Calendar No. 323

103D CONGRESS

1ST SESSION S. 1432

[Report No. 103–196]

A BILL

To amend the Merchant Marine Act, 1936, to esNIndustry. Strong and Competitive United States Maritime tablish a National Commission to Ensure a OVEMBER 19 (legislative day, NOVEMBER 2), 1993

Reported with amendments
II

Calendar No. 323

103D CONGRESS

1ST SESSION S. 1432

[Report No. 103–196]

To amend the Merchant Marine Act, 1936, to establish a National Commission to Ensure a Strong and Competitive United States Maritime Industry.

IN THE SENATE OF THE UNITED STATES

AUGUST 6 (legislative day, JUNE 30), 1993

Mr. HOLLINGS (for himself, Mr. BREAUX, Mr. KERRY, Mr. ROBB, and Ms.

MIKULSKI) introduced the following bill; which was read twice and referred to the Committee on Commerce, Science, and Transportation

NOVEMBER 19 (legislative day, NOVEMBER 2), 1993

Reported by Mr. HOLLINGS, with amendments

[Omit the part struck through and insert the part printed in italic]

A BILL

To amend the Merchant Marine Act, 1936, to establish a

National Commission to Ensure a Strong and Competitive United States Maritime Industry.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. SHORT TITLE.

2 This Act may be cited as the ‘‘Maritime Competitive3 ness Act of 1993’’.

4 SEC. 2. FINDINGS.

5 The Congress finds the following:

6 (1) Since early in our Nation’s history, it has

7 been the policy of the United States to maintain a

8 strong United States maritime industry that—

9 (A) includes an operating fleet of modern

10 United States-flag vessels that is sufficient to

11 carry the domestic waterborne commerce of the

12 United States and a substantial portion of the

13 waterborne export and import foreign commerce

14 of the United States, and to provide shipping

15 service essential for maintaining the flow of

16 such domestic and foreign waterborne com17 merce at all times;

18 (B) includes a fleet of vessels under United

19 States registry that is adequate to serve as a

20 naval auxiliary in time of war or national emer21 gency;

22 (C) has a labor force composed of highly

23 trained and efficient United States citizens; and

24 (D) includes a United States shipbuilding

25 industry with the most modern and efficient fa26 cilities.
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1 (2) The United States maritime industry has

2 declined to the point that this longstanding national

3 policy is imperiled.

4 (3) There is a growing sentiment in favor of re5 forming the maritime laws and governmental prac6 tices in order to revitalize the industry.

7 (4) Without such reform, it is foreseeable that

8 the remaining United States-flag carriers will shift

9 their operations to foreign-flag vessels and the Na10 tion’s shipbuilding industry and other sectors of the

11 maritime industry will continue to decline.

12 (5) A focused review of the United States mari13 time industry and impediments to its success should

14 be undertaken in order to lay a solid foundation for

15 reform.

16 SEC. 3. AMENDMENT TO MERCHANT MARINE ACT, 1936.

17 The Merchant Marine Act, 1936 (46 App. U.S.C.

18 1101 et seq.), is amended by adding at the end the follow19 ing new title:

20 ‘‘TITLE XIV—NATIONAL COMMISSION ON MARITIME INDUS21 TRY COMPETITIVENESS

22 ‘‘SEC. 1401. ESTABLISHMENT.

23 ‘‘There is established a commission to be known as

24 the ‘National Committee Commission to Ensure a Strong
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1 and Competitive United States Maritime Industry’ (here2 inafter referred to as the ‘Commission’).

3 ‘‘SEC. 1402. FUNCTIONS.

4 ‘‘(a) INVESTIGATION AND STUDY.—The Commission

5 shall make a complete investigation and study of the con6 dition of the United States maritime industry, and impedi7 ments to a strong and competitive United States maritime

8 industry.

9 ‘‘(b) POLICY RECOMMENDATIONS.—Based on the re10 sults of the investigation and study to be conducted under

11 subsection (a), the Commission shall recommend to the

12 President and Congress those policies which should be

13 adopted to—

14 ‘‘(1) achieve the national goal of a strong and

15 competitive United States maritime industry which

16 will help to provide for the national defense and eco17 nomic security;

18 ‘‘(2) revitalize the fleet of United States-flag

19 vessels and maintain that fleet at a level sufficient

20 to contribute to the national defense and the eco21 nomic security of the Nation;

22 ‘‘(3) foster a viable United States shipbuilding

23 industry to provide an industrial base for meeting

24 present and future military and civilian shipbuilding

25 needs; and
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1 ‘‘(4) reduce the loss of seafaring and shipbuild2 ing jobs for United States citizens so as to ensure

3 the existence of a reliable maritime labor force.

4 ‘‘SEC. 1403. SPECIFIC MATTERS TO BE ADDRESSED.

5 ‘‘The Commission shall specifically investigate and

6 study under section 1402(a) the following:

7 ‘‘(1) CURRENT CONDITION OF UNITED STATES

8 MARITIME INDUSTRY.—The current condition of the

9 United States maritime industry, including how the

10 condition of the industry is likely to change over the

11 next ten years.

12 ‘‘(2) NATIONAL DEFENSE.—The adequacy of

13 the United States maritime industry to ensure the

14 national defense.

15 ‘‘(3) MARITIME LABOR.—Whether there is an

16 adequate number of skilled mariners and shipyard

17 workers, the level of training of United States mari18 ners at training facilities in the United States, and

19 the effect of wage rates on the global competitive20 ness of the United States maritime industry.

21 ‘‘(4) IMPEDIMENTS TO A STRONG AND COM22 PETITIVE MARITIME INDUSTRY.—Whether the Fed23 eral Government should take any legislative or ad24 ministrative actions to improve the condition of the

25 United States maritime industry, including whether
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1 any changes are needed in the legal and administra2 tive policies which govern—

3 ‘‘(A) support for United States-flag vessel

4 operations;

5 ‘‘(B) the taxes and user fees imposed on

6 United States maritime enterprises;

7 ‘‘(C) the regulatory requirements imposed

8 on United States-flag vessels and their opera9 tors, including environmental, vessel construc10 tion, and safety standards; and

11 ‘‘(D) incentives to encourage investment in

12 United States-flag vessel operations and United

13 States shipbuilding.

14 ‘‘(4) ‘‘(5) INTERNATIONAL MARITIME POLICY.—

15 Whether the policies and strategies followed by the

16 United States in international maritime policy are

17 promoting the ability of the United States maritime

18 industry to achieve long-term competitive success in

19 international markets, including—

20 ‘‘(A) the Government’s general negotiating

21 policy;

22 ‘‘(B) the desirability of multilateral rather

23 than bilateral negotiations;
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1 ‘‘(C) the rights granted foreign investors to

2 invest in United States-flag shipping and Unit3 ed States shipbuilding; and

4 ‘‘(D) the effect of subsidies and other fi5 nancial assistance by foreign governments to

6 their vessel operators and shipbuilders.

7 ‘‘SEC. 1404. MEMBERSHIP; ADMINISTRATIVE MATTERS.

8 ‘‘(a) APPOINTMENT.—The Commission shall be com9 posed of 15 voting members and 11 nonvoting members

10 as follows:

11 ‘‘(1) 5 voting members and 1 nonvoting mem12 ber appointed by the President.

13 ‘‘(2) 3 voting members and 3 nonvoting mem14 bers appointed by the majority leader of the Senate.

15 ‘‘(3) 2 voting members and 2 nonvoting mem16 bers appointed by the minority leader of the Senate.

17 ‘‘(4) 3 voting members and 3 nonvoting mem18 bers appointed by the Speaker of the House of Rep19 resentatives.

20 ‘‘(5) 2 voting members and 2 nonvoting mem21 bers appointed by the minority leader of the House

22 of Representatives.

23 ‘‘(b) QUALIFICATIONS.—Voting members appointed

24 pursuant to subsection (a) shall be appointed from among

25 individuals who are experts in commercial shipping, inter-
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1 national trade, and related disciplines and who can rep2 resent United States-flag vessel operators (including do3 mestic passenger vessel operators), seafaring and ship4 building labor, shipbuilders, shippers, and the financial

5 community with expertise in maritime matters.

6 ‘‘(c) TERMS OF OFFICE.—Members shall be ap7 pointed for the life of the Commission.

8 ‘‘(d) VACANCIES.—A vacancy in the Commission

9 shall be filled in the manner in which the original appoint10 ment was made.

11 ‘‘(e) TRAVEL EXPENSES.—Members shall serve with12 out pay but shall receive travel expenses, including per

13 diem in lieu of subsistence, in accordance with subchapter

14 I of chapter 57 of title 5, United States Code.

15 ‘‘(f) CHAIRMAN.—The President, in consultation with

16 the majority leader of the Senate and the Speaker of the

17 House of Representatives, shall designate the Chairman

18 of the Commission from among its voting members.

19 ‘‘(g) COMMISSION PANELS.—The Chairman shall es20 tablish such panels consisting of voting members of the

21 Commission as the Chairman determines appropriate to

22 carry out the functions of the Commission.

23 ‘‘(h) STAFF.—The Commission may appoint and fix

24 the pay of such personnel as it considers appropriate.
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1 ‘‘(i) STAFF OF FEDERAL AGENCIES.—Upon request

2 of the Commission, the head of any department or agency

3 of the United States may detail, on a reimbursable basis,

4 any of the personnel of that department or agency to the

5 Commission to assist it in carrying out its duties under

6 this title.

7 ‘‘(j) ADMINISTRATIVE SUPPORT SERVICES.—Upon

8 request of the Commission, the Administrator of General

9 Services shall provide to the Commission, on a reimburs10 able basis, the administrative support services necessary

11 for the Commission to carry out its duties under this title.

12 ‘‘(k) STAFF AND OTHER SUPPORT.—Upon the re13 quest of the Commission or a panel of the Commission,

14 the Secretary of Transportation shall provide the Commis15 sion or panel with staff and other support to assist the

16 Commission or panel in carrying out its responsibilities.

17 ‘‘(l) OBTAINING OFFICIAL DATA.—The Commission

18 may secure directly from any department or agency of the

19 United States information (other than information re20 quired by any statute of the United States to be kept con21 fidential by such department or agency) necessary for the

22 Commission to carry out its duties under this title. Upon

23 request of the Commission, the head of that department

24 or agency shall furnish such nonconfidential information

25 to the Commission.
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1 ‘‘SEC. 1405. REPORT.

2 ‘‘Not later than sixty days after the date on which

3 the initial appointments of members to the Commission

4 are completed, the Commission shall transmit to the Presi5 dent and Congress a report on the activities of the Com6 mission, including recommendations made by the Commis7 sion under section 1402(b).

8 ‘‘SEC. 1406. TERMINATION.

9 ‘‘The Commission shall terminate on the 30th day

10 after the date of transmittal of the report under section

11 1405. All records and papers of the Commission shall

12 thereupon be delivered by the Administrator of General

13 Services for deposit in the National Archives.’’.