[Senate Report 110-340]
[From the U.S. Government Publishing Office]
110th Congress
2d Session SENATE Report
110-340
_______________________________________________________________________
Calendar No. 750
FLORIDA SALVAGING LICENSE ACT
__________
R E P O R T
OF THE
COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
on
S. 2482
May 22, 2008.--Ordered to be printed
SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
one hundred tenth congress
second session
DANIEL K. INOUYE, Hawaii, Chairman
TED STEVENS, Alaska, Vice-Chairman
JOHN D. ROCKEFELLER IV, West JOHN McCAIN, Arizona
Virginia KAY BAILEY HUTCHISON, Texas
JOHN F. KERRY, Massachusetts OLYMPIA J. SNOWE, Maine
BYRON L. DORGAN, North Dakota GORDON H. SMITH, Oregon
BARBARA BOXER, California JOHN ENSIGN, Nevada
BILL NELSON, Florida JOHN E. SUNUNU, New Hampshire
MARIA CANTWELL, Washington JIM DeMINT, South Carolina
FRANK R. LAUTENBERG, New Jersey DAVID VITTER, Louisiana
MARK PRYOR, Arkansas JOHN THUNE, South Dakota
THOMAS CARPER, Delaware ROGER F. WICKER, Mississippi
CLAIRE McCASKILL, Missouri
AMY KLOBUCHAR, Minnesota
Margaret Cummisky, Staff Director and Chief Counsel
Lila Helms, Deputy Staff Director and Policy Director
Jean Toal Eisen, Senior Advisor and Deputy Policy Director
Christine Kurth, Republican Staff Director and General Counsel
Paul J. Nagle, Republican Chief Counsel
Mimi Braniff, Republican Deputy Chief Counsel
Calendar No. 750
110th Congress Report
SENATE
2d Session 110-340
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FLORIDA SALVAGING LICENSE ACT
_______
May 22, 2008.--Ordered to be printed
_______
Mr. Inouye, from the Committee on Commerce, Science, and
Transportation, submitted the following
R E P O R T
[To accompany S. 2482]
The Committee on Commerce, Science, and Transportation, to
which was referred the bill (S. 2482) to repeal the provision
of title 46, United States Code, requiring a license for
employment in the business of salvaging on the coast of
Florida, having considered the same, reports favorably thereon
without amendment and recommends that the bill do pass.
Purpose of the Bill
The bill would repeal section 80102 of title 46, United
States Code, which adversely affects the Florida salvage
industry and was recently determined to be unconstitutional by
the U.S. Department of Justice (DOJ).
Background and Needs
Section 80102 was codified in 1847 to regulate the wrecking
industry, which at the time was associated with piracy and
other misconduct, by requiring wreckers to obtain licenses from
Federal district court judges. These licenses have not been
used since the 1920s when the industry shifted from wrecking to
large salvaging corporations. Thus, the provision was largely
obsolete.
In 2006, P.L. 109-304, a bill to complete the codification of
title 46, was enacted. Unfortunately, it inappropriately
altered section 80102 to apply to ``salvaging'' rather than
``wrecking.'' This change imposed a judicial licensing
requirement on the modern marine assistance and towing
industry, which has been licensed under the Coast Guard since
its inception in the 1980s. This industry supports boaters
along the U.S. eastern coast, performing more than 120,000
towing operations and salvaging tens of thousands of vessels
each year, thereby saving millions of dollars in damages for
owners and insurance companies, most of them in the State of
Florida.
In connection to one petition to obtain a license under this
newly resurrected law, the DOJ advised the District Court of
Southern Florida of its opinion that the law is
unconstitutional on the grounds that it charges judges with a
licensing function, which is a responsibility of the Executive
Branch. The court denied the petitioner a license, indicating
that it was powerless to grant one. The Court also declined to
judge whether the law is unconstitutional because such a ruling
would have been outside the scope of the suit. The court called
on Congress to repeal the law.
Although any prosecution of a salvager for violation of
section 80102 would likely fail in court, salvagers in Florida
are unable to obtain the licenses required by law. Repealing
the law will eliminate the need for further judicial action to
resolve this issue.
Summary of Provisions
The bill would repeal section 80102 of title 46, United
States Code, which adversely affects the Florida salvage
industry and was recently determined to be unconstitutional by
the DOJ.
Legislative History
The bill was introduced on December 13, 2007, by Senator Bill
Nelson and ordered to be reported favorably by the Commerce
Committee on April 24, 2008. Staff assigned to this legislation
are Dabney Hegg, Democratic Senior Professional Staff, and Todd
Bertoson, Republican Senior Counsel.
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:
May 7, 2008.
Hon. Daniel K. Inouye,
Chairman, Committee on Commerce, Science, and Transportation,
U.S. Senate, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for S. 2482, a bill to
repeal the provision of title 46, United States Code, requiring
a license for employment in the business of salvaging on the
coast of Florida.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Deborah Reis.
Sincerely,
Peter R. Orszag.
Enclosure.
S. 2482--A bill to repeal the provision of title 46, United States
Code, requiring a license for employment in the business of
salvaging on the coast of Florida
S. 2482 would repeal an existing law that requires vessels
and their masters to each obtain licenses from a U.S. district
court in Florida to operate salvage businesses off that state's
coast. CBO estimates that enacting S. 2482 would have no effect
on the federal budget because no such licenses are currently
issued by the district courts.
The bill contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act and
would not affect the budgets of state, local, or tribal
governments.
The CBO staff contact for this estimate is Deborah Reis.
The estimate was approved by Peter H. Fontaine, Assistant
Director for 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
The reported bill would affect persons employed or seeking
employment as a master of a vessel in the business of salvaging
off the coast of Florida.
ECONOMIC IMPACT
S. 2482 is expected to have a positive impact on the economy
of the State of Florida. This provision helps relieve an undue
burden on the salvaging industry in the State of Florida, which
was mistakenly impacted during the recodification of title 46,
United States Code in 2006.
PRIVACY
The reported bill is not expected to have any impact on the
privacy rights of individuals.
PAPERWORK
There will be no increase in paperwork burdens resulting from
the enactment of S. 2482.
Congressionally Directed Spending
In compliance with paragraph 4(b) of rule XLIV of the
Standing Rules of the Senate, the Committee provides that the
reported bill contains not congressionally directed spending
items.
Section-by-Section Analysis
Sec. 1. Repeal of Requirement of License for Employment in the Business
of Salvaging on the Coast of Florida.
This section would repeal section 80102 of title 46, United
States Code.
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):
TITLE 46, UNITED STATES CODE
[Sec. 80102. License to salvage on Florida coast
[(a) Licensing requirements. To be regularly employed in the
business of salvaging on the coast of Florida, a vessel and its
master each must have a license issued by a judge of the
district court of the United States for a judicial district of
Florida.
[(b) Judicial findings. Before issuing a license under this
section, the judge must be satisfied, when the license is for--
[(1) a vessel, that the vessel is seaworthy and
properly equipped for the business of saving property
shipwrecked and in distress; or
[(2) a master, that the master is trustworthy and
innocent of any fraud or misconduct related to property
shipwrecked or saved on the coast.]