H.R. 1836 – Reading Mode

IIB

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.

Short title

This Act may be cited as the Ocean Shipping Reform Implementation Act of 2023.

Federal Maritime Commission

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.

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;.

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:

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.

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.

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.

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:

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.

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)”.

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.

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.

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).

Other Agencies

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.

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.

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:

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.

III

Technical amendments

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 Committees42501

(g)

Analysis

The heading and analysis for chapter 425 of title 46, United States Code, is amended to read as follows:

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.

Kevin F. McCumber,

Clerk.