§53404 Effectiveness of operating agreements

Summary

The Secretary can make one-year operating agreements starting in fiscal year 2022. Each agreement lasts one fiscal year and can be renewed each year through the end of fiscal year 2040 if money is provided. Vessels that are on long-term charter to the United States cannot join the Fleet. If a program participant breaks the agreement in a major way, the Secretary must tell them and give them a fair chance to fix it. If they do not fix it, the Secretary must end the agreement. A participant may end an agreement early if they give notice at least 60 days before the chosen end date. If money for the program is not approved by the first day of a fiscal year, the Secretary must tell the Senate Committees on Armed Services and on Commerce, Science, and Transportation and the House Committees on Armed Services and on Transportation and Infrastructure that agreements will not be renewed unless funds arrive by the 60th day. If funds are still not provided by the 60th day, each covered vessel is freed from its obligations, the participant may register the vessel under a foreign flag acceptable to the Secretary of Transportation and the Secretary of Defense even if section 56101 would normally prevent that, and if chapter 563 applies after reflagging the vessel may be requisitioned under chapter 563.