paragraphs (1) and (10) of
subsection (a), take effect on January 1, 1999.
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--
(1) striking ``Federal Maritime Commission'' each place it
appears and inserting ``Intermodal Transportation Board'';
(2) striking ``Commission'' each place it appears and
inserting ``Board''; and
(3) striking ``they in their discretion'' each place it
appears and inserting ``it in its discretion''.
(b) Title 28, United States Code, and Cross Reference.--
(1) Section 2341 of title 28, United States Code, is
amended by--
(A) striking ``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.
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.
[[Page S3198]]
``Sec. 11202. DOCUMENTATION OF QUALIFIED SERVICE
``(a) Record of Service.--The Secretary shall, upon
application--
``(1) issue a certificate of honorable discharge to a
person who, as determined by the 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 Secretary shall take
action on an application under subsection (a) not later than
one year after the Secretary receives the application.
``(c) Standards Relating to Service.--In making a
determination under subsection (a)(1), the 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 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
Secretary under this section shall be credited to
appropriations available to the secretary for carrying out
this chapter.''.
(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.
The Secretary of Transportation may not issue a guarantee
or commitment to guarantee a loan for the construction,
reconstruction, or reconditioning of a vessel under the
authority of title XI of the Merchant Marine Act, 1936 (46
U.S.C. App. 1271 et seq.) unless the Commissioner 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;
(2) is not currently under investigation by the Commission
concerning the suspected violation of section 19 of the
Merchant Marine Act, 1920 (46 U.S.C. App. 876), the Shipping
Act of 1984 (46 U.S.C. App. 1701 et seq.), or the Foreign
Shipping Practices Act of 1988 (46 U.S.C. App. 1701a);
(1) 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; and
(4) is not currently under investigation by the Commission
concerning the suspected 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.
Amend the title so as to read ``A Bill to amend the
Shipping Act of 1984 to encourage competition in
international shipping and growth of United States exports,
and for other purposes.
Mrs. HUTCHISON. Mr. President, I ask unanimous consent that there be
a total of 10 minutes of debate on the bill, equally divided, between
the chairman and ranking member or their designees, that there be an
additional 60 minutes for debate on the Gorton amendment, equally
divided between the proponents and the opponents. I further ask
unanimous consent that following the expiration or yielding back of
time, the Senate proceed to lay aside the Gorton amendment and a vote
occur on or in relation to the Gorton amendment at a time to be
determined by the majority leader, after notification of the Democratic
leader, on Tuesday, April 21, to be preceded by 20 minutes for closing
remarks equally divided on Tuesday, to be followed by adoption of the
substitute amendment, and that the bill then be read a third time and
passed, with no intervening action or debate. I finally ask unanimous
consent that if the Gorton amendment is adopted, this consent be
considered void and the bill be open to further amendment and debate.
Mr. GORTON. Reserving the right to object, I simply would like a
clarification that the 20 minutes, after the recess is over, is 20
minutes on the Gorton amendment, is it not?
Mrs. HUTCHISON. Yes.
Mr. GORTON. I have no objection.
The PRESIDING OFFICER. Without objection, it is so ordered.
Amendment No. 1689
(Purpose: To amend the Shipping Act of 1984 to encourage competition in
international shipping and growth of United States exports, and for
other purposes)
Mrs. HUTCHISON. Mr. President, I ask that the substitute at the desk,
amendment No. 1689, be considered.
The PRESIDING OFFICER. The clerk will report the amendment.
The assistant legislative clerk read as follows:
The Senator from Texas [Mrs. Hutchison], for herself, Mr.
Lott and Mr. Breaux, proposes an amendment numbered 1689.
Mrs. HUTCHISON. I ask unanimous consent that reading of the amendment
be dispensed with and I be recognized to speak on the bill.
The PRESIDING OFFICER. Without objection, it is so ordered.
(The text of the amendment is printed in today's Record under
``Amendments Submitted.'')
The PRESIDING OFFICER. The Senator from Texas.
Mrs. HUTCHISON. Mr. President, American ports and carriers and
shippers are disadvantaged by current laws that require all contracts
to be public. To avoid publication, U.S. ports are bypassed when
possible and the U.S. carriers lose business. U.S. exporters, unlike
their foreign competitors, must reveal their ocean transportation
costs, permitting the foreign competition to undercut them. Recent
economic problems in Asia will increase pressure in those countries to
increase their exports. S. 414 will be even more important if our
shippers meet the heightened competitive challenge. S. 414 attempts to
level the playing field between U.S. companies which export and their
foreign competitors.
This bill will encourage greater competition among carriers. It will
provide American exporters and importers with greater choice in
obtaining ocean transportation services and promote more ocean shipping
activity for our carriers and our ports.
In providing our shippers with this important reform, we have still
attempted to preserve antidiscrimination provisions in current law and
the elements of our current ``transparent'' system that protect our
ports, smaller shippers, and U.S. workers. This bill balances the need
to have enough transparency to assure fair pricing with contract
privacy.
Ninety-five percent of U.S. foreign commerce is transported via ocean
shipping. Half of this trade which is carried by container liner
vessels with scheduled service is regulated under the Shipping Act of
1984 and would be affected by these reforms. This legislation
represents an important opportunity to ease the hand of regulation on a
significant sector of commerce.
This bill represents the first major reform of this critical industry
in a decade and the most significant change to the underlying statute
since 1984. Its completion complements the free trade revolution that
has occurred during this same period and will allow American businesses
and consumers to take advantage of the global increase in trade, both
imports and exports.
Mr. President, I am proud to have worked on this bill with the
distinguished Majority Leader Lott and colleagues from both sides of
the aisle to advance this important legislation. I really appreciate
the leadership of the ranking member of the full Commerce Committee,
Senator Hollings, as well as certainly the ranking member of the
Surface Transportation and Merchant Marine Subcommittee, Senator
Inouye, and my colleague from Louisiana, Senator Breaux, and the
chairman of the committee, Senator McCain.
[[Page S3199]]
I would also like to acknowledge the concerns of my colleague from
Washington, Senator Gorton. I am aware of the outstanding issue that he
will soon address with his amendment. I understand the merits of his
amendment. I have sympathy for it. However, I will have to vote against
it and urge my colleagues to do likewise because its adoption at this
time will jeopardize the progress of this bill.
I would like to outline the key points of the legislation. Here are
the highlights of the floor amendment that I have introduced.
We provide shippers and common carriers greater choice and
flexibility in entering into contractual relationships for ocean
transportation and intermodal services. To this end, the most
significant improvements are:
No. 1, that we strengthen the right of individual members of ocean
carrier groups to negotiate and enter into service contracts with one
or more shippers, independent of the carrier group. This means that
individual carriers will be better able to customize their services
without the interference of the carrier conferences.
No. 2, we clarify the rights of groups of ocean common carriers to
jointly negotiate inland transportation rates and services consistent
with antitrust statutes and FMC approval. This means that carriers will
be able to incorporate electronic commerce, logistics and other
services that add value to the customer's contract.
No. 3, we continue to require a form of tariff publication. However,
it is much more flexible than the current tariff filings. Tariffs
become effective upon publication through a private system, such as on
the carriers' World Wide Web pages, not a governmental publication.
Also tariff changes do not require Government approval. This puts the
maritime industry on a similar footing as other transportation
industries which we have deregulated in recent years, providing
carriers with greater flexibility.
The measure protects U.S. exporters from disclosure to their foreign
competitors of certain proprietary business information through their
contractual relationships with common carriers by allowing
confidentiality of certain service contract terms. As I have mentioned
earlier, our competitors can and do contract ocean shipping
transportation confidentially, and our shippers never know what their
competitors are paying for transportation. However, U.S. shippers'
ocean transportation costs are an open book, and foreign competitors
use the information to undercut our exporters whenever possible. Our
ports suffer, too. Shippers who conveniently can, will ship out of
foreign ports in nearby Canada or Mexico to avoid this penalty.
Our shippers say they want more flexibility in dealing with their
ocean carriers and the ability to go outside the traditional tariff
system and conference structure. We have provided this needed
confidentiality, but balanced it with protections for ports and U.S.
dockworkers who seek information on the movement of commodities to
protect their competitive position.
Additionally, this measure relaxes some of the restrictions on
individual carriers relating to practices or preferences in dealing
with exporters, but maintains them with regard to the concerted
activity of two or more carriers.
Finally, the reported bill would have combined the functions of the
Federal Maritime Commission and the Service Transportation Board into a
single agency. This floor amendment retains these separate agencies and
functions in their current form.
Thus, the overall thrust of this entire bill--with the amendment that
I am offering--is to generate more competition for shippers of all
sizes in the ocean transportation sector and to make this important
transportation link to their overseas markets more affordable and
sensitive to their individual needs.
This is a bill that should help our ports get more business, which
means more jobs in America. It should level the playing field for our
U.S. carriers while protecting the rights of shippers and dock workers
and other union personnel. It is very important that we have tried to
balance this.
Is the bill perfect? No. There are things I would like to have seen
different. We have had to compromise to a degree. But I do think we
have done a good job of working with all the interests here and
allowing our carriers, shippers and ports to compete, which means jobs
for Americans.
That is the purpose of this bill. I believe we have done it in the
best way we could, balancing all of the competing interests. I urge my
colleagues to support it.
I yield the floor.
The PRESIDING OFFICER. The Chair recognizes the Senator from
Washington.
Amendment No. 2287 to Amendment No. 1689
(Purpose: To provide rules for the application of the Act to
intermediaries)
Mr. GORTON. I send an amendment to the desk and ask for its immediate
consideration.
The PRESIDING OFFICER. The clerk will report.
The assistant legislative clerk read as follows:
The Senator from Washington, [Mr. Gorton], proposes an
amendment numbered 2287 to amendment numbered 1689.
Mr. GORTON. I ask unanimous consent reading of the amendment be
dispensed with.
The PRESIDING OFFICER. Without objection, it is so ordered.
The amendment is as follows:
On page 5, line 10, strike ``ocean''.
On page 5, line 15, strike ``ocean''.
On page 11, line 16, strike ``ocean''.
On page 12, line 8, strike ``ocean''.
Mr. GORTON. Mr. President, with the exception of the single paragraph
toward the beginning of the eloquent statement by the Senator from
Texas, I agree, literally, with every word of her remarks. In fact, I
think, as I will show to you, that single paragraph with which I
disagree is totally inconsistent with the remarks of the Senator from
Texas. Let me tell you why.
For my first 3 years in the U.S. Senate, 1981-1984, I held hearings,
drafted, worked on, discussed, and ultimately sponsored and passed the
Shipping Act of 1984. Fifteen years ago, I probably could have recited
it from memory. I was at that time the chairman of the subcommittee of
the Commerce Committee now chaired by my esteemed friend, the Senator
from Texas. The goal of the Shipping Act of 1984 was to breathe fresh
air, competition, and deregulation into the worldwide system of ocean
carriage of goods, at least as that carriage affected the United
States. It was an industry controlled by cartels and monopolies far
less interested in those whom it served than in those who provided the
service--most particularly, many foreign-flagged merchant marines.
I am certain when I introduced that bill for debate I made the same
remarks the Senator from Texas has just made--that it was not perfect,
that it did not create a purely competitive market, but that it
represented a major step forward in allowing the fresh air of
competition to breathe on the ocean carriage of goods. And now building
on that 1984 act, the Senator from Texas has brought us a further
proposal which opens up, still wider, the field of ocean carriage of
goods to competition. It is in that respect a fine bill.
What the bill does is say that shippers can make agreements with
ocean carriers in the same fashion that almost all contracts in the
private sector can be made in the United States without having to
follow the specific monetary requirements of filed tariffs, but simply
as private contracts in which the shipper could get the best possible
deal that it can negotiate and the carrier can get as high a price for
that carriage as it can negotiate. This is the heart of the free market
system. It is a precisely proper philosophy for the carriage of goods
by sea. The bill also allows the ocean carriers to get together with
land carriers so that you can get one price for shipping your goods
from, say, in your case, Mr. President, Cheyenne, WY, to Yokohama,
Japan, also a major step forward.
One thing, however, it does not do, and that is what my amendment is
all about. If you are a major manufacturer, a huge shipper, capable of
filling an entire vessel with a single shipment of your goods, or at
least so large a container that you can effectively deal directly with
the ocean carrier, you get the advantage of this competitive system.
You can make the best deal you can wring out of that ocean carrier.
But if you are the kind of shipper or seller that I suspect is more
common in a rural State like Wyoming, and you
[[Page S3200]]
are shipping only a modest amount of goods, you have very little
leverage with the ocean carrier. You probably don't even know very much
about how to engage in that business. So you hire an intermediary,
usually in one of America's ports, a customs broker, or a freight
consolidator, to do it for you. These intermediaries, almost without
exception, are small business people. That intermediary gets together a
bunch of shipments from small shippers and it makes the contract with
the ocean carrier. In other words, small business people hire other
small business people to consolidate their shipments so they can have
advantages equal to those of the big businesses and the big shippers.
At the present time, under the 1984 law the same rules as to
published tariffs and the degree of competition or lack of competition
apply to the big shipper and the small shipper.
And I may say that when the Senator from Texas wrote this bill, she
provided the same advantages to the small shipper and the intermediary
as she did to the big shipper. Obviously, there should not be
discrimination between those two groups. And that is the way the bill
was reported from the Commerce Committee--more competition, more
ability to negotiate. You didn't have to tell your competitors what you
were paying. Everybody benefited.
Oh, but, Mr. President, what happen then? Well, then, the big
longshore unions objected. The International Longshoremen's Association
and the International Longshoremen's and Warehouseman's Union don't
like these little guys because sometimes the little guys don't use the
longshore unions to put these shipments together. So the longshoremen's
unions go to the majority leader and the Senator from Texas and say: We
are not going to let this bill pass unless you help us drive these
little people out of business and say that we will give all of these
new competitive advantages to the big boys, who automatically use the
longshore unions, but we are not going to give the benefits of
competition to the little people, to that small shipper from Cheyenne,
WY; we are not going to give them to that freight intermediary in
Seattle, WA, or in Newark, NJ. Oh, no. They still have to publish their
rates. They still can't enter into long term contracts and make the
best possible deal.
So not only are you depriving the small shippers and transportation
intermediaries of an advantage of a free market, you are telling them
they are in a terribly unfavored competitive situation as against the
ocean carriers themselves. You are forcing the small shipper in
Cheyenne, if he can possibly do so, to go directly to the ocean
carrier.
What kind of deal do you expect he is going to get under those
circumstances? He doesn't know anything about these transactions and he
doesn't have any expert working for him. He will pay far more than his
large competitor will for the carriage of his goods. Or, of course, he
could still go to the intermediary, but the intermediary can't get as
good a deal for him as the large shipper can get.
You listened to the unanimous consent that preceded this debate, Mr.
President, and you may have questioned the end of it. The end of it
states that if I win, the ball game is over. If my amendment is
adopted, most of the members of the party that claims to be for the
little guy will kill the bill, and they will kill it because the little
guy gets equal advantages with the big guy. That is what the unanimous
consent is all about.
Mr. President, it is no more complicated and no less complicated than
just that. If we are willing to put our votes where our mouths are when
we go home and talk about the virtues of small businesses, if we are
willing to carry out the kind of pledges we make in our election
campaigns and treat people equally, if we are willing to say that if a
competitive market is good for the large, it is good for the small, we
will vote for the Gorton amendment and see whether or not the people on
the other side dare kill a procompetitive bill just because it doesn't
add to the monopoly of two unions at the expense of small businesses
all across the United States of America.
Mr. President, I ask that you and other Members of this body consider
this matter in the 2\1/2\ weeks we are going to be away, and see
whether or not we don't want to treat people fairly and not ratify an
agreement that was made behind closed doors, with the ocean carriers
present and the big shippers present and the unions present, but the
small business people told: Get lost; we are not going to listen to you
while we make this deal.
That is the wrong way to reach an agreement, and it is the wrong way
to pass legislation. We can correct it by passing this amendment.
Mr. BREAUX. Mr. President, I rise in opposition to the Gorton
amendment, which would give non-vessel-operating common carriers, or
NVOs, the right to offer service contracts to shippers--that is, the
importers and exporters--just as do vessel-operating ocean common
carriers. NVOs do not own or operate vessels. They are middlemen, who
act as carriers in relation to their shipper customers, and who then
act as shippers when they offer those cargoes to vessel-operating
carriers for transport. NVOs were first legislatively recognized as a
legal entity in the 1984 Shipping Act, in recognition that NVOs can
provide specialized attention and service to small shippers whose
minimal cargo volumes are not always worth the time and attention of
large vessel-operating carriers. No other nation has legally recognized
the concept of non-vessel-owner-common carriers.
Originally, NVOs consolidated the cargoes of several shippers into a
container and then took advantage of the full container rates offered
by ocean carriers. There are thousands of NVOs doing business in the
United States, all of whom are required to file their rates, to adhere
to their rates, and to be bonded to establish their financial
responsibility to their customers. It should be noted that S. 414 will
reduce the cost of tariff filing by eliminating the requirement that
the federal government collect and disseminate tariff information, and
would replace this system with a requirement that tariff information be
publicly available through a private sector resource, such as the
internet or other private sector information system provider.
This system has been working well for 14 years. There is no reason to
change it. Small shippers--with only the occasional box or two of cargo
to be transported--have come to depend on NVOs for the care and
personal attention that a larger carrier cannot offer. But some NVOs
have grown immeasurably in size, primarily those that are based in
Europe, and are now competing directly for cargo with the major U.S.
and foreign shipping lines. It is precisely these NVOs who are not
satisfied with their current status, and insist that despite the fact
that they have none of the expenses attendant to actually operating
vessels, want to be treated like a vessel-operating common carrier in
every respect. They want to offer service contracts to shippers and
groups of shippers who can afford to promise large volumes of cargo in
return for more favorable rates.
It is not fair to the vessel-operating common carriers serving our
trades, with their huge capital investments, that they be put on par
with entities taking advantage of the fiction of current law calling
them carriers. And it is especially not fair that the small ``mom and
pop'' NVOs, who are not in a position to compete with some of the NVO
giants that have emerged, may be swallowed up by them if the larger
ones are allowed to offer service contracts. Small NVOs, by virtue of
the modest cargoes they handle, will not be able to take advantage of
the Gorton amendment; only the mega-companies will. America's small
businesses do not deserve this treatment. This amendment is not about
protecting the interests of small business, it is actually about
treating large multinational forwarding companies the same way that we
would ocean carriers. The end result would be to provide a disincentive
to actually own and operate ships. Why actually own and operate ships
if you could function in the same fashion as an ocean carrier without
actually having to own or control any of the transportion functions or
liabilities.
Moreover, S. 414, as revised by the Hutchison, Lott, Breaux
amendment, represents a delicately crafted compromise reflecting the
interests of all sectors of the shipping industry, including vessel-
and non-vessel-operating common carriers, as well as shipper,
forwarder, port and labor interests. The resulting documents cannot
[[Page S3201]]
be altered in a piecemeal fashion without upsetting that balance. No
one in this compromise got exactly and completely what was wanted;
everyone won a little and lost a little. That's what a compromise is.
I urge my colleagues to vote against destroying several years of hard
work to come up with a fair and viable revision of our shipping laws. I
would like to thank my colleagues, Senators Hutchison, Lott and Gorton
for all of the work that they have put into this measure, and I urge
you to vote against the Gorton amendment.
Mrs. HUTCHISON addressed the Chair.
The PRESIDING OFFICER (Mr. Gorton). The Chair recognizes the Senator
from Texas.
Mrs. HUTCHISON. Mr. President, I think the Senator from Washington
has made a very eloquent statement, and I am very glad that we agree on
99 percent of this bill and that we agree that this is a very important
improvement for the whole shipping and carrier industry which will
promote more business for U.S. ports.
I do not take issue with anything Senator Gorton has said, except to
say that in the balancing of competing interests, it is very difficult
to have acceptance by all. And I can truthfully say that no one who is
affected in this shipping industry is completely happy with this bill--
no one--not the unions, not the shippers, not the carriers, and not the
non-vessel-operating common carriers of which Senator Gorton spoke. But
in the main, the balance is better for all of these than in the present
law.
This bill has some advantages above current law for these non-vessel-
operating common carriers. They can take advantage of the tariff
reforms. They will be able to privately publish tariffs, and they don't
need to file them with the Federal Maritime Commission. These NVOs, as
shippers, can have confidential contracts with carriers, helping them
compete against each other. They will be able to benefit, of course,
from the more competitive atmosphere among carriers when purchasing
space, and they have the current protections against discrimination
against them by cartels maintained in this bill.
So while they are not completely happy with this bill--and I
certainly understand their concerns--there are important pro-
competitive reforms they will benefit from.
I would point out that the other entities affected by this bill are
also not completely happy with it. But they too, recognize it as a
compromise that contains positive reforms. I think all would say that
having this legislation does open competition, it does bring business
to U.S. carriers, the competition will bring lower prices to shippers,
and our ports will get the business.
That is good for everyone above and beyond the law as it stands
today.
I hope, when we vote on Senator Gorton's amendment, people will
understand this balancing, that they will opt in favor of the Hutchison
amendment to S. 414 unamended by the Gorton amendment and then let us
keep working on this issue, which I think certainly the non-vessel-
operating common carriers are entitled to and which I pledge I will do
and try to get a bill that is a balance, that creates more jobs and
more business for America. That should be our goal, and I believe it
is. Let us just get there.
I thank the Chair.
Now, according to the unanimous consent agreement, I will yield back
the time from the majority side. The minority side has agreed to also
yield back time. If Senator Gorton does not wish to have further
debate, then I will yield the floor and the unanimous consent agreement
is in effect.
Mr. GORTON addressed the Chair.
The PRESIDING OFFICER (Mr. DeWine). The Senator from Washington.
Mr. GORTON. I thank the Senator from Texas. We are about finished
with debate on this amendment, and it is the appropriate course of
action for both of us to yield back our time. I will maybe take 2
minutes on it and then relieve the Chair for my assignment there, and
we can go on to something else.
Mr. President, I appreciate the courteous response of the Senator
from Texas to my remarks. Again I have to say that she and I agree
profoundly on the goals of this legislation. I am proud that she has
been able to build on what I started a decade and a half ago. She has
worked as hard and almost as long on this bill as I did on the 1984 act
itself. It certainly can be said they go in precisely the same
direction--more competition, better service, and a higher degree of
competitiveness on the part of American business in that portion of the
world's merchant marine, including the U.S. flag merchant marine that
operates out of the United States. She is certainly right when she says
many of the current rules disadvantage American businesses and cause
some shipments to go to Canada or Mexico that might otherwise come
directly here.
The amendment that I have proposed, of course, moves another major
step in that direction. It is, as I emphasized, exactly what the
Senator from Texas wanted when she wrote the bill in the committee and
was forced to retreat from by these large interests, particularly the
maritime unions. But it does disadvantage one group. If you have a
semicompetitive system and all American businesses, large and small,
operate under the same rules, that is one thing. If you have a system
that says the big boys get to operate under much less restrictive
rules, do not have to publish their fares and their tariffs, can enter
into any kind of agreements they want, but the little guys cannot, they
are still subject to those old rules, you have created a fundamentally
unfair situation. When that unfairness is directed at small shippers
and small freight consolidaters, the difference, the discrimination, is
particularly egregious.
I agree with the Senator from Texas. However it ends up, this is not
the final form of the bill; it has not passed the House of
Representatives yet. But, Mr. President, you and my colleagues should
not fool yourselves to think if we do not adopt this fairness
amendment, this small business amendment now, it is somehow going to
come back in later. I think if we do adopt it now, we have a far
greater opportunity to see to it that this bill is not only
procompetition and deregulatory but fair; that all the people, all the
groups in America who deserve that fairness, the small businesses,
about whom we talk so much on every one of our trips home, do deserve
an equal opportunity to compete.
That is all this amendment is about. It allows the little guys to
contract the way the big guys contract. Often we will make a policy
that says the little people will have an advantage over the big ones
because the big ones have the advantage of their bigness. Rarely do we
say, as we are asked to here, that we will give the big guys an
advantage and deprive their small competitors of that advantage. Equal
the playing field. If competition is good for the large shippers, it is
good for the small shippers. If it is good for the large carriers, it
is good for the small carriers. That is what this amendment is all
about.
With that, I will yield the remainder of my time.
Mrs. HUTCHISON. Mr. President, I think Senator Gorton has made a very
good statement. I think we will be able to work together for our common
goal.
I yield back the remainder of my time.
Mr. GORTON. Mr. President, I ask for the yeas and nays on the
amendment.
The PRESIDING OFFICER. Is there a sufficient second?
There is a sufficient second.
The yeas and nays were ordered.
Mr. GORTON. It is my understanding, Mr. President, that this vote
will not take place before April 21.
Mrs. HUTCHISON. That is correct.
The PRESIDING OFFICER. If all time is yielded back, under the
previous order, S. 414 will be laid aside until Tuesday, April 21, to
be considered at a time to be determined by the majority leader.
Mrs. HUTCHISON. Mr. President, I suggest the absence of a quorum.
The PRESIDING OFFICER (Mr. Gorton). The clerk will call the roll.
Mr. DeWINE. Mr. President, I ask unanimous consent that the order for
the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
Under the previous order, the Senator from Ohio is recognized to
speak for up to 1 hour.
Mr. DeWINE. Mr. President, I ask unanimous consent at this time to
extend that to 75 minutes.
[[Page S3202]]
The PRESIDING OFFICER. Without objection, it is so ordered.
____________________