[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1836 Referred in Senate (RFS)]
<DOC>
118th CONGRESS
2d Session
H. R. 1836
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 22, 2024
Received; read twice and referred to the Committee on Commerce,
Science, and Transportation
_______________________________________________________________________
AN ACT
To amend title 46, United States Code, to make technical corrections
with respect to ocean shipping authorities, 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 Implementation
Act of 2023''.
TITLE I--FEDERAL MARITIME COMMISSION
SEC. 101. PURPOSES.
Section 40101 of title 46, United States Code, is amended--
(1) in paragraph (1) by striking ``with'' and all that
follows through ``regulatory costs'';
(2) in paragraph (2) by striking ``in the ocean commerce of
the United States'' and inserting ``for the common carriage of
goods by water in the foreign commerce of the United States'';
(3) in paragraph (3) by striking ``and'' at the end;
(4) in paragraph (4)--
(A) by striking ``promote'' and inserting
``support''; and
(B) by striking ``, and'' and all that follows
through the period and inserting ``; and''; and
(5) by adding at the end the following:
``(5) promote reciprocal trade in the common carriage of
goods by water in the foreign commerce of the United States.''.
SEC. 102. DEFINITIONS.
(a) In General.--Section 40102(9) of title 46, United States Code,
is amended--
(1) by redesignating subparagraphs (A) and (B) as clauses
(i) and (ii), respectively and by moving the margins of clauses
(i) and (ii), as redesignated, accordingly;
(2) by striking ``means an ocean common carrier'' and
inserting the following: ``means--
``(A) an ocean common carrier'';
(3) in subparagraph (A)(ii), as so redesignated, by
striking the period and inserting ``; or''; and
(4) by adding at the end the following:
``(B) such a carrier that is owned or controlled
by, a subsidiary of, or otherwise related legally or
financially (other than a minority relationship or
investment) to a corporation based in a country--
``(i) identified as a nonmarket economy
country (as defined in section 771(18) of the
Tariff Act of 1930 (19 U.S.C. 1677(18))) as of
the date of enactment of this paragraph;
``(ii) identified by the United States
Trade Representative in the most recent report
required by section 182 of the Trade Act of
1974 (19 U.S.C. 2242) as a priority foreign
country under subsection (a)(2) of that
section; or
``(iii) subject to monitoring by the United
States Trade Representative under section 306
of the Trade Act of 1974 (19 U.S.C. 2416).''.
(b) Conforming Amendment.--Section 46106(b)(7) of title 46, United
States Code, is amended by striking ``ocean common carriers,
particularly such carriers that are controlled carriers'' and all that
follows through the period at the end and inserting ``controlled
carriers;''.
SEC. 103. COMPLAINTS AGAINST SHIPPING EXCHANGES.
(a) In General.--Section 40504(c) of title 46, United States Code,
is amended--
(1) in the subsection heading by striking ``Exemption'' and
inserting ``Exemption and Investigation'';
(2) by striking the period at the end and inserting ``;
and'';
(3) by striking ``may exempt'' and inserting the following:
``may--
``(1) exempt''; and
(4) by adding at the end the following:
``(2) investigate complaints submitted under section
40505.''.
(b) Complaints Against Shipping Exchanges.--Chapter 405 of title
46, United States Code, is amended by adding at the end the following:
``Sec. 40505. Complaints against shipping exchanges
``(a) In General.--A person may submit to the Federal Maritime
Commission, and the Commission shall accept, information concerning
alleged incidents of market manipulation or other anticompetitive
practices by shipping exchanges registered under section 40504.
``(b) Investigation.--Upon receipt of a submission of information
under subsection (a), the Commission shall promptly investigate the
accuracy of such information.
``(c) Report 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 results of any investigation in which
the Commission finds incidents of market manipulation or
anticompetitive practices by shipping exchanges registered under
section 40504.''.
(c) Clerical Amendment.--The analysis for chapter 405 of title 46,
United States Code, is amended by adding at the end the following:
``40505. Complaints against shipping exchanges.''.
SEC. 104. REPEAL.
(a) In General.--Section 40706 of title 46, United States Code, is
repealed.
(b) Clerical Amendment.--The analysis for chapter 407 of title 46,
United States Code, is amended by striking the item relating to section
40706.
SEC. 105. DATA COLLECTION.
Section 41110 of title 46, United States Code, is amended--
(1) by striking ``The Federal Maritime Commission'' and
inserting ``(a) Quarterly Report.--The Federal Maritime
Commission''; and
(2) by adding at the end the following:
``(b) Limitation on Duplication.--Unless the data described in
paragraphs (1) and (2) is not available in a timely manner or in a form
that allows the Commission to meet the requirements of subsection (a),
data required to be reported under subsection (a) may not duplicate
information--
``(1) submitted to the Corps of Engineers pursuant to
section 11 of the Act entitled `An Act authorizing the
construction, repair, and preservation of certain public works
on rivers and harbors, and for other purposes', approved
September 22, 1922 (33 U.S.C. 555), by an ocean common carrier
acting as a vessel operator;
``(2) submitted pursuant to section 481 of the Tariff Act
of 1930 (19 U.S.C. 1481) to U.S. Customs and Border Protection
by merchandise importers; or
``(3) submitted to the Department of Commerce pursuant to
section 301 of title 13.''.
SEC. 106. NATIONAL ADVISORY COMMITTEES.
(a) National Shipper Advisory Committee.--Section 42502 of title
46, United States Code, is amended--
(1) in subsection (a) by striking ``Committee.'' and
inserting ``Committee (in this section referred to as the
`Shipper Committee').'';
(2) by striking subsection (b);
(3) by redesignating subsection (c) as subsection (b); and
(4) in subsection (b), as so redesignated, by striking
``Committee'' each place it appears and inserting ``Shipper
Committee''.
(b) National Port Advisory Committee.--Chapter 425 of title 46,
United States Code, is amended--
(1) by redesignating section 42503 as section 42506; and
(2) by inserting after section 42502 the following:
``Sec. 42503. National Port Advisory Committee
``(a) Establishment.--There is established a National Port Advisory
Committee (in this section referred to as the `Port Committee').
``(b) Membership.--
``(1) In general.--The Port Committee shall consist of 13
members appointed by the Commission in accordance with this
section.
``(2) Expertise.--Each member of the Port Committee shall
have particular expertise, knowledge, and experience in matters
relating to the function of the Port Committee.
``(3) Representation.--Members of the Port Committee shall
be appointed as follows:
``(A) 5 members shall represent marine terminal
operators, as defined in section 40102.
``(B) 5 members shall represent port authorities.
``(C) 3 members shall represent longshore and
maritime labor.
``Sec. 42504. National Ocean Carrier Advisory Committee
``(a) Establishment.--There is established a National Ocean Carrier
Advisory Committee (in this section referred to as the Carrier
Committee').
``(b) Membership.--
``(1) In general.--The Carrier Committee shall consist of 9
members appointed by the Commission in accordance with this
section.
``(2) Expertise.--Each member of the Carrier Committee
shall have particular expertise, knowledge, and experience in
matters relating to the function of the Committee.
``(3) Representation.--Members of the Carrier Committee
shall represent ocean carriers serving such seaports and
terminals, of which at least three shall be ocean
transportation intermediaries (as such term is defined in
section 40102)''.
``Sec. 42505. Function
``The covered Committees shall advise the Federal Maritime
Commission on policies relating to the competitiveness, reliability,
and efficiency of the international ocean freight delivery system.''.
(c) Conforming Amendments.--
(1) Definitions.--Section 42501 of title 46, United States
Code, is amended by striking paragraph (2) and inserting the
following:
``(2) Covered committee.--The term `covered Committee'
means--
``(A) the National Shipper Advisory Committee
established under section 42502;
``(B) the National Seaport Advisory Committee
established under section 42503; and
``(C) the National Ocean Carrier Advisory Committee
established under section 52504.''.
(2) Administration.--Section 42506 of title 46, United
States Code, as redesignated by subsection (b)(1), is amended--
(A) by striking ``The Committee'' each place it
appears except in subsection (k) and inserting ``Each
covered Committee'';
(B) in subsection (a) by striking ``the Committee''
and inserting ``each such Committee'';
(C) in subsections (b), (c), (d), (e), (f), and (j)
by striking ``the Committee'' each place it appears and
inserting ``a covered Committee'';
(D) in subsection (h)--
(i) in paragraph (1)--
(I) by striking ``Chair of the
Committee'' and inserting ``Chair of
each covered Committee''; and
(II) by striking ``function of the
Committee'' and inserting ``function of
the applicable Committee''; and
(ii) in paragraph (2) by striking ``the
Committee'' and inserting ``each covered
Committee'';
(E) in subsection (i)--
(i) in paragraph (1) by striking ``the
Committee if the function of the Committee''
and inserting ``any relevant covered Committee
if the function of such Committee'';
(ii) in paragraph (2) by striking ``the
Committee'' and inserting ``each such
Committee'';
(iii) in paragraph (3)--
(I) by striking ``from the
Committee'' and inserting ``from a
covered Committee''; and
(II) in subparagraph (B) by
striking ``to the Committee'' and
inserting ``to the submitting
Committee''; and
(iv) in paragraph (4) by striking ``from
the Committee'' and inserting ``from a covered
Committee''; and
(F) in subsection (k) by striking ``The Committee''
and inserting ``Covered Committees''.
SEC. 107. ANNUAL REPORT AND PUBLIC DISCLOSURES.
(a) Report on Foreign Laws and Practices.--Section 46106(b) of
title 46, United States Code, is amended--
(1) in paragraph (6)--
(A) by striking ``and'' at the end; and
(B) by striking ``under this part'' and inserting
``under chapter 403'';
(2) in paragraph (7)--
(A) by inserting ``anticompetitive, nonreciprocal
trade, or'' before ``otherwise concerning practices'';
(B) by inserting ``or marine terminal operators''
after ``controlled carriers''; and
(C) by striking the period at the end and inserting
a semicolon; and
(3) by adding at the end the following:
``(8) an analysis of any trade imbalance resulting from the
business practices of ocean common carriers, including an
analysis of the data collected under section 41110; and
``(9) the aggregated findings and results of the Vessel-
Operating Common Carrier Audit Program established by the
Commission on July 18, 2021, pursuant to the Commission rule
interpreting section 41102(c).''.
(b) Public Disclosure.--Section 46106(d)(2) of title 46, United
States Code, is amended by inserting ``or marine terminal operator''
after ``common carrier''.
SEC. 108. CONTAINERIZED FREIGHT INDEXES.
(a) In General.--Not later than 1 year after the date of enactment
of this Act, the Federal Maritime Commission shall promulgate an
advance notice of proposed rulemaking on price indexes for
containerized ocean freight for shippers (as such term is defined in
section 40102 of title 46, United States Code) in the United States
published by a shipping exchange registered under section 40504 of
title 46, United States Code.
(b) Final Rule.-- Not later than 3 years after the date of
enactment of this Act, the Commission shall publish a final rule with
respect to the advance notice of proposed rulemaking under subsection
(a).
TITLE II--OTHER AGENCIES
SEC. 201. DATA STANDARD FOR MARITIME FREIGHT LOGISTICS.
(a) In General.--Not later than 180 days after the date of
enactment of this Act, the Federal Maritime Commission shall promulgate
an advance notice of proposed rulemaking on a data standard for
maritime freight logistics and ocean transportation in the foreign
commerce of the United States.
(b) Consultation.--During the public comment period for the
rulemaking under subsection (a), the Commission shall consult with--
(1) the National Shippers Advisory Board established under
section 42502 of title 46, United States Code; and
(2) the Secretaries of Transportation, Commerce, and
Agriculture.
(c) Contents.--The rulemaking under subsection (a) shall--
(1) develop a data standard for the voluntary sharing of
appropriate supply chain data with--
(A) a common lexicon of standard terms and methods
of measurements;
(B) a method to exchange data in real time amongst
relevant stakeholders;
(C) appropriate data protections to ensure
confidentiality of proprietary business information;
and
(D) appropriate cybersecurity measures to protect
data from unauthorized use;
(2) incorporate data from stakeholders to facilitate--
(A) the arrival, unloading, loading, and departure
of vessels;
(B) cargo availability and pick up reservation;
(C) chassis availability; and
(D) other data elements the Commission consider
prudent; and
(3) consider relevant data standards used or under
development within the private sector and whether to adopt or
otherwise incorporate such standards into the rule finalized
under this subsection, with priority given to standards that--
(A) are developed in open, transparent, impartial,
balanced, consensus-based processes;
(B) are performance-based, technology neutral, and
vendor neutral;
(C) are interoperable, allowing for the exchange
and use of data between devices and systems;
(D) are market relevant and globally applicable;
(E) are nonduplicative of, and coherent with, other
relevant standards, guides, best practices, and
frameworks; and
(F) allow information owners to control what
information is shared, when information is shared, with
whom, and for what purpose; and
(4) be consistent with section 12(d) of the National
Technology Transfer and Advancement Act of 1995 (Public Law
104-113; 15 U.S.C. 272 note) including any standard for the
voluntary sharing of appropriate supply chain data developed
thereunder.
(d) Third-Party Agreement.--The Commission may enter into an
agreement with 1 or more appropriate independent entities based in the
United States that operate as voluntary consensus standards setting
organizations as defined for purposes of section 12(d) of the National
Technology Transfer and Advancement Act of 1995 (Public Law 104-113)
and Office of Management and Budget Revised Circular A-119, published
in the Federal Register on January 27, 2016 (81 Fed. Reg. 4673), to
develop the data standard for maritime freight logistics and ocean
transportation in the foreign commerce of the United States for the
rulemaking under subsection (a) and for procurement or other relevant
programmatic activities, consistent with the requirements of this
section.
(e) Grant Criterion.--If the rulemaking under subsection (a) is
finalized, the Secretary of Transportation may require a covered port
authority to adopt any data standard issued pursuant to this section
for relevant operational use cases, as determined by the Secretary.
(f) Definition of Covered Port Authority.--In this section, the
term ``covered port authority'' means a port authority that receives
funding after the date on which a rule is finalized under this section
under--
(1) the port infrastructure development program under
section 54301(a) of title 46, United States Code; or
(2) the maritime transportation system emergency relief
program under section 50308 of title 46, United States Code.
(g) Rule of Construction.--Nothing in this section shall be
construed to require the Commission to develop a data standard that
violates the confidentiality and disclosure policies established under
subchapter III of chapter 35 of title 44, United States Code.
SEC. 202. INDEPENDENT STUDY AND REPORT ON SHANGHAI SHIPPING EXCHANGE.
(a) Study.--Not later than 1 year after the date of the enactment
of this Act, the Secretary of Transportation shall enter into an
agreement with an appropriate independent entity described in
subsection (d) to conduct a study and assessment of the business
practices of the Shanghai Shipping Exchange, including--
(1) any anticompetitive advantages benefitting the Shanghai
Shipping Exchange; and
(2) the ability of the Ministry of Transport of the
People's Republic of China and the Shanghai Shipping Exchange
to manipulate container freight markets.
(b) Elements.--The study and assessment required under subsection
(a) shall address the following:
(1) The influence of the government of the People's
Republic of China on the Shanghai Shipping Exchange.
(2) The impact of such business practices or influence on
American consumers and businesses.
(3) The ability of a shipping exchange registered under
section 40504 of title 46, United States Code, and based in the
United States to identify market manipulation as described in
subsection (a)(2) or any otherwise concerning practices by the
Shanghai Shipping Exchange and report such incidents to the
Federal Maritime Commission and other Federal regulators.
(4) Any other matters the Secretary or the appropriate
independent entity that enters into an agreement under this
section determines to be appropriate for the purposes of the
study.
(c) Report.--
(1) In general.--Not later than 1 year after the date on
which the Secretary of Transportation enters into an agreement
under this section, the appropriate independent entity shall
submit to the Secretary, the Committee on Commerce, Science,
and Transportation of the Senate, and the Committee on
Transportation and Infrastructure of the House of
Representatives a report setting forth the results of the study
conducted under subsection (a).
(2) Public availability.--The Secretary shall publish the
report required under paragraph (1) on a publicly accessible
website of the Department of Transportation.
(d) Appropriate Independent Entity Described.--An appropriate
independent entity described in this subsection is--
(1) a federally funded research and development center
sponsored by a Federal agency;
(2) the Transportation Research Board of the National
Academies;
(3) the Government Accountability Office; or
(4) an organization described in section 501(c) of the
Internal Revenue Code of 1986 and exempt from taxation under
section 501(a) of such Code.
(e) Obtaining Official Data.--The appropriate independent entity
that enters into an agreement under this section may secure directly
from any department or agency of the Federal Government information
necessary to enable such entity to carry out this section. Upon request
of such entity, the head of such department or agency shall furnish
such information to the appropriate independent entity, unless doing so
would not be in the public interest.
SEC. 203. POLICY WITH RESPECT TO LOGINK.
(a) In General.--Chapter 503 of title 46, United States Code, is
amended by adding at the end the following:
``Sec. 50309. Prohibited use
``(a) In General.--A covered entity shall not utilize covered
logistics software.
``(b) Guidance.--The Secretary of Transportation shall publish on
the website of the Department of Transportation, and update regularly,
a list of prohibited logistics information technologies provided by the
People's Republic of China or Chinese state-affiliated entities.
``(c) Consultation.--The Secretary shall consult with the United
States-China Economic and Security Review Commission established under
section 1238 of the Floyd D. Spence National Defense Authorization Act
for Fiscal Year 2001 (Public Law 106-398) in carrying out this section.
``(d) Review.--In preparing the guidance under subsection (b), the
Secretary shall review the list of Chinese state-affiliated entities
included in--
``(1) the list of Communist Chinese military companies
released by the Department of Defense in accordance with
section 1260H of the National Defense Authorization Act for
Fiscal Year 2021 (10 U.S.C. 113 note); and
``(2) the most recent `Non-SDN Chinese Military-Industrial
Complex Companies List' published by the Secretary of the
Treasury pursuant to Executive Order 14032 of June 3, 2021 (86
Fed. Reg. 30145; relating to Addressing the Threat From
Securities Investments That Finance Certain Companies of the
People's Republic of China).
``(e) Definitions.--In this section:
``(1) Covered logistics software.--The term `covered
logistics software' means--
``(A) the public, open, shared logistics
information network known as the `National Public
Information Platform for Transportation & Logistics' by
the Ministry of Transport of China or any affiliate or
successor entity;
``(B) any other transportation logistics software
designed to be used by covered entities subject to the
jurisdiction, ownership, direction, or control of a
foreign adversary; or
``(C) any other logistics platform or software that
shares data with a system described in paragraphs (a)
or (b).
``(2) Covered entity.--The term `covered entity' means an
entity that receives funding after the date of enactment of
this section under--
``(A) the port infrastructure development program
under subsections (a) and (b) of section 54301; or
``(B) the maritime transportation system emergency
relief program under section 50308.''.
(b) Clerical Amendment.--The analysis for chapter 503 of title 46,
United States Code, is amended by adding at the end the following:
``50309. Prohibited use.''.
TITLE III--TECHNICAL AMENDMENTS
SEC. 301. TECHNICAL AMENDMENTS.
(a) Administration.--Section 15109 of title 46, United States Code,
is amended--
(1) in subsection (a)(2) by striking ``15102,'' and
inserting ``15102''; and
(2) in subsection (k)(1) by inserting ``or to which this
chapter applies'' after ``under this chapter''.
(b) Investigations.--Section 41302(a) of title 46, United States
Code, is amended by striking ``conduct agreement'' and inserting
``conduct, agreement''.
(c) Award of Reparations.--Section 41305(c) is amended by striking
``section subsection'' and inserting ``subsection''.
(d) National Shipper Advisory Committee.--Section 42502(b)(3) of
title 46, United States Code, as redesignated by the preceding
provisions of this Act, is amended by striking ``(3) representation''
and all that follows through ``Twelve members'' and inserting the
following:
``(3) Representation.--Members of the Committee shall be
appointed as follows:
``(A) Twelve members''.
(e) Monetary Penalties or Refunds.--The analysis for chapter 411 of
title 46, United States Code, is amended by striking the item relating
to section 41107 and inserting the following:
``41107. Monetary penalties or refunds.''.
(f) National Advisory Committees.--The analysis for subtitle IV of
title 46, United States Code, is amended by striking the item relating
to chapter 425 and inserting the following:
``425. National Advisory Committees......................... 42501''.
(g) Analysis.--The heading and analysis for chapter 425 of title
46, United States Code, is amended to read as follows:
``CHAPTER 425--NATIONAL PORT ADVISORY COMMITTEE
``Sec.
``42501. Definitions.
``42502. National Shipper Advisory Committee.
``42503. National Seaport Advisory Committee.
``42504. National Ocean Carrier Advisory Committee.
``42505. Function.
``42506. Administration.''.
(h) Annual Report and Public Disclosure.--
(1) Conforming amendment.--The heading for section 46106 of
title 46, United States Code, is amended by inserting ``and
public disclosure'' after ``report''.
(2) Clerical amendment.--The analysis for chapter 461 of
title 46, United States Code, is amended by striking the item
relating to section 46106 and inserting the following:
``46106. Annual report and public disclosure.''.
Passed the House of Representatives March 21, 2024.
Attest:
KEVIN F. MCCUMBER,
Clerk.