§53103 — Title 46 Shipping | U.S. Code

Summary

The Secretary must require the owner or operator of any ship to sign an operating agreement with the Secretary to include that ship in the Fleet. For existing contractors, the Secretary must offer to extend any current agreement through September 30, 2040 within 60 days after the law change. The contractor has 120 days after the offer to accept. If the contractor refuses, the Secretary may give the agreement to another applicant who is eligible for fiscal years 2016 through 2040. The Secretary can make new agreements with applicants who meet the vessel rules. Applications are taken in the order of vessel types needed by the Secretary of Defense. Applicants get at least 30 days to apply. After looking at military needs, U.S. citizens get priority under section 50501. The Secretary cannot approve an application without the Secretary of Defense’s consent and must either sign the agreement or give a written reason for denial. No more than 60 vessels in any fiscal year may have agreements that require payments under section 53106.

Title 46, §53103

Shipping — Source: USLM XML via OLRC

(a)The Secretary shall require, as a condition of including any vessel in the Fleet, that the person that is the owner or operator of the vessel for purposes of section 53102(c) enter into an operating agreement with the Secretary under this section.

(b)(1)Not later than 60 days after the date of enactment of this paragraph, the Secretary shall offer, to an existing contractor, to extend, through September 30, 2040, an operating agreement that is in existence on the date of enactment of this paragraph. The terms and conditions of the extended operating agreement shall include terms and conditions authorized under this chapter, as amended from time to time.

(2)An existing contractor shall have not later than 120 days after the date the Secretary offers to extend an operating agreement to agree to the extended operating agreement.

(3)The Secretary may award an operating agreement to an applicant that is eligible to enter into an operating agreement for fiscal years 2016 through 2040 if the existing contractor does not agree to the extended operating agreement under paragraph (2).

(c)The Secretary may enter into a new operating agreement with an applicant that meets the requirements of section 53102(c) (for vessels that meet the qualifications of section 53102(b)) on the basis of priority for vessel type established by military requirements of the Secretary of Defense. The Secretary shall allow an applicant at least 30 days to submit an application for a new operating agreement. After consideration of military requirements, priority shall be given to an applicant that is a United States citizen under section 50501 of this title. The Secretary may not approve an application without the consent of the Secretary of Defense. The Secretary shall enter into an operating agreement with the applicant or provide a written reason for denying the application.

(d)The Secretary may not award operating agreements under this chapter that require payments under section 53106 for a fiscal year for more than 60 vessels.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The date of enactment of this paragraph, referred to in subsec. (b)(1), probably means the date of enactment of Pub. L. 112–239, which amended subsec. (b) generally and was approved Jan. 2, 2013.

Amendments

2024—Subsec. (b)(1), (3). Pub. L. 118–159 substituted “2040” for “2035”. 2019—Subsec. (b)(1), (3). Pub. L. 116–92 substituted “2035” for “2025”. 2013—Subsec. (b). Pub. L. 112–239, § 3508(c)(1), amended subsec. (b) generally. Prior to amendment, subsec. (b) related to procedure for applications. Subsec. (c). Pub. L. 112–239, § 3508(c)(2), amended subsec. (c) generally. Prior to amendment, subsec. (c) related to priority for awarding agreements. 2006—Subsec. (c)(1). Pub. L. 109–304, § 13(a)(2)(A)–(C), substituted “section 50501 of this title” for “section 2 of the Shipping Act, 1916 (46 U.S.C. App. 802)” in subpars. (A)(iii) and (C)(i) and (ii), “applying subparagraph” for “applying subparagraphs” in subpar. (B), and “section 50501” for “section 2” in subpar. (C) heading. Subsec. (c)(3)(B). Pub. L. 109–304, § 13(a)(2)(D), substituted “agreements” for “agreement”. Subsec. (c)(4)(A). Pub. L. 109–364, § 3502(b)(1)(A)–(D), redesignated cls. (i) and (ii) as cl. (i), subcls. (I) and (II), respectively, in subcl. (II) substituted “; or” for period at end, and added cl. (ii). Subsec. (c)(4)(B). Pub. L. 109–364, § 3502(b)(1)(E), inserted “with respect to which a binding contract is entered into under subparagraph (A)(i)” after “existing tank vessel”. Subsec. (c)(4)(C), (D). Pub. L. 109–364, § 3502(b)(1)(F), added subpars. (C) and (D).

§53103 Award of operating agreements