[House Report 115-1017]
[From the U.S. Government Publishing Office]


115th Congress    }                                   {         Report
                        HOUSE OF REPRESENTATIVES
 2d Session       }                                   {       115-1017

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



 
         FEDERAL MARITIME COMMISSION AUTHORIZATION ACT OF 2017

                                _______
                                

 November 13, 2018.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

 Mr. Shuster, from the Committee on Transportation and Infrastructure, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 2593]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Transportation and Infrastructure, to whom 
was referred the bill (H.R. 2593) to authorize appropriations 
for the Federal Maritime Commission for fiscal years 2018 and 
2019, and for other purposes, having considered the same, 
report favorably thereon with an amendment and recommend that 
the bill as amended do pass.

                                CONTENTS

                                                                   Page
Purpose of Legislation...........................................     5
Background and Need for Legislation..............................     5
Hearings.........................................................     6
Legislative History and Consideration............................     6
Committee Votes..................................................     6
Committee Oversight Findings.....................................     7
New Budget Authority and Tax Expenditures........................     7
Congressional Budget Office Cost Estimate........................     7
Performance Goals and Objectives.................................     9
Advisory of Earmarks.............................................    10
Duplication of Federal Programs..................................    10
Disclosure of Directed Rule Makings..............................    10
Federal Mandate Statement........................................    10
Preemption Clarification.........................................    10
Advisory Committee Statement.....................................    10
Applicability of Legislative Branch..............................    10
Section-by-Section Analysis of Legislation.......................    11
Changes in Existing Law Made by the Bill, as Reported............    13

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Federal Maritime 
Commission Authorization Act of 2017''.
  (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.

                  TITLE I--FEDERAL MARITIME COMMISSION

Sec. 101. Authorization.
Sec. 102. Port services.
Sec. 103. Information.
Sec. 104. Ocean transportation intermediaries.
Sec. 105. Interrelated agreements.

                        TITLE II--OTHER MATTERS

Sec. 201. Fishing safety grants.
Sec. 202. Assistance for small shipyards.
Sec. 203. Treatment of fishing permits.
Sec. 204. Centers of excellence.

                  TITLE I--FEDERAL MARITIME COMMISSION

SEC. 101. AUTHORIZATION.

  Section 308 of title 46, United States Code, is amended by striking 
``$24,700,000 for each of fiscal years 2016 and 2017'' and inserting 
``$28,012,310 for fiscal year 2018 and $28,544,543 for fiscal year 
2019''.

SEC. 102. PORT SERVICES.

  (a) Definitions.--Section 40102 of title 46, United States Code, is 
amended by adding at the end the following:
          ``(26) Port services.--The term `port services' means 
        intermediary services provided to an ocean carrier at a United 
        States port to facilitate vessels operated by such a carrier to 
        operate and load and unload cargo at such port, including 
        towage, cargo handling, and bunkering.''.
  (b) Concerted Action.--Section 41105 of title 46, United States Code, 
is amended--
          (1) in paragraph (7) by striking ``or'' at the end;
          (2) in paragraph (8) by striking the period at the end and 
        inserting ``;''; and
          (3) by adding at the end the following:
          ``(9) negotiate with a provider of port services, other than 
        a provider of towing vessel services, on any matter relating to 
        rates or services provided within the United States by such 
        provider, unless advance notice is provided to the Federal 
        Maritime Commission of the intent and need for the negotiation, 
        the negotiation and any resulting agreement are not in 
        violation of the antitrust laws and are consistent with the 
        purposes of this part, and, as determined by the Commission, 
        the negotiation and any resulting agreement will not 
        substantially lessen competition in the purchasing of port 
        services provided at United States ports (this paragraph does 
        not prohibit the setting and publishing of a joint through rate 
        by a conference, joint venture, or association of common 
        carriers); or
          ``(10) negotiate with a provider of towing vessel services on 
        any matter relating to rates or services provided within the 
        United States by towing vessels.''.
  (c) Injunctive Relief Sought by the Commission.--Section 41307(b) of 
title 46, United States Code, is amended--
          (1) in paragraph (1) by striking ``produce an unreasonable 
        reduction in transportation service or an unreasonable increase 
        in transportation cost'' and inserting ``produce an 
        unreasonable reduction in transportation service, produce an 
        unreasonable increase in transportation cost, or substantially 
        lessen competition in the purchasing of port services''; and
          (2) by adding at the end the following:
          ``(4) Competition factors.--In making a determination under 
        this subsection, the Commission may consider any relevant 
        competition factors in affected markets, including, without 
        limitation, the competitive effect of agreements other than the 
        agreement under review.''.

SEC. 103. INFORMATION.

  (a) Reports Filed With the Commission.--Section 40104(a) of title 46, 
United States Code, is amended--
          (1) by inserting ``, marine terminal operator, or ocean 
        transportation intermediary,'' after ``common carrier'';
          (2) by inserting ``, operator, or intermediary,'' after 
        ``employee of the carrier''; and
          (3) by inserting ``, operator, or intermediary'' after 
        ``business of the carrier''.
  (b) Commission Action.--Section 40304 of title 46, United States 
Code, is amended--
          (1) in subsection (a) by inserting ``, and interested persons 
        may submit relevant information and documents to the 
        Commission'' after ``publication''; and
          (2) in subsection (d) by striking ``to make the 
        determinations required by this section''.

SEC. 104. OCEAN TRANSPORTATION INTERMEDIARIES.

  (a) License Requirement.--Section 40901(a) of title 46, United States 
Code, is amended by inserting ``advertise, hold oneself out, or'' after 
``may not''.
  (b) Financial Responsibility.--Section 40902(a) of title 46, United 
States Code, is amended by inserting ``advertise, hold oneself out, 
or'' after ``may not''.
  (c) Common Carriers.--Section 41104(11) of title 46, United States 
Code, is amended by striking ``a tariff as required by section 40501 of 
this title and''.

SEC. 105. INTERRELATED AGREEMENTS.

  (a) Common Carriers.--Section 41104 of title 46, United States Code, 
is amended--
          (1) in paragraph (11) by striking ``or'' at the end;
          (2) in paragraph (12) by striking the period at the end and 
        inserting ``; or''; and
          (3) by adding at the end the following:
          ``(13) participate in a rate discussion agreement and a 
        vessel sharing agreement, slot sharing agreement, space sharing 
        agreement, or similar agreement for use of vessels by two or 
        more ocean common carriers, unless the Commission has granted 
        the parties an exemption pursuant to section 40103.''.
  (b) Applicability.--Participants in an agreement in effect on the 
date of enactment of this Act and prohibited as a result of the 
amendment made in subsection (a) shall have 1 year from such date of 
enactment to--
          (1) obtain an exemption from the application of section 
        41104(13) of title 46, United States Code, pursuant to section 
        40103 of such title; or
          (2) withdraw from the agreement as necessary to comply with 
        such section 41104(13).

                        TITLE II--OTHER MATTERS

SEC. 201. FISHING SAFETY GRANTS.

  Section 4502 of title 46, United States Code, is amended--
          (1) in subsections (i) and (j), by striking ``Secretary'' 
        each place it appears and inserting ``Secretary of Commerce'';
          (2) in subsection (i)(3), by striking ``75'' and inserting 
        ``50'';
          (3) in subsection (i)(4), by striking ``$3,000,000 for each 
        of fiscal years 2015 through 2017'' and inserting ``$3,000,000 
        for each of fiscal years 2018 through 2019'';
          (4) in subsection (j)(3), by striking ``75'' and inserting 
        ``50''; and
          (5) in subsection (j)(4), by striking ``$3,000,000 for each 
        fiscal years 2015 through 2017'' and inserting ``$3,000,000 for 
        each of fiscal years 2018 through 2019''.

SEC. 202. ASSISTANCE FOR SMALL SHIPYARDS.

  (a) In General.--Section 54101 of title 46, United States Code, is 
amended--
          (1) in the section heading, by striking ``and maritime 
        communities'';
          (2) in subsection (a)(2), by striking ``in communities'' and 
        all that follows through the period and inserting ``relating to 
        shipbuilding, ship repair, and associated industries.'';
          (3) in subsection (b), by amending paragraph (1) to read as 
        follows:
          ``(1) consider projects that foster--
                  ``(A) efficiency, competitive operations, and quality 
                ship construction, repair, and reconfiguration; and
                  ``(B) employee skills and enhanced productivity 
                related to shipbuilding, ship repair, and associated 
                industries; and'';
          (4) in subsection (c)(1)--
                  (A) by inserting ``to'' after ``may be used''; and
                  (B) by striking subparagraphs (A), (B), and (C) and 
                inserting the following:
                  ``(A) make capital and related improvements in small 
                shipyards; and
                  ``(B) provide training for workers in shipbuilding, 
                ship repair, and associated industries.'';
          (5) in subsection (d), by striking ``unless'' and all that 
        follows before the period;
          (6) in subsection (e)--
                  (A) by striking paragraph (2);
                  (B) by redesignating paragraph (3) as paragraph (2); 
                and
                  (C) in paragraph (1) by striking ``Except as provided 
                in paragraph (2),''; and
          (7) in subsection (i), by striking ``2015'' and all that 
        follows before the period and inserting ``2018 and 2019 to 
        carry out this section $30,000,000''.
  (b) Clerical Amendment.--The analysis for chapter 541 of title 46, 
United States Code, is amended by striking the item relating to section 
54101 and inserting the following:

``54101. Assistance for small shipyards.''.

SEC. 203. TREATMENT OF FISHING PERMITS.

  (a) In General.--Subchapter I of chapter 313 of title 46, United 
States Code, is amended by adding at the end the following:

``Sec. 31310. Treatment of fishing permits

  ``(a) Limitation on Maritime Liens.--This chapter--
          ``(1) does not establish a maritime lien on a fishing permit; 
        and
          ``(2) does not authorize any civil action to enforce a 
        maritime lien on a fishing permit.
  ``(b) Treatment of Fishing Permits Under State and Federal Law.--A 
fishing permit--
          ``(1) is governed solely by the State or Federal law under 
        which it is issued; and
          ``(2) shall not be treated as part of a vessel, or as an 
        appurtenance or intangible of a vessel, for any purpose under 
        Federal law.
  ``(c) Authority of Secretary of Commerce Not Affected.--Nothing in 
this section shall be construed as imposing any limitation upon the 
authority of the Secretary of Commerce--
          ``(1) to modify, suspend, revoke, or impose a sanction on any 
        fishing permit issued by the Secretary of Commerce; or
          ``(2) to bring a civil action to enforce such a modification, 
        suspension, revocation, or sanction.
  ``(d) Fishing Permit Defined.--In this section the term `fishing 
permit' means any authorization of a person or vessel to engage in 
fishing that is issued under State or Federal law.''.
  (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
31309 the following:

``31310. Treatment of fishing permits.''.

SEC. 204. CENTERS OF EXCELLENCE.

  (a) In General.--Chapter 541 of title 46, United States Code, is 
amended by adding at the end the following:

``Sec. 54102. Centers of excellence for domestic maritime workforce 
                    training and education

  ``(a) Designation.--The Secretary of Transportation may designate as 
a center of excellence for domestic maritime workforce training and 
education a covered training entity located in a State that borders on 
the--
          ``(1) Gulf of Mexico;
          ``(2) Atlantic Ocean;
          ``(3) Long Island Sound;
          ``(4) Pacific Ocean;
          ``(5) Great Lakes; or
          ``(6) Mississippi River System.
  ``(b) Assistance.--The Secretary may enter into a cooperative 
agreement (as that term is used in section 6305 of title 31) with a 
center of excellence designated under subsection (a) to support 
maritime workforce training and education at the center of excellence, 
including efforts of the center of excellence to--
          ``(1) admit additional students;
          ``(2) recruit and train faculty;
          ``(3) expand facilities;
          ``(4) create new maritime career pathways; or
          ``(5) award students credit for prior experience, including 
        military service.
  ``(c) Covered Training Entity Defined.--In this section, the term 
`covered training entity' means an entity that is--
          ``(1) a community or technical college; or
          ``(2) a maritime training center--
                  ``(A) operated by, or under the supervision of, a 
                State; and
                  ``(B) with a maritime training program in operation 
                on the date of enactment of this section.''.
  (b) Clerical Amendment.--The analysis for chapter 541 of title 46, 
United States Code, is amended by inserting after the item relating to 
section 54101 the following:

``54102. Centers of excellence for domestic maritime workforce training 
and education.''.

                         Purpose of Legislation

    H.R. 2593, the Federal Maritime Commission Authorization 
Act of 2017, authorizes funding for the Federal Maritime 
Commission (FMC or Commission) for fiscal years 2018 and 2019 
at increased levels and includes reforms to Commission 
authorities under Subtitle IV, Regulation of Ocean Shipping, of 
title 46, United States Code, regarding reviews of carrier 
agreements.

                  Background and Need for Legislation

    The Shipping Act of 1984 (46 United States Code 
Sec. Sec. 40101-41309) establishes a regulatory process for the 
common carriage of goods by water in the foreign commerce of 
the United States. This process is to be carried out by the 
Commission. The FMC is tasked with reviewing agreements filed 
by ocean carriers with the Commission to ensure open 
competition among carriers and fair pricing for shipping 
services to U.S. importers and exporters. Ocean carriers that 
comply with the policies of the Act are granted a limited 
antitrust exemption pursuant to agreements filed with the FMC. 
In general, the fair competition and anti-trust standards under 
the Subtitle IV are comparable to other anti-trust statutes 
(e.g., the Sherman Anti-Trust Act (26 Stat. 209, 15 United 
States Code Sec. Sec. 1-7), the Clayton Act (15 United States 
Code Sec. Sec. 12-27, 29 United States Code Sec. Sec. 52-53) 
and Federal Trade Commission Act (15 United States Code 
Sec. Sec. 41-58)).
    Additionally, Subtitle IV creates a regulatory process with 
minimal government intervention and regulatory costs. 
Nevertheless, when carriers discuss, fix, or regulate 
transportation rates, as well as other conditions of service, 
agreements must be filed with the Commission for review. During 
the Commission's review, the terms of an agreement may be 
adjusted to address concerns raised by the Commission. The 
Commission does not have, however, explicit authority to 
disapprove of an agreement. Rather, the Commission must seek 
injunctive relief in federal court to stay an agreement from 
going into effect. Filing for injunctive relief by the 
Commission is exceedingly rare and the vast majority of 
agreements (modified to address Commission concerns) 
automatically become effective 45 days after filing.
    The liner shipping industry has not yet recovered from the 
global recession that began in 2008. The continuing weakness in 
global trade growth, intense competition, a mismatch between 
the supply of vessel capacity and the demand to move cargo, the 
need for more energy efficient vessels, and historically low 
freight rates led industry to make fundamental changes to 
continue to provide ocean transportation services. Industry has 
worked to find efficiencies wherever they could. Efficiency 
measures have included technological innovations such as highly 
fuel efficient new vessels and vessel sharing agreements, 
commonly referred to ``alliances''. The alliances allow 
carriers to share vessel assets to move cargo to reduce the 
oversupply of capacity. While the Commission testified that the 
international ocean liner industry is not concentrated, the 
ability to form an alliance and collectively negotiate has 
raised concerns about carrier consolidation and impacts it may 
have on shippers and port service providers.
    The Commission allowed an amendment to a roll-on roll-off 
carrier agreement\1\ which went into effect on January 23, 
2017. American maritime industry stakeholders raised concerns 
with the amendment due to the inclusion of language allowing 
ocean carriers to collectively negotiate rates with American 
maritime service providers, including tugboat operators, which 
industry stakeholders claim would be disadvantaged by such 
negotiations. In March 2017, the Commission received another 
agreement,\2\ which also would permit ocean carrier alliances 
to jointly negotiate with American maritime service providers. 
American maritime stakeholders again raised concerns regarding 
maritime service providers having no counterbalancing ability 
to take collective action.
---------------------------------------------------------------------------
    \1\WWL/EUKOR/ARC/GLOVIS Cooperative Working Agreement (FMC No. 
012309-001).
    \2\The Tripartite Agreement (FMC Agreement No. 012475).
---------------------------------------------------------------------------

                                Hearings

    On May 3, 2017, the Subcommittee on Coast Guard and 
Maritime Transportation held a hearing on maritime 
transportation regulatory issues. The Subcommittee heard 
testimony from the Commission, American Waterways Operators, 
and the World Shipping Council. Concerns were raised regarding 
the existing Commission review process of ocean carrier 
alliance agreements and the impact such agreements may have on 
American port service providers.

                 Legislative History and Consideration

    On May 23, 2017, H.R. 2593 was introduced by Congressman 
Duncan Hunter (R-CA) and cosponsored by Congressman John 
Garamendi (D-CA), Congressman Bill Shuster (R-PA), and 
Congressman Peter DeFazio (D-OR). The bill was referred solely 
to the Committee on Transportation and Infrastructure.
    On May 24, 2017, the Committee on Transportation and 
Infrastructure met in open session to consider H.R. 2593. 
Congressman Hunter offered an amendment to the bill that would 
further clarify that ocean carrier alliances could not 
negotiate with providers of tug vessel services. The amendment 
was adopted by voice vote. The Committee ordered the bill, as 
amended, reported favorably to the House by voice vote with a 
quorum present.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires each committee report to include the 
total number of votes cast for and against on each record vote 
on a motion to report and on any amendment offered to the 
measure or matter, and the names of those Members voting for 
and against. There were no recorded votes taken in connection 
with consideration of H.R. 2593. A motion to order H.R. 2593, 
as amended, reported favorably to the House was agreed to by 
voice vote with a quorum present.

                      Committee Oversight Findings

    With respect to the requirements of clause 3(c)(1) of rule 
XIII of the Rules of the House of Representatives, the 
Committee's oversight findings and recommendations are 
reflected in this report.

               New Budget Authority and Tax Expenditures

    Clause 3(c)(2) of rule XIII of the Rules of the House of 
Representatives does not apply where a cost estimate and 
comparison prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act of 
1974 has been timely submitted prior to the filing of the 
report and is included in the report. Such a cost estimate is 
included in this report.

               Congressional Budget Office Cost Estimate

    With respect to the requirement of clause 3(c)(3) of rule 
XIII of the Rules of the House of Representatives and section 
402 of the Congressional Budget Act of 1974, the Committee has 
received the enclosed cost estimate for H.R. 2593 from the 
Director of the Congressional Budget Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                  Washington, DC, October 12, 2017.
Hon. Bill Shuster,
Chairman, Committee on Transportation and Infrastructure,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 2593, the Federal 
Maritime Commission Authorization Act of 2017.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Megan 
Carroll.
    Sincerely,
                                                Keith Hall,
                                                          Director.
    Enclosure.

H.R. 2593--Federal Maritime Commission Authorization Act of 2017

    Summary: H.R. 2593 would authorize appropriations totaling 
$129 million over the 2018-2019 period for activities related 
to waterborne transportation and commerce. Assuming 
appropriation of the authorized amounts, CBO estimates that 
enacting the bill would cost $129 million over the 2018-2022 
period.
    Enacting H.R. 2593 would decrease revenues by an 
insignificant amount; therefore, pay-as-you-go procedures 
apply. Enacting the bill would not affect direct spending.
    CBO estimates that enacting H.R. 2593 would not increase 
net direct spending or significantly affect on-budget deficits 
in any of the four consecutive 10-year periods beginning in 
2028.
    H.R. 2593 would impose intergovernmental and private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA). 
CBO estimates that the cost of the mandate on public entities 
would fall below the annual threshold established in UMRA for 
intergovernmental mandates ($78 million in 2017, adjusted 
annually for inflation). CBO cannot determine whether the cost 
of the mandates on private-entities would exceed the annual 
threshold established in UMRA for private-sector mandates ($156 
million in 2017, adjusted annually for inflation).
    Estimated cost to the Federal Government: The estimated 
budgetary effect of H.R. 2593 is shown in the following table. 
The costs of this legislation fall within budget function 400 
(transportation).

----------------------------------------------------------------------------------------------------------------
                                                                 By fiscal year, in millions of dollars--
                                                         -------------------------------------------------------
                                                            2018     2019     2020     2021     2022   2018-2022
----------------------------------------------------------------------------------------------------------------
                                 INCREASES IN SPENDING SUBJECT TO APPROPRIATION
 
Authorization Level.....................................       64       65        0        0        0       129
Estimated Outlays.......................................       41       52       20       13        3       129
----------------------------------------------------------------------------------------------------------------

    Basis of estimate: H.R. 2593 would authorize appropriations 
totaling $64 million in 2018 and $65 million in 2019 for 
activities related to waterborne transportation and commerce. 
(CBO estimates that funding for those activities in 2017 totals 
$37 million.) Those authorizations include:
           $30 million in each year for the Maritime 
        Administration to make grants to support capital and 
        related improvements at small shipyards;
           $28 million in 2018 and $29 million in 2019 
        for expenses of the Federal Maritime Commission, which 
        regulates oceanborne transportation related to U.S. 
        foreign commerce; and
           $6 million in each year for the Department 
        of Commerce to make grants to support efforts to 
        improve the safety of commercial fishing.
    Based on historical spending patterns for existing and 
similar activities, CBO estimates that implementing H.R. 2593 
would cost $129 million over the 2018-2022 period, assuming 
appropriation of the authorized amounts.
    Pay-As-You-Go Considerations: The bill would specify a 
different treatment of commercial fishing permits under federal 
laws, which could reduce the scope of civil actions pursued 
through federal courts to enforce maritime liens. Such a change 
in scope would reduce revenues from court filing fees; 
therefore, pay-as-you-go procedures apply. Based on the 
relatively small number of cases likely to be affected, CBO 
estimates that any decrease in revenues would be insignificant. 
(The federal costs to administer court proceedings would be 
insignificant and subject to appropriation.)
    Increase in long-term direct spending and deficits: CBO 
estimates that enacting H.R. 2593 would not increase net direct 
spending or on-budget deficits in any of the four consecutive 
10-year periods beginning in 2028.
    Intergovernmental and private-sector impact: H.R. 2593 
would impose intergovernmental and private-sector mandates as 
defined in UMRA. CBO estimates that the cost of the mandate on 
public entities would fall below the annual threshold 
established in UMRA for intergovernmental mandates ($78 million 
in 2017, adjusted annually for inflation). Because the cost of 
the private-sector mandates would depend, in part, on the 
outcome of hearings held by the Federal Maritime Commission 
(FMC), CBO cannot determine whether the cost of the mandates on 
private-entities would exceed the annual threshold established 
in UMRA for private-sector mandates ($156 million in 2017, 
adjusted annually for inflation).

Mandates that apply to both public and private entities

    The bill would impose intergovernmental and private-sector 
mandates on ocean transportation intermediaries and operators 
of marine terminals such as port authorities by requiring those 
entities to submit reports on their business activities to the 
FMC if requested. CBO estimates that the cost of complying with 
the reporting requirement would be small.

Mandates that apply to private entities only

    The bill also would impose a mandate on ocean carriers by 
prohibiting a carrier from participating in a vessel sharing 
agreement and a rate discussion agreement without an exemption 
from the FMC. The cost of the mandate would include the cost of 
preparing for an administrative hearing and any losses of 
income the carrier would incur because the carrier may no 
longer participate in a vessel sharing agreement if no 
exemption is granted. Based on information from industry 
sources, CBO estimates that the administrative costs would be 
small, particularly if the FMC provides an exemption to classes 
of agreements that meet certain criteria. However, the costs of 
the prohibition could be substantial, totaling hundreds of 
millions of dollars, if a carrier could not obtain an exemption 
and would have to terminate an agreement. CBO cannot determine 
the likelihood or frequency of potential exceptions that would 
be granted by FMC. Consequently, we cannot estimate whether the 
costs of the mandate would be substantial relative to the 
annual threshold established in UMRA.
    The bill also would impose a mandate on ocean carriers by 
prohibiting them from jointly negotiating agreements with tug 
operators and subjecting other joint negotiations to antitrust 
laws, which could result in higher costs. That is, the bill 
would prohibit ocean carriers from jointly negotiating with 
providers of some services at ports unless those negotiations 
meet the criteria of federal antitrust laws. Currently, only 
one group of ocean carriers has the authority to jointly 
negotiate with tug operators, and that authority has not yet 
been used. Based on those facts and information from industry 
sources, CBO estimates that the costs of those mandates would 
not be substantial in the first few years the mandate is in 
effect.
    Estimate prepared by: Federal costs: Megan Carroll; Impact 
on state, local, and tribal governments: Jon Sperl; Impact on 
the private sector: Amy Petz.
    Estimate approved by: H. Samuel Papenfuss, Deputy Assistant 
Director for Budget Analysis.

                    Performance Goals and Objectives

    With respect to the requirement of clause 3(c)(4) of rule 
XIII of the Rules of the House of Representatives, the 
performance goals and objectives of this legislation are to 
authorize appropriations for the FMC and modify FMC's 
authorities with regard to ocean carrier alliance agreements 
and negotiations with U.S. port service providers that may 
result from such agreements.

                          Advisory of Earmarks

    Pursuant to clause 9 of rule XXI of the Rules of the House 
of Representatives, the Committee is required to include a list 
of congressional earmarks, limited tax benefits, or limited 
tariff benefits as defined in clause 9(e), 9(f), and 9(g) of 
rule XXI of the Rules of the House of Representatives. No 
provision in the bill includes an earmark, limited tax benefit, 
or limited tariff benefit under clause 9(e), 9(f), or 9(g) of 
rule XXI.

                    Duplication of Federal Programs

    Pursuant to clause 3(c)(5) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that no provision 
of H.R. 2593 establishes or reauthorizes a program of the 
federal government known to be duplicative of another federal 
program, a program that was included in any report from the 
Government Accountability Office to Congress pursuant to 
section 21 of Public Law 111-139, or a program related to a 
program identified in the most recent Catalog of Federal 
Domestic Assistance.

                  Disclosure of Directed Rule Makings

    Pursuant to section 3(i) of H. Res. 5, 115th Cong. (2017), 
the Committee finds that enacting H.R. 2593 does not direct the 
completion of a specific rule making within the meaning of 
section 551 of title 5, United States Code.

                       Federal Mandate Statement

    The Committee adopts as its own the estimate of federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act (Public Law 104-4).

                        Preemption Clarification

    Section 423 of the Congressional Budget Act of 1974 
requires the report of any Committee on a bill or joint 
resolution to include a statement on the extent to which the 
bill or joint resolution is intended to preempt state, local, 
or tribal law. The Committee states that H.R. 2593 does not 
preempt any state, local, or tribal law.

                      Advisory Committee Statement

    No new advisory committees within the meaning of section 
5(b) of the Federal Advisory Committee Act are created by this 
legislation.

                  Applicability of Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act (Public Law 
104-1).

               Section-by-Section Analysis of Legislation


Section 101. Authorization

    This section amends section 308 of title 46, United States 
Code, to authorize funding levels for the Commission for fiscal 
years 2018 and 2019 that match the fiscal year 2017 
appropriation of $27.4 million adjusted annually for inflation.

Section 102. Port services

    This section amends section 40102 of title 46, United 
States Code, to include a new paragraph (26) which defines port 
services as an intermediary services provider to an ocean 
carrier at an American port to facilitate vessels operated by 
such carrier to operate, and load and unload cargo at the port. 
This amendment expands the scope of Subtitle IV to now include 
consideration of American port service providers.
    This section also amends section 41105 of title 46, United 
States Code, the concerted actions section, to include new 
paragraphs (9) and (10). The new paragraph (9) stipulates that 
a conference or group of two or more carriers may not negotiate 
with a provider of port services on any matter relating to 
rates or service provided. The paragraph does provide an 
exception to allow negotiations, if advance notice is provided 
to the Commission, the negotiation and resulting agreement are 
not in violation of anti-trust laws and are consistent with the 
Shipping Act, and the resulting agreement will not lessen 
competition, as determined by the Commission. Towing vessels 
are not included in the exception language. The new paragraph 
(10) states that a conference or group of two or more carriers 
may not negotiate with providers of towing vessel services.
    This section additionally amends section 41307(b) of title 
46, United States Code, to strike ``produce an unreasonable 
reduction in transportation service or an unreasonable increase 
in transportation cost''. Inserted in its place is ``produce an 
unreasonable reduction in transportation service or an 
unreasonable increase in transportation cost, or substantially 
lessen competition in the purchasing of port services.'' A new 
paragraph (4) is added at the end regarding competition 
factors. It would allow the Commission to consider any relevant 
competition factors in affected markets, including other 
agreements, other than the agreement under review. These 
amendments broaden the scope of the Commission's competition 
analysis to ensure the maintenance of fair competition in the 
purchasing and pricing of U.S. port services.

Section 103. Information

    This section amends the report section, section 40101(a) of 
title 46, United States Code, to include ``marine terminal 
operator or ocean transportation intermediary'' and employees 
of these two entities in the list of entities the Federal 
Maritime Commission may require a report, account, record, 
rate, or charge, or a memorandum of facts and transactions 
related to the business of such entities.
    The section also amends section 40304 of title 46, United 
States Code, to include ``, and interested persons may submit 
relevant information and documents to the Commission'' after 
``publication''. In 40304(d) the language ``to make the 
determination required by this section'' is removed.
    Both amendments should bolster the ability of the 
Commission to gather additional information to best evaluate 
conditions in affected markets and factors affecting 
competition among carriers and American port service providers.

Section 104. Ocean transportation intermediaries

    This section amends the license requirement section, 
section 40901(a) of title 46, United States Code, and the 
financial responsibility section, section 40902(a) of title 46, 
United States Code, to insert ``advertise, hold oneself out, 
or'' after ``may not''.
    This section also amends section 41104(11) of title 46, 
United States Code, to strike ``a tariff as required by section 
40501 of this title and''. These amendments were requested by 
the Commission.

Section 105. Interrelated agreements

    This section amends section 41104 of title 46, United 
States Code, to include language that says a common carrier 
alone, or in conjunction with any other person, may not 
participate in any agreements (i.e., rate discussions, vessel 
sharing, slot-sharing, or space-sharing) unless the Commission 
has granted a waiver under section 40103.
    The section also allows participants in agreements that 
would be prohibited due to amendments made in subsection (a) to 
obtain an exemption or withdraw from such agreement. These 
amendments also were requested by the Commission.

                        Title II--Other Matters


Section 201. Fishing safety grants

    This section amends section 4502 of title 46, United States 
Code, to transfer each the grant program from the Coast Guard 
to the Secretary of Commerce. Authorized funding for each grant 
programs is $3 million which matches the fiscal year 2017 
appropriated levels and the level at which the program was 
previously authorized. The cost share for each grant program is 
reduced from 75 percent to 50 percent.

Section 202. Assistance for small shipyards

    This section amends section 54101 of title 46, United 
States Code, to clarify that training provided under the 
section is related to shipbuilding, ship repair, and associated 
industries. The section reauthorizes $30 million for each 
fiscal year 2018 and 2019.

Section 203. Treatment of fishing permits

    This section adds a new section 31310 in chapter 313 of 
title 46, United States Code. The new section would clarify 
that chapter 313 does not establish a maritime lien on a 
fishing permit and does not authorize any civil action to 
enforce a maritime lien on a fishing permit. It also clarifies 
that a fishing permit is governed solely by a State or federal 
law under which it was issued and shall not be treated as part 
of a vessel, or as an appurtenance or intangible of a vessel, 
for any purpose under federal law.
    This section also clarifies that the authorities of the 
Secretary of Commerce are not affected and ``fishing permit'' 
means ``any authorization of a person or vessel to engage in a 
fishery that is issued under State or federal law''.

Section 204. Centers of excellence

    This section adds a section 54102 at the end of chapter 541 
of title 46, United States Code, which would allow the 
Secretary of Transportation to designate a covered trained 
entity as a center for excellence for domestic maritime work 
force training and education through the use of a cooperative 
agreement.

         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, 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 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, 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 
matter is printed in italic, and existing law in which no 
change is proposed is shown in roman):

                      TITLE 46, UNITED STATES CODE




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SUBTITLE I--GENERAL

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CHAPTER 3--FEDERAL MARITIME COMMISSION

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Sec. 308. Authorization of appropriations

  There is authorized to be appropriated to the Federal 
Maritime Commission [$24,700,000 for each of fiscal years 2016 
and 2017] $28,012,310 for fiscal year 2018 and $28,544,543 for 
fiscal year 2019 for the activities of the Commission 
authorized under this chapter and subtitle IV.

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SUBTITLE II--VESSELS AND SEAMEN

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PART B--INSPECTION AND REGULATION OF VESSELS

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CHAPTER 45--UNINSPECTED COMMERCIAL FISHING INDUSTRY VESSELS

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Sec. 4502. Safety standards

  (a) The Secretary shall prescribe regulations which require 
that each vessel to which this chapter applies shall be 
equipped with--
          (1) readily accessible fire extinguishers capable of 
        promptly and effectively extinguishing a flammable or 
        combustible liquid fuel fire;
          (2) at least one readily accessible life preserver or 
        other lifesaving device for each individual on board;
          (3) an efficient flame arrestor, backfire trap, or 
        other similar device on the carburetors of each inboard 
        engine which uses gasoline as fuel;
          (4) the means to properly and efficiently ventilate 
        enclosed spaces, including engine and fuel tank 
        compartments, so as to remove explosive or flammable 
        gases;
          (5) visual distress signals;
          (6) other equipment required to minimize the risk of 
        injury to the crew during vessel operations, if the 
        Secretary determines that a risk of serious injury 
        exists that can be eliminated or mitigated by that 
        equipment; and
          (7) a placard as required by regulations prescribed 
        under section 10603(b) of this title.
  (b)(1) In addition to the requirements of subsection (a) of 
this section, the Secretary shall prescribe regulations 
requiring the installation, maintenance, and use of the 
equipment in paragraph (2) of this subsection for vessels to 
which this chapter applies that--
                  (A) operate beyond 3 nautical miles from the 
                baseline from which the territorial sea of the 
                United States is measured or beyond 3 nautical 
                miles from the coastline of the Great Lakes;
                  (B) operate with more than 16 individuals on 
                board; or
                  (C) in the case of a fish tender vessel, 
                engage in the Aleutian trade.
          (2) The equipment to be required is as follows:
                  (A) alerting and locating equipment, 
                including emergency position indicating radio 
                beacons;
                  (B) a survival craft that ensures that no 
                part of an individual is immersed in water 
                sufficient to accommodate all individuals on 
                board;
                  (C) at least one readily accessible immersion 
                suit for each individual on board that vessel 
                when operating on the waters described in 
                section 3102 of this title;
                  (D) marine radio communications equipment 
                sufficient to effectively communicate with 
                land-based search and rescue facilities;
                  (E) navigation equipment, including 
                compasses, nautical charts, and publications;
                  (F) first aid equipment and medical supplies 
                sufficient for the size and area of operation 
                of the vessel; and
                  (G) ground tackle sufficient for the vessel.
  (c)(1) In addition to the requirements described in 
subsections (a) and (b) of this section, the Secretary may 
prescribe regulations establishing the standards in paragraph 
(2) of this subsection for vessels to which this chapter 
applies that--
                  (A)(i) were built after December 31, 1988, or 
                undergo a major conversion completed after that 
                date; and
                          (ii) operate with more than 16 
                        individuals on board; or
                  (B) in the case of a fish tender vessel, 
                engage in the Aleutian trade.
          (2) The standards shall be minimum safety standards, 
        including standards relating to--
                  (A) navigation equipment, including radars 
                and fathometers;
                  (B) lifesaving equipment, immersion suits, 
                signaling devices, bilge pumps, bilge alarms, 
                life rails, and grab rails;
                  (C) fire protection and firefighting 
                equipment, including fire alarms and portable 
                and semiportable fire extinguishing equipment;
                  (D) use and installation of insulation 
                material;
                  (E) storage methods for flammable or 
                combustible material; and
                  (F) fuel, ventilation, and electrical 
                systems.
  (d)(1) The Secretary shall prescribe regulations for the 
operating stability of a vessel to which this chapter applies--
                  (A) that was built after December 31, 1989; 
                or
                  (B) the physical characteristics of which are 
                substantially altered after December 31, 1989, 
                in a manner that affects the vessel's operating 
                stability.
          (2) The Secretary may accept, as evidence of 
        compliance with this subsection, a certification of 
        compliance issued by the person providing insurance for 
        the vessel or by another qualified person approved by 
        the Secretary.
  (e) In prescribing regulations under this chapter, the 
Secretary--
          (1) shall consider the specialized nature and 
        economics of the operations and the character, design, 
        and construction of the vessel; and
          (2) may not require the alteration of a vessel or 
        associated equipment that was constructed or 
        manufactured before the effective date of the 
        regulation.
  (f) To ensure compliance with the requirements of this 
chapter, the Secretary--
          (1) shall require the individual in charge of a 
        vessel described in subsection (b) to keep a record of 
        equipment maintenance, and required instruction and 
        drills;
          (2) shall examine at dockside a vessel described in 
        subsection (b) at least once every 5 years, and shall 
        issue a certificate of compliance to a vessel meeting 
        the requirements of this chapter; and
          (3) shall complete the first dockside examination of 
        a vessel under this subsection not later than October 
        15, 2015.
  (g)(1) The individual in charge of a vessel described in 
subsection (b) must pass a training program approved by the 
Secretary that meets the requirements in paragraph (2) of this 
subsection and hold a valid certificate issued under that 
program.
          (2) The training program shall--
                  (A) be based on professional knowledge and 
                skill obtained through sea service and hands-on 
                training, including training in seamanship, 
                stability, collision prevention, navigation, 
                fire fighting and prevention, damage control, 
                personal survival, emergency medical care, 
                emergency drills, and weather;
                  (B) require an individual to demonstrate 
                ability to communicate in an emergency 
                situation and understand information found in 
                navigation publications;
                  (C) recognize and give credit for recent past 
                experience in fishing vessel operation; and
                  (D) provide for issuance of a certificate to 
                an individual that has successfully completed 
                the program.
          (3) The Secretary shall prescribe regulations 
        implementing this subsection. The regulations shall 
        require that individuals who are issued a certificate 
        under paragraph (2)(D) must complete refresher training 
        at least once every 5 years as a condition of 
        maintaining the validity of the certificate.
          (4) The Secretary shall establish an electronic 
        database listing the names of individuals who have 
        participated in and received a certificate confirming 
        successful completion of a training program approved by 
        the Secretary under this section.
  (h) A vessel to which this chapter applies shall be 
constructed in a manner that provides a level of safety 
equivalent to the minimum safety standards the Secretary may 
establish for recreational vessels under section 4302, if--
          (1) subsection (b) of this section applies to the 
        vessel;
          (2) the vessel is less than 50 feet overall in 
        length; and
          (3) the vessel is built after January 1, 2010.
  (i)(1) The [Secretary] Secretary of Commerce shall establish 
a Fishing Safety Training Grants Program to provide funding to 
municipalities, port authorities, other appropriate public 
entities, not-for-profit organizations, and other qualified 
persons that provide commercial fishing safety training--
                  (A) to conduct fishing vessel safety training 
                for vessel operators and crewmembers that--
                          (i) in the case of vessel operators, 
                        meets the requirements of subsection 
                        (g); and
                          (ii) in the case of crewmembers, 
                        meets the requirements of subsection 
                        (g)(2)(A), such requirements of 
                        subsection (g)(2)(B) as are appropriate 
                        for crewmembers, and the requirements 
                        of subsections (g)(2)(D), (g)(3), and 
                        (g)(4); and
                  (B) for purchase of safety equipment and 
                training aids for use in those fishing vessel 
                safety training programs.
          (2) The [Secretary] Secretary of Commerce shall award 
        grants under this subsection on a competitive basis.
          (3) The Federal share of the cost of any activity 
        carried out with a grant under this subsection shall 
        not exceed [75] 50 percent.
          (4) There is authorized to be appropriated 
        [$3,000,000 for each of fiscal years 2015 through 2017] 
        $3,000,000 for each of fiscal years 2018 through 2019 
        for grants under this subsection.
  (j)(1) The [Secretary] Secretary of Commerce shall establish 
a Fishing Safety Research Grant Program to provide funding to 
individuals in academia, members of non-profit organizations 
and businesses involved in fishing and maritime matters, and 
other persons with expertise in fishing safety, to conduct 
research on methods of improving the safety of the commercial 
fishing industry, including vessel design, emergency and 
survival equipment, enhancement of vessel monitoring systems, 
communications devices, de-icing technology, and severe weather 
detection.
          (2) The [Secretary] Secretary of Commerce shall award 
        grants under this subsection on a competitive basis.
          (3) The Federal share of the cost of any activity 
        carried out with a grant under this subsection shall 
        not exceed [75] 50 percent.
          (4) There is authorized to be appropriated 
        [$3,000,000 for each fiscal years 2015 through 2017] 
        $3,000,000 for each of fiscal years 2018 through 2019 
        for activities under this subsection.

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SUBTITLE III--MARITIME LIABILITY

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         CHAPTER 313--COMMERCIAL INSTRUMENTS AND MARITIME LIENS


                          SUBCHAPTER I--GENERAL

Sec.
31301. Definitions.
     * * * * * * *
31310. Treatment of fishing permits.

SUBCHAPTER I--GENERAL

           *       *       *       *       *       *       *



Sec. 31310. Treatment of fishing permits

  (a) Limitation on Maritime Liens.--This chapter--
          (1) does not establish a maritime lien on a fishing 
        permit; and
          (2) does not authorize any civil action to enforce a 
        maritime lien on a fishing permit.
  (b) Treatment of Fishing Permits Under State and Federal 
Law.--A fishing permit--
          (1) is governed solely by the State or Federal law 
        under which it is issued; and
          (2) shall not be treated as part of a vessel, or as 
        an appurtenance or intangible of a vessel, for any 
        purpose under Federal law.
  (c) Authority of Secretary of Commerce Not Affected.--Nothing 
in this section shall be construed as imposing any limitation 
upon the authority of the Secretary of Commerce--
          (1) to modify, suspend, revoke, or impose a sanction 
        on any fishing permit issued by the Secretary of 
        Commerce; or
          (2) to bring a civil action to enforce such a 
        modification, suspension, revocation, or sanction.
  (d) Fishing Permit Defined.--In this section the term 
``fishing permit'' means any authorization of a person or 
vessel to engage in fishing that is issued under State or 
Federal law.

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SUBTITLE IV--REGULATION OF OCEAN SHIPPING

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PART A--OCEAN SHIPPING

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CHAPTER 401--GENERAL

           *       *       *       *       *       *       *



Sec. 40102. Definitions

  In this part:
          (1) Agreement.--The term ``agreement''--
                  (A) means a written or oral understanding, 
                arrangement, or association, and any 
                modification or cancellation thereof; but
                  (B) does not include a maritime labor 
                agreement.
          (2) Antitrust laws.--The term ``antitrust laws'' 
        means--
                  (A) the Sherman Act (15 U.S.C. 1 et seq.);
                  (B) sections 73 and 74 of the Wilson Tariff 
                Act (15 U.S.C. 8, 9);
                  (C) the Clayton Act (15 U.S.C. 12 et seq.);
                  (D) the Act of June 19, 1936 (15 U.S.C. 13, 
                13a, 13b, 21a);
                  (E) the Federal Trade Commission Act (15 
                U.S.C. 41 et seq.);
                  (F) the Antitrust Civil Process Act (15 
                U.S.C. 1311 et seq.); and
                  (G) Acts supplementary to those Acts.
          (3) Assessment agreement.--The term ``assessment 
        agreement'' means an agreement, whether part of a 
        collective bargaining agreement or negotiated 
        separately, to the extent the agreement provides for 
        the funding of collectively bargained fringe-benefit 
        obligations on other than a uniform worker-hour basis, 
        regardless of the cargo handled or type of vessel or 
        equipment used.
          (4) Bulk cargo.--The term ``bulk cargo'' means cargo 
        that is loaded and carried in bulk without mark or 
        count.
          (5) Chemical parcel-tanker.--The term ``chemical 
        parcel-tanker'' means a vessel that has--
                  (A) a cargo-carrying capability consisting of 
                individual cargo tanks for bulk chemicals 
                that--
                          (i) are a permanent part of the 
                        vessel; and
                          (ii) have segregation capability with 
                        piping systems to permit simultaneous 
                        carriage of several bulk chemical 
                        cargoes with minimum risk of cross-
                        contamination; and
                  (B) a valid certificate of fitness under the 
                International Maritime Organization Code for 
                the Construction and Equipment of Ships 
                Carrying Dangerous Chemicals in Bulk.
          (6) Common carrier.--The term ``common carrier''--
                  (A) means a person that--
                          (i) holds itself out to the general 
                        public to provide transportation by 
                        water of passengers or cargo between 
                        the United States and a foreign country 
                        for compensation;
                          (ii) assumes responsibility for the 
                        transportation from the port or point 
                        of receipt to the port or point of 
                        destination; and
                          (iii) uses, for all or part of that 
                        transportation, a vessel operating on 
                        the high seas or the Great Lakes 
                        between a port in the United States and 
                        a port in a foreign country; but
                  (B) does not include a carrier engaged in 
                ocean transportation by ferry boat, ocean 
                tramp, or chemical parcel-tanker, or by vessel 
                when primarily engaged in the carriage of 
                perishable agricultural commodities--
                          (i) if the carrier and the owner of 
                        those commodities are wholly-owned, 
                        directly or indirectly, by a person 
                        primarily engaged in the marketing and 
                        distribution of those commodities; and
                          (ii) only with respect to the 
                        carriage of those commodities.
          (7) Conference.--The term ``conference''--
                  (A) means an association of ocean common 
                carriers permitted, pursuant to an approved or 
                effective agreement, to engage in concerted 
                activity and to use a common tariff; but
                  (B) does not include a joint service, 
                consortium, pooling, sailing, or transshipment 
                agreement.
          (8) Controlled carrier.--The term ``controlled 
        carrier'' means an ocean common carrier that is, or 
        whose operating assets are, directly or indirectly, 
        owned or controlled by a government, with ownership or 
        control by a government being deemed to exist for a 
        carrier if--
                  (A) a majority of the interest in the carrier 
                is owned or controlled in any manner by that 
                government, an agency of that government, or a 
                public or private person controlled by that 
                government; or
                  (B) that government has the right to appoint 
                or disapprove the appointment of a majority of 
                the directors, the chief operating officer, or 
                the chief executive officer of the carrier.
          (9) Deferred rebate.--The term ``deferred rebate'' 
        means a return by a common carrier of any freight money 
        to a shipper, where the return is--
                  (A) consideration for the shipper giving all 
                or any portion of its shipments to that or any 
                other common carrier over a fixed period of 
                time;
                  (B) deferred beyond the completion of the 
                service for which it was paid; and
                  (C) made only if the shipper has agreed to 
                make a further shipment with that or any other 
                common carrier.
          (10) Forest products.--The term ``forest products'' 
        includes lumber in bundles, rough timber, ties, poles, 
        piling, laminated beams, bundled siding, bundled 
        plywood, bundled core stock or veneers, bundled 
        particle or fiber boards, bundled hardwood, wood pulp 
        in rolls, wood pulp in unitized bales, and paper and 
        paper board in rolls or in pallet or skid-sized sheets.
          (11) Inland division.--The term ``inland division'' 
        means the amount paid by a common carrier to an inland 
        carrier for the inland portion of through 
        transportation offered to the public by the common 
        carrier.
          (12) Inland portion.--The term ``inland portion'' 
        means the charge to the public by a common carrier for 
        the non-ocean portion of through transportation.
          (13) Loyalty contract.--The term ``loyalty contract'' 
        means a contract with an ocean common carrier or 
        agreement providing for--
                  (A) a shipper to obtain lower rates by 
                committing all or a fixed portion of its cargo 
                to that carrier or agreement; and
                  (B) a deferred rebate arrangement.
          (14) Marine terminal operator.--The term ``marine 
        terminal operator'' means a person engaged in the 
        United States in the business of providing wharfage, 
        dock, warehouse, or other terminal facilities in 
        connection with a common carrier, or in connection with 
        a common carrier and a water carrier subject to 
        subchapter II of chapter 135 of title 49.
          (15) Maritime labor agreement.--The term ``maritime 
        labor agreement''--
                  (A) means--
                          (i) a collective bargaining agreement 
                        between an employer subject to this 
                        part, or a group of such employers, and 
                        a labor organization representing 
                        employees in the maritime or 
                        stevedoring industry;
                          (ii) an agreement preparatory to such 
                        a collective bargaining agreement among 
                        members of a multi-employer bargaining 
                        group; or
                          (iii) an agreement specifically 
                        implementing provisions of such a 
                        collective bargaining agreement or 
                        providing for the formation, financing, 
                        or administration of a multi-employer 
                        bargaining group; but
                  (B) does not include an assessment agreement.
          (16) Non-vessel-operating common carrier.--The term 
        ``non-vessel-operating common carrier'' means a common 
        carrier that--
                  (A) does not operate the vessels by which the 
                ocean transportation is provided; and
                  (B) is a shipper in its relationship with an 
                ocean common carrier.
          (17) Ocean common carrier.--The term ``ocean common 
        carrier'' means a vessel-operating common carrier.
          (18) Ocean freight forwarder.--The term ``ocean 
        freight forwarder'' means a person that--
                  (A) 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
                  (B) processes the documentation or performs 
                related activities incident to those shipments.
          (19) Ocean transportation intermediary.--The term 
        ``ocean transportation intermediary'' means an ocean 
        freight forwarder or a non-vessel-operating common 
        carrier.
          (20) Service contract.--The term ``service contract'' 
        means a written contract, other than a bill of lading 
        or receipt, between one or more shippers, on the one 
        hand, and an individual ocean common carrier or an 
        agreement between or among ocean common carriers, on 
        the other, in which--
                  (A) the shipper or shippers commit to 
                providing a certain volume or portion of cargo 
                over a fixed time period; and
                  (B) 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.
          (21) Shipment.--The term ``shipment'' means all of 
        the cargo carried under the terms of a single bill of 
        lading.
          (22) Shipper.--The term ``shipper'' means--
                  (A) a cargo owner;
                  (B) the person for whose account the ocean 
                transportation of cargo is provided;
                  (C) the person to whom delivery is to be 
                made;
                  (D) a shippers' association; or
                  (E) a non-vessel-operating common carrier 
                that accepts responsibility for payment of all 
                charges applicable under the tariff or service 
                contract.
          (23) Shippers' association.--The term ``shippers' 
        association'' means a group of shippers that 
        consolidates or distributes freight on a nonprofit 
        basis for the members of the group to obtain carload, 
        truckload, or other volume rates or service contracts.
          (24) Through rate.--The term ``through rate'' means 
        the single amount charged by a common carrier in 
        connection with through transportation.
          (25) Through transportation.--The term ``through 
        transportation'' means continuous transportation 
        between origin and destination for which a through rate 
        is assessed and which is offered or performed by one or 
        more carriers, at least one of which is a common 
        carrier, between a United States port or point and a 
        foreign port or point.
          (26) Port services.--The term ``port services'' means 
        intermediary services provided to an ocean carrier at a 
        United States port to facilitate vessels operated by 
        such a carrier to operate and load and unload cargo at 
        such port, including towage, cargo handling, and 
        bunkering.

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Sec. 40104. Reports filed with the Commission

  (a) In General.--The Federal Maritime Commission may require 
a common carrier, marine terminal operator, or ocean 
transportation intermediary, or an officer, receiver, trustee, 
lessee, agent, or employee of the carrier, operator, or 
intermediary, to file with the Commission a periodical or 
special report, an account, record, rate, or charge, or a 
memorandum of facts and transactions related to the business of 
the carrier, operator, or intermediary. The report, account, 
record, rate, charge, or memorandum shall be made under oath if 
the Commission requires, and shall be filed in the form and 
within the time prescribed by the Commission.
  (b) Conference Minutes.--Conference minutes required to be 
filed with the Commission under this section may not be 
released to third parties or published by the Commission.

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CHAPTER 403--AGREEMENTS

           *       *       *       *       *       *       *



Sec. 40304. Commission action

  (a) Notice of Filing.--Within 7 days after an agreement is 
filed, the Federal Maritime Commission shall transmit a notice 
of the filing to the Federal Register for publication, and 
interested persons may submit relevant information and 
documents to the Commission.
  (b) Preliminary Review and Rejection.--After preliminary 
review, the Commission shall reject an agreement that it finds 
does not meet the requirements of sections 40302 and 40303 of 
this title. The Commission shall notify in writing the person 
filing the agreement of the reason for rejection.
  (c) Review and Effective Date.--Unless rejected under 
subsection (b), an agreement (other than an assessment 
agreement) is effective--
          (1) on the 45th day after filing, or on the 30th day 
        after notice of the filing is published in the Federal 
        Register, whichever is later; or
          (2) if additional information or documents are 
        requested under subsection (d)--
                  (A) on the 45th day after the Commission 
                receives all the additional information and 
                documents; or
                  (B) if the request is not fully complied 
                with, on the 45th day after the Commission 
                receives the information and documents 
                submitted and a statement of the reasons for 
                noncompliance with the request.
  (d) Request for Additional Information.--Before the 
expiration of the period specified in subsection (c)(1), the 
Commission may request from the person filing the agreement any 
additional information and documents the Commission considers 
necessary [to make the determinations required by this 
section].
  (e) Modification of Review Period.--
          (1) Shortening.--On request of the party filing an 
        agreement, the Commission may shorten a period 
        specified in subsection (c), but not to a date that is 
        less than 14 days after notice of the filing of the 
        agreement is published in the Federal Register.
          (2) Extension.--The period specified in subsection 
        (c)(2) may be extended only by the United States 
        District Court for the District of Columbia in a civil 
        action brought by the Commission under section 41307(c) 
        of this title.
  (f) Fixed Terms.--The Commission may not limit the 
effectiveness of an agreement to a fixed term.

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            CHAPTER 409--OCEAN TRANSPORTATION INTERMEDIARIES


Sec. 40901. License requirement

  (a) In General.--A person in the United States may not 
advertise, hold oneself out, or act as an ocean transportation 
intermediary unless the person holds an ocean transportation 
intermediary's license issued by the Federal Maritime 
Commission. The Commission shall issue a license to a person 
that the Commission determines to be qualified by experience 
and character to act as an ocean transportation intermediary.
  (b) Exception.--A person whose primary business is the sale 
of merchandise may forward shipments of the merchandise for its 
own account without an ocean transportation intermediary's 
license.

Sec. 40902. Financial responsibility

  (a) In General.--A person may not advertise, hold oneself 
out, or act as an ocean transportation intermediary unless the 
person furnishes a bond, proof of insurance, or other surety--
          (1) in a form and amount determined by the Federal 
        Maritime Commission to insure financial responsibility; 
        and
          (2) issued by a surety company found acceptable by 
        the Secretary of the Treasury.
  (b) Scope of Financial Responsibility.--A bond, insurance, or 
other surety obtained under this section--
          (1) shall be available to pay any penalty assessed 
        under section 41109 of this title or any order for 
        reparation issued under section 41305 of this title;
          (2) may be available to pay any claim against an 
        ocean transportation intermediary arising from its 
        transportation-related activities--
                  (A) with the consent of the insured ocean 
                transportation intermediary and subject to 
                review by the surety company; or
                  (B) 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
          (3) shall be available to pay any judgment for 
        damages against an ocean transportation intermediary 
        arising from its transportation-related activities, if 
        the claimant has first attempted to resolve the claim 
        under paragraph (2) and the claim has not been resolved 
        within a reasonable period of time.
  (c) Regulations on Court Judgments.--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.
  (d) Resident Agent.--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.

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CHAPTER 411--PROHIBITIONS AND PENALTIES

           *       *       *       *       *       *       *



Sec. 41104. Common carriers

  A common carrier, either alone or in conjunction with any 
other person, directly or indirectly, may not--
          (1) allow a person to obtain transportation for 
        property at less than the rates or charges established 
        by the carrier in its tariff or service contract by 
        means of false billing, false classification, false 
        weighing, false measurement, or any other unjust or 
        unfair device or means;
          (2) provide service in the liner trade that is--
                  (A) not in accordance with the rates, 
                charges, classifications, rules, and practices 
                contained in a tariff published or a service 
                contract entered into under chapter 405 of this 
                title, unless excepted or exempted under 
                section 40103 or 40501(a)(2) of this title; or
                  (B) under a tariff or service contract that 
                has been suspended or prohibited by the Federal 
                Maritime Commission under chapter 407 or 423 of 
                this title;
          (3) retaliate against a shipper by refusing, or 
        threatening to refuse, cargo space accommodations when 
        available, or resort to other unfair or unjustly 
        discriminatory methods because the shipper has 
        patronized another carrier, or has filed a complaint, 
        or for any other reason;
          (4) for service pursuant to a tariff, engage in any 
        unfair or unjustly discriminatory practice in the 
        matter of--
                  (A) rates or charges;
                  (B) cargo classifications;
                  (C) cargo space accommodations or other 
                facilities, with due regard being given to the 
                proper loading of the vessel and the available 
                tonnage;
                  (D) loading and landing of freight; or
                  (E) adjustment and settlement of claims;
          (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;
          (6) use a vessel in a particular trade for the 
        purpose of excluding, preventing, or reducing 
        competition by driving another ocean common carrier out 
        of that trade;
          (7) offer or pay any deferred rebates;
          (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) knowingly and willfully accept cargo from or 
        transport cargo for the account of an ocean 
        transportation intermediary that does not have [a 
        tariff as required by section 40501 of this title and] 
        a bond, insurance, or other surety as required by 
        section 40902 of this title; [or]
          (12) knowingly and willfully enter into a service 
        contract with an ocean transportation intermediary that 
        does not have a tariff as required by section 40501 of 
        this title and a bond, insurance, or other surety as 
        required by section 40902 of this title, or with an 
        affiliate of such an ocean transportation 
        intermediary[.]; or
          (13) participate in a rate discussion agreement and a 
        vessel sharing agreement, slot sharing agreement, space 
        sharing agreement, or similar agreement for use of 
        vessels by two or more ocean common carriers, unless 
        the Commission has granted the parties an exemption 
        pursuant to section 40103.

Sec. 41105. Concerted action

  A conference or group of two or more common carriers may 
not--
          (1) boycott or take any other concerted action 
        resulting in an unreasonable refusal to deal;
          (2) engage in conduct that unreasonably restricts the 
        use of intermodal services or technological 
        innovations;
          (3) engage in any predatory practice designed to 
        eliminate the participation, or deny the entry, in a 
        particular trade of a common carrier not a member of 
        the conference, a group of common carriers, an ocean 
        tramp, or a bulk carrier;
          (4) negotiate with a non-ocean carrier or group of 
        non-ocean carriers (such as truck, rail, or air 
        operators) on any matter relating to rates or services 
        provided to ocean common carriers within the United 
        States by those non-ocean carriers, unless the 
        negotiations and any resulting agreements are not in 
        violation of the antitrust laws and are consistent with 
        the purposes of this part, except that this paragraph 
        does not prohibit the setting and publishing of a joint 
        through rate by a conference, joint venture, or 
        association of ocean common carriers;
          (5) deny in the export foreign commerce of the United 
        States compensation to an ocean freight forwarder or 
        limit that compensation to less than a reasonable 
        amount;
          (6) allocate shippers among specific carriers that 
        are parties to the agreement or prohibit a carrier that 
        is a party to the agreement from soliciting cargo from 
        a particular shipper, except as--
                  (A) authorized by section 40303(d) of this 
                title;
                  (B) required by the law of the United States 
                or the importing or exporting country; or
                  (C) agreed to by a shipper in a service 
                contract;
          (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 person due to the person's status as 
        a shippers' association or ocean transportation 
        intermediary; [or]
          (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 
        person due to the person's status as a shippers' 
        association or ocean transportation intermediary[.];
          (9) negotiate with a provider of port services, other 
        than a provider of towing vessel services, on any 
        matter relating to rates or services provided within 
        the United States by such provider, unless advance 
        notice is provided to the Federal Maritime Commission 
        of the intent and need for the negotiation, the 
        negotiation and any resulting agreement are not in 
        violation of the antitrust laws and are consistent with 
        the purposes of this part, and, as determined by the 
        Commission, the negotiation and any resulting agreement 
        will not substantially lessen competition in the 
        purchasing of port services provided at United States 
        ports (this paragraph does not prohibit the setting and 
        publishing of a joint through rate by a conference, 
        joint venture, or association of common carriers); or
          (10) negotiate with a provider of towing vessel 
        services on any matter relating to rates or services 
        provided within the United States by towing vessels.

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CHAPTER 413--ENFORCEMENT

           *       *       *       *       *       *       *



Sec. 41307. Injunctive relief sought by the Commission

  (a) General Violations.--In connection with an investigation 
under section 41301 or 41302 of this title, the Federal 
Maritime Commission may bring a civil action to enjoin conduct 
in violation of this part. The action must be brought in the 
district court of the United States for any judicial district 
in which the defendant resides or transacts business. After 
notice to the defendant, and a showing that the standards for 
granting injunctive relief by courts of equity are met, the 
court may grant a temporary restraining order or preliminary 
injunction for a period not to exceed 10 days after the 
Commission has issued an order disposing of the issues under 
investigation.
  (b) Reduction in Competition.--
          (1) Action by commission.--If, at any time after the 
        filing or effective date of an agreement under chapter 
        403 of this title, the Commission determines that the 
        agreement is likely, by a reduction in competition, to 
        [produce an unreasonable reduction in transportation 
        service or an unreasonable increase in transportation 
        cost] produce an unreasonable reduction in 
        transportation service, produce an unreasonable 
        increase in transportation cost, or substantially 
        lessen competition in the purchasing of port services, 
        the Commission, after notice to the person filing the 
        agreement, may bring a civil action in the United 
        States District Court for the District of Columbia to 
        enjoin the operation of the agreement. The Commission's 
        sole remedy with respect to an agreement likely to have 
        such an effect is an action under this subsection.
          (2) Remedies by court.--In an action under this 
        subsection, the court may issue--
                  (A) a temporary restraining order or a 
                preliminary injunction; and
                  (B) a permanent injunction after a showing 
                that the agreement is likely to have the effect 
                described in paragraph (1).
          (3) Burden of proof and third parties.--In an action 
        under this subsection, the burden of proof is on the 
        Commission. The court may not allow a third party to 
        intervene.
          (4) Competition factors.--In making a determination 
        under this subsection, the Commission may consider any 
        relevant competition factors in affected markets, 
        including, without limitation, the competitive effect 
        of agreements other than the agreement under review.
  (c) Failure To Provide Information.--If a person filing an 
agreement, or an officer, director, partner, agent, or employee 
of the person, fails substantially to comply with a request for 
the submission of additional information or documents within 
the period provided in section 40304(c) of this title, the 
Commission may bring a civil action in the United States 
District Court for the District of Columbia. At the request of 
the Commission, the Court--
          (1) may order compliance;
          (2) shall extend the period specified in section 
        40304(c)(2) of this title until there has been 
        substantial compliance; and
          (3) may grant other equitable relief that the court 
        decides is appropriate.
  (d) Representation.--The Commission may represent itself in a 
proceeding under this section in--
          (1) a district court of the United States, on notice 
        to the Attorney General; and
          (2) a court of appeals of the United States, with the 
        approval of the Attorney General.

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SUBTITLE V--MERCHANT MARINE

           *       *       *       *       *       *       *


PART C--FINANCIAL ASSISTANCE PROGRAMS

           *       *       *       *       *       *       *


                       CHAPTER 541--MISCELLANEOUS


Sec
[54101. Assistance for small shipyards and maritime communities]
54101. Assistance for small shipyards.
54102. Centers of excellence for domestic maritime workforce training 
          and education.

Sec. 54101. Assistance for small shipyards [and maritime communities]

  (a) Establishment of Program.--Subject to the availability of 
appropriations, the Administrator of the Maritime 
Administration shall execute agreements with shipyards to 
provide assistance--
          (1) in the form of grants, loans, and loan guarantees 
        to small shipyards for capital improvements; and
          (2) for maritime training programs to foster 
        technical skills and operational productivity [in 
        communities whose economies are related to or dependent 
        upon the maritime industry.] relating to shipbuilding, 
        ship repair, and associated industries.
  (b) Awards.--In providing assistance under the program, the 
Administrator shall--
          [(1) take into account--
                  [(A) the economic circumstances and 
                conditions of maritime communities;
                  [(B) projects that would be effective in 
                fostering efficiency, competitive operations, 
                and quality ship construction, repair, and 
                reconfiguration; and
                  [(C) projects that would be effective in 
                fostering employee skills and enhancing 
                productivity; and]
          (1) consider projects that foster--
                  (A) efficiency, competitive operations, and 
                quality ship construction, repair, and 
                reconfiguration; and
                  (B) employee skills and enhanced productivity 
                related to shipbuilding, ship repair, and 
                associated industries; and
          (2) make grants within 120 days after the date of 
        enactment of the appropriations Act for the fiscal year 
        concerned.
  (c) Use of Funds.--
          (1) In general.--Assistance provided under this 
        section may be used to--
                  [(A) to make capital and related improvements 
                in small shipyards located in or near maritime 
                communities;
                  [(B) to provide training for workers in 
                communities whose economies are related to the 
                maritime industry; and
                  [(C) for such other purposes as the 
                Administrator determines to be consistent with 
                and supplemental to such activities.]
                  (A) make capital and related improvements in 
                small shipyards; and
                  (B) provide training for workers in 
                shipbuilding, ship repair, and associated 
                industries.
          (2) Administrative costs.--Not more than 2 percent of 
        amounts made available to carry out the program may be 
        used for the necessary costs of grant administration.
  (d) Prohibited Uses.--Grants awarded under this section may 
not be used to construct buildings or other physical facilities 
or to acquire land [unless such use is specifically approved by 
the Administrator in support of subsection (c)(1)(C)].
  (e) Matching Requirements; Allocation.--
          (1) Federal funding.--[Except as provided in 
        paragraph (2),] Federal funds for any eligible project 
        under this section shall not exceed 75 percent of the 
        total cost of such project.
          [(2) Exception.--If the Administrator determines that 
        a proposed project merits support and cannot be 
        undertaken without a higher percentage of Federal 
        financial assistance, the Administrator may award a 
        grant for such project with a lesser matching 
        requirement than is described in paragraph (1).]
          [(3)] (2) Allocation of funds.--The Administrator may 
        not award more than 25 percent of the funds 
        appropriated to carry out this section for any fiscal 
        year to any small shipyard in one geographic location 
        that has more than 600 employees.
  (f) Applications.--
          (1) In general.--To be eligible for assistance under 
        this section, an applicant shall submit an application, 
        in such form, and containing such information and 
        assurances as the Administrator may require, within 60 
        days after the date of enactment of the appropriations 
        Act for the fiscal year concerned.
          (2) Minimum standards for payment or reimbursement.--
        Each application submitted under paragraph (1) shall 
        include--
                  (A) a comprehensive description of--
                          (i) the need for the project;
                          (ii) the methodology for implementing 
                        the project; and
                          (iii) any existing programs or 
                        arrangements that can be used to 
                        supplement or leverage assistance under 
                        the program.
          (3) Procedural safeguards.--The Administrator, in 
        consultation with the Office of the Inspector General, 
        shall issue guidelines to establish appropriate 
        accounting, reporting, and review procedures to ensure 
        that--
                  (A) grant funds are used for the purposes for 
                which they were made available;
                  (B) grantees have properly accounted for all 
                expenditures of grant funds; and
                  (C) grant funds not used for such purposes 
                and amounts not obligated or expended are 
                returned.
          (4) Project approval required.--The Administrator may 
        not award a grant under this section unless the 
        Administrator determines that--
                  (A) sufficient funding is available to meet 
                the matching requirements of subsection (e);
                  (B) the project will be completed without 
                unreasonable delay; and
                  (C) the recipient has authority to carry out 
                the proposed project.
  (g) Audits and Examinations.--All grantees under this section 
shall maintain such records as the Administrator may require 
and make such records available for review and audit by the 
Administrator.
  (h) Small Shipyard Defined.--In this section, the term 
``small shipyard'' means a shipyard facility in one geographic 
location that does not have more than 1,200 employees.
  (i) Authorization of Appropriations.--There are authorized to 
be appropriated to the Administrator of the Maritime 
Administration for each of fiscal years [2015 through 2017 to 
carry out this section--]
          [(1) $5,000,000 for training grants; and]
          [(2) $25,000,000 for capital and related 
        improvements] 2018 and 2019 to carry out this section 
        $30,000,000.

Sec. 54102. Centers of excellence for domestic maritime workforce 
                    training and education

  (a) Designation.--The Secretary of Transportation may 
designate as a center of excellence for domestic maritime 
workforce training and education a covered training entity 
located in a State that borders on the--
          (1) Gulf of Mexico;
          (2) Atlantic Ocean;
          (3) Long Island Sound;
          (4) Pacific Ocean;
          (5) Great Lakes; or
          (6) Mississippi River System.
  (b) Assistance.--The Secretary may enter into a cooperative 
agreement (as that term is used in section 6305 of title 31) 
with a center of excellence designated under subsection (a) to 
support maritime workforce training and education at the center 
of excellence, including efforts of the center of excellence 
to--
          (1) admit additional students;
          (2) recruit and train faculty;
          (3) expand facilities;
          (4) create new maritime career pathways; or
          (5) award students credit for prior experience, 
        including military service.
  (c) Covered Training Entity Defined.--In this section, the 
term ``covered training entity'' means an entity that is--
          (1) a community or technical college; or
          (2) a maritime training center--
                  (A) operated by, or under the supervision of, 
                a State; and
                  (B) with a maritime training program in 
                operation on the date of enactment of this 
                section.

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