[Senate Report 116-299]
[From the U.S. Government Publishing Office]
Calendar No. 592
116th Congress } { Report
SENATE
2d Session } { 116-299
_______________________________________________________________________
FEDERAL MARITIME COMMISSION NATIONAL
SHIPPER ADVISORY COMMITTEE ACT OF 2019
__________
R E P O R T
of the
COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
on
S. 2894
November 17, 2020.--Ordered to be printed
______
U.S. GOVERNMENT PUBLISHING OFFICE
19-010 WASHINGTON : 2020
SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
one hundred sixteenth congress
second session
ROGER F. WICKER, Mississippi, Chairman
JOHN THUNE, South Dakota MARIA CANTWELL, Washington
ROY BLUNT, Missouri AMY KLOBUCHAR, Minnesota
TED CRUZ, Texas RICHARD BLUMENTHAL, Connecticut
DEB FISCHER, Nebraska BRIAN SCHATZ, Hawaii
JERRY MORAN, Kansas EDWARD J. MARKEY, Massachusetts
DAN SULLIVAN, Alaska TOM UDALL, New Mexico
CORY GARDNER, Colorado GARY C. PETERS, Michigan
MARSHA BLACKBURN, Tennessee TAMMY BALDWIN, Wisconsin
SHELLEY MOORE CAPITO, West Virginia TAMMY DUCKWORTH, Illinois
MIKE LEE, Utah JON TESTER, Montana
RON JOHNSON, Wisconsin KYRSTEN SINEMA, Arizona
TODD C. YOUNG, Indiana JACKY ROSEN, Nevada
RICK SCOTT, Florida
John Keast, Staff Director
David Strickland, Minority Staff Director
Calendar No. 592
116th Congress } { Report
SENATE
2d Session } { 116-299
======================================================================
FEDERAL MARITIME COMMISSION NATIONAL SHIPPER ADVISORY COMMITTEE ACT OF
2019
_______
November 17, 2020.--Ordered to be printed
_______
Mr. Wicker, from the Committee on Commerce, Science, and
Transportation, submitted the following
R E P O R T
[To accompany S. 2894]
[Including cost estimate of the Congressional Budget Office]
The Committee on Commerce, Science, and Transportation, to
which was referred the bill (S. 2894) to establish a National
Shipper Advisory Committee, having considered the same, reports
favorably thereon with amendments and recommends that the bill
(as amended) do pass.
Purpose of the Bill
The purpose of this legislation is to establish a Federal
advisory committee to provide policy recommendations to the
Federal Maritime Commission (FMC) on policies relating to the
competitiveness, reliability, integrity, and fairness of the
international ocean freight delivery system.
Background and Needs
S. 2894, Federal Maritime Commission National Shipper
Advisory Committee Act of 2019, establishes an advisory
committee to advise the FMC on policies relating to the
competitiveness, reliability, integrity, and fairness of the
international ocean freight delivery system. The advisory
committee is one of the recommendations from Fact Finding
Investigation No. 28 led by Commissioner Rebecca F. Dye.\1\
Fact Finding Investigation No. 28 was an 18-month inquiry to
determine the nature and full extent of demurrage and detention
issues in the ocean transportation system, and find ways to
address identified problems. In addition to the advisory
committee, Commissioner Dye also recommended the FMC issue an
interpretive rule regarding how it will assess the
reasonableness of detention and demurrage rules and practices
of ocean carriers and marine terminal operators.\2\ The
interpretive rule was finalized on April 28, 2020. Finally,
Commissioner Dye recommended the FMC continue to support the
work of the Supply Chain Innovation Teams established during
Fact Finding Investigation No. 28.
---------------------------------------------------------------------------
\1\Federal Maritime Commission, ``Fact Finding 28'' (https://
www.fmc.gov/fact-finding-28/) (accessed Aug. 21, 2020).
\2\Federal Maritime Commission, Notice of Proposed Rulemaking,
Docket No. 19-05 (https://www2.fmc.gov/readingroom/docs/19-05/19-
05_NPRM.pdf/) (accessed Aug. 21, 2020).
---------------------------------------------------------------------------
Summary of Provisions
If enacted, S. 2894, Federal Maritime Commission National
Shipper Advisory Committee Act of 2019, would do the following:
Establish the National Shipper Advisory Committee.
Require the Advisory Committee to consist of 24
members appointed by the FMC with expertise relating to
the competitiveness, reliability, integrity, and
fairness of the international ocean freight delivery
system. Twelve members would represent entities who
import cargo to the United States using ocean common
carriers. Twelve members would represent entities who
export cargo from the United States using ocean common
carriers.
Require the Advisory Committee to submit its
recommendations to the FMC in writing.
Require the FMC to publish any recommendations
within 60 days on a public website. Additionally, the
FMC would have to respond, in writing, to the Advisory
Committee regarding the recommendations, with an
explanation of actions taken regarding the
recommendations.
Require the FMC to submit to Congress the advice,
reports, and recommendations it receives from the
Advisory Committee.
Legislative History
S. 2894, the Federal Maritime Commission National Shipper
Advisory Committee Act of 2019, was introduced on November 19,
2019, by Senator Wicker and was referred to the Committee on
Commerce, Science, and Transportation of the Senate. On May 20,
2020, the Committee met in open Executive Session and, by voice
vote, ordered S. 2894 reported favorably with amendments.
HEARING
The Committee held a hearing entitled ``Federal Maritime
Agencies: Ensuring a Safe, Secure, and Competitive Future'' on
April 4, 2019, to assess the state of the maritime sector, and
priorities for 2020. FMC Chairman Michael A. Khouri updated the
Committee on the FMC's work, including Fact Finding
Investigation No. 28. In November 2019, Senator Wicker sent a
letter to FMC Chairman Michael A. Khouri asking to be updated
on the work of the Supply Chain Innovation Team in Memphis
established during Fact Finding Investigation No. 28.
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. 2894 would require the Federal Maritime Commission (FMC)
to establish the National Shipper Advisory Committee to advise
the FMC on matters related to the system for delivering
international ocean freight. The 24-member committee would
consist of representatives from entities that import or export
cargo using ocean-going common carriers. The FMC would be
required to report the committee's recommendations to the
Congress.
S. 2894 would not authorize additional funding to support
the activities required under the bill. However, based on the
cost of similar activities, CBO estimates that implementing S.
2894 would cost $1 million over the 2020-2025 period; such
spending would be subject to the availability of appropriated
funds.
The CBO staff contact for this estimate is Aaron Krupkin.
The estimate was reviewed by H. Samuel Papenfuss, Deputy
Director of 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
As reported, S. 2894 would establish the National Shipper
Advisory Committee to provide the FMC with advice on policies
relating to the competitiveness, reliability, integrity, and
fairness of the international ocean freight delivery system.
These recommendations could affect millions of Americans by
improving the efficiency and reliability of American ocean
transportation.
economic impact
As reported, S. 2894 is not expected to have a negative
impact on the Nation's economy.
privacy
As reported, S. 2894 is not expected to impact the personal
privacy of individuals.
paperwork
As reported, S. 2894 would not create increases in
paperwork burdens if enacted.
Congressionally Directed Spending
In compliance with paragraph 4(b) of rule XLIV of the
Standing Rules of the Senate, the Committee provides that no
provisions contained in the bill, as reported, meet the
definition of congressionally directed spending items under the
rule.
Section-by-Section Analysis
Section 1. Short title.
This section would provide that the bill may be cited as
the ``Federal Maritime Commission National Shipper Advisory
Committee Act of 2019''.
Section 2. Advisory committee.
This section would establish the advisory committee. The
advisory committee would consist of 24 members appointed by the
FMC with expertise relating to the competitiveness,
reliability, integrity, and fairness of the international ocean
freight delivery system. Twelve members would be required to
represent entities that import cargo to the United States using
ocean common carriers. Twelve members would be required to
represent entities that export cargo from the United States
using ocean common carriers. This section would require the FMC
to solicit nominations for the advisory committee in the
Federal Register, prohibit the FMC from considering political
affiliation in making appointments, prohibit Federal employees
from being appointed, and set the term for members of the
advisory committee. Additionally, it would require the FMC to
post publicly all recommendations received from the advisory
committee within 60 days. Finally, it would require the FMC to
submit to Congress the advice, reports, and recommendations
received from the advisory committee. This section would also
provide that the advisory committee shall terminate on
September 30, 2029.
Section 3. No funding authorized.
This section states that no additional funds would be
authorized to carry out the Act or the amendment made by this
bill, as enacted.
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):
UNITED STATES CODE
* * * * * * *
TITLE 46--SHIPPING
* * * * * * *
Subtitle IV--Regulation of Ocean Shipping
* * * * * * *
PART B--ACTIONS TO ADDRESS FOREIGN PRACTICES
* * * * * * *
CHAPTER 424--NATIONAL SHIPPER ADVISORY COMMITTEE
Sec.
42401. Definitions.
42402. National Shipper Advisory Committee.
42403. Administration.
Sec. 42401. Definitions
In this chapter:
(1) Commission.--The term ``Commission'' means the
Federal Maritime Commission.
(2) Committee.--The term ``Committee'' means the
National Shipper Advisory Committee established by
section 42402.
Sec. 42402. National Shipper Advisory Committee
(a) Establishment.--There is established a National Shipper
Advisory Committee.
(b) Function.--The Committee shall advise the Federal
Maritime Commission on policies relating to the
competitiveness, reliability, integrity, and fairness of the
international ocean freight delivery system.
(c) Membership.--
(1) In general.--The Committee shall consist of 24
members appointed by the Commission in accordance with
this section.
(2) Expertise.--Each member of the Committee shall
have particular expertise, knowledge, and experience in
matters relating to the function of the Committee.
(3) Representation.--Members of the Committee shall
be appointed as follows:
(A) Twelve members shall represent entities
who import cargo to the United States using
ocean common carriers.
(B) Twelve members shall represent entities
who export cargo from the United States using
ocean common carriers.
Sec. 42403. Administration
(a) Meetings.--The Committee shall, not less than once each
year, meet at the call of the Commission or a majority of the
members of the Committee.
(b) Employee Status.--A member of the Committee shall not
be considered an employee of the Federal Government by reason
of service on such Committee, except for the purposes of the
following:
(1) Chapter 81 of title 5.
(2) Chapter 171 of title 28 and any other Federal
law relating to tort liability.
(c) Volunteer Services Required.-- Notwithstanding any
other provision of law, a member of the Committee shall serve
on such committee on a voluntary basis without pay.
(d) Status of Members.--
(1) In general.--Except as provided in paragraph
(2), with respect to a member of the Committee whom the
Commission appoints to represent an entity or group--
(A) the member is authorized to represent
the interests of the applicable entity or
group; and
(B) requirements under Federal law that
would interfere with such representation and
that apply to a special Government employee (as
defined in section 202(a) of title 18),
including requirements relating to employee
conduct, political activities, ethics,
conflicts of interest, and corruption, do not
apply to the member.
(2) Exception.--Notwithstanding subsection (b), a
member of the Committee shall be treated as a special
Government employee for purposes of the committee
service of the member if the member, without regard to
service on the committee, is a special Government
employee.
(e) Service on Committee.--
(1) Solicitation of nominations.--Before appointing
an individual as a member of the Committee, the
Commission shall publish a timely notice in the Federal
Register soliciting nominations for membership on such
Committee.
(2) Appointments.--
(A) In general.--After considering
nominations received pursuant to a notice
published under paragraph (1), the Commission
may appoint a member to the Committee.
(B) Prohibition.--The Commission shall not
seek, consider, or otherwise use information
concerning the political affiliation of a
nominee in making an appointment to the
Committee.
(3) Service at pleasure of the commission.--Each
member of the Committee shall serve at the pleasure of
the Commission.
(4) Security background examinations.--The
Commission may require an individual to have passed an
appropriate security background examination before
appointment to the Committee.
(5) Prohibition.--A Federal employee may not be
appointed as a member of the Committee.
(6) Terms.--
(A) In general.--The term of each member of
the Committee shall expire on December 31 of
the third full year after the effective date of
the appointment.
(B) Continued service after term.--When the
term of a member of the Committee ends, the
member, for a period not to exceed 1 year, may
continue to serve as a member until a successor
is appointed.
(7) Vacancies.--A vacancy on the Committee shall be
filled in the same manner as the original appointment.
(8) Special rule for reappointments.--
Notwithstanding paragraphs (1) and (2), the Commission
may reappoint a member of a committee for any term,
other than the first term of the member, without
soliciting, receiving, or considering nominations for
such appointment.
(f) Staff Services.--The Commission shall furnish to the
Committee any staff and services considered by the Commission
to be necessary for the conduct of the Committee's functions.
(g) Chair; Vice Chair.--
(1) In general.--The Committee shall elect a Chair
and Vice Chair from among the committee's members.
(2) Vice chairman acting as chairman.--The Vice
Chair shall act as Chair in the absence or incapacity
of, or in the event of a vacancy in the office of, the
Chair.
(h) Subcommittees and Working Groups.--
(1) In general.--The Chair of the Committee may
establish and disestablish subcommittees and working
groups for any purpose consistent with the function of
the Committee.
(2) Participants.--Subject to conditions imposed by
the Chair, members of the Committee may be assigned to
subcommittees and working groups established under
paragraph (1).
(i) Consultation, Advice, Reports, and Recommendations.--
(1) Consultation.--Before taking any significant
action, the Commission shall consult with, and consider
the information, advice, and recommendations of, the
Committee if the function of the Committee is to advise
the Commission on matters related to the significant
action.
(2) Advice, reports, and recommendations.--The
Committee shall submit, in writing, to the Commission
its advice, reports, and recommendations, in a form and
at a frequency determined appropriate by the Committee.
(3) Explanation of actions taken.--Not later than
60 days after the date on which the Commission receives
recommendations from the Committee under paragraph (2),
the Commission shall--
(A) publish the recommendations on a public
website; and
(B) respond, in writing, to the Committee
regarding the recommendations, including by
providing an explanation of actions taken
regarding the recommendations.
(4) Submission to congress.--The Commission shall
submit to the Committee on Transportation and
Infrastructure of the House of Representatives and the
Committee on Commerce, Science, and Transportation of
the Senate the advice, reports, and recommendations
received from the Committee under paragraph (2).
(j) Observers.--The Commission may designate a
representative to--
(1) attend any meeting of the Committee; and
(2) participate as an observer at such meeting.
(k) Termination.--The Committee shall terminate on
September 30, 2029.
* * * * * * *