U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

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19–010

" SENATE ! 108th Congress 

1st Session 

REPORT

2003

108–120

Calendar No. 245

THE FEDERAL MARITIME COMMISSION 

AUTHORIZATION ACT OF 2003

REPORT

OF THE

COMMITTEE ON COMMERCE, SCIENCE, AND 

TRANSPORTATION

ON

S. 1244

JULY 31 (legislative day, JULY 21), 2003.—Ordered to be printed 


congress.#13
(II)

SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION 

ONE HUNDRED EIGHTH CONGRESS

FIRST SESSION

JOHN MCCAIN, Arizona, Chairman 

TED STEVENS, Alaska 

CONRAD BURNS, Montana 

TRENT LOTT, Mississippi 

KAY BAILEY HUTCHISON, Texas 

OLYMPIA J. SNOWE, Maine 

SAM BROWNBACK, Kansas 

GORDON SMITH, Oregon 

PETER G. FITZGERALD, Illinois 

JOHN ENSIGN, Nevada 

GEORGE ALLEN, Virginia 

JOHN E. SUNUNU, New Hampshire 

ERNEST F. HOLLINGS, South Carolina 

DANIEL K. INOUYE, Hawaii 

JOHN D. ROCKEFELLER IV, West Virginia 

JOHN F. KERRY, Massachusetts 

JOHN B. BREAUX, Louisiana 

BYRON L. DORGAN, North Dakota 

RON WYDEN, Oregon 

BARBARA BOXER, California 

BILL NELSON, Florida 

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 

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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. 

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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 

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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):

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REORGANIZATION PLAN NO. 7 OF 1961

MARITIME FUNCTIONS

PART I. FEDERAL MARITIME COMMISSION

§ 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. 

§ 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 øPresident¿ 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.

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