U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

1 

69–010 

" ! SENATE 110TH CONGRESS

2d Session 

REPORT

2008

110–340 

Calendar No. 750 

FLORIDA SALVAGING LICENSE ACT 

R E P O R T 

OF THE

COMMITTEE ON COMMERCE, SCIENCE, AND 

TRANSPORTATION 

ON

S. 2482 

MAY 22, 2008.—Ordered to be printed 


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(II) 

SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION 

ONE HUNDRED TENTH CONGRESS

SECOND SESSION

DANIEL K. INOUYE, Hawaii, Chairman 

TED STEVENS, Alaska, Vice-Chairman 

JOHN D. ROCKEFELLER IV, West Virginia 

JOHN F. KERRY, Massachusetts 

BYRON L. DORGAN, North Dakota 

BARBARA BOXER, California 

BILL NELSON, Florida 

MARIA CANTWELL, Washington 

FRANK R. LAUTENBERG, New Jersey 

MARK PRYOR, Arkansas 

THOMAS CARPER, Delaware 

CLAIRE MCCASKILL, Missouri 

AMY KLOBUCHAR, Minnesota 

JOHN MCCAIN, Arizona 

KAY BAILEY HUTCHISON, Texas 

OLYMPIA J. SNOWE, Maine 

GORDON H. SMITH, Oregon 

JOHN ENSIGN, Nevada 

JOHN E. SUNUNU, New Hampshire 

JIM DEMINT, South Carolina 

DAVID VITTER, Louisiana 

JOHN THUNE, South Dakota 

ROGER F. WICKER, Mississippi 

MARGARET CUMMISKY, Staff Director and Chief Counsel 

LILA HELMS, Deputy Staff Director and Policy Director 

JEAN TOAL EISEN, Senior Advisor and Deputy Policy Director 

CHRISTINE KURTH, Republican Staff Director and General Counsel 

PAUL J. NAGLE, Republican Chief Counsel 

MIMI BRANIFF, Republican Deputy Chief Counsel 


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Calendar No. 750 

110TH CONGRESS REPORT " ! SENATE 2d Session 110–340 

FLORIDA SALVAGING LICENSE ACT 

MAY 22, 2008.—Ordered to be printed 

Mr. INOUYE, from the Committee on Commerce, Science, and 

Transportation, submitted the following 

R E P O R T 

[To accompany S. 2482] 

The Committee on Commerce, Science, and Transportation, to 

which was referred the bill (S. 2482) to repeal the provision of title 

46, United States Code, requiring a license for employment in the 

business of salvaging on the coast of Florida, having considered the 

same, reports favorably thereon without amendment and recommends that the bill do pass. 

PURPOSE OF THE BILL

The bill would repeal section 80102 of title 46, United States 

Code, which adversely affects the Florida salvage industry and was 

recently determined to be unconstitutional by the U.S. Department 

of Justice (DOJ). 

BACKGROUND AND NEEDS

Section 80102 was codified in 1847 to regulate the wrecking industry, which at the time was associated with piracy and other 

misconduct, by requiring wreckers to obtain licenses from Federal 

district court judges. These licenses have not been used since the 

1920s when the industry shifted from wrecking to large salvaging 

corporations. Thus, the provision was largely obsolete. 

In 2006, P.L. 109–304, a bill to complete the codification of title 

46, was enacted. Unfortunately, it inappropriately altered section 

80102 to apply to ‘‘salvaging’’ rather than ‘‘wrecking.’’ This change 

imposed a judicial licensing requirement on the modern marine assistance and towing industry, which has been licensed under the 

Coast Guard since its inception in the 1980s. This industry supports boaters along the U.S. eastern coast, performing more than 


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120,000 towing operations and salvaging tens of thousands of vessels each year, thereby saving millions of dollars in damages for 

owners and insurance companies, most of them in the State of Florida. 

In connection to one petition to obtain a license under this newly 

resurrected law, the DOJ advised the District Court of Southern 

Florida of its opinion that the law is unconstitutional on the 

grounds that it charges judges with a licensing function, which is 

a responsibility of the Executive Branch. The court denied the petitioner a license, indicating that it was powerless to grant one. The 

Court also declined to judge whether the law is unconstitutional 

because such a ruling would have been outside the scope of the 

suit. The court called on Congress to repeal the law. 

Although any prosecution of a salvager for violation of section 

80102 would likely fail in court, salvagers in Florida are unable to 

obtain the licenses required by law. Repealing the law will eliminate the need for further judicial action to resolve this issue. 

SUMMARY OF PROVISIONS

The bill would repeal section 80102 of title 46, United States 

Code, which adversely affects the Florida salvage industry and was 

recently determined to be unconstitutional by the DOJ. 

LEGISLATIVE HISTORY

The bill was introduced on December 13, 2007, by Senator Bill 

Nelson and ordered to be reported favorably by the Commerce 

Committee on April 24, 2008. Staff assigned to this legislation are 

Dabney Hegg, Democratic Senior Professional Staff, and Todd 

Bertoson, Republican Senior Counsel. 

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: 

MAY 7, 2008. 

Hon. DANIEL K. INOUYE, 

Chairman, Committee on Commerce, Science, and Transportation, 

U.S. Senate, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for S. 2482, a bill to repeal the 

provision of title 46, United States Code, requiring a license for employment in the business of salvaging on the coast of Florida. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Deborah Reis. 

Sincerely, 

PETER R. ORSZAG. 

Enclosure. 


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S. 2482—A bill to repeal the provision of title 46, United States 

Code, requiring a license for employment in the business of salvaging on the coast of Florida 

S. 2482 would repeal an existing law that requires vessels and 

their masters to each obtain licenses from a U.S. district court in 

Florida to operate salvage businesses off that state’s coast. CBO estimates that enacting S. 2482 would have no effect on the federal 

budget because no such licenses are currently issued by the district 

courts. 

The bill contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would 

not affect the budgets of state, local, or tribal governments. 

The CBO staff contact for this estimate is Deborah Reis. The estimate was approved by Peter H. Fontaine, Assistant Director for 

Budget Analysis. 

REGULATORY IMPACT STATEMENT

In accordance with paragraph 11(b) of rule XXVI of the Standing 

Rules of the Senate, the Committee provides the following evaluation of the regulatory impact of the legislation, as reported: 

NUMBER OF PERSONS COVERED

The reported bill would affect persons employed or seeking employment as a master of a vessel in the business of salvaging off 

the coast of Florida. 

ECONOMIC IMPACT

S. 2482 is expected to have a positive impact on the economy of 

the State of Florida. This provision helps relieve an undue burden 

on the salvaging industry in the State of Florida, which was mistakenly impacted during the recodification of title 46, United 

States Code in 2006. 

PRIVACY

The reported bill is not expected to have any impact on the privacy rights of individuals. 

PAPERWORK

There will be no increase in paperwork burdens resulting from 

the enactment of S. 2482. 

CONGRESSIONALLY DIRECTED SPENDING

In compliance with paragraph 4(b) of rule XLIV of the Standing 

Rules of the Senate, the Committee provides that the reported bill 

contains not congressionally directed spending items. 

SECTION-BY-SECTION ANALYSIS

Sec. 1. Repeal of Requirement of License for Employment in the 

Business of Salvaging on the Coast of Florida. 

This section would repeal section 80102 of title 46, United States 

Code. 


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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): 

TITLE 46, UNITED STATES CODE 

ø§ 80102. License to salvage on Florida coast 

ø(a) Licensing requirements. To be regularly employed in the 

business of salvaging on the coast of Florida, a vessel and its master each must have a license issued by a judge of the district court 

of the United States for a judicial district of Florida. 

ø(b) Judicial findings. Before issuing a license under this section, 

the judge must be satisfied, when the license is for—

ø(1) a vessel, that the vessel is seaworthy and properly 

equipped for the business of saving property shipwrecked and 

in distress; or 

ø(2) a master, that the master is trustworthy and innocent 

of any fraud or misconduct related to property shipwrecked or 

saved on the coast.¿ 

Æ 


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