[House Report 104-544]
[From the U.S. Government Publishing Office]



104th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 2d Session                                                     104-544
_______________________________________________________________________


 
PROVIDING FOR THE CONSIDERATION OF H.R. 2149, THE OCEAN SHIPPING REFORM 
                                  ACT
                                _______


   April 30, 1996.--Referred to the House Calendar and ordered to be 
                                printed

_______________________________________________________________________


   Mr. Quillen, from the Committee on Rules, submitted the following

                              R E P O R T

                       [To accompany H. Res. 419]

    The Committee on Rules, having had under consideration 
House Resolution 419, by a nonrecord vote, report the same to 
the House with the recommendation that the resolution be 
adopted.

               Brief Summary of Provisions of Resolutions

    The resolution provides for the consideration of H.R. 2149, 
the ``Ocean Shipping Reform Act'' under an open rule. The rule 
provides one hour of general debate divided equally between the 
chairman and ranking minority member of the Committee on 
Transportation.
    The rule provides for the consideration of a manager's 
amendment to be printed in part 1 of the report of the 
Committee on Rules to accompany the resolution, which is 
considered as read, may amend portions of the bill not yet read 
for amendment, is debatable for 10 minutes equally divided 
between the proponent and an opponent, and shall not be subject 
to amendment or to division of the question. If adopted, the 
amendment is considered as part of the base text for further 
amendment purposes.
    Additionally, the rule waives clause 7 of rule XVI 
(germaneness) against the manager's amendment printed in part 1 
of the report.
    The rule provides that the bill, as amended, shall be 
considered by title rather than by section, and that the first 
section and each title shall be considered as read.
    Members who have pre-printed their amendments in the Record 
prior to their consideration will be given in recognition to 
offer their amendments if otherwise consistent with House 
rules.
    The rule further provides that the amendment printed in 
part 2 of the report shall be considered as read, may amend 
portions of the bill not yet read for amendment, shall not be 
subject to amendment, and shall not be subject to a demand for 
division of the question in the House or in the Committee of 
the Whole.
    Finally, the rule provides for one motion to recommit, with 
or without instructions.

                                 PART 1

    Manager's Amendment To Be Offered by Representative Shuster of 
                      Pennsylvania or His Designee

    Page 3, line 3, strike ``rates;'' and insert ``rates, 
charges, classifications, rules, and practices;''.
    Page 3, line 19, strike ``or'' and insert ``and''.
    Page 10, line 17, strike the closing quotation marks and 
the final period.
    Page 10, after line 17, insert the following:
          ``(4) The requirements and prohibitions concerning 
        contracting by conferences contained in sections 
        5(b)(9) and (10) of this Act shall also apply to any 
        agreement among one or more ocean common carriers that 
        is filed under section 5(a) of this Act.''.
    Page 10, line 23, strike ``(4)'' and insert ``(5)''.
    Page 14, after line 19, insert the following:
                  (A) by striking subsection (c)(1) and 
                inserting the following:
                  ``(1) boycott, take any concerted action 
                resulting in an unreasonable refusal to deal, 
                or implement a policy or practice that results 
                in an unreasonable refusal to deal;'';
    Page 14, line 20, strike ``(A)'' and insert ``(B)''.
    Page 14, line 23, strike ``(B)'' and insert ``(C)''.
    Page 14, line 25, insert ``and'' at the end.
    Page 15, line 3 strike ``; and'' and insert a period.
    Page 15, strike lines 4 through 9.
    Page 19, strike lines 4 through 25 and insert the 
following:
          (1) by striking subsection (a) and inserting the 
        following:
    ``(a) License.--No person in the United States may act as 
an ocean freight forwarder unless that person holds a license 
issued by the Commission. The Commission shall issue a 
forwarder's license to any person that the Commission 
determines to be qualified by experience and character to 
render forwarding services.'';
          (2) by redesignating subsections (b), (c), and (d) as 
        subsections (c), (d), and (e), respectively;
          (3) by inserting after subsection (a) the following:
    ``(b) Financial Responsibility.--
          ``(1) No person may act as an ocean freight forwarder 
        unless that person furnishes a bond, proof of 
        insurance, or other surety in a form and amount 
        determined by the Commission to insure financial 
        responsibility that is issued by a surety company found 
        acceptable by the Secretary of the Treasury.
          ``(2) A bond, insurance, or other surety obtained 
        pursuant to this section shall be available to pay any 
        judgment for damages against an ocean freight forwarder 
        arising from its transportation-related activities 
        under this Act or order for reparation issued pursuant 
        to section 11 or 14 of this Act.
          ``(3) An ocean freight forwarder not domiciled in the 
        United States shall designate a resident agent in the 
        United States for receipt of service of judicial and 
        administrative process, including subpoenas.'';
          (4) in subsection (c), as redesignated by paragraph 
        (2) of this section, by striking ``a bond in accordance 
        with subsection (a)(2)'' and inserting ``a bond, proof 
        of insurance, or other surety in accordance with 
        subsection (b)(1)''; and
          (5) in subsection (e), as redesignated by paragraph 
        (2) of this section--
                  (A) by striking paragraph (3) and 
                redesignating paragraph (4) as paragraph (3); 
                and
                  (B) by adding at the end the following:
          ``(4) No conference or group of 2 or more ocean 
        common carriers in the foreign commerce of the United 
        States that is authorized to agree upon the level of 
        compensation paid to an ocean freight forwarder, as 
        defined in section 3(18)(A) of this Act, may--
                  ``(A) deny to any member of the conference or 
                group the right, upon notice of not more than 3 
                business days, to take independent action on 
                any level of compensation paid to an ocean 
                freight forwarder; or
                  ``(B) agree to limit the payment of 
                compensation to an ocean freight forwarder, as 
                defined in section 3(18)(A) of this Act, to 
                less than 1.25 percent of the aggregate of all 
                rates and charges which are applicable under a 
                common schedule of transportation rates 
                provided under section 8(a) of this Act, and 
                which are assessed against the cargo on which 
                the forwarding services are provided.''.
    Page 24, line 15, strike ``United States carriers'' and 
insert ``one or more ocean common carriers''.
    Page 24, strike lines 19 through 24 and insert the 
following:
    ``(h)(1) The Secretary shall issue regulations by June 1, 
1997, that prescribe procedures and requirements governing the 
submission of price and other information necessary to enable 
the Secretary to determine under subsection (g) whether prices 
charged by carriers are unfair, predatory, or anticompetitive.
    ``(2)(A) If information provided to the Secretary under 
this subsection does not result in a finding by the Secretary 
of a violation of this section or enforcement action by the 
Secretary, the information may not be made public and shall be 
exempt from disclosure under section 552 of title 5, United 
States Code, except for purposes of an administrative or 
judicial action or proceeding.
    ``(B) This paragraph does not prohibit disclosure to either 
House of the Congress or to a duly authorized committee or 
subcommittee of the Congress.''.
    Page 25, after line 10, insert the following:

SEC. 203. REPORT BY THE SECRETARY.

    The Secretary shall report to the Congress by January 1, 
1998, and annually thereafter, on--
          (1) actions taken by the Secretary under the Foreign 
        Shipping Practices Act of 1988 (46 App. U.S.C. 1710a) 
        and section 9 of the Shipping Act of 1984 (46 U.S.C. 
        App. 1708); and
          (2) the effect on United States maritime employment 
        of laws, rules, regulations, policies, or practice of 
        foreign governments, and any practices of foreign 
        carriers or other persons providing maritime or 
        maritime-related services in a foreign country, that 
        adversely affect the operations of United States 
        carriers in United States oceanborne trade.
    Page 25, strike line 14 and all that follows through line 4 
on page 26 and insert the following:

SEC. 301. AGENCY TERMINATION.

    (a) In General.--On September 30, 1997, the Federal 
Maritime Commission shall terminate and all remaining 
functions, powers, and duties of the Federal Maritime 
Commission shall be transferred to the Secretary of 
Transportation.
    (b) Authorization of Appropriations for Fiscal Year 1997.--
There is authorized to be appropriated to the Federal Maritime 
Commission, $19,000,000 for fiscal year 1997.
                              ----------                              


                                 PART 2

Amendment To Be Offered by Representative Oberstar of Minnesota or His 
                                Designee

    Page 10, line 23, strike ``(5)'' and insert ``(5)(A)''.
    Page 11, line 7, strike the closing quotation marks and the 
final period.
    Page 11, after line 7, insert the following:
          ``(B) Notwithstanding subparagraph (A), the essential 
        terms of a contract entered into under this section 
        shall be made publicly available electronically in a 
        manner prescribed by the Commission. This subparagraph 
        does not apply to service contracts dealing with bulk 
        cargo, forest products, recycled metal scrap, waste 
        paper, or paper waste.
        ``(C) For purpose of subparagraph (B), the essential 
        terms of a contract shall include--
                  ``(i) the origin and destination port ranges 
                in the case of port-to-port movements, and the 
                original and destination geographic areas in 
                the case of through intermodal movements;
                  ``(ii) the commodity or commodities involved;
                  ``(iii) the minimum volume;
                  ``(iv) the line-haul rate;
                  ``(v) the duration;
                  ``(vi) service commitments; and
                  ``(vii) the liquidated damages for 
                nonperformance, if any.''.
    Page 14, line 11, insert ``except as provided by section 
8(b)(4)(B),'' after ``(B)''.
    At the end of section 301(a) of the bill insert the 
following:

The Secretary of Transportation shall delegate such functions, 
powers, and duties to the Surface Transportation Board.