[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

======================================================================




         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.

----------------------------------------------------------------------------------------------------------------
                                                                  By fiscal years, in millions of dollars--
                                                           -----------------------------------------------------
                                                              1999     2000     2001     2002     2003     2004
----------------------------------------------------------------------------------------------------------------
                                        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.

                                  
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