[Senate Report 106-57]
[From the U.S. Government Publishing Office]
Calendar No. 127
106th Congress Report
SENATE
1st Session 106-57
_______________________________________________________________________
FEDERAL MARITIME COMMISSION AUTHORIZATION ACT OF 1999
__________
R E P O R T
OF THE
COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
on
S. 920
May 27, 1999.--Ordered to be printed
__________
U.S. GOVERNMENT PRINTING OFFICE
69-010 WASHINGTON : 1999
SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
one hundred sixth congress
first session
JOHN McCAIN, Arizona, Chairman
TED STEVENS, Alaska ERNEST F. HOLLINGS, South Carolina
CONRAD BURNS, Montana DANIEL K. INOUYE, Hawaii
SLADE GORTON, Washington JOHN D. ROCKEFELLER IV, West
TRENT LOTT, Mississippi Virginia
KAY BAILEY HUTCHISON, Texas JOHN F. KERRY, Massachusetts
OLYMPIA SNOWE, Maine JOHN B. BREAUX, Louisiana
JOHN ASHCROFT, Missouri RICHARD H. BRYAN, Nevada
BILL FRIST, Tennessee BYRON L. DORGAN, North Dakota
SPENCER ABRAHAM, Michigan RON WYDEN, Oregon
SAM BROWNBACK, Kansas MAX CLELAND, Georgia
Mark Buse, Staff Director
Martha P. Allbright, General Counsel
Ivan A. Schlager, Democratic Chief Counsel and Staff Director
Kevin Kayes, Democratic General Counsel
(ii)
Calendar No. 127
106th Congress Report
SENATE
1st Session 106-57
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FEDERAL MARITIME COMMISSION AUTHORIZATION ACT OF 1999
_______
May 27, 1999.--Ordered to be printed
_______
Mr. McCain, from the Committee on Commerce, Science, and
Transportation, submitted the following
R E P O R T
[To accompany S. 920]
The Committee on Commerce, Science, and Transportation, to
which was referred the bill (S. 920) ``A Bill to authorize
appropriations for the Federal Maritime Commission for fiscal
years 2000 and 2001'', having considered the same, reports
favorably thereon with an amendment and recommends that the
bill (as amended) do pass.
Purpose of the Bill
The primary purpose of H.R. 819 is to authorize funds for the
Federal Maritime Commission for fiscal years 2000 and 2001.
Background and Needs
The Federal Maritime Commission (FMC) is an independent
agency formed in 1961 following the abolition of the Federal
Maritime Board. The Commission is responsible for enforcing
international shipping rules and regulations involving carriers
(container ship operators), shippers (companies owning goods to
be transported), and transportation facilitators such as
freight forwarders, nonvessel operating common carriers, and
customs brokers.
The FMC is composed of five commissioners, appointed by the
President by and with the consent of the Senate. The current
Chairman of the FMC is the Honorable Harold J. Creel, Jr.
The FMC is primarily engaged in administering the Shipping
Act of 1984. However, the FMC also enforces the Foreign
Shipping Practices Act and Section 19 of the Merchant Marine
Act, 1920. Under these authorities, the FMC protects shippers
and carriers from restrictive or unfair practices of foreign
governments and foreign-flag carriers. Under these laws, the
FMC has the authority to take action against the offending
carriers, including the imposition of per voyage fees and
preventing them from operating in trade with the United States.
The final major responsibility of the FMC is enforcement of the
laws related to cruise vessel financial responsibility. Under
sections 2 and 3 of Public Law 89-777, the FMC ensures that
cruise vessel operators have sufficient resources to pay
judgments to passengers for personal injury or death or for
nonperformance of a voyage.
The Ocean Shipping Reform Act went into effect May 1, 1999.
The Committee intends to review throughout this Congress its
impact and the Commission's implementation efforts. In this
process, the Committee will consider what resources are
necessary for the Commission's efficient administration of the
Act.
Summary of Major Provisions
S. 920 authorizes funding for the activities of the FMC for
fiscal year 2000 and 2001. Additionally, the bill amends
current law to require that the appointment of the Commission's
Chairmanship be subject to Senate confirmation.
Legislative History
The bill was introduced as S. 920 by Subcommittee Chairman
Hutchison on April 29, 1999, with Senators McCain, Hollings,
and Inouye as cosponsors. The bill was referred to the
Committee on Commerce, Science, and Transportation.
On May 5, 1999, the Commerce, Science, and Transportation
Committee met to consider S. 920. S. 920 was ordered reported
to the Senate as amended by a voice vote in the presence of a
quorum.
Estimated Costs
In accordance with paragraph 11(a) of rule XXVI of the
Standing Rules of the Senate and section 403 of the
Congressional Budget Act of 1974, the Committee provides the
following cost estimate, prepared by the Congressional Budget
Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, May 12, 1999.
Hon. John McCain,
Chairman, Committee on Commerce, Science, and Transportation, U.S.
Senate, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for S. 920, the Federal
Maritime Commission Authorization Act of 1999.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Deborah Reis.
Sincerely,
Barry B. Anderson
(For Dan L. Crippen, Director).
Enclosure.
congressional budget office cost estimate
S. 920--Federal Maritime Commission Authorization Act of 1999
Summary: S. 920 would authorize appropriations to the
Federal Maritime Commission (FMC) of about $15.7 million and
$16.3 million for fiscal years 2000 and 2001, respectively.
Appropriation of the authorized amounts would result in
additional outlays totaling $32 million over the 2000-2002
period. The bill would not affect direct spending or receipts;
therefore, pay-as-you-go procedures would not apply. S. 920
contains no intergovernmental or private-sector mandates as
defined in the Unfunded Mandates Reform Act (UMRA) and would
impose no costs on state, local, or tribal governments.
Estimated cost to the Federal Government: The estimated
budgetary impact of S. 920 is shown in the following table. The
costs of this legislation fall within budget function 400
(transportation). For purposes of this estimate, CBO assumes
that S. 920 will be enacted during fiscal year 1999 and that
the authorized amounts will be appropriated for each year. The
estimate of outlays is based on historical spending patterns of
the FMC. Other provisions of the bill would have no impact on
the federal budget.
Pay-as-you-go considerations: None.
Intergovernmental and private-sector impact: S. 920
contains no intergovernmental or private-sector mandates as
defined in UMRA and would impose no costs on state, local, or
tribal governments.
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By fiscal years, in millions of dollars--
-----------------------------------------------------
1999 2000 2001 2002 2003 2004
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SPENDING SUBJECT TO APPROPRIATION
FMC Spending Under Current Law:
Budget Authority \1\.................................. 14 0 0 0 0 0
Estimated Outlays..................................... 14 0 0 0 0 0
Proposed Changes:
Authorization Level................................... 0 16 16 0 0 0
Estimated Outlays..................................... 0 15 16 1 0 0
FMC Spending Under S. 920:
Authorization Level \1\............................... 14 16 16 0 0 0
Estimated Outlays..................................... 14 15 16 1 0 0
----------------------------------------------------------------------------------------------------------------
\1\ The 1999 level is the amount appropriated for that year.
Previous CBO estimate: On March 2, 1999, CBO prepared a
cost estimate for H.R. 819, the Federal Maritime Commission
Authorization Act of 1999, as ordered reported by the House
Committee on Transportation and Infrastructure on March 2,
1999. Both bills would authorize the same funding levels, and
the estimated costs are identical.
Estimate prepared by: Deborah Reis.
Estimate approved by: Robert A. Sunshine, Deputy Assistant
Director for Budget Analysis.
Regulatory Impact Statement
In accordance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee provides the
following evaluation of the regulatory impact of the
legislation, as reported:
Because S. 920 does not create any new programs, the
legislation will have no additional regulatory impact, and will
result in no additional reporting requirements. The legislation
will have no further effect on the number or types of
individuals and businesses regulated, the economic impact of
such regulation, the personalprivacy of affected individuals,
or the paperwork required from such individuals and businesses.
S. 920 as reported by the Committee authorizes appropriations
to continue existing Federal Maritime Administration Programs
and makes only one change to current law.
That change, made by section 3 of the reported bill, requires
Senate confirmation of the President's appointment of the
Commission's Chairman. This provision will require that any
individual nominated by the President to the position provide
the Senate with up to date biographical and financial
information as requested for consideration. Further, the
individual would be required to appear before the Senate
Committee on Commerce, Science, and Transportation prior to
approval by the Senate.
Section-by-Section Analysis
Section 1. Short Title
This section states that the Act may be cited as the Federal
Maritime Commission Authorization Act of 1999.
Sec. 2. Authorization of Appropriations
Section 2 of S. 920 authorizes $15,685,000 for the activities
of the FMC for fiscal year 2000. This is the amount requested
for the FMC by the President, with an additional $385,000 to
fund the office of the new Federal Maritime Commissioner when
he is confirmed. Section 2 also authorizes $16,312,000 for the
FMC for fiscal year 2001.
Sec. 3. Chairman Designated with Senate Confirmation
Section 3 amends the Reorganization Plan Number 7 of 1961 to
require that the Chairmanship of the Commission be appointed by
the President with the advice and consent of the Senate.
Changes in Existing Law
In compliance with paragraph 12 of rule XXVI of the Standing
Rules of the Senate, changes in existing law made by the bill,
as reported, are shown as follows (existing law proposed to be
omitted is enclosed in black brackets, new material is printed
in italic, existing law in which no change is proposed is shown
in roman):
REORGANIZATION PLAN NO. 7 OF 1961
Sec. 102. Composition of the Commission
* * * * * * *
(b) The [President] President, by and with the advice and
consent of the Senate, shall from time to time designate one of
the Commissioners to be the Chairman of the Commission.