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95TH CONGRESS

1st SESSION

H. R. 9518

IN THE HOUSE OF REPRESENTATIVES

OCTOBER 12, 1977 Mr. MURPHY of New York (for himself, Mr. LEGGETT, Mr. BREAUX, Mr. ZEFE

RETTI, Mr. OBERSTAR, and Mr. AKAKA) introduced the following bill; which was referred to the Committee on Merchant Marine and Fisheries

A BILL

To amend the Shipping Act, 1916, to provide for a three-year

period, to reach a permanent solution of the rebating practices in the United States foreign trade.

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Be it enacted by the Senate and House of Representa

2 tives of the United States of America in Congress assembled, 3 That this Act may be cited as the “Shipping Act Amend

4 ments of 1977.

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SEC. 2. Section 22 of the Shipping Act, 1916 (46

6 U.S.C. 821) is amended as follows:

7 (a) Designate the two existing paragraphs as (a) and 8 (b), respectively. 9 (b) Strike out “That”, in subsection (a), as designated 1 by this Act, and insert in lieu thereof “Except as provided

2 in subsection (c), that”.

3 (c) Immediately after subsection (b), as designated by 4 this Act, insert the following: 5 "(c) (1) Notwithstanding any other provision of this 6 Act relating to the investigation of complaints of violations 7 of this Act, whenever the Commission receives a complaint 8 by any person of a violation of section 16 (other than para9 graphs First and Third) in foreign commerce, or section 10 18 (b), then the Commission shall, within thirty days after 11 the date it received such complaint, issue an order of hearing 12 and investigation to determine whether such violation has 13 occurred or is occurring, except that if the Commission 14 deems the complaint to be insubstantial it shall, without a 15 hearing or further investigation, deny the complaint in writ16 ing stating the reasons for the denial. The Commission

may 17 upon its own motion, without such a complaint, issue an 18 order of hearing and investigation pursuant to this subsection

19 to determine whether any person has violated or is violating

20 section 16 (other than paragraphs First and Third) in for21 eign commerce or section 18 (b) of this Act. Within one

22 hundred and eighty days after the date of the issuance of 23 such an order of hearing and investigation, the Commission 24 shall issue a final order in the proceeding or the Commission 25 shall issue an interim order stating in full why it could not

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issue a final order and establishing the period within which

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“(2) Failure on the part of any person, respondent to 4 a proceeding instituted pursuant to subsection (c) (1), to 5 comply with depositions, written interrogatories, discovery 6 procedure, or subpena issued in relation to an investigation 7 or hearing held under an order issued by the Commission 8 under subsection (c) (1) shall:

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“(A) Toll the time within which the Commission

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shall issue a final order as provided in subsection (c)
(1). The Commission shall immediately suspend, with-
out hearing, all tariffs filed pursuant to section 18 of this
Act by, or on behalf of, a respondent carrier or any -
carrier directly or indirectly owned, controlled, or affili-
ated with that respondent carrier, and the vessels of

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that respondent carrier shall be denied entry to any United States port until that respondent carrier has fully

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responded to the deposition, written interrogatories, discovery procedure, or subpena involved, and the Com-. mission has issued its order in the proceeding. Vessels of that respondent carrier in voyage shall be permitted to enter United States ports for the purpose of discharging cargo notwithstanding that the carrier's tariff has -been suspended. Any carrier whose tariffs have been suspended pursuant to this subparagraph, and who pro

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vides common carrier by water service in the foreign

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commerce of the United States, except for completing

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voyages in progress, shall be subject to a civil penalty of not less than $25,000, and not more than $50,000, for

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each day such service continues.

“(B) Create a rebuttable presumption that the facts alleged in the complaint or in the Commission's order

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of investigation are established for the purposes of the

proceedings.". 10

SEC. 3. Section 32 of the Shipping Act, 1916 (46 U.S.C. 11 831), is amended by inserting at the end thereof the follow12

ing new subsection:

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“(d) (1) Subject to the provisions of paragraph (2), no penalty shall be imposed on any person under section 16 (other than paragraphs First and Third) in foreign commerce. or section 18 (b) for any act which may be a viola

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tion of either section if,

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“(A) such act occurred before the date of enact

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“ (B) within one year after the date of enactment, the person who committed such act had made a good :

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faith disclosure thereof to the Commission.

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Notwithstanding any other provision of law, no person.

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shall be subject to criminal prosecution under the laws of the United States for any such act disclosed to the Come : 1 mission pursuant to subsection (d) (1), so long as such 2 disclosure is made prior to the time such person had actual 3 notice that it was the subject of an investigation relating to 4 such act by any agency of the Federal Government. 5 “(2) With respect to each aot disclosed in accordance 6 with the provision of paragraph (1), the person shall enter 7 into a settlement agreement with the Federal Maritime Com8 mission which (A) shall establish the amount of civil penalty 9 compromised by the Commission; (B) shall contain a provi: 10 sion whereby the person agrees to cease and desist from, 11 engaging in the act disclosed to the Commission, or any other:: 12 acts which would constitute a violation of section 16 (other". 13 than paragraphs First and Third) in foreign commerce and: 14 section 18 (b); and (C) shall contain a provision that upon 15 a knowing violation of the cease and desist order the civil.

16 penalty established by the agreement, but not collected, 17 shall be immediately recovered, as provided in section 3 of 18 the Act of August 29, 1972 (making amendments to the 19 Shipping Act, 1916). 20 “(3) Any person who, after having made a good faith 21 disclosure pursuant to paragraph (1) (B), violates any pro22 vision of section 16 (other than paragraphs First and Third) 23 in foreign commerce, or of section 18 (b), in lieu of the pen24 alties otherwise provided for, shall be guilty of a civil viola25 tion punishable by a fine of not less than $25,000, nor more

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