[Congressional Record Volume 144, Number 108 (Tuesday, August 4, 1998)]
[House]
[Pages H7011-H7019]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                              {time}  1045
                   OCEAN SHIPPING REFORM ACT OF 1998

  Mr. SHUSTER. Mr. Speaker, I move to suspend the rules and pass the 
Senate bill (S. 414) to amend the Shipping Act of 1984 to encourage 
competition in international shipping and growth of United States 
exports, and for other purposes, as amended.
  The Clerk read as follows:

                                 S. 414

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

     SECTION 1. SHORT TITLE.

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

     SEC. 2. EFFECTIVE DATE.

       Except as otherwise expressly provided in this Act, this 
     Act and the amendments made by this Act take effect May 1, 
     1999.
            TITLE I--AMENDMENTS TO THE SHIPPING ACT OF 1984

     SEC. 101. PURPOSE.

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

     SEC. 102. DEFINITIONS.

       Section 3 of the Shipping Act of 1984 (46 U.S.C. App. 1702) 
     is amended by--
       (1) striking ``the government under whose registry the 
     vessels of the carrier operate;'' in paragraph (8) and 
     inserting ``a government;'';
       (2) striking paragraph (9) and inserting the following:
       ``(9) `deferred rebate' means a return by a common carrier 
     of any portion of freight money to a shipper as a 
     consideration for that shipper giving all, or any portion, of 
     its shipments to that or any other common carrier over a 
     fixed period of time, the payment of which is deferred beyond 
     the completion of service for which it is paid, and is made 
     only if the shipper has agreed to make a further shipment or 
     shipments with that or any other common carrier.'';
       (3) striking paragraph (10) and redesignating paragraphs 
     (11) through (27) as paragraphs (10) through (26);
       (4) striking ``in an unfinished or semifinished state that 
     require special handling moving in lot sizes too large for a 
     container,'' in paragraph (10), as redesignated;
       (5) striking ``paper board in rolls, and paper in rolls.'' 
     in paragraph (10) as redesignated and inserting ``paper and 
     paper board in rolls or in pallet or skid-sized sheets.'';
       (6) striking ``conference, other than a service contract or 
     contract based upon time-volume rates,'' in paragraph (13) as 
     redesignated and inserting ``agreement'';
       (7) striking ``conference.'' in paragraph (13) as 
     redesignated and inserting ``agreement and the contract 
     provides for a deferred rebate arrangement.'';
       (8) by striking ``carrier.'' in paragraph (14) as 
     redesignated and inserting ``carrier, or in connection with a 
     common carrier and a water carrier subject to subchapter II 
     of chapter 135 of title 49, United States Code.'';
       (9) striking paragraph (16) as redesignated and 
     redesignating paragraphs (17) through (26) as redesignated as 
     paragraphs (16) through (25), respectively;
       (10) striking paragraph (17), as redesignated, and 
     inserting the following:
       ``(17) `ocean transportation intermediary' means an ocean 
     freight forwarder or a non-vessel-operating common carrier. 
     For purposes of this paragraph, the term--
       ``(A) `ocean freight forwarder' means a person that--
       ``(i) in the United States, dispatches shipments from the 
     United States via a common carrier and books or otherwise 
     arranges space for those shipments on behalf of shippers; and
       ``(ii) processes the documentation or performs related 
     activities incident to those shipments; and
       ``(B) `non-vessel-operating common carrier' means a common 
     carrier that does not operate the vessels by which the ocean 
     transportation is provided, and is a shipper in its 
     relationship with an ocean common carrier.'';
       (11) striking paragraph (19), as redesignated and inserting 
     the following:

[[Page H7012]]

       ``(19) `service contract' means a written contract, other 
     than a bill of lading or a receipt, between one or more 
     shippers and an individual ocean common carrier or an 
     agreement between or among ocean common carriers in which the 
     shipper or shippers makes a commitment to provide a certain 
     volume or portion of cargo over a fixed time period, and the 
     ocean common carrier or the agreement commits to a certain 
     rate or rate schedule and a defined service level, such as 
     assured space, transit time, port rotation, or similar 
     service features. The contract may also specify provisions in 
     the event of nonperformance on the part of any party.''; and
       (12) striking paragraph (21), as redesignated, and 
     inserting the following:
       ``(21) `shipper' means--
       ``(A) a cargo owner;
       ``(B) the person for whose account the ocean transportation 
     is provided;
       ``(C) the person to whom delivery is to be made;
       ``(D) a shippers' association; or
       ``(E) an ocean transportation intermediary, as defined in 
     paragraph (17)(B) of this section, that accepts 
     responsibility for payment of all charges applicable under 
     the tariff or service contract.''.

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

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

     SEC. 104. AGREEMENTS.

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

     An agreement may provide authority to adopt voluntary 
     guidelines relating to the terms and procedures of an 
     agreement member's or agreement members' service contracts if 
     the guidelines explicitly state the right of members of the 
     agreement not to follow the guidelines. These guidelines 
     shall be confidentially submitted to the Commission.''.
       (b) Application.--
       (1) Subsection (e) of section 5 of that Act, as 
     redesignated, is amended by striking ``this Act, the Shipping 
     Act, 1916, and the Intercoastal Shipping Act, 1933, do'' and 
     inserting ``this Act does''; and
       (2) Subsection (f) of section 5 of that Act, as 
     redesignated, is amended by--
       (A) striking ``and the Shipping Act, 1916, do'' and 
     inserting ``does'';
       (B) striking ``or the Shipping Act, 1916,''; and
       (C) inserting ``or are essential terms of a service 
     contract'' after ``tariff''.

     SEC. 105. EXEMPTION FROM ANTITRUST LAWS.

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

     SEC. 106. TARIFFS.

       (a) In General.--Section 8(a) of the Shipping Act of 1984 
     (46 U.S.C. App. 1707(a)) is amended by--
       (1) inserting ``new assembled motor vehicles,'' after 
     ``scrap,'' in paragraph (1);
       (2) striking ``file with the Commission, and'' in paragraph 
     (1);
       (3) striking ``inspection,'' in paragraph (1) and inserting 
     ``inspection in an automated tariff system,'';
       (4) striking ``tariff filings'' in paragraph (1) and 
     inserting ``tariffs'';
       (5) striking ``freight forwarder'' in paragraph (1)(C) and 
     inserting ``transportation intermediary, as defined in 
     section 3(17)(A),'';
       (6) striking ``and'' at the end of paragraph (1)(D);
       (7) striking ``loyalty contract,'' in paragraph (1)(E);
       (8) striking ``agreement.'' in paragraph (1)(E) and 
     inserting ``agreement; and'';
       (9) adding at the end of paragraph (1) the following:
       ``(F) include copies of any loyalty contract, omitting the 
     shipper's name.''; and
       (10) striking paragraph (2) and inserting the following:
       ``(2) Tariffs shall be made available electronically to any 
     person, without time, quantity, or other limitation, through 
     appropriate access from remote locations, and a reasonable 
     charge may be assessed for such access. No charge may be 
     assessed a Federal agency for such access.''.
       (b) Service Contracts.--Subsection (c) of that section is 
     amended to read as follows:
       ``(c) Service Contracts.--
       ``(1) In general.--An individual ocean common carrier or an 
     agreement between or among ocean common carriers may enter 
     into a service contract with one or more shippers subject to 
     the requirements of this Act. The exclusive remedy for a 
     breach of a contract entered into under this subsection shall 
     be an action in an appropriate court, unless the parties 
     otherwise agree. In no case may the contract dispute 
     resolution forum be controlled by or in any way affiliated 
     with a controlled carrier as defined in section 3(8) of this 
     Act, or by the government which owns or controls the carrier.
       ``(2) Filing requirements.--Except for service contracts 
     dealing with bulk cargo, forest products, recycled metal 
     scrap, new assembled motor vehicles, waste paper, or paper 
     waste, each contract entered into under this subsection by an 
     individual ocean common carrier or an agreement shall be 
     filed confidentially with the Commission. Each service 
     contract shall include the following essential terms--
       ``(A) the origin and destination port ranges;
       ``(B) the origin and destination geographic areas in the 
     case of through intermodal movements;
       ``(C) the commodity or commodities involved;
       ``(D) the minimum volume or portion;
       ``(E) the line-haul rate;
       ``(F) the duration;
       ``(G) service commitments; and
       ``(H) the liquidated damages for nonperformance, if any.
       ``(3) Publication of certain terms.--When a service 
     contract is filed confidentially with the Commission, a 
     concise statement of the essential terms described in 
     paragraphs 2 (A), (C), (D), and (F) shall be published and 
     made available to the general public in tariff format.
       ``(4) Disclosure of certain terms.--
       ``(A) An ocean common carrier, which is a party to or is 
     subject to the provisions of a collective bargaining 
     agreement with a labor organization, shall, in response to a 
     written request by such labor organization, state whether it 
     is responsible for the following work at dock areas and 
     within port areas in the United States with respect to cargo 
     transportation under a service contract described in 
     paragraph (1) of this subsection--
       ``(i) the movement of the shipper's cargo on a dock area or 
     within the port area or to or from railroad cars on a dock 
     area or within the port area;
       ``(ii) the assignment of intraport carriage of the 
     shipper's cargo between areas on a dock or within the port 
     area;
       ``(iii) the assignment of the carriage of the shipper's 
     cargo between a container yard on a dock area or within the 
     port area and a rail yard adjacent to such container yard; 
     and
       ``(iv) the assignment of container freight station work and 
     container maintenance and repair work performed at a dock 
     area or within the port area.
       ``(B) The common carrier shall provide the information 
     described in subparagraph (A) of this paragraph to the 
     requesting labor organization within a reasonable period of 
     time.
       ``(C) This paragraph requires the disclosure of information 
     by an ocean common carrier only if there exists an applicable 
     and otherwise lawful collective bargaining agreement which 
     pertains to that carrier. No disclosure made by an ocean 
     common carrier shall be deemed to be an admission or 
     agreement that any work is covered by a collective bargaining 
     agreement. Any dispute regarding whether any work is covered 
     by a collective bargaining agreement and the responsibility 
     of the ocean common carrier under such agreement shall be 
     resolved solely in accordance with the dispute resolution 
     procedures contained in the collective bargaining agreement 
     and the National Labor Relations Act, and without reference 
     to this paragraph.

[[Page H7013]]

       ``(D) Nothing in this paragraph shall have any effect on 
     the lawfulness or unlawfulness under this Act, the National 
     Labor Relations Act, the Taft-Hartley Act, the Federal Trade 
     Commission Act, the antitrust laws, or any other Federal or 
     State law, or any revisions or amendments thereto, of any 
     collective bargaining agreement or element thereof, including 
     any element that constitutes an essential term of a service 
     contract under this subsection.
       ``(E) For purposes of this paragraph the terms `dock area' 
     and `within the port area' shall have the same meaning and 
     scope as in the applicable collective bargaining agreement 
     between the requesting labor organization and the carrier.''.
       (c) Rates.--Subsection (d) of that section is amended by--
       (1) striking the subsection caption and inserting ``(d) 
     Tariff Rates.--'';
       (2) striking ``30 days after filing with the Commission.'' 
     in the first sentence and inserting ``30 calendar days after 
     publication.'';
       (3) inserting ``calendar'' after ``30'' in the next 
     sentence; and
       (4) striking ``publication and filing with the 
     Commission.'' in the last sentence and inserting 
     ``publication.''.
       (d) Refunds.--Subsection (e) of that section is amended 
     by--
       (1) striking ``tariff of a clerical or administrative 
     nature or an error due to inadvertence'' in paragraph (1) and 
     inserting a comma; and
       (2) striking ``file a new tariff,'' in paragraph (1) and 
     inserting ``publish a new tariff, or an error in quoting a 
     tariff,'';
       (3) striking ``refund, filed a new tariff with the 
     Commission'' in paragraph (2) and inserting ``refund for an 
     error in a tariff or a failure to publish a tariff, published 
     a new tariff'';
       (4) inserting ``and'' at the end of paragraph (2); and
       (5) striking paragraph (3) and redesignating paragraph (4) 
     as paragraph (3).
       (e) Marine Terminal Operator Schedules.--Subsection (f) of 
     that section is amended to read as follows:
       ``(f) Marine Terminal Operator Schedules.--A marine 
     terminal operator may make available to the public, subject 
     to section 10(d) of this Act, a schedule of rates, 
     regulations, and practices, including limitations of 
     liability for cargo loss or damage, pertaining to receiving, 
     delivering, handling, or storing property at its marine 
     terminal. Any such schedule made available to the public 
     shall be enforceable by an appropriate court as an implied 
     contract without proof of actual knowledge of its 
     provisions.''.
       (f) Automated Tariff System Requirements; Form.--Section 8 
     of that Act is amended by adding at the end the following:
       ``(g) Regulations.--The Commission shall by regulation 
     prescribe the requirements for the accessibility and accuracy 
     of automated tariff systems established under this section. 
     The Commission may, after periodic review, prohibit the use 
     of any automated tariff system that fails to meet the 
     requirements established under this section. The Commission 
     may not require a common carrier to provide a remote terminal 
     for access under subsection (a)(2). The Commission shall by 
     regulation prescribe the form and manner in which marine 
     terminal operator schedules authorized by this section shall 
     be published.''.

     SEC. 107. AUTOMATED TARIFF FILING AND INFORMATION SYSTEM.

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

     SEC. 108. CONTROLLED CARRIERS.

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

     SEC. 109. PROHIBITED ACTS.

       (a) Section 10(b) of the Shipping Act of 1984 (46 U.S.C. 
     App. 1709(b)) is amended by--
       (1) striking paragraphs (1) through (3);
       (2) redesignating paragraph (4) as paragraph (1);
       (3) inserting after paragraph (1), as redesignated, the 
     following:
       ``(2) provide service in the liner trade that--
       ``(A) is not in accordance with the rates, charges, 
     classifications, rules, and practices contained in a tariff 
     published or a service contract entered into under section 8 
     of this Act unless excepted or exempted under section 8(a)(1) 
     or 16 of this Act; or
       ``(B) is under a tariff or service contract which has been 
     suspended or prohibited by the Commission under section 9 of 
     this Act or the Foreign Shipping Practices Act of 1988 (46 
     U.S.C. App. 1710a);'';
       (4) redesignating paragraphs (5) and (6) as paragraphs (3) 
     and (4), respectively;
       (5) striking ``except for service contracts,'' in paragraph 
     (4), as redesignated, and inserting ``for service pursuant to 
     a tariff,'';
       (6) striking ``rates;'' in paragraph (4)(A), as 
     redesignated, and inserting ``rates or charges;'';
       (7) inserting after paragraph (4), as redesignated, the 
     following:
       ``(5) for service pursuant to a service contract, engage in 
     any unfair or unjustly discriminatory practice in the matter 
     of rates or charges with respect to any port;'';
       (8) redesignating paragraphs (7) and (8) as paragraphs (6) 
     and (7), respectively;
       (9) striking paragraph (6) as redesignated and inserting 
     the following:
       ``(6) use a vessel or vessels in a particular trade for the 
     purpose of excluding, preventing, or reducing competition by 
     driving another ocean common carrier out of that trade;'';
       (10) striking paragraphs (9) through (13) and inserting the 
     following:
       ``(8) for service pursuant to a tariff, give any undue or 
     unreasonable preference or advantage or impose any undue or 
     unreasonable prejudice or disadvantage;
       ``(9) for service pursuant to a service contract, give any 
     undue or unreasonable preference or advantage or impose any 
     undue or unreasonable prejudice or disadvantage with respect 
     to any port;
       ``(10) unreasonably refuse to deal or negotiate;'';
       (11) redesignating paragraphs (14), (15), and (16) as 
     paragraphs (11), (12), and (13), respectively;
       (12) striking ``a non-vessel-operating common carrier'' in 
     paragraphs (11) and (12) as redesignated and inserting ``an 
     ocean transportation intermediary'';
       (13) striking ``sections 8 and 23'' in paragraphs (11) and 
     (12) as redesignated and inserting ``sections 8 and 19'';
       (14) striking ``or in which an ocean transportation 
     intermediary is listed as an affiliate'' in paragraph (12), 
     as redesignated;
       (15) striking ``Act;'' in paragraph (12), as redesignated, 
     and inserting ``Act, or with an affiliate of such ocean 
     transportation intermediary;''
       (16) striking ``paragraph (16)'' in the matter appearing 
     after paragraph (13), as redesignated, and inserting 
     ``paragraph (13)''; and
       (17) inserting ``the Commission,'' after ``United States,'' 
     in such matter.
       (b) Section 10(c) of the Shipping Act of 1984 (46 U.S.C. 
     App. 1709(c)) is amended by--
       (1) striking ``non-ocean carriers'' in paragraph (4) and 
     inserting ``non-ocean carriers, unless such negotiations and 
     any resulting agreements are not in violation of the 
     antitrust laws and are consistent with the purposes of this 
     Act'';
       (2) striking ``freight forwarder'' in paragraph (5) and 
     inserting ``transportation intermediary, as defined by 
     section 3(17)(A) of this Act,'';
       (3) striking ``or'' at the end of paragraph (5);
       (4) striking ``contract.'' in paragraph (6) and inserting 
     ``contract;''; and
       (5) adding at the end the following:
       ``(7) for service pursuant to a service contract, engage in 
     any unjustly discriminatory practice in the matter of rates 
     or charges with respect to any locality, port, or persons due 
     to those persons' status as shippers' associations or ocean 
     transportation intermediaries; or

[[Page H7014]]

       ``(8) for service pursuant to a service contract, give any 
     undue or unreasonable preference or advantage or impose any 
     undue or unreasonable prejudice or disadvantage with respect 
     to any locality, port, or persons due to those persons' 
     status as shippers' associations or ocean transportation 
     intermediaries;''.
       (c) Section 10(d) of the Shipping Act of 1984 (46 U.S.C. 
     App. 1709(d)) is amended by--
       (1) striking ``freight forwarders,'' and inserting 
     ``transportation intermediaries,'';
       (2) striking ``freight forwarder,'' in paragraph (1) and 
     inserting ``transportation intermediary,'';
       (3) striking ``subsection (b)(11), (12), and (16)'' and 
     inserting ``subsections (b)(10) and (13)''; and
       (4) adding at the end thereof the following:
       ``(4) No marine terminal operator may give any undue or 
     unreasonable preference or advantage or impose any undue or 
     unreasonable prejudice or disadvantage with respect to any 
     person.
       ``(5) The prohibition in subsection (b)(13) of this section 
     applies to ocean transportation intermediaries, as defined by 
     section 3(17)(A) of this Act.''.

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

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

     SEC. 111. FOREIGN SHIPPING PRACTICES ACT OF 1988.

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

     SEC. 112. PENALTIES.

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

     SEC. 113. REPORTS AND CERTIFICATES.

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

     SEC. 114. EXEMPTIONS.

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

     SEC. 115. AGENCY REPORTS AND ADVISORY COMMISSION.

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

     SEC. 116. OCEAN FREIGHT FORWARDERS.

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

[[Page H7015]]

     are assessed against the cargo on which the intermediary 
     services are provided.''.

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

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

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

       Section 23 of the Shipping Act of 1984 (46 U.S.C. App. 
     1721) is repealed.
  TITLE II--AUTHORIZATION OF APPROPRIATIONS FOR THE FEDERAL MARITIME 
                               COMMISSION

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

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

     SEC. 202. FEDERAL MARITIME COMMISSION ORGANIZATION.

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

     SEC. 203. REGULATIONS.

       Not later than March 1, 1999, the Federal Maritime 
     Commission shall prescribe final regulations to implement the 
     changes made by this Act.
       TITLE III--AMENDMENTS TO OTHER SHIPPING AND MARITIME LAWS

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

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

     SEC. 302. TECHNICAL CORRECTIONS.

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

     SEC. 401. CERTAIN LOAN GUARANTEES AND COMMITMENTS.

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

  The SPEAKER pro tempore (Mr. Dickey). Pursuant to the rule, the 
gentleman from Pennsylvania (Mr. Shuster) and the gentleman from 
Tennessee (Mr. Clement) each will control 20 minutes.
  The Chair recognizes the gentleman from Pennsylvania (Mr. Shuster).
  Mr. SHUSTER. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, this is the Ocean Shipping Reform Act of 1998 which 
modernizes our system of international ocean shipping. This reform is 
long overdue. In fact, in the last Congress, the House overwhelmingly 
passed Ocean Shipping Reform. However, there was no action in the other 
body.
  The bill before us today maintains the essential reforms contained in 
that previous bill, and the most important of these reforms is the 
authority for American businesses to keep their ocean transportation 
costs confidential from their foreign competitors.
  Today our ocean transportation systems are competing against foreign 
exporters and foreign importers, and indeed, American exporters and 
importers are required to publicly file their ocean transportation 
contract prices. This bill will allow American businesses to keep those 
transportation costs confidential from their foreign competitors, and 
it will level the international playing field for our U.S. exporters. 
Further delay in not passing this bill will sacrifice any chance of 
reform in this Congress.
  This bill is strongly supported by millions of U.S. businesses, 
including the National Industrial Transportation League and the 
American Flag Carriers. It is supported by the administration and it is 
supported by organized labor.
  I would emphasize to my colleagues that competitive American ocean 
shipping is becoming more and more important to our country as we 
compete

[[Page H7016]]

more and more in a global economy. In fact, let me share a statistic 
that I find a bit stunning.
  The average American plant, if it wants to ship product overseas from 
a seaport, must ship its product to that port an average distance of 
1,500 miles. For a German company in Germany, it must ship its product 
to a seaport only 300 miles. For a Japanese company, it must ship its 
product to a seaport only 30 miles. So one can see the relative 
disadvantage we have in transportation costs, and therefore, the 
extraordinary need for us to make our transportation system as 
efficient as possible.
  This, of course, means the multimodal nature of our transportation 
system, from an efficient railroad system, an efficient trucking 
system, shipping into those ports, to modernize ports which can handle 
those products to be shipped overseas, and the actual passage, the 
actual ocean shipping itself.
  For all of these reasons we need to pass this legislation today as 
one of the steps in making American global transportation more 
efficient. For that reason, I urge my colleagues to support this 
legislation.
  Mr. Speaker, I reserve the balance of my time.
  Mr. CLEMENT. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise in strong support of the Senate bill, S. 414, the 
Ocean Shipping Reform Act of 1997. S. 414 will significantly increase 
competition in international shipping, and help make U.S. industries 
more competitive by decreasing their transportation costs to overseas 
markets.
  In the last Congress the House passed H.R. 2149, the Ocean Shipping 
Reform Act of 1995, legislation which was widely criticized for 
allowing international shipping conferences to enter into totally 
confidential contracts with shippers while maintaining their antitrust 
immunity. The Ocean Shipping Reform Act of 1997 does not allow for 
totally confidential contracts by conferences. Carriers in conferences 
must continue to disclose to the Federal Maritime Commission the 
commodity, volume, origin, and destination port ranges, as well as the 
contract duration.
  In the interests of eliminating unnecessary government involvement, 
tariffs and rates will not need to be filed with the Federal Maritime 
Commission. We are going to allow the electronic technology in the 
marketplace to promote competition by requiring that tariffs and rates 
be made available on the Internet. People around the world will have 
instantaneous access to the rates and services provided by water 
carriers.
  Many of the complaints about the Shipping Act of 1984 centered around 
restrictions that international shipping conferences had placed upon 
their members. For many years, conferences had restricted the ability 
of their members to enter into service contracts with their customers. 
S. 414 solves this problem by prohibiting a conference from restricting 
its members from entering into service contracts. Similarly, a 
conference may not require its members to disclose the terms of the 
service contracts that they enter into.
  Mr. Speaker, this bill will increase competition among international 
carriers. It will benefit both large and small companies that desire to 
have their goods exported.
  The Ocean Shipping Reform Act of 1997 has broad support from shipping 
lines, such as Sea-Land and American President Lines, from shoreside 
labor, including the ILA and the ILWU, the American Association of Port 
Authorities, and the National Industrial Transportation League.
  There is one group, Transportation Intermediaries, that has concerns 
about S. 414. These companies do not operate the vessels on which the 
cargo is carried, but resell their space to shippers. One of the 
purposes of the Shipping Act is to promote investment in international 
shipping. This bill attempts to give people reason to invest in 
shipping by allowing the company that operates the vessel on which the 
goods are transported to have a more confidential contract with 
shippers than those that do not operate the vessel.
  International shipping is continuing to evolve with larger, more 
efficient ships. By promoting investment in these types of ship 
operations, we will help to decrease the cost of transporting goods in 
the future.
  However, if we do not see this type of investment and increased 
competition as a result of enactment of S. 414, I do not believe that 
Congress will hesitate to revisit these issues to promote competition 
in international shipping.
  Mr. Speaker, I would like to take a moment to mention one other 
essential of S. 414 that is being dropped from that bill. Title IV, as 
passed by the Senate, grants limited burial and funeral benefits to 
Merchant Mariners who served in World War II between August 16, 1945, 
and December 31, 1946.
  In 1987, the Department of Defense granted veterans status to 
Merchant Mariners who served between December 7th, 1941, and August 16, 
1945. However, the dangers of the war did not end on that day. Foreign 
harbors continued to have dangerous mines. At least 11 merchant ships 
were sunk during those 14\1/2\ months between 1945 and at the end of 
1946.
  Mr. Speaker, over 310 members of the House have cosponsored H.R. 
1126, which would have granted these Merchant Mariners full veterans 
status. The provisions that were contained in S. 414 would have simply 
allowed these men to be buried in our national cemeteries, and be given 
a flag and a headstone for their valiant service to our country. I do 
not think that was too much to ask.
  However, when considered in its entirety, S. 414 is a major step 
forward in promoting competition in international shipping when 
compared to the Shipping Act of 1984. I strongly urge my colleagues to 
support passage of this bill so that it can be signed into law by the 
President.
  Mr. Speaker, I reserve the balance of my time.
  Mr. SHUSTER. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, we bring this bill to the floor today in consultation 
with the Committee on the Judiciary. I ask to include for the Record 
the letters between the Committee on Transportation and Infrastructure 
and the Committee on the Judiciary concerning the committees' 
respective jurisdictions over this legislation.
  The letters referred to are as follows:
                                         House of Representatives,


                                   Committee on the Judiciary,

                                   Washington, DC, August 3, 1998.
     Hon. Bud Shuster,
     Chairman, Committee on Transportation and Infrastructure, 
         U.S. House of Representatives, Washington, DC.
       Dear Bud: I understand that you intend to move to suspend 
     the rules and pass S. 414, the ``Ocean Shipping Reform Act of 
     1998,'' as passed by the Senate.
       Title I of S. 414, as passed by the Senate, makes a variety 
     of amendments to the regime under which ocean common carrier 
     conferences enjoy antitrust immunity. Under Rule X(1)(j)(15), 
     the Committee on the Judiciary has jurisdiction over the 
     antitrust provisions of the Act.
       Because of the leadership's request that we move this bill 
     to the floor quickly and the delicate political balance 
     involved in this compromise legislation, I am willing to 
     waive this Committee's right to a referral of S. 414. I will 
     not attempt to impede this legislation from going forward so 
     long as it remains in exactly the form it was passed by the 
     Senate, other than the provisions of Title IV, which I 
     understand will be removed at the request of the Committee on 
     Veterans' Affairs. However, my doing so does not constitute 
     any waiver of the Committee's jurisdiction over these 
     provisions and does not prejudice its rights in any future 
     legislation relating to these provisions or any other 
     antitrust immunity provided in the Act. I will, of course, 
     insist that Members of this Committee be named as conferees 
     on these provisions or any other antitrust immunity provided 
     in the Act should the bill go to the conference.
       I want to note, however, that I am very concerned about the 
     situation of the non-vessel-owning common carriers, or 
     NVOCCs, the freight forwarders, and the shipping 
     associations. These groups were not included in the 
     compromise that was reached in the Senate, and I believe that 
     the provisions of this bill will harm them. For that reason, 
     I will not be able to support S. 414 when it comes to the 
     floor, and I intend to speak against it. I understand that 
     you also are concerned about the plight of these groups and 
     that you intend to take further action to address their 
     concerns in the next Congress. This action will include 
     hearings and other oversight activities as the amendments to 
     the Shipping Act of 1984 are implemented.
       If the foregoing meets with your understanding of the 
     matter, I would appreciate your placing this letter and your 
     response in the record during the debate on S. 414. Thank you 
     for your cooperation in this matter.
           Sincerely,
                                                    Henry J. Hyde,
                                                         Chairman.

[[Page H7017]]

     
                                  ____
         House of Representatives, Committee on Transportation and 
           Infrastructure,
                                   Washington, DC, August 4, 1998.
     Hon. Henry J. Hyde,
     Chairman, Committee on the Judiciary, Rayburn House Office 
         Building, Washington, DC.
       Dear Mr. Chairman: Thank you for your letter waiving your 
     Committee's right to a referral of amendments to the Shipping 
     Act of 1984 contained in S. 414, the Ocean Shipping Reform 
     Act. I agree that the waiver should not be viewed as a waiver 
     of any jurisdictional claim that you might have over the 
     bill. As you know, ocean shipping reform has been an 
     extremely controversial subject, and I appreciate your 
     continuing support of my effort to modernize international 
     ocean shipping.
       Since the House of Representatives passed H.R. 2149, the 
     Ocean Shipping Reform Act of 1996, the Senate has worked to 
     pass a bill that maintained the most essential provisions of 
     H.R. 2149. Earlier this year, the Senate passed S. 414, the 
     Ocean Shipping Reform Act of 1998. That bill is not identical 
     to H.R. 2149, but it retains the provisions from the House 
     bill that are the most important to millions of American 
     businesses. These provisions give American businesses the 
     freedom to keep their ocean transportation contract prices 
     confidential from their foreign competitors. This change in 
     the law will improve the competitive position of American 
     exporters, and stimulate American exports.
       I believe we must act now to pass S. 414. This bill is a 
     huge step forward in the process of deregulation of 
     international ocean shipping. If we delay action on this 
     important matter any longer, we will lose this chance to 
     modernize ocean shipping transportation practices and level 
     the playing field for American businesses.
       I understand that you have strong concerns about the 
     provisions in S. 414 related to shipping intermediaries and 
     other matters. During the next Congress, I will work with 
     you, the shipping intermediaries, and the Federal Maritime 
     Commission to bring a more level playing field to all U.S. 
     businesses involved in ocean shipping.
       Please be assured that I will submit our correspondence on 
     S. 414 for the Record when we take the bill up on the House 
     Floor.
       With kind personal regards, I am
           Sincerely,
                                                      Bud Shuster,
                                                         Chairman.

  Mr. Speaker, I am pleased to yield 3\1/2\ minutes to the 
distinguished gentleman from Illinois (Mr. Hyde), chairman of the 
Committee on the Judiciary.
  Mr. HYDE. Mr. Speaker, I thank the gentleman for yielding time to me.
  Mr. Speaker, I rise in reluctant opposition to S. 414, the Ocean 
Shipping Reform Act of 1998. Two years ago I stood here and supported 
H.R. 2149, another version of shipping reform. The bill we consider 
today differs from the 1996 bill in important ways, and I cannot 
support it.
  Current law provides an antitrust exemption for ocean-going ships, 
most of which are foreign-owned, to form cartels that legally enter 
into price-fixing agreements at the expense of American shippers. As 
chairman of the committee with jurisdiction over antitrust, I find that 
system difficult to accept.
  If we were writing on a blank slate, I do not think such a system 
would pass. However, I understand the political reality that this 
system has been in the law since 1916, and it probably cannot be 
eliminated in one shot. I reluctantly accept that change probably has 
to come incrementally. However, in making that incremental change, we 
should follow the fundamental principles of medicine: First, do no 
harm.
  I think this bill does harm in some important ways. First and most 
importantly, one group of small businesses, many of whom are my 
constituents, will suffer severe harm if this bill becomes law. At 
every port there are businesses that consolidate small shipments into 
large shipments, thereby getting lower rates for small shippers.
  These businesses go by various names, nonvessel operating common 
carriers, freight forwarders, or shipping associations, but they all 
perform basically the same economic function. In doing so, they compete 
directly with the ocean-going common carriers for shipping business.
  This bill puts these small businesses at a severe disadvantage. It 
allows their competitors to use secret contracts to undermine the 
cartels, but it requires these small businesses to publish their rates 
for all to see. It does not take an economic genius to realize that 
this system will soon drive them out of business.
  Second, I am concerned that this bill actually encourages the joint 
negotiation of inland shipping rates. Thus, not only will the rates for 
the ocean part of the trip be set by legally-sanctioned price-fixing 
cartels, but now those same cartels will be encouraged to jointly 
negotiate rates for the overland trip to the port, as well. I see no 
justification for this further extension of cartel behavior.
  Let me just repeat, I would like to see the entire antitrust 
exemption eliminated. Failing that, I would like to allow all of the 
competitors to use secret contracts so that the cartels are undermined. 
But I am not willing to make those changes in a way that gives one 
group of competitors an insurmountable advantage over another, and 
unfortunately, that is what this bill does.
  This compromise was reached in the Senate after the committee 
reported the bill, but before it reached the floor. We are now taking 
it up on the floor without any committee consideration. We are told if 
we change one word the whole thing will fall apart. I understand that 
reality as well, and thus, I have not insisted on a referral. However, 
I can only go so far, and I cannot support this bill, which harms my 
constituents. I urge my colleagues to defeat it.
  I want to thank my colleagues, the gentleman from Pennsylvania (Mr. 
Shuster) and the gentleman from Maryland (Mr. Gilchrest). I appreciate 
their commitment to conduct vigorous oversight of the situation of the 
various types of freight consolidators if this bill becomes law, and I 
intend to conduct such oversight in the Committee on the Judiciary, as 
well.
  Mr. SHUSTER. Mr. Speaker, I am pleased to yield 4 minutes to the 
gentleman from Maryland (Mr. Gilchrest), the distinguished chairman of 
our subcommittee.
  Mr. GILCHREST. Mr. Speaker, I thank the chairman for yielding time to 
me. I am not sure if I need the entire 4 minutes. I want to address 
some of the concerns that the chairman of the Committee on the 
Judiciary raised.
  One is the antitrust exemption, and he is correct, we have tried to 
deal with this particular issue, and ocean shipping in general, in an 
international way since 1916. This has been addressed in Congress in 
1961, during the 1970s recession, then in 1984 in the Ocean Shipping 
Act, and again as recently as a couple of years ago, in order to 
stabilize ocean shipping in an international way, understanding that 85 
percent of the regulated ocean shipping is basically controlled by the 
international community or our foreign competitors.

                              {time}  1100

  To deal with this issue in an incremental fashion would mean that we 
are trying to do no harm to U.S. shipping, the main goal of this 
legislation. It is not a panacea. It does not solve all of the problems 
for those people who are involved in the shipping industry, especially 
the freight forwarders that the gentleman from Illinois (Mr. Hyde) 
mentioned, but it does, in an incremental fashion, create stability and 
a further advantage for the U.S. shipping industry, with the U.S. 
shipping industry being able to enter into private contracts, the 
shippers and the carriers.
  This has not been done before. Our foreign competitors were able to 
enter into private contracts, which was a big disadvantage to U.S. 
shippers, and if that was a big disadvantage to U.S. shippers, it was 
not helpful to those who are categorized as a freight forwarder.
  We do have to deal with those constituents of the gentleman from 
Illinois (Mr. Hyde), the gentleman from Illinois (Mr. Fawell), myself 
and a number of other Members in the area of what we might call travel 
agents, those people who try to decide, someone who has a small 
business, who cannot fill up many containers or who may not be able to 
fill up one container, how do we consolidate all those small businesses 
so that we can get their goods on these ships and ship overseas at the 
lowest rate possible? The competition in there is very great.
  I would say to the chairman of the Committee on the Judiciary that we 
are very cognizant of that particular problem. As we go through this 
legislation again next year, those areas of concern will be addressed 
and the freight forwarders and people in that particular arena, we want 
to make sure that those small businesses stay in

[[Page H7018]]

business, because they add such a great deal to the free and open 
marketplace.
  The chairman of the Committee on Transportation and Infrastructure 
talking about the intermodal system, which the gentleman from Illinois 
(Mr. Hyde) also raised, in order to be competitive with the rest of the 
world, knowing that we do not ship these goods, understanding how short 
the distance is shipping from Japan to the ports and from Germany to 
the ports or from Holland to the ports and from the Midwest to our 
coastal areas, our intermodal system must be very organized, very 
structured, very aligned.
  We are doing what we can for the whole international marketplace for 
the United States to be able to compete not only with the shipping but 
with the intermodal transportation system.
  Mr. HYDE. Mr. Speaker, will the gentleman yield?
  Mr. GILCHREST. I yield to the gentleman from Illinois.
  Mr. HYDE. Mr. Speaker, I just want to express my thanks to the 
gentleman for his assurances that he will give this problem continuing 
attention. I will be very interested in his performance. I am very 
grateful for his understanding.
  Mr. GILCHREST. Mr. Speaker, I thank the chairman of the Committee on 
the Judiciary, and I thank the gentleman for yielding me the time.
  Mr. CLEMENT. Mr. Speaker, I yield 2 minutes to the gentleman from New 
Jersey (Mr. Menendez), my friend.
  Mr. MENENDEZ. Mr. Speaker, I want to thank the distinguished 
gentleman for yielding me the time.
  As a representative of one of the Nation's largest ports in the Ports 
of Elizabeth and Newark within the context of the Port of New York, I 
had opposed ocean shipping before in the last Congress, but I rise in 
support of S. 414, the Ocean Shipping Reform Act of 1998.
  I do want to express, however, some concerns. We clearly should not 
underestimate the importance of this topic. Ocean shipping is the very 
means that our Nation trades with the world. Ocean-going vessels move 
more than 95 percent of all the international trade, and small 
businesses account for the majority of all export and import trade.
  Unfortunately, small business did not end up being part of this 
compromise which produced the current version. In my district, small 
businesses have made it clear to me that S. 414 is not perfect. While 
S. 414 is an attempt to introduce more competition, and that is good, 
in the ocean-shipping industry, freight forwarders, nonvessel operating 
common carriers, shipper associations and independently owned 
businesses, all important and vital elements in the international 
ocean-borne commerce community, have reservations about the bill.
  I have sincere concerns for the many ocean freight forwarders and 
NVOCCs that are active in New Jersey. I want to reiterate the thoughts 
of my Democratic colleague, Senator Breaux, who called upon the Federal 
Maritime Commission to actively monitor how this legislation impacts 
small businesses and freight forwarders in the areas of ocean freight 
forwarder compensation and whether confidential contracts will 
undermine the forwarder's place as an integral service provider to 
smaller business active in the international trade community.
  I am glad to hear that the chairman of the subcommittee as well as 
the chairman of the Committee on the Judiciary are going to continue to 
pursue these concerns.
  Let me reiterate my support for the bill, which represents careful 
negotiation by labor groups and shippers. It was clearly no small task 
to reach the agreement that we will be voting on. However, I hope that 
we will continue to examine the effects of the bill to ensure that 
unintended consequences do not take place.
  Mr. CLEMENT. Mr. Speaker, I have no further requests for time, and I 
yield back the balance of my time.
  Mr. SHUSTER. Mr. Speaker, I yield myself such time as I may consume.
  In closing, I would simply emphasize that this bill has the support 
of NIT league, the shippers who use the ocean-going vessels, of the 
AFL-CIO, labor, and of the administration, and it is a big step in the 
right direction. It does not solve all of the problems, but certainly 
moves in the right direction.
  I would urge passage of this important legislation.
  Mr. OBERSTAR. Mr. Speaker, I rise in support of S. 414, the Ocean 
Shipping Reform Act of 1997. This bill is the culmination of a process 
that began in the Transportation Committee last Congress with House 
passage of the Ocean Shipping Reform Act of 1995. That bill, H.R. 2149, 
would have drastically changed the way international common carriage by 
water is regulated. I was very concerned about that bill because of the 
unrestricted authority it gave conferences or cartels to enter into 
confidential contracts.
  The approach contained in S. 414 is much more balanced. That is why 
it is supported by vessel operators, manufacturers, ports, seagoing 
labor, and shoreside labor.
  Enactment of S. 414 will allow individual carriers and conferences to 
enter into more confidential contracts than they are allowed today. 
However, they must continue to disclose with the Federal Maritime 
Commission the commodity, volume, origin and destination port ranges, 
and contract duration. Similarly, carriers and conferences will no 
longer have to file tariffs with the Commission, but they must make 
their tariffs publicly available electronically, such as through the 
internet.
  S. 414 prohibits conferences from requiring its individual members to 
disclose their service contract terms and prohibits conferences from 
restricting in any way the ability to their members to enter into 
service contracts with shippers. Along with this, S. 414 will allow 
individual carriers to act independently of the conferences with notice 
of 5 calendar days, instead of the current 10 business days.
  Mr. Speaker, the changes made by S. 414 will profoundly change 
international shipping by increasing competition among carriers and by 
allowing carriers to offer a broader array of services to their 
customers.
  Not everyone is totally happy with S. 414. Under the bill, only the 
person operating the vessel on which the goods are actually carried can 
enter into a confidential service contract with a shipper. The basis 
for this is simple: these people have invested millions of dollars in 
the vessel and pay for its operating cost. Why should they be treated 
the same as someone who has not invested any money in the vessel on 
which the goods are transported? This bill attempts to give an 
incentive for capital investment in these ships. Others may argue that 
allowing people that do not operate the vessel on which the goods are 
transported to enter into confidential contracts will help promote 
competition and reduce rates. However, investment in new, more 
efficient ships, will also increase capacity and decrease rates. The 
FMC is going to continue to oversee these contracts and will be 
responsible for ensuring that the conferences and their members do not 
engage in anti-competitive practices such as voluntarily pooling 
information on their service contracts with each other.
  Mr. Speaker, I must say that I am very disappointed that an amendment 
to S. 414 has been added that eliminates a Senate provision that would 
have granted merchant mariners who served during World War II the same 
burial benefits as other veterans from that war. Merchant Mariners 
suffered the second highest casualty rate of any service during the 
war, second only to the Marine Corps. The convoys of ships they 
operated were the lifeline to England and enabled our forces to free 
Europe. The provisions in the bill were but a small way of our nation 
telling these gallant men thanks. The benefits that would have been 
provided for in the Senate passed bill would have been a small part of 
the benefits provided for by H.R. 1126, which currently has over 310 
cosponsors.
  And why was this section deleted? Because, the gentleman from 
Arizona, Mr. Stump, the Chairman of the Veterans Affairs Committee, 
refused to agree to scheduling S. 414 for the House floor with the 
merchant mariners benefits provisions included, unless his bill, H.R. 
3211, restricting who can be buried in Arlington National Cemetery was 
passed by the Senate. Why won't the Senate consider his bill? Because 
it does not allow for heroes like Officer John Gibson to be buried in 
Arlington National Cemetery under a waiver process. The gentleman from 
Arizona opposes burial of national heroes such as Officer Gibson in 
Arlington Cemetery and does not want U.S. merchant mariners who served 
their country during World War II buried in any national cemetery, even 
though 310 members of this body disagree with him. I believe this is 
terribly wrong and that the Republican leadership should not prevent 
all of these people who served our country from being buried in our 
national cemeteries simply because one Member is opposed.
  Mr. Speaker, on balance, I believe that S. 414 is a good bill. Our 
Committee is going to continue its oversight of international shipping 
to ensure that there is fair competition and that the needs of U.S. 
exporters are being met. Therefore, I urge my colleagues to support 
passage of S. 414, the Ocean Shipping Reform Act of 1997.

[[Page H7019]]

  Mr. FAWELL. Mr. Speaker, I rise today to express my concern about S. 
414, the Ocean Shipping Reform Act of 1998. I have always supported 
deregulation, because I believe the free market is the best way to 
receive goods and services at the best price. Unfortunately, S. 414 
does not fully deregulate the ocean shipping industry. This bill has 
the potential to benefit only the large shipping companies at the 
expense of small and medium-size exporters, importers, and freight 
intermediaries.
  Under a 1916 law, all steamship companies are granted ``antitrust 
immunity,'' thereby exempting them from compliance with the Sherman 
Antitrust Act. As a result, steamship companies have historically 
grouped together in what are known as ``conferences'' to consider, 
establish, and enforce collective transportation rates. This situation 
puts the shipping public at a disadvantage.
  To counterbalance the antitrust exemption, all charges and rates are 
``transparent''--made available to the public, to ensure that there is 
no discrimination against small business and even the government.
  S. 414, however, would give steamship conferences the ability to 
negotiate contracts in a confidential environment. These ``secret'' 
contracts could very well allow the conferences to provide lower costs 
to large shippers at the expense of small businesses and the U.S. 
government, which purchases about $1 billion of ocean transportation 
per year. If S. 414 becomes law, there will be no way of determining 
what the private sector is paying to transport goods. As a result, 
steamship companies could force the government, along with small 
businesses, to subsidize the lower rates extended secretly to these 
large shippers.
  I do not oppose shipping deregulation, as long as it is done for the 
benefit of large as well as small shippers. S. 414 in its current form 
creates inequalities that could easily drive small shipping companies 
and shipping intermediaries out of business. This bill should be 
considered before a House committee and brought back to the House after 
these inequities are resolved and S. 414 benefits all shippers.
  Mr. EVANS. Mr. Speaker, during World War II thousands of young men 
volunteered for service in the United States Merchant Marine. Many of 
these mariners were recruited specifically to staff ships under the 
control and direction of the United States Government to assist the 
U.S. war effort. These seamen were subject to government control, their 
vessels were controlled by the government under the authority of the 
War Shipping Administration and, like branches of military service, 
they traveled under sealed orders and were subject to the Code of 
Military Justice.
  Some volunteers joined the Merchant Marines because their youthful 
age or minor physical problems, such as poor eyesight, made them 
ineligible for service in the Army, Navy, or Marine Corps. Others were 
encouraged by military recruiters to volunteer for service in the 
Merchant Marines because the recruiter recognized that the special 
skills offered by the volunteer could best be put to use for our 
country by service in the Merchant Marines. Most importantly, all were 
motivated by their deep love of country and personal sense of 
patriotism to contribute to the war effort.
  In order to staff our growing merchant fleet during World War II, the 
U.S. Maritime Commission established training camps around the country 
under the direct supervision of the Coast Guard. After completing basic 
training, which included both small arms and cannon proficiency, seamen 
became active members of the U.S. Merchant Marine. These seamen, often 
at great personal risk, helped deliver troops and war supplies needed 
for every Allied invasion site from Guadalcanal to Omaha Beach. I have 
heard from the merchant mariners who were responsible in 1946 for 
transporting tons of German mustard and other poisonous gas containers 
from Europe to the San Jacinto ordinance base in Texas.
  More than 6,500 Merchant Mariners who served our country during World 
War II gave the ultimate sacrifice of their lives, including 37 who 
died as prisoners of war, and almost 5,000 World War II Merchant 
Mariners remain officially missing and are presumed dead. In addition, 
733 U.S. Merchant ships were destroyed. Even after the surrender of 
Japan, members of our Merchant Marine fleet were in mortal danger as 
they continued to support the war effort by entering mined harbors to 
transport our troops safely home. After the war ended, they carried 
food and medicine to millions of the world's starving people.
  In spite of the illustrious service of the World War II U.S. Merchant 
Marine, the Secretary of the Air Force, Edward Aldridge, inexplicably 
and erroneously made the decision in 1988 to define the dates for World 
War II service differently for Merchant Marines than for those who 
served in the other American forces. The effect of this decision was to 
deny veteran status to those mariners who served between the dates of 
August 15, 1945 and December 31, 1946, the official end of World War 
II.
  It is important to remember that during the time period addressed by 
this bill, August 15, 1945 through December 31, 1946, 12 U.S. Flag 
Merchant Vessels were lost or damaged as a result of striking mines, 
and some of the Merchant Mariners serving on these vessels were killed 
or injured. Fully understanding the tremendous risks they faced, 
mariners nonetheless willingly went into mined harbors so that they 
could bring our American troops home to their families and friends. I 
believe these courageous Merchant Mariners, who were subject to the 
risks and dangers of war between V-J Day and the official end of the 
war, have been wrongfully denied veteran status. They faced the very 
real hazards of wartime hostile actions and should not be denied the 
status of veteran of purposes of laws administered by the Department of 
Veterans Affairs because their seagoing contributions began after 
August 15, 1945.
  In recognition of the service rendered and dangers faced by those 
mariners who served during the period of August 15, 1945 through 
December 31, 1946, on March 19, 1997, I introduced the Merchant Mariner 
Fairness Act (H.R. 1126). H.R. 1126 will finally provide appropriate 
recognition: veteran status for a few thousand World War II American 
Merchant Mariners. While this status will enable them to be eligible 
for veterans' benefits, it is likely that the only benefit most will 
receive is proper recognition of their contributions to the war effort 
and the right to a veterans' funeral. The merchant mariners who would 
be granted veteran status by this bill are aging. They will not qualify 
for educational benefits. As Medicare beneficiaries, most already have 
long standing relationships with their medical providers and are 
unlikely to seek VA health care. Nonetheless, the Merchant Mariners of 
World War II will receive the long-overdue thanks from the nation they 
served faithfully and courageously. The Merchant Mariners Fairness Act 
would correct this erroneous administrative decision by making the 
service eligibility period for World War II Merchant Mariners identical 
to that established for others.

  As of yesterday, H.R. 1126 has been cosponsored by 310 Members of the 
House. Clearly, there is widespread and bipartisan support for H.R. 
1126 and an overwhelming majority of the House agree with me on 
granting veteran status to this select group of Merchant Mariners of 
World War II. Unfortunately, the House has not yet taken action on the 
Merchant Mariners Fairness Act.
  It has been more than than a half century since the end of World War 
II. How much longer must these aging Merchant Mariners, who are the 
forgotten partriots of World War II, wait for their service to our 
Nation to be properly and fully honored and acknowledged?
  As approved by the other body, S. 414, the Ocean Shipping Reform Act 
of 1998, contained an important provision granting veteran status and 
limited veteran's benefits to a select group of World War II merchant 
mariners. With the number of days remaining in the 105th Congress 
rapidly dwindling, enactment of S. 414 as approved by the other body, 
would have properly provided the long overdue recognition to the 
Merchant Mariners who bravely served our Nation during the final days 
of World War II by granting veteran status and limited veterans' 
benefits. At long last, our Nation would have appropriately 
acknowledged their sacrifice and service to our Nation during wartime.
  I regret, however, that the provisions contained in S. 414 bestowing 
veterans' status to those mariners, who served between the dates of 
August 15, 1945 and the official end of World War II, have been deleted 
from this legislation being considered by the House. As a result of 
striking these provisions from S. 414, those mariners who served 
between the dates of August 15, 1945 and December 31, 1946, will be 
required to wait even longer to receive the veterans status which I 
strongly believe they have earned and are due.
  On a more positive note, I am very pleased to report that the 
Chairman of the House Committee on Veterans Affairs has pledged to work 
for Congressional approval of legislation granting veteran status and 
limited veterans' benefits to those mariners who served between the 
dates of August 15, 1945 and December 31, 1946, before the end of the 
105th Congress. I welcome this commitment from Chairman Stump and based 
on his pledge I look forward to the approval of this legislation before 
the adjournment of the 105th Congress sine die.
  Mr. SHUSTER. Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Dickey). The question is on the motion 
offered by the gentleman from Pennsylvania (Mr. Shuster) that the House 
suspend the rules and pass the Senate bill, S. 414, as amended.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the Senate bill, as amended, was 
passed.
  A motion to reconsider was laid on the table.




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