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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2149 Referred in Senate (RFS)]

  2d Session
                                H. R. 2149

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                              May 2, 1996

    Received; read twice and referred to the Committee on Commerce, 
                      Science, and Transportation

_______________________________________________________________________

                                 AN ACT

 
 To reduce regulation, promote efficiencies, and encourage competition 
in the international ocean transportation system of the United States, 
 to eliminate the Federal Maritime Commission, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Ocean Shipping Reform Act of 1995''.

                     TITLE I--OCEAN SHIPPING REFORM

SEC. 101. PURPOSES.

    Section 2 of the Shipping Act of 1984 (46 App. U.S.C. 1701) is 
amended--
            (1) by striking ``and'' at the end of paragraph (2);
            (2) by striking the period at the end of paragraph (3) and 
        inserting ``; and''; and
            (3) by adding a new paragraph (4) to read as follows:
            ``(4) to permit carriers and shippers to develop 
        transportation arrangements to meet their specific needs.''.

SEC. 102. DEFINITIONS.

    Section 3 of the Shipping Act of 1984 (46 App. U.S.C. 1702) is 
amended--
            (1) effective on January 1, 1997--
                    (A) by striking paragraph (9); and
                    (B) by redesignating the remaining paragraphs 
                accordingly;
            (2) effective on June 1, 1997--
                    (A) by striking paragraph (4);
                    (B) in paragraph (7), by striking ``a common 
                tariff;'' and inserting ``a common schedule of 
                transportation rates, charges, classifications, rules, 
                and practices;'';
                    (C) by striking paragraph (10) (as redesignated by 
                paragraph (1) of this section);
                    (D) by striking paragraph (13) (as redesignated by 
                paragraph (1) of this section);
                    (E) by striking paragraph (16) (as redesignated by 
                paragraph (1) of this section);
                    (F) by amending paragraph (18) (as redesignated by 
                paragraph (1) of this section) to read as follows:
            ``(18) `ocean freight forwarder' means a person that--
                    ``(A)(i) 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
                    ``(ii) processes the documentation or performs 
                related activities incident to those shipments; or
                    ``(B) acts as a common carrier that does not 
                operate the vessels by which the ocean transportation 
                is provided, and is a shipper in its relationship with 
an ocean common carrier.'';
                    (G) by striking paragraph (20) (as redesignated by 
                paragraph (1) of this section);
                    (H) in paragraph (22) (as redesignated by paragraph 
                (1) of this section)--
                            (i) by striking ``or'' the second time it 
                        appears and inserting a comma; and
                            (ii) by striking the period and inserting 
                        ``, a shippers' association, or an ocean 
                        freight forwarder that accepts responsibility 
                        for payment of the ocean freight.'';
                    (I) by amending paragraph (23) (as redesignated by 
                paragraph (1) of this section) to read as follows:
            ``(23) `shippers' association' means a group of shippers 
        that consolidates or distributes freight, on a nonprofit basis 
        for the members of the group in order to secure carload, 
        truckload, or other volume rates or ocean transportation 
        contracts.''; and
                    (J) by inserting after paragraph (18) the following 
                new paragraph:
            ``(19) `ocean transportation contract' means a contract in 
        writing separate from the bill of lading or receipt between 1 
        or more common carriers or a conference and 1 or more shippers 
        to provide specified services under specified rates and 
        conditions.''.

SEC. 103. AGREEMENTS WITHIN THE SCOPE OF THE ACT.

    Section 4(a) of the Shipping Act of 1984 (46 App. U.S.C. 1703(a)) 
is amended, effective on June 1, 1997--
            (1) in paragraph (5), by striking ``non-vessel-operating 
        common carriers'' and inserting ``ocean freight forwarders''; 
        and
            (2) by amending paragraph (7) to read as follows:
            ``(7) discuss any matter related to ocean transportation 
        contracts, and enter ocean transportation contracts and 
        agreements related to those contracts.''.

SEC. 104. AGREEMENTS.

    Section 5 of the Shipping Act of 1984 (46 App. U.S.C. 1704) is 
amended--
            (1) effective on January 1, 1997--
                    (A) in subsection (b)(4), by striking ``at the 
                request of any member, require an independent neutral 
                body to police fully'' and inserting ``state the 
                provisions, if any, for the policing of'';
                    (B) in subsection (b)(7), by striking ``and'' at 
                the end;
                    (C) in subsection (b)(8), by striking the period 
                and inserting ``; and''; and
                    (D) by adding at the end of subsection (b) the 
                following new paragraph:
            ``(9) provide that a member of the conference may enter 
        individual and independent negotiations and may conclude 
        individual and independent service contracts under section 8 of 
        this Act.'';
            (2) effective on June 1, 1997--
                    (A) by amending subsection (b)(8) to read as 
                follows:
            ``(8) provide that any member of the conference may take 
        independent action on any rate or service item agreed upon by 
        the conference for transportation provided under section 8(a) 
        of this Act upon not more than 3 business days' notice to the 
        conference, and that the conference will provide the new rate 
        or service item for use by that member, effective no later than 
        3 business days after receipt of that notice, and by any other 
        member that notifies the conference that it elects to adopt the 
        independent rate or service item on or after its effective 
        date, in lieu of the existing conference provision for that 
        rate or service item;''; and
                    (B) by adding the following new paragraph to read 
                as follows:
            ``(10) prohibit the conference from--
                    ``(A) prohibiting or restricting the members of the 
                conference from engaging in individual negotiations for 
                ocean transportation contracts under section 8(b) with 
                1 or more shippers; and
                    ``(B) issuing mandatory rules or requirements 
                affecting ocean transportation contracts that may be 
                entered by 1 or more members of the conference, except 
                that a conference may require that a member of the 
                conference disclose the existence of an existing 
                individual ocean transportation contract or 
                negotiations on an ocean transportation contract, when 
                the conference enters negotiations on an ocean 
                transportation contract with the same shipper.'';
                    (C) in subsection (e), by striking ``carrier that 
                are required to be set forth in a tariff,'' and 
                inserting ``carrier,''; and
                    (D) in subsection (b)(9), by striking ``service'' 
                and inserting ``ocean transportation''.

SEC. 105. EXEMPTION FROM ANTITRUST LAWS.

    Section 7 of the Shipping Act of 1984 (46 App. U.S.C. 1706) is 
amended--
            (1) by amending subsection (a)(6) to read as follows:
            ``(6) subject to section 20(e)(2) of this Act, any 
        agreement, modification, or cancellation, in effect before the 
        effective date of this Act and any tariff, rate, fare, charge, 
        classification, rule, or regulation explanatory thereof 
        implementing that agreement, modification, or cancellation.''; 
        and
            (2) in subsection (c)(1), by striking ``agency'' and 
        inserting ``agency, department,''.

SEC. 106. COMMON AND CONTRACT CARRIAGE.

    (a) In General.--Effective on June 1, 1997--
            (1) section 8a of the Shipping Act of 1984 (46 App. U.S.C. 
        1707a) is repealed; and
            (2) section 8 of the Shipping Act of 1984 (46 App. U.S.C. 
        1707) is amended to read as follows:

``SEC. 8. COMMON AND CONTRACT CARRIAGE.

    ``(a) Common Carriage.--
            ``(1) A common carrier and a conference shall make 
        available a schedule of transportation rates which shall 
        include the rates, terms, and conditions for transportation 
        services not governed by an ocean transportation contract, and 
        shall provide the schedule of transportation rates, in writing, 
        upon the request of any person. A common carrier and a 
        conference may assess a reasonable charge for complying with a 
        request for a rate, term, and condition, except that the charge 
        may not exceed the cost of providing the information requested.
            ``(2) A dispute between a common carrier or conference and 
        a person as to the applicability of the rates, terms, and 
        conditions for ocean transportation services shall be decided 
        in an appropriate State or Federal court of competent 
        jurisdiction, unless the parties otherwise agree.
            ``(3) A claim concerning a rate for ocean transportation 
        services which involves false billing, false classification, 
        false weighing, false report of weight, or false measurement 
        shall be decided in an appropriate State or Federal court of 
        competent jurisdiction, unless the parties otherwise agree.
    ``(b) Contract Carriage.--
            ``(1) 1 or more common carriers or a conference may enter 
        into an ocean transportation contract with 1 or more shippers. 
        A common carrier may enter into ocean transportation contracts 
        without limitations concerning the number of ocean 
        transportation contracts or the amount of cargo or 
space involved. The status of a common carrier as an ocean common 
carrier is not affected by the number or terms of ocean transportation 
contracts entered.
            ``(2) A party to an ocean transportation contract entered 
        under this section shall have no duty in connection with 
        services provided under the contract other than the duties 
        specified by the terms of the contract.
            ``(3)(A) An ocean transportation contract or the 
        transportation provided under that contract may not be 
        challenged in any court on the grounds that the contract 
        violates a provision of this Act.
            ``(B) The exclusive remedy for an alleged breach of an 
        ocean transportation contract is an action in an appropriate 
        State or Federal court of competent jurisdiction, unless the 
        parties otherwise agree.
            ``(4) The requirements and prohibitions concerning 
        contracting by conferences contained in sections 5(b)(9) and 
        (10) of this Act shall also apply to any agreement among one or 
        more ocean common carriers that is filed under section 5(a) of 
        this Act.''.
    (b) Confidentiality of Contracts.--Effective on January 1, 1998, 
section 8(b) of the Shipping Act of 1984 (46 App. U.S.C. 1707(b)), as 
amended by subsection (a) of this section, is amended by adding at the 
end the following:
            ``(5) A contract entered under this section may be made on 
        a confidential basis, upon agreement of the parties. An ocean 
        common carrier that is a member of a conference agreement may 
        not be prohibited or restricted from agreeing with 1 or more 
        shippers that the parties to the contract will not disclose the 
        rates, services, terms, or conditions of that contract to any 
        other member of the agreement, to the conference, to any other 
        carrier, shipper, conference, or to any other third party.''.

SEC. 107. PROHIBITED ACTS.

    Section 10 of the Shipping Act of 1984 (46 App. U.S.C. 1709) is 
amended--
            (1) effective on January 1, 1997, by amending subsection 
        (b)--
                    (A) by amending paragraph (1) to read as follows:
            ``(1) except for service contracts, subject a person, 
        place, port, or shipper to unreasonable discrimination;''; and
                    (B) by repealing paragraphs (2), (3), (4), and (8);
            (2) effective on June 1, 1997, by amending subsection (b) 
        to read as follows:
    ``(b) Common Carriers.--No common carrier, either alone or in 
conjunction with any other person, directly or indirectly, may--
            ``(1) except for ocean transportation contracts, subject a 
        person, place, port, or shipper to unreasonable discrimination;
            ``(2) retaliate against any 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;
            ``(3) employ any fighting ship;
            ``(4) subject any particular person, locality, class, or 
        type of shipper or description of traffic to an unreasonable 
        refusal to deal;
            ``(5) refuse to negotiate with a shippers' association;
            ``(6) knowingly and willfully accept cargo from or 
        transport cargo for the account of an ocean freight forwarder 
        that does not have a bond, insurance, or other surety as 
        required by section 19;
            ``(7) knowingly and willfully enter into an ocean 
        transportation contract with an ocean freight forwarder or in 
        which an ocean freight forwarder is listed as an affiliate that 
        does not have a bond, insurance, or other surety as required by 
        section 19; or
            ``(8)(A) knowingly disclose, offer, solicit, or receive any 
        information concerning the nature, kind, quantity, destination, 
        consignee, or routing of any property tendered or delivered to 
        a common carrier without the consent of the shipper or 
        consignee if that information--
                    ``(i) may be used to the detriment or prejudice of 
                the shipper or consignee;
                    ``(ii) may improperly disclose its business 
                transaction to a competitor; or
                    ``(iii) may be used to the detriment or prejudice 
                of any common carrier;
        except that nothing in paragraph (8) shall be construed to 
        prevent providing the information, in response to legal 
        process, to the United States, or to an independent neutral 
        body operating within the scope of its authority to fulfill the 
        policing obligations of the parties to an agreement effective 
        under this Act. Nor shall it be prohibited for any ocean common 
        carrier that is a party to a conference agreement approved 
        under this Act, or any receiver, trustee, lessee, agent, or 
        employee of that carrier, or any other person authorized by 
        that carrier to receive information, to give information to the 
        conference or any person, firm, corporation, or agency 
        designated by the conference or to prevent the conference or 
        its designee from soliciting or receiving information for the 
        purpose of determining whether a shipper or consignee has 
        breached an agreement with a conference or for the purpose of 
        determining whether a member of the conference has breached the 
        conference agreement or for the purpose of compiling statistics 
        of cargo movement, but the use of that information for any 
        other purpose prohibited by this Act or any other Act is 
        prohibited; and
            ``(B) after December 31, 1997, the rates, services, terms, 
        and conditions of an ocean transportation contract may not be 
        disclosed under this paragraph if the contract has been made on 
        a confidential basis under section 8(b) of this Act.
The exclusive remedy for a disclosure under this paragraph shall be an 
action for breach of contract as provided in section 8(b)(3) of this 
Act.'';
            (3) effective on June 1, 1997--
                    (A) by striking subsection (c)(1) and inserting the 
                following:
                    ``(1) boycott, take any concerted action resulting 
                in an unreasonable refusal to deal, or implement a 
                policy or practice that results in an unreasonable 
                refusal to deal;'';
                    (B) in subsection (c)(5), by inserting ``as defined 
                in section 3(14)(A) of this Act'' after ``freight 
                forwarder''; and
                    (C) in subsection (c)(6), by striking ``a service 
                contract.'' and inserting ``an ocean transportation 
                contract.''; and
            (4) effective on June 1, 1997, in subsection (d)(3), by 
        striking ``(b) (11), (12), and (16)'' and inserting ``(b) (1), 
        (4), and (8)''.

SEC. 108. REPARATIONS.

    Effective June 1, 1997, section 11(g) of the Shipping Act of 1984 
(46 App. U.S.C. 1710(g)) is amended--
            (1) by inserting ``or counter-complainant'' after 
        ``complainant'' the second time it appears;
            (2) by striking ``10(b) (5) or (7)'' and inserting ``10(b) 
        (2) or (3)''; and
            (3) by striking the last sentence.

SEC. 109. FOREIGN LAWS AND PRACTICES.

    Section 10002 of the Foreign Shipping Practices Act of 1988 (46 
App. U.S.C. 1710a) is amended, effective on June 1, 1997--
            (1) in subsection (a)(1)--
                    (A) by striking ``non-vessel-operating common 
                carrier,''; and
                    (B) by inserting ``ocean freight forwarder,'' after 
                ``ocean common carrier,'';
            (2) in subsection (a)(4), by striking ``non-vessel-
        operating common carrier operations,'';
            (3) in subsection (e)(1), by striking subparagraph (B) and 
        all that follows through subparagraph (D) and inserting the 
        following:
                    ``(B) suspension, in whole or in part, of the right 
                of an ocean common carrier to operate under any 
                agreement filed with the Secretary, including 
                agreements authorizing preferential treatment at 
                terminals, preferential terminal leases, space 
                chartering, or pooling of cargo or revenues with other 
                ocean common carriers; and
                    ``(C) a fee, not to exceed $1,000,000 per 
                voyage.''; and
            (4) in subsection (h), by striking ``section 13(b)(5) of 
        the Shipping Act of 1984 (46 App. U.S.C. 1712(b)(5))'' and 
        inserting ``section 13(b)(2) of the Shipping Act of 1984 (46 
        App. U.S.C. 1712(b)(2))''.

SEC. 110. PENALTIES.

    Section 13 of the Shipping Act of 1984 (46 App. U.S.C. 1712) is 
amended, effective on June 1, 1997--
            (1) in subsection (b)--
                    (A) by striking paragraphs (1) and (3) and 
                redesignating paragraphs (2), (4), (5), and (6) in 
                order as paragraphs (1), (2), (3), and (4);
                    (B) by striking paragraph (1), as so redesignated, 
                and inserting the following:
            ``(1) If the Secretary finds, after notice and an 
        opportunity for a hearing, that a common carrier has failed to 
        supply information ordered to be produced or compelled by 
        subpoena under section 1711 of this Act, the Secretary may 
        request that the Secretary of the Treasury refuse or revoke any 
        clearance required for a vessel operated by that common 
        carrier. Upon request by the Secretary, the Secretary of the 
        Treasury shall, with respect to the vessel concerned, refuse or 
        revoke any clearance required by section 4197 of the Revised 
        Statutes of the United States (46 App. U.S.C. 91).''; and
                    (C) in paragraph (3), as so redesignated, by 
                striking ``finds appropriate,'' and all that follows 
                through the end of the paragraph and inserting ``finds 
                appropriate including the imposition of the penalties 
                authorized under paragraph (2).'';
            (2) in subsection (f)(1), by striking ``section 10 (a)(1), 
        (b)(1), or (b)(4)'' and inserting ``section 10(a)(1)''.

SEC. 111. REPORTS.

    (a) In General.--Section 15 of the Shipping Act of 1984 (46 App. 
U.S.C. 1714) is amended, effective on January 1, 1997--
            (1) in the section heading by striking ``and 
        certificates'';
            (2) by striking ``(a) Reports.--''; and
            (3) by striking subsection (b).''.
    (b) Clerical Amendment.--The Shipping Act of 1984 (46 App. U.S.C. 
1701 et seq.) is amended in the first section in the table of contents 
by amending the item relating to section 15 to read as follows:

``Sec. 15. Reports.''.

SEC. 112. REGULATIONS.

    Section 17 of the Shipping Act of 1984 (46 App. U.S.C. 1716) is 
amended--
            (1) by striking ``(a)''; and
            (2) by striking subsection (b).''.

SEC. 113. REPEAL.

    Section 18 of the Shipping Act of 1984 (46 App. U.S.C. 1717) is 
repealed.

SEC. 114. OCEAN FREIGHT FORWARDERS.

    Section 19 of the Shipping Act of 1984 (46 App. U.S.C. 1718) is 
amended, effective on June 1, 1997--
            (1) by striking subsection (a) and inserting the following:
    ``(a) License.--No person in the United states may act as an ocean 
freight forwarder unless that person holds a license issued by the 
Commission. The Commission shall issue a forwarder's license to any 
person that the Commission determines to be qualified by experience and 
character to render forwarding services.'';
            (2) by redesignating subsections (b), (c), and (d) as 
        subsections (c), (d), and (e), respectively;
            (3) by inserting after subsection (a) the following:
    ``(b) Financial Responsibility.--
            ``(1) No person may act as an ocean freight forwarder 
        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 that is issued by a surety 
        company found acceptable by the Secretary of the Treasury.
            ``(2) A bond, insurance, or other surety obtained pursuant 
        to this section shall be available to pay any judgment for 
        damages against an ocean freight forwarder arising from its 
        transportation-related activities under this Act or order for 
        reparation issued pursuant to section 11 or 14 of this Act.
            ``(3) An ocean freight forwarder 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.'';
            (4) in subsection (c), as redesignated by paragraph (2) of 
        this section, by striking ``a bond in accordance with 
        subsection (a)(2)'' and inserting ``a bond, proof of insurance, 
        or other surety in accordance with subsection (b)(1)''; and
            (5) in subsection (e), as redesignated by paragraph (2) of 
        this section--
                    (A) by striking paragraph (3) and redesignating 
                paragraph (4) as paragraph (3); and
                    (B) by adding at the end the following:
            ``(4) No conference or group of 2 or more ocean common 
        carriers in the foreign commerce of the United States that is 
        authorized to agree upon the level of compensation paid to an 
        ocean freight forwarder, as defined in section 3(18)(A) of this 
        Act, may--
                    ``(A) deny to any member of the conference or group 
                the right, upon notice of not more than 3 business 
                days, to take independent action on any level of 
                compensation paid to an ocean freight forwarder; or
                    ``(B) agree to limit the payment of compensation to 
                an ocean freight forwarder, as defined in section 
                3(18)(A) of this Act, to less than 1.25 percent of the 
                aggregate of all rates and charges which are applicable 
                under a common schedule of transportation rates 
                provided under section 8(a) of this Act, and which are 
                assessed against the cargo on which the forwarding 
                services are provided.''.

SEC. 115. EFFECTS ON CERTAIN AGREEMENTS AND CONTRACTS.

    Section 20(e) of the Shipping Act of 1984 (46 App. U.S.C. 1719) is 
amended to read as follows:
    ``(e) Savings Provisions.--
            ``(1) Each service contract entered into by a shipper and 
        an ocean common carrier or conference before the date of the 
        enactment of the Ocean Shipping Reform Act of 1995 may remain 
        in full force and effect according to its terms.
            ``(2) This Act and the amendments made by this Act shall 
        not affect any suit--
                    ``(A) filed before the date of the enactment of the 
                Ocean Shipping Reform Act of 1995;
                    ``(B) with respect to claims arising out of conduct 
                engaged in before the date of the enactment of the 
                Ocean Shipping Reform Act of 1995, filed within 1 year 
                after the date of the enactment of the Ocean Shipping 
                Reform Act of 1995;
                    ``(C) with respect to claims arising out of conduct 
                engaged in after the date of the enactment of the Ocean 
                Shipping Reform Act of 1995 but before January 1, 1997, 
                pertaining to a violation of section 10(b) (1), (2), 
                (3), (4), or (8), as in effect before January 1, 1997, 
                filed by June 1, 1997;
                    ``(D) with respect to claims pertaining to the 
                failure of a common carrier or conference to file its 
                tariffs or service contracts in accordance with this 
                Act in the period beginning January 1, 1997, and ending 
                June 1, 1997, filed by December 31, 1997; or
                    ``(E) with respect to claims arising out of conduct 
                engaged in on or after the date of the enactment of the 
                Ocean Shipping Reform Act of 1995 but before June 1, 
                1997, filed by December 31, 1997.''.

SEC. 116. REPEAL.

    Section 23 of the Shipping Act of 1984 (46 App. U.S.C. 1721) is 
repealed, effective on June 1, 1997.

SEC. 117. MARINE TERMINAL OPERATOR SCHEDULES.

    (a) In General.--The Shipping Act of 1984 (46 App. U.S.C. 1701 et 
seq.) is amended, effective on June 1, 1997, by adding at the end the 
following new section:

``SEC. 24. MARINE TERMINAL OPERATOR SCHEDULES.

    ``A marine terminal operator shall make available to the public a 
schedule of rates, regulations, and practices, including limitations of 
liability, pertaining to receiving, delivering, handling, or storing 
property at its marine terminal. The schedule shall be enforceable as 
an implied contract, without proof of actual knowledge of its 
provisions, for any activity by the marine terminal operator that is 
taken to--
            ``(1) efficiently transfer property between transportation 
        modes;
            ``(2) protect property from damage or loss;
            ``(3) comply with any governmental requirement; or
            ``(4) store property in excess of the terms of any other 
        contract or agreement, if any, entered into by the marine 
        terminal operator.''.
    (b) Clerical Amendment.--The Shipping Act of 1984 (46 App. U.S.C. 
1701 et seq.) is amended in the first section in the table of contents 
by adding at the end the following new item:

``Sec. 24. Marine terminal operator schedules.''.

                TITLE II--CONTROLLED CARRIERS AMENDMENTS

SEC. 201. CONTROLLED CARRIERS.

    Section 9 of the Shipping Act of 1984 (46 App. U.S.C. 1708) is 
amended, effective on June 1, 1997--
            (1) in subsection (a), by striking ``in its tariffs or 
        service contracts filed with the Commission'' and ``in those 
        tariffs or service contracts'' in the first sentence, and by 
striking ``filed by a controlled carrier'' in the last sentence;
            (2) in subsection (b), by striking ``filed'' and inserting 
        ``published'', in paragraphs (1) and (2);
            (3) in subsection (c), by striking the first sentence;
            (4) subsection (d) is amended to read as follows:
    ``(d) Within 120 days of the receipt of information requested by 
the Secretary under this section, the Secretary shall determine whether 
the rates, charges, classifications, rules, or regulations of a 
controlled carrier may be unjust and unreasonable. If so, the Secretary 
shall issue an order to the controlled carrier to show cause why those 
rates, charges, classifications, rules, or regulations should not be 
approved. Pending a determination, the Secretary may suspend the rates, 
charges, classifications, rules, or regulations at any time. No period 
of suspension may be greater than 180 days. Whenever the Secretary has 
suspended any rates, charges, classifications, rules, or regulations 
under this subsection, the affected carrier may publish and, after 
notification to the Secretary, assess new rates, charges, 
classifications, rules, or regulations--except that the Secretary may 
reject the new rates, charges, classifications, rules, or regulations 
if the Secretary determines that they are unreasonable.'';
            (5) in subsection (f), by striking ``This'' and inserting 
        ``Subject to subsection (g), this''; and
            (6) by adding at the end the following new subsections:
    ``(g) The rate standards, information submissions, remedies, 
reviews, and penalties in this section shall also apply to ocean common 
carriers that are not controlled, but who have been determined by the 
Secretary to be structurally or financially affiliated with 
nontransportation entities or organizations (government or private) in 
such a way as to affect their pricing or marketplace behavior in an 
unfair, predatory, or anticompetitive way that disadvantages one or 
more ocean common carriers. The Secretary may make such determinations 
upon request of any person or upon the Secretary's own motion, after 
conducting an investigation and a public hearing.
    ``(h)(1) The Secretary shall issue regulations by June 1, 1997, 
that prescribe procedures and requirements governing the submission of 
price and other information necessary to enable the Secretary to 
determine under subsection (g) whether prices charged by carriers are 
unfair, predatory, or anticompetitive.
    ``(2)(A) If information provided to the Secretary under this 
subsection does not result in a finding by the Secretary of a violation 
of this section or enforcement action by the Secretary, the information 
may not be made public and shall be exempt from disclosure under 
section 552 of title 5, United States Code, except for purposes of an 
administrative or judicial action or proceeding.
    ``(B) This paragraph does not prohibit disclosure to either House 
of the Congress or to a duly authorized committee or subcommittee of 
the Congress.''.

SEC. 202. NEGOTIATING STRATEGY TO REDUCE GOVERNMENT OWNERSHIP AND 
              CONTROL OF COMMON CARRIERS.

    Not later than January 1, 1997, the Secretary of Transportation 
shall develop, submit to Congress, and begin implementing a negotiation 
strategy to persuade foreign governments to divest themselves of 
ownership and control of ocean common carriers (as that term is defined 
in section 3(18) of the Shipping Act of 1984 (46 App. U.S.C. 1702).

SEC. 203. REPORT BY THE SECRETARY.

    The Secretary shall report to the Congress by January 1, 1998, and 
annually thereafter, on--
            (1) actions taken by the Secretary under the Foreign 
        Shipping Practices Act of 1988 (46 App. U.S.C. 1710a) and 
        section 9 of the Shipping Act of 1984 (46 U.S.C. App. 1708); 
        and
            (2) the effect on United States maritime employment of 
        laws, rules, regulations, policies, or practices of foreign 
        governments, and any practices of foreign carriers or other 
        persons providing maritime or maritime-related services in a 
        foreign country, that adversely affect the operations of United 
        States carriers in United States oceanborne trade.

       TITLE III--ELIMINATION OF THE FEDERAL MARITIME COMMISSION

SEC. 301. AGENCY TERMINATION.

    (a) In General.--On September 30, 1997, the Federal Maritime 
Commission shall terminate and all remaining functions, powers, and 
duties of the Federal Maritime Commission shall be transferred to the 
Secretary of Transportation.
    (b) Authorization of Appropriations for Fiscal Year 1997.--There is 
authorized to be appropriated to the Federal Maritime Commission, 
$19,000,000 for fiscal year 1997.

                   TITLE IV--MISCELLANEOUS PROVISIONS

SEC. 401. TRANSFER OF CERTAIN OBSOLETE TUGBOATS OF THE NAVY.

    (a) Requirement To Transfer Vessels.--The Secretary of the Navy 
shall transfer the six obsolete tugboats of the Navy specified in 
subsection (b) to the Northeast Wisconsin Railroad Transportation 
Commission, an instrumentality of the State of Wisconsin. Such 
transfers shall be made as expeditiously as practicable upon completion 
of any necessary environmental compliance agreements.
    (b) Vessels Covered.--The requirement in subsection (a) applies to 
the six decommissioned Cherokee class tugboats, listed as of the date 
of the enactment of this Act as being surplus to the Navy, that are 
designated as ATF-105, ATF-110, ATF-149, ATF-158, ATF-159, and ATF-160.
    (c) Terms and Conditions.--The Secretary may require such terms and 
conditions in connection with the transfers required by this section as 
the Secretary considers appropriate.

            Passed the House of Representatives May 1, 1996.

            Attest:

                                                ROBIN H. CARLE,

                                                                 Clerk.
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