[Senate Report 108-120]
[From the U.S. Government Publishing Office]
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.