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                                                       Calendar No. 245
108th Congress                                                   Report
                                 SENATE
 1st Session                                                    108-120
_______________________________________________________________________


 
       THE FEDERAL MARITIME COMMISSION AUTHORIZATION ACT OF 2003

                               __________

                              R E P O R T

                                 OF THE

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                   on

                                S. 1244



                                     

    July 31 (legislative day, July 21), 2003.--Ordered to be printed

                                 ______

                     U.S. GOVERNMENT PRINTING OFFICE
  19-010                    WASHINGTON : 2003




       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                      one hundred eighth congress

                             first session

                     JOHN McCAIN, Arizona, Chairman
TED STEVENS, Alaska                  ERNEST F. HOLLINGS, South Carolina
CONRAD BURNS, Montana                DANIEL K. INOUYE, Hawaii
TRENT LOTT, Mississippi              JOHN D. ROCKEFELLER IV, West 
KAY BAILEY HUTCHISON, Texas              Virginia
OLYMPIA J. SNOWE, Maine              JOHN F. KERRY, Massachusetts
SAM BROWNBACK, Kansas                JOHN B. BREAUX, Louisiana
GORDON SMITH, Oregon                 BYRON L. DORGAN, North Dakota
PETER G. FITZGERALD, Illinois        RON WYDEN, Oregon
JOHN ENSIGN, Nevada                  BARBARA BOXER, California
GEORGE ALLEN, Virginia               BILL NELSON, Florida
JOHN E. SUNUNU, New Hampshire        MARIA CANTWELL, Washington
                                     FRANK LAUTENBERG, New Jersey
           Jeanne Bumpus, Staff Director and General Counsel
                   Ann Begeman, Deputy Staff Director
                  Robert W. Chamberlin, Chief Counsel
               Kevin D. Kayes, Democratic Staff Director
                Gregg Elias, Democratic General Counsel



                                                       Calendar No. 245
108th Congress                                                   Report
                                 SENATE
 1st Session                                                    108-120
======================================================================



       THE FEDERAL MARITIME COMMISSION AUTHORIZATION ACT OF 2003

                                _______
                                

    July 31 (legislative day, July 21), 2003.--Ordered to be printed

                                _______
                                

       Mr. McCain, from the Committee on Commerce, Science, and 
                Transportation, submitted the following

                              R E P O R T

                         [To accompany S. 1244]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill (S. 1244) to authorize 
appropriations for the Federal Maritime Commission for fiscal 
years 2004 and 2005, having considered the same, reports 
favorably thereon with an amendment and recommends that the 
bill (as amended) do pass.

                          Purpose of the Bill

  The primary purpose of S. 1244, as amended, is to authorize 
funds for the Federal Maritime Commission (FMC) for fiscal 
years 2004 through 2008.

                          Background and Needs

  The FMC was established in 1961 as an independent 
governmental agency following the abolition of the Federal 
Maritime Board, then part of the Commerce Department. It is 
responsible for the regulation of shipping in the foreign 
trades of the United States. The Commission is comprised of 5 
members appointed by the President, with the advice and consent 
of the Senate.
  The FMC is primarily engaged in administering the Shipping 
Act of 1984 as amended by the Ocean Shipping Reform Act of 
1996. It also enforces the Foreign Shipping Practices Act and 
section 19 of the Merchant Marine Act (1920). Under these 
authorities, the FMC protects shippers, carriers, and others 
engaged in the foreign commerce of the United States from 
restrictive rules and regulations of foreign governments and 
from the practices of foreign-flag carriers that have an 
adverse effect on shipping in United States trades. Under the 
provisions of the Foreign Shipping Practices Act and section 19 
of the Merchant Marine Act, 1920, the FMC has the authority to 
take action against the flag carriers of offending nations, 
including the imposition of per voyage fees and preventing such 
carriers from operating in trade with the United States.
  In carrying out its duties in regulating the practices of 
ocean shippers, carriers, intermediaries, and ports, the FMC 
investigates--upon its own motion or upon the filing of a 
complaint--discriminatory, unfair, or unreasonable rates, 
charges, classifications, and practices of ocean common 
carriers, terminal operators, and freight forwarders operating 
in the foreign commerce of the United States; receives and 
reviews agreements among ocean common carriers or marine 
terminal operators and monitors them to assure that they are 
not substantially anticompetitive or otherwise in violation of 
the Shipping Act of 1984; reviews tariff publications under the 
access and accuracy standards of the Shipping Act of 1984; 
regulates rates, charges, classifications, rules, and 
regulations contained in tariffs of carriers controlled by 
foreign governments and operating in United States trades to 
ensure that such matters are just and reasonable; and licenses 
United States-based international ocean transportation 
intermediaries.
  Finally, the FMC also enforces laws related to cruise vessel 
financial responsibility. Under sections 2 and 3 of P.L. 89-
777, the FMC ensures that cruise vessel operators have 
sufficient resources to pay judgments to passengers for 
personal injury or death or for nonperformance of a voyage.
  The Administration's fiscal year (FY) 2004 budget request for 
the FMC is $18.4 million, a $1,880,000 increase over the FY 
2003 appropriated level. S. 1244 would authorize funding for FY 
2004 consistent with the level requested by the Administration. 
The increases in FY 2005 through FY 2008 authorizations are to 
fund required annual salary and benefit adjustments.

                         Summary of Provisions

  S. 1244 would authorize funding for the activities of the FMC 
for fiscal years 2004 through 2008. It also would amend current 
law to provide that the designation of the Chairman of the 
Commission selected by the President under Section 102(b) of 
the Reorganization Plan No. 7 of 1961 (5 U.S.C. 903 nt) is 
subject to Senate confirmation.
  Additionally, the bill would require the FMC to report to the 
Senate Committee on Commerce, Science, and Transportation and 
the House Committee on Transportation and Infrastructure on the 
status of any agreements or discussions with other Federal, 
State, or local government agencies concerning issues dealing 
with the sharing of ocean shipping information for the purpose 
of assisting law enforcement or anti-terrorism efforts.

                          Legislative History

  The bill was introduced by Senator McCain on June 11, 2003, 
and is cosponsored by Senators Hollings, Hutchison, and Inouye. 
The bill was referred to the Committee on Commerce, Science, 
and Transportation.
  On June 19, 2003, the Committee ordered S. 1244 to be 
favorably reported with an amendment by a voice vote.

                            Estimated Costs

  In accordance with paragraph 11(a) of rule XXVI of the 
Standing Rules of the Senate and section 403 of the 
Congressional Budget Act of 1974, the Committee provides the 
following cost estimate, prepared by the Congressional Budget 
Office:

S. 1244--Federal Maritime Commission Authorization Act of 2003

    Summary: S. 1244 would authorize appropriations to the 
Federal Maritime Commission (FMC) for fiscal years 2004 through 
2008. CBO estimates that appropriation of the authorized 
amounts would result in outlays of $17 million in fiscal year 
2004 and $102 million over the 2004-2008 period. The bill would 
not affect direct spending or revenues.
    The legislation contains no intergovernmental or private-
sector mandares as defined in the Unfunded Mandates Reform Act 
(UMRA) and would impose no costs on state, local, or tribal 
governments.
    Estimated cost to the Federal Government: S. 1244 would 
authorize the appropriation of $18.4 million to the FMC for 
fiscal year 2004 and a total of $104 million over the 2004-2008 
period. The estimated budgetary impact of the bill is shown in 
the following table. The costs of this legislation fall within 
budget function 400 (transportation). For this estimate, CBO 
assumes that the amounts authorized by the bill will be 
appropriated for each year. Estimated outlays are based on 
historical spending patterns of the FMC.

----------------------------------------------------------------------------------------------------------------
                                                                  By fiscal year, in millions of dollars--
                                                           -----------------------------------------------------
                                                              2003     2004     2005     2006     2007     2008
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION

FMC Spending Under Current Law:
    Budget Authority 1....................................       17        0        0        0        0        0
    Estimated Outlays.....................................       17        1        0        0        0        0
Proposed Changes:
    Authorization Level...................................        0       18       20       21       22       23
    Estimated Outlays.....................................        0       17       19       21       22       23
FMC Spending Under S. 1244:
    Authorization Level 1.................................       17       18       20       21       22       23
    Estimated Outlays.....................................       17       18       19       21       22       23
----------------------------------------------------------------------------------------------------------------
\1\ The 2003 level is the amount appropriated for that year.

    Intergovernmental and private-sector impact: S. 1244 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on state, local, or 
tribal governments.
    Estimate prepared by: Federal Costs: Deborah Reis; Impact 
on State, Local, and Tribal Governments: Greg Waring; and 
Impact on the Private Sector: Cecil McPherson.
    Estimate approved by: Robert A. Sunshine, Assistant 
Director for Budget Analysis.

                      Regulatory Impact Statement

  Because S. 1244 does not create any new programs, the 
legislation would have no additional regulatory impact, and 
would result in no additional reporting requirements. The 
legislation would have no further effect on the number or types 
of individuals and businesses regulated, the economic impact of 
such regulation, the personal privacy of affected individuals, 
or the paperwork required from such individuals and businesses.
  S. 1244 as reported by the Committee would authorize 
appropriations to continue existing Federal Maritime Commission 
Programs and makes only one change to current law. That change, 
made by section 3 of the reported bill, would require Senate 
confirmation of the President's designation of the Commissioner 
who will serve as Chairman.

                      Section-by-Section Analysis


Section 1. Short title

  This section states that the Act may be cited as the 
``Federal Maritime Commission Authorization Act of 2003''.

Section 2. Authorization of appropriations

  Section 2 would authorize $18,471,000 for the activities of 
the FMC for FY 2004, consistent with the President's budget 
request. It also would authorize $19,500,000 for FY 2005; 
$20,750,000 for FY 2006; $21,500,000 for FY 2007; and 
$22,575,000 for FY 2008.

Section 3. Chairman designated with Senate confirmation

  Section 3 would make the President's designation of one of 
the Commissioners to serve as Chairman subject to Senate 
confirmation.

Section 4. Report on ocean shipping information gathering efforts

  Section 4 would require the FMC to provide the Senate 
Committee on Commerce, Science, and Transportation and the 
House of Representatives Committee on Transportation and 
Infrastructure a report within 90 days after the date of 
enactment on the status of any agreements, or discussions with, 
other Federal, State, or local government agencies concerning 
issues dealing with the sharing of ocean shipping information 
for the purpose of assisting law enforcement or anti-terrorism 
efforts. The Commission would be further required to include in 
the report its recommendations on how the Administration's 
ocean shipping information could be better utilized by it and 
other Federal agencies to improve port security.

                        Changes in Existing Law

  In compliance with paragraph 12 of rule XXVI of the Standing 
Rules of the Senate, changes in existing law made by the bill, 
as reported, are shown as follows (existing law proposed to be 
omitted is enclosed in black brackets, new material is printed 
in italic, existing law in which no change is proposed is shown 
in roman):

                   REORGANIZATION PLAN NO. 7 OF 1961

                           MARITIME FUNCTIONS

                   PART I. FEDERAL MARITIME COMMISSION

Sec. 101. Creation of Federal Maritime Commission

  (a) There is hereby established a Federal Maritime 
Commission, hereinafter referred to as the Commission.
  (b) The Commission shall not be a part of any executive 
department or under the authority of the head of any executive 
department.

Sec. 102. Composition of the Commission

  (a) The Commission shall be composed of five Commissioners, 
who shall be appointed by the President by and with the advice 
and consent of the Senate. Each Commissioner shall be removable 
by the President for inefficiency, neglect of duty, or 
malfeasance in office.
  (b) The [President] President, by and with the advice and 
consent of the Senate, shall from time to time designate one of 
the Commissioners to be the Chairman of the Commission.
  (c) Of the first five Commissioners appointed hereunder, one 
shall be appointed for a term expiring on June 30, 1962, one 
for a term expiring on June 30, 1963, one for a term expiring 
on June 30, 1964, and two for terms expiring on June 30, 1965. 
Their successors shall be appointed for terms of four years, 
except that any person chosen to fill a vacancy shall be 
appointed only for the unexpired term of the Commissioner whom 
he succeeds. Not more than three of the Commissioners shall be 
appointed from the same political party. A vacancy in the 
office of any such Commissioner shall be filled in the same 
manner as the original appointment.
  (d) A vacancy or vacancies in the membership of Commission 
shall not impair the power of the Commission to execute its 
functions. The affirmative vote of a majority of the members 
serving on the Commission is required to dispose of any matter 
before the Commission.