§53104 Effectiveness of operating agreements

Summary

Allows the Secretary to make an operating agreement starting in fiscal year 2006. Each agreement lasts one fiscal year but can be renewed each year through the end of fiscal year 2040 if money is approved. If a vessel is already on a U.S. Government charter (except an Emergency Preparedness Agreement under section 53107), the operating agreement will start when that government charter ends, or sooner if the vessel leaves the charter, unless the applicant asks for an earlier start. If a contractor breaks the agreement in a major way, the Secretary will warn them, give time to fix it, and end the agreement if they do not comply; any money tied to the agreement then returns to the Secretary to use under this chapter. A contractor may also end an agreement by telling the Secretary at least 60 days ahead. If enough funds are not provided by the first day of a fiscal year, the Secretary must tell the Senate Armed Services Committee, the Senate Commerce, Science, and Transportation Committee, and the House Armed Services Committee that agreements will not be renewed unless money is provided by the 60th day. If funds are still not provided by day 60, each covered vessel is released from the agreement, the owner may register the vessel under a foreign flag approved by the Secretary of Transportation and the Secretary of Defense (despite section 56101), and if chapter 563 applies after reflagging, the vessel may be requisitioned by the Secretary of Transportation under chapter 563.