[Federal Register Volume 84, Number 196 (Wednesday, October 9, 2019)]
[Proposed Rules]
[Pages 54087-54093]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-21537]


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FEDERAL MARITIME COMMISSION

46 CFR Parts 503, 515, and 535

[Docket No. 19-06]
RIN 3072-AC77


Regulatory Amendments Implementing the Frank LoBiondo Coast Guard 
Authorization Act of 2018

AGENCY: Federal Maritime Commission

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Federal Maritime Commission (Commission) proposes to 
revise its regulations to implement the provisions of the Frank 
LoBiondo Coast Guard Authorization Act of 2018. The proposed revisions 
include amendments to the regulations governing Commission meetings, 
ocean transportation intermediary licensing, financial responsibility, 
and general duties, and the submission of public comments on ocean 
common carrier and marine terminal operator agreements.

DATES: Submit comments on or before November 8, 2019.

ADDRESSES: You may submit comments, identified by Docket No. 19-06, by 
the following methods:
     Email: [email protected]. For comments, include in the 
subject line: ``Docket No. 19-06, Comments on LoBiondo Act Regulatory 
Amendments.'' Comments should be attached to the email as a Microsoft 
Word or text-searchable PDF document. Only non-confidential and public 
versions of confidential comments should be submitted by email.
     Mail: Rachel E. Dickon, Secretary, Federal Maritime 
Commission, 800 North Capitol Street NW, Washington, DC 20573-0001.
    Instructions: For detailed instructions on submitting comments, 
including requesting confidential treatment of comments, and additional 
information on the rulemaking process, see the Public Participation 
heading of the Supplementary Information section of this document. Note 
that all comments received will be posted without change to the 
Commission's website, unless the commenter has requested confidential 
treatment.
    Docket: For access to the docket to read background documents or 
comments received, go to the Commission's Electronic Reading Room at: 
https://www2.fmc.gov/readingroom/proceeding/19-06/, or to the Docket 
Activity Library at 800 North Capitol Street NW, Washington, DC 20573, 
between 9:00 a.m. and 5:00 p.m., Monday through Friday, except Federal 
holidays. Telephone: (202) 523-5725.

[[Page 54088]]


FOR FURTHER INFORMATION CONTACT: Rachel E. Dickon, Secretary; Phone: 
(202) 523-5725; Email: [email protected].

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Introduction
II. Background
III. Proposed Changes
    A. References to Statutory Provisions (Parts 515, 530, 532, 545)
    B. Commission Meetings (Part 503)
    C. OTI Licensing, Financial Responsibility, and General Duties 
(Part 515)
    1. Licensing and Financial Responsibility
    2. Common Carrier Prohibitions
    D. Comments on Filed Agreements (Part 535)
IV. Public Participation
V. Rulemaking Analyses and Notices

I. Introduction

    On December 4, 2018, the ``Frank LoBiondo Coast Guard Authorization 
Act of 2018'' was enacted as Public Law 115-282 (LoBiondo Act or Act). 
The LoBiondo Act made a number of changes affecting the Federal 
Maritime Commission (Commission) and the Shipping Act of 1984 (Shipping 
Act). These included the changes made in Title VII of the Act, referred 
to as the ``Federal Maritime Commission Authorization Act of 2017,'' as 
well as a miscellaneous provision in Sec.  834 of the LoBiondo Act. 
These changes were summarized by Commission staff at the Commission's 
May 1, 2019 meeting.\1\ In this rulemaking, the Commission is focusing 
on the statutory changes that warrant corresponding revisions to the 
Commission's regulations. The proposed changes include:
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    \1\ Meeting of the Federal Maritime Commission (May 1, 2019) 
(video available at https://www.youtube.com/watch?v=gqpPJ3ATjS4&t=57m40s).
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     Revising several Commission regulations to update 
references to statutory provisions;
     Revising the regulations governing Commission meetings to 
include provisions on ``nonpublic collaborative discussions,'' a new 
type of meeting established by the LoBiondo Act that is not open to 
public observation;
     Revising the regulations governing ocean transportation 
intermediary (OTI) \2\ licensing and financial responsibility to 
reflect statutory changes to the types of persons that are required to 
be licensed and maintain a bond, insurance, or other surety;
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    \2\ OTIs include non-vessel-operating common carriers (NVOCCs) 
and ocean freight forwarders (OFFs). 46 U.S.C. 40102(20).
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     Revising the regulations governing the general duties of 
non-vessel-operating common carriers (NVOCCs) to reflect amendments to 
several prohibited acts; and
     Revising the regulations related to comments on filed 
ocean common carrier and marine terminal operator (MTO) agreements to 
reflect that such comments are now confidential and may not be 
disclosed by the Commission;

The Commission is seeking comment on these proposed revisions and any 
others necessary to implement the statutory changes described below.
    Although beyond the scope of this current rulemaking, the 
Commission also invites comments on any regulatory changes necessary to 
implement other LoBiondo Act provisions not discussed in this NPRM.\3\ 
Such comments may be considered by the Commission in determining 
whether additional regulatory changes should be made in a future 
rulemaking.
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    \3\ For example, Sec.  834 of the LoBiondo Act amended 46 U.S.C. 
3503 to exempt old passenger vessels that operate within inland 
waterways from the requirement that they be constructed of fire-
retardant materials, provided certain conditions are met. One of 
those conditions is that the vessel owner acquire and maintain 
liability insurance in an amount to be prescribed by the Federal 
Maritime Commission. 46 U.S.C. 3503(b)(1)(C). The Commission is 
currently considering what actions are necessary to implement this 
provision and is not including any proposed regulatory changes as 
part of this rulemaking.
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II. Proposed Changes

A. References to Statutory Provisions (Parts 515, 530, 532, 545)

    The LoBiondo Act amended 46 U.S.C. 41104 to revise several 
prohibited acts and added a new prohibited act. Public Law 115-282, 
708. As part of those amendments, the Act changed the subsection 
designations in Sec.  41104. The Commission is therefore proposing to 
revise its regulations to reflect the new subsection designations.

B. Commission Meetings (Part 503)

    The LoBiondo Act amended 46 U.S.C. 303 to exclude certain 
Commission meetings from the requirements of the Government in the 
Sunshine Act (5 U.S.C. 552b). Public Law 115-282, 711(a). Under the 
revised statute, a majority of Commissioners may hold a meeting closed 
to the public to discuss Commission business if: (1) No vote or 
official Commission action is taken at the meeting; (2) only 
Commissioners and employees are present; (3) at least one Commissioner 
from each political party is present (assuming there are sitting 
Commissioners from more than one party); and (4) the Commission's 
General Counsel is present. 46 U.S.C. 303(c).\4\ The statute refers to 
these closed meetings as ``nonpublic collaborative discussions.''
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    \4\ This exclusion was modeled on a similar provision in the 
Surface Transportation Board Reauthorization Act of 2015. See S. 
Rep. No. 115-89 at 19 (2017) (accompanying S. 1129, an earlier 
authorization bill that contained many of the provisions later 
incorporated into the LoBiondo Act); 49 U.S.C. 1303(a)(2).
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    Although the Commission need not publicize such meetings beforehand 
or record a complete transcript or minutes, the Commission must, 
following the meeting, make publicly available a list of individuals 
present at the meeting and a summary of matters discussed, except for 
those matters the Commission determines may be withheld from the public 
under one of the applicable exemptions listed in the Sunshine Act Sec.  
303(c)(2)-(3). For those matters withheld from the public, the 
Commission must provide a summary with as much general information as 
possible. Sec.  303(c)(3). The required disclosures must be made within 
two business days after the meeting, unless the meeting relates to an 
ongoing proceeding before the Commission, in which case the disclosures 
must be made on the date of the final Commission decision. Sec.  
303(c)(2), (4); see S. Rep. No. 115-89 at 19.
    Finally, the Act includes provisions clarifying that: (1) The 
Sunshine Act continues to apply to all meetings other than nonpublic 
collaborative discussions as described in Sec.  303(c), as well as to 
any information related to those discussions that the Commission 
proposes to withhold from the public; and (2) the provisions governing 
nonpublic collaborative discussions do not authorize the Commission to 
withhold records accessible to an individual under the Privacy Act of 
1974 (5 U.S.C. 552a). Sec.  303(b)(5)-(6).
    The Commission is proposing to include a new section, Sec.  503.84, 
in part 503 of its regulations mirroring the new provisions in 46 
U.S.C. 303(c)(1)-(4) and to make necessary conforming revisions to 
other sections in that part.

C. OTI Licensing, Financial Responsibility, and General Duties (Part 
515)

1. Licensing and Financial Responsibility
    The LoBiondo Act amendments expanded the class of persons that must 
be licensed as OTIs and meet the OTI financial responsibility 
requirements to include persons that advertise or hold themselves out 
as OTIs. 46 U.S.C. 40901(a); 40902(a); Public Law 115-282, 707(a), (c). 
Previously, only persons that acted as OTIs were subject to the

[[Page 54089]]

licensing and financial responsibility requirements.
    The Commission is proposing to amend the general licensing and 
financial responsibility requirements in Sec.  515.3 and Sec.  515.21 
to reflect this change. The Commission expects this change to have 
minimal, if any, effects on the universe of entities that must meet the 
licensing and financial responsibility requirements. In general, an 
entity that advertises or holds itself out as an OTI also acts as an 
OTI, and the practical effect of the change is to make it easier for 
the Commission to enforce the licensing and financial responsibility 
requirements and prosecute noncompliant OTIs. Instead of having to show 
that a noncompliant entity actually acted as an OTI, the mere fact that 
an unlicensed entity advertised or held itself out as an OTI is now 
sufficient to show a violation of the statute.
    The LoBiondo Act also includes a new provision clarifying that the 
OTI licensing and financial responsibility requirements do not apply to 
a person ``that performs [OTI] services on behalf of an [OTI] for which 
it is a disclosed agent.'' 46 U.S.C. 40901(c); Public Law 115-282, 
707(b). This provision appears to codify the holding in Landstar 
Express Am. v. Fed. Mar. Comm'n, 569 F.3d 493 (D.C. Cir. 2009), in 
which the D.C. Circuit held that ``[a]gents providing NVOCC services 
for licensed NVOCC principals are not NVOCCs (or OFFs) solely by virtue 
of being agents of NVOCCs,'' ``[t]hey therefore fall outside the 
coverage of the statute's licensing requirement,'' and ``[t]he 
Commission lacks authority to compel those agents to obtain licenses.'' 
569 F.3d at 500. The Commission's regulations at Sec.  515.4(b) already 
exclude agents of licensed OTIs from the licensing requirements, and 
the Commission is proposing minor revisions to that section to reflect 
the language of the new statutory provision.
    The language of the new provision, however, is arguably broader 
than the holding in Landstar, which was focused on agents of licensed 
NVOCCs. The new Sec.  40901(c) excludes agents of any OTI from the 
licensing and financial responsibility requirements, and does not 
distinguish between agents of licensed and unlicensed OTIs. The 
Commission has therefore tentatively determined that this statutory 
change may conflict with the Commission's regulations at 46 CFR 515.3 
requiring that only licensed OTIs may act as agents to provide OTI 
services in the United States for foreign-based, registered NVOCCs 
(which are not licensed). The Commission seeks comment on whether to 
remove this requirement.
2. Common Carrier Prohibitions
    The LoBiondo Act also expands the common carrier prohibition 
against knowingly and willfully accepting or transporting cargo for 
OTIs that do not meet certain Shipping Act requirements. See 46 U.S.C. 
41104(a)(11); Public Law 115-282, 708(a)(2)(A). Previously, common 
carriers were prohibited from knowingly and willfully accepting or 
transporting cargo for an OTI that did not have a tariff and did not 
meet the OTI financial responsibility requirements. See 46 U.S.C. 
41104(11) (2017). This wording limited the prohibition to dealing with 
noncompliant NVOCCs, as OFFs are not required to have a tariff. See 46 
CFR 515.19(g)(1)(vii); 515.27(a). The LoBiondo Act split the provision 
into two separate prohibitions in 46 U.S.C. 41104(a)(11). The first 
prohibits common carriers from knowingly and willfully accepting or 
transporting cargo from an NVOCC that does not have a tariff. The 
second prohibits common carriers from knowingly and willfully accepting 
or transporting cargo from an OTI (i.e., NVOCC or OFF) that does not 
meet the financial responsibility requirements.
    The Commission's regulations at 46 CFR 515.19 and 515.27 reflect 
the earlier version of the prohibition (accepting or transporting cargo 
for noncompliant NVOCCs). The Commission is therefore proposing to 
amend these sections to reflect the new, broader statutory prohibition.

D. Comments on Filed Agreements (Part 535)

    The LoBiondo Act made several changes to the provisions governing 
Commission action on agreements. In particular, the LoBiondo Act 
expanded on the existing requirement that the Commission transmit a 
notice of an agreement filing to the Federal Register within seven 
days, adding a requirement that the Commission request interested 
persons to submit relevant information and documents. 46 U.S.C. 
40304(a)(2); Public Law 115-282, 706(a). Although the Commission 
already includes such requests in its Federal Register notices, see 46 
CFR 535.603, adding this provision renders such comments confidential 
under 46 U.S.C. 40306, which exempts ``[i]nformation and documents . . 
. filed with the . . . Commission under [chapter 403]'' from disclosure 
under the Freedom of Information Act. Previously, only information 
provided by the filing parties was protected from disclosure under 
Sec.  40306. See Final Rule: Rules Governing Agreements by Ocean Common 
Carriers and Other Persons Subject to the Shipping Act of 1984, 49 FR 
45320, 45336 (Nov. 15, 1984) (interpreting the provision (as originally 
enacted in the Shipping Act of 1984) as only protecting information 
provided by the filing parties).
    In addition, the Act includes a saving clause stating that nothing 
in Sec.  706 of the Act or the amendments made to 46 U.S.C. 40304 may 
be construed to prescribe a specific deadline for the submission of 
relevant information and documents from interested persons in response 
to a request for comment on an agreement filing. Public Law 115-282, 
706(c).
    The Commission is proposing to revise its regulations in part 535 
to address these changes. In particular, the Commission proposes to 
revise the procedures for submitting comments on filed agreements in 
Sec.  535.603 to reflect that such comments are exempt from disclosure 
under FOIA and to make conforming changes to the list of confidentially 
submitted material in Sec.  535.608. The Commission also proposes to 
revise the Federal Register notice requirements in Sec.  535.602 to 
reflect the saving clause, namely that the Shipping Act may not be 
construed as prescribing a deadline for the submission of comments on 
filed agreements. Specifically, under revised Sec.  535.602, Federal 
Register notices would no longer include a ``final date'' or rigid 
deadline for filing comments; rather, notices would include a date by 
which comments are most useful for the Commission's analysis of an 
agreement within the statutory 45-day review period. Comments received 
before that date would be considered by the Commission and staff in 
making determinations within the 45-day review period, while comments 
received after that date may be considered, to the extent practicable, 
within the 45-day review period or as part of the Commission's 
continuing review of the agreement after the 45-day period.

III. Public Participation

How do I prepare and submit comments?

    Your comments must be written and in English. To ensure that your 
comments are correctly filed in the docket, please include the docket 
number of this document in your comments.
    You may submit your comments via email to the email address listed 
above under ADDRESSES. Please include the

[[Page 54090]]

docket number associated with this notice and the subject matter in the 
subject line of the email. Comments should be attached to the email as 
a Microsoft Word or text-searchable PDF document. Only non-confidential 
and public versions of confidential comments should be submitted by 
email.
    You may also submit comments by mail to the address listed above 
under ADDRESSES.

How do I submit confidential business information?

    The Commission will provide confidential treatment for identified 
confidential information to the extent allowed by law. If your comments 
contain confidential information, you must submit the following by mail 
to the address listed above under ADDRESSES:
     A transmittal letter requesting confidential treatment 
that identifies the specific information in the comments for which 
protection is sought and demonstrates that the information is a trade 
secret or other confidential research, development, or commercial 
information.
     A confidential copy of your comments, consisting of the 
complete filing with a cover page marked ``Confidential-Restricted,'' 
and the confidential material clearly marked on each page. You should 
submit the confidential copy to the Commission by mail.
     A public version of your comments with the confidential 
information excluded. The public version must state ``Public Version--
confidential materials excluded'' on the cover page and on each 
affected page, and must clearly indicate any information withheld. You 
may submit the public version to the Commission by email or mail.

Will the Commission consider late comments?

    The Commission will consider all comments received before the close 
of business on the comment closing date indicated above under DATES. To 
the extent possible, we will also consider comments received after that 
date.

How can I read comments submitted by other people?

    You may read the comments received by the Commission at the 
Commission's Electronic Reading Room or the Docket Activity Library at 
the addresses listed above under ADDRESSES.

IV. Rulemaking Analyses and Notices

Regulatory Flexibility Act

    The Regulatory Flexibility Act (codified as amended at 5 U.S.C. 
601-612) provides that whenever an agency is required to publish a 
notice of proposed rulemaking under the Administrative Procedure Act 
(APA) (5 U.S.C. 553), the agency must prepare and make available for 
public comment an initial regulatory flexibility analysis (IRFA) 
describing the impact of the proposed rule on small entities, unless 
the head of the agency certifies that the rulemaking will not have a 
significant economic impact on a substantial number of small entities. 
5 U.S.C. 603, 605. Based on the analysis below, the Chairman of the 
Federal Maritime Commission certifies that this final rule will not 
have a significant economic impact on a substantial number of small 
entities.
    Most of the proposed changes will clearly have no economic impact 
on any regulated entities, i.e., updating references to statutory 
provisions, the amendments relating to nonpublic collaborative 
discussions by the Commission, and the amendments relating to comments 
on filed agreements.
    With respect to the proposed amendments to the regulations 
governing OTI licensing, financial responsibility, and general duties, 
the Commission recognizes that the majority of businesses affected by 
these proposed changes (OTIs) qualify as small entities under the 
guidelines of the Small Business Administration. The proposed rule 
would not, however, result in a significant economic impact on these 
entities. The proposed regulatory changes include: (1) Expanding the 
class of entities that must obtain a license to include those holding 
themselves out or advertising as OTIs; and (2) expanding the 
prohibition on common carriers transporting cargo for noncompliant OTIs 
to include OFFs that have not met the financial responsibility 
requirements. The Commission is also seeking comment regarding whether 
to eliminate the requirement that foreign-based, registered NVOCCs 
employ only licensed OTIs as their agents in the United States.
    These changes are expected to have minimal, if any, economic 
impact. As explained above, the Commission expects that requiring 
entities that hold themselves out or advertise as OTIs to obtain a 
license and bond, insurance, or other surety will have minimal, if any, 
effects on the universe of entities that must meet the licensing and 
financial responsibility requirements. In general, an entity that 
advertises or holds itself out as an OTI also acts as an OTI, and the 
practical effect of the change is to make it easier for the Commission 
to enforce the licensing and financial responsibility requirements and 
prosecute noncompliant OTIs. Further, if the Commission determines to 
eliminate the requirement that agents of foreign-based, registered 
NVOCCs obtain licenses in a final rule, the change would, at most, 
reduce the regulatory burden on those agents.\5\ Finally, the changes 
to the prohibition on transporting cargo for noncompliant OTIs would 
have little, if any, economic impact on common carriers, including 
NVOCCs. NVOCCs would continue to be able to rely on the Commission's 
website, which contains an easily searchable database of OTIs, to 
ascertain both NVOCC and OFF compliance with the relevant requirements.
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    \5\ When originally proposing this requirement in 1998, the 
Commission stated that it expected that most U.S. agents would 
already be licensed and the impact of the requirement would be de 
minimis. 1998 NPRM, 63 FR at 70714. If the Commission determines to 
remove the requirement in a final rule, the Commission would expect 
this change to have a similar, minimal economic impact.
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National Environmental Policy Act

    The Commission's regulations categorically exclude certain 
rulemakings from any requirement to prepare an environmental assessment 
or an environmental impact statement because they do not increase or 
decrease air, water or noise pollution or the use of fossil fuels, 
recyclables, or energy. 46 CFR 504.4. In addition to correcting 
references to statutory provisions, the proposed rule would make 
changes to the regulations governing Commission meetings in part 503, 
the regulations governing OTI licensing, financial responsibility, and 
general duties in part 515, and the regulations governing the 
submission of comments on filed agreements in part 535. This rulemaking 
thus falls within the categorical exclusion for actions regarding 
access to public information under part 503 (Sec.  504.4(a)(24)), 
actions related to the issuance, modification, denial and revocation of 
ocean transportation intermediary licenses (Sec.  504.4(a)(1)), and 
actions related to the consideration of agreements (Sec.  
[thinsp]504.4(a)(9)-(13), (30)-(35)). Therefore, no environmental 
assessment or environmental impact statement is required.

Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3521) (PRA) 
requires an agency to seek and receive approval from the Office of 
Management and

[[Page 54091]]

Budget (OMB) before collecting information from the public. 44 U.S.C. 
3507. The agency must submit collections of information in proposed 
rules to OMB in conjunction with the publication of the notice of 
proposed rulemaking. 5 CFR 1320.11. This proposed rule does not contain 
any collections of information as defined by 44 U.S.C. 3502(3) and 5 
CFR 1320.3(c).

Executive Order 12988 (Civil Justice Reform)

    This rule meets the applicable standards in E.O. 12988 titled, 
``Civil Justice Reform,'' to minimize litigation, eliminate ambiguity, 
and reduce burden.

Regulation Identifier Number

    The Commission assigns a regulation identifier number (RIN) to each 
regulatory action listed in the Unified Agenda of Federal Regulatory 
and Deregulatory Actions (Unified Agenda). The Regulatory Information 
Service Center publishes the Unified Agenda in April and October of 
each year. You may use the RIN contained in the heading at the 
beginning of this document to find this action in the Unified Agenda, 
available at http://www.reginfo.gov/public/do/eAgendaMain.

List of Subjects

46 CFR Part 503

    Freedom of Information, Privacy, Sunshine Act.

46 CFR Part 515

    Freight, Freight forwarders, Maritime carriers, Reporting and 
recordkeeping requirements.

46 CFR Part 530

    Freight, Maritime carriers, Reporting and recordkeeping 
requirements.

46 CFR Part 532

    Common carriers, Exports, Maritime carriers, Reporting and 
recordkeeping requirements.

46 CFR Part 535

    Administrative practice and procedure, Freight, Maritime carriers, 
Reporting and recordkeeping requirements.

46 CFR Part 545

    Antitrust, Maritime carriers.

    For the reasons set forth above, the Federal Maritime Commission 
proposes to amend 46 CFR parts 503, 515, 530, 532, 535, and 545 as 
follows:

PART 503--PUBLIC INFORMATION

0
1. The authority citation for part 503 is revised to read as follows:

    Authority: 5 U.S.C. 331, 552, 552a, 552b, 553; 31 U.S.C. 9701; 
46 U.S.C. 303; E.O. 13526 of January 5, 2010 75 FR 707, 3 CFR, 2010 
Comp., p. 298, sections 5.1(a) and (b).

0
2. Amend Sec.  503.72 by revising paragraph (a) to read as follows:


Sec.  503.72  General rule--meetings.

    (a) Except as otherwise provided in Sec. Sec.  503.73, 503.74, 
503.75, 503.76, and 503.84, every portion of every meeting and every 
portion of a series of meetings of the agency shall be open to public 
observation.
* * * * *
0
3. Amend Sec.  503.78 by revising paragraph (a) to read as follows:


Sec.  503.78   General rule--information pertaining to meeting.

    (a) As defined in Sec.  503.71, all information pertaining to a 
portion or portions of a meeting or portion or portions of a series of 
meetings of the agency shall be disclosed to the public unless excepted 
from such disclosure under Sec. Sec.  503.79 through 503.81 or Sec.  
503.84.
* * * * *
0
4. Add Sec.  503.84 to subpart I to read as follows:


Sec.  503.84  Nonpublic Collaborative Discussions.

    (a) General. Notwithstanding Sec.  503.72, a majority of the 
Commissioners may hold a meeting that is not open to public observation 
to discuss official agency business if:
    (1) No formal or informal vote or other official agency action is 
taken at the meeting;
    (2) Each individual present at the meeting is a Commissioner or an 
employee of the Commission;
    (3) At least one (1) Commissioner from each political party is 
present at the meeting, if there are sitting Commissioners from more 
than one party; and
    (4) The General Counsel of the Commission is present at the 
meeting.
    (b) Disclosure of nonpublic collaborative discussions. Except as 
provided under paragraph (c) of this section, not later than two (2) 
business days after the conclusion of a meeting under paragraph (a) of 
this section, the Commission shall make available to the public, in a 
place easily accessible to the public:
    (1) A list of the individuals present at the meeting; and
    (2) A summary of the matters discussed at the meeting, except for 
any matters the Commission properly determines may be withheld from the 
public under Sec.  503.73.
    (c) Exception. If the Commission properly determines matters may be 
withheld from the public under Sec.  503.73, the Commission shall 
provide a summary with as much general information as possible on those 
matters withheld from the public.
    (d) Ongoing proceedings. If a meeting under paragraph (a) of this 
section directly relates to an ongoing proceeding before the 
Commission, the Commission shall make the disclosure under paragraph 
(b) of this section on the date of the final Commission decision.
0
5. Amend Sec.  503.85 by revising paragraph (a) introductory text to 
read as follows:


Sec.  503.85  Agency recordkeeping requirements.

    (a) In the case of any portion or portions of a meeting or portion 
or portions of a series of meetings determined by the agency to be 
closed to public observation under the provisions of Sec. Sec.  502.73 
through 503.75, the following records shall be maintained by the 
Secretary of the agency:
* * * * *

PART 515--LICENSING, FINANCIAL RESPONSIBILITY REQUIREMENTS, AND 
GENERAL DUTIES FOR OCEAN TRANSPORTATION INTERMEDIARIES

0
6. The authority citation for part 515 continues to read as follows:

    Authority: 5 U.S.C. 553; 31 U.S.C. 9701; 46 U.S.C. 305, 40102, 
40104, 40501-40503, 40901-40904, 41101-41109, 41301-41302, 41305-
41307; Pub. L. 105-383, 112 Stat. 3411; 21 U.S.C. 862.

0
7. Revise Sec.  515.3 to read as follows:


Sec.  515.3  License; when required.

    Except as otherwise provided in this part, no person in the United 
States may advertise, hold itself out, or act as an ocean 
transportation intermediary unless that person holds a valid license 
issued by the Commission. For purposes of this part, a person is 
considered to be ``in the United States'' if such person is resident 
in, or incorporated or established under, the laws of the United 
States. Registered NVOCCs must utilize only licensed ocean 
transportation intermediaries to provide NVOCC services in the United 
States. In the United States, only licensed OTIs may act as agents to 
provide OTI services for registered NVOCCs.
0
8. Amend Sec.  515.4 by revising paragraph (b) to read as follows:

[[Page 54092]]

Sec.  515.4  License; when not required.

* * * * *
    (b) Agents, employees, or branch offices of an ocean transportation 
intermediary. A disclosed agent, individual employee, or branch office 
of a licensed ocean transportation intermediary is not required to be 
licensed in order to act on behalf of and in the name of such licensee; 
however, branch offices must be reported to the Commission in Form FMC-
18 or under the procedures in Sec.  515.20(e). A licensed ocean 
transportation intermediary is fully responsible for the acts and 
omissions of any of its employees and agents that are performed in 
connection with the conduct of such licensee's business.
* * * * *
0
9. Amend Sec.  515.19 by revising paragraph (g)(1)(vii) to read as 
follows:


Sec.  515.19  Registration of foreign-based unlicensed NVOCC.

* * * * *
    (g) * * *
    (1) * * *
    (vii) Knowingly and willfully accepting cargo from or transporting 
cargo for the account of:
    (A) An NVOCC that does not have a published tariff as required by 
46 U.S.C. 40501 and part 520 of this chapter, and a bond, insurance, or 
other surety as required by 46 U.S.C. 40902 and this part; or
    (B) an OFF that does not have a bond, insurance, or other surety as 
required by 46 U.S.C. 40902 and this part; and
* * * * *
0
10. Amend Sec.  515.21 by revising paragraph (a) introductory text, and 
paragraphs (a)(1), and (a)(2) to read as follows:


Sec.  515.21   Financial Responsibility Requirements

    (a) Form and amount. Except as otherwise provided in this part, no 
person may advertise, hold oneself out, or act as an ocean 
transportation intermediary unless that person furnishes a bond, proof 
of insurance, or other surety in a form and amount determined by the 
Commission to insure financial responsibility. The bond, insurance, or 
other surety covers the transportation-related activities of an ocean 
transportation intermediary only when acting as an ocean transportation 
intermediary.
    (1) Any person in the United States advertising, holding oneself 
out, or acting as an ocean freight forwarder as defined in Sec.  
515.2(m)(1) shall furnish evidence of financial responsibility in the 
amount of $50,000.
    (2) Any person in the United States advertising, holding oneself 
out, or acting as an NVOCC as defined in Sec.  515.2(m)(2) shall 
furnish evidence of financial responsibility in the amount of $75,000.
* * * * *
0
11. Amend Sec.  515.27 by revising paragraph (a), paragraph (b) 
introductory text, and paragraphs (b)(1), and (c) to read as follows:


Sec.  515.27  Proof of compliance--NVOCC.

    (a) No common carrier may knowingly and willfully accept cargo from 
or transport cargo for the account of:
    (1) An NVOCC that does not have a published tariff as required by 
46 U.S.C. 40501 and part 520 of this chapter, and a bond, insurance, or 
other surety as required by 46 U.S.C. 40902 and this part; or
    (2) An OFF that does not have a bond, insurance, or other surety as 
required by 46 U.S.C. 40902 and this part.
    (b) A common carrier can obtain proof of an NVOCC or OFF's 
compliance with the OTI licensing, registration, tariff and financial 
responsibility requirements by:
    (1) Consulting the Commission's website www.fmc.gov as provided in 
paragraph (d) of this section, to verify that the NVOCC or OFF has 
complied with the applicable licensing, registration, tariff, and 
financial responsibility requirements; or
* * * * *
    (c) A common carrier that has employed the procedure prescribed in 
paragraph (b)(1) of this section shall be deemed to have met its 
obligations under 46 U.S.C. 41104(a)(11), unless the common carrier 
knew that such NVOCC or OFF was not in compliance with the applicable 
tariff or financial responsibility requirements.
* * * * *

PART 530--SERVICE CONTRACTS

0
12. The authority citation for part 530 continues to read as follows:

    Authority: 5 U.S.C. 553; 46 U.S.C. 305, 40301-40306, 40501-
40503, 41307.

0
13. Amend Sec.  530.6 by revising paragraph (d) to read as follows:


Sec.  530.6  Certification of shipper status.

* * * * *
    (d) Reliance on NVOCC proof; independent knowledge. An ocean common 
carrier, agreement or conference executing a service contract shall be 
deemed to have complied with 46 U.S.C. 41104(a)(12) upon meeting the 
requirements of paragraphs (a) and (b) of this section, unless the 
carrier party had reason to know such certification or documentation of 
NVOCC tariff and bonding was false.

PART 532--NVOCC NEGOTIATED RATE ARRANGEMENTS

0
14. The authority citation for part 530 continues to read as follows:

    Authority: 46 U.S.C. 40103.

0
15. Amend Sec.  532.2 by revising paragraph (e) to read as follows:


Sec.  532.2  Scope and applicability.

* * * * *
    (e) The prohibition in 46 U.S.C. 41104(a)(2)(A);
* * * * *
0
16. Amend Sec.  532.7 by revising paragraph (c) to read as follows:


Sec.  532.7  Recordkeeping and audit.

* * * * *
    (c) Failure to keep or timely produce original NRAs will disqualify 
an NVOCC from the operation of the exemption provided pursuant to this 
part, regardless of whether it has been invoked by notice as set forth 
above, and may result in a Commission finding of a violation of 46 
U.S.C. 41104(a)(1), 41104(a)(2)(A) or other acts prohibited by the 
Shipping Act.

PART 535--OCEAN COMMON CARRIER AND MARINE TERMINAL OPERATOR 
AGREEMENTS SUBJECT TO THE SHIPPING ACT OF 1984

0
17. The authority citation for part 535 continues to read as follows:

    Authority: 5 U.S.C. 553; 46 U.S.C. 305, 40101-40104, 40301-
40307, 40501-40503, 40901-40904, 41101-41109, 41301-41302, and 
41305-41307.
0
18. Amend Sec.  535.602 by revising paragraph (b)(6) to read as 
follows:


Sec.  535.602  Federal Register notice.

* * * * *
    (b) * * *
    (6) A request for comments, including relevant information and 
documents, regarding the agreement and the date by which comments 
should be submitted in order to be most useful to the Commission's 
review of the agreement during the 45-day waiting period.
0
19. Amend Sec.  535.603 by revising paragraph (a) to read as follows:


Sec.  535.603  Comment.

    (a) Persons may file with the Secretary written comments, including 
relevant information and documents, regarding a filed agreement. 
Commenters may submit the comment by email to [email protected] or 
deliver to Secretary, Federal Maritime Commission, 800 N Capitol St. 
NW,

[[Page 54093]]

Washington, DC 20573-0001. The Commission will treat such comments as 
confidential in accordance with Sec.  535.608.
* * * * *
0
20. Amend Sec.  535.608 by revising paragraph (a) to read as follows:


Sec.  535.608  Confidentiality of submitted material.

    (a) Except for an agreement filed under 46 U.S.C. ch. 403, all 
information and documents submitted to the Commission by the filing 
party(ies) or third parties regarding an agreement will be exempt from 
disclosure under 5 U.S.C. 552. Included in this disclosure exemption is 
information provided in the Information Form, voluntary submission of 
additional information, reasons for noncompliance, replies to requests 
for additional information, and third-party comments.
* * * * *

PART 545--INTERPRETATIONS AND STATEMENTS OF POLICY

0
21. The authority citation for part 545 continues to read as follows:

    Authority: 5 U.S.C. 553; 46 U.S.C. 305, 40307, 40501-40503, 
41101-41106, and 40901-40904; 46 CFR 515.23.

0
22. Amend Sec.  545.1 by revising paragraph (a) to read as follows:


Sec.  545.1  Interpretation of Shipping Act of 1984--Refusal to 
negotiate with shippers' associations.

    (a) 46 U.S.C. 40502 authorizes ocean common carriers and agreements 
between or among ocean common carriers to enter into a service contract 
with a shippers' association, subject to the requirements of the 
Shipping Act of 1984 (``Act''). 46 U.S.C. 41104(a)(10) prohibits 
carriers from unreasonably refusing to deal or negotiate. 46 U.S.C. 
40307(a)(3) exempts from the antitrust laws any activity within the 
scope of the Act, undertaken with a reasonable basis to conclude that 
it is pursuant to a filed and effective agreement.
* * * * *

    By the Commission.
Rachel Dickon,
Secretary.
[FR Doc. 2019-21537 Filed 10-8-19; 8:45 am]
BILLING CODE 6731-AA-P