§53404 Effectiveness of Operating Agreements

Summary

The Secretary may make one-year operating agreements under this chapter for fiscal year 2022 and later, but only if funds are provided. Each agreement lasts one fiscal year and can be renewed each year through the end of fiscal year 2040, again only if money is appropriated. Any vessel that is under a long-term charter to the United States cannot join the Fleet. If a program participant seriously breaks the agreement, the Secretary must tell them, give a fair chance to fix the problem, and end the agreement if they do not comply. A participant may end an agreement by giving notice at least 60 days before the chosen termination date. If, by the first day of a fiscal year, funds are not available, the Secretary must notify the Senate Armed Services Committee, Senate Commerce, Science, and Transportation Committee, House Armed Services Committee, and House Transportation and Infrastructure Committee that agreements will not be renewed unless funds are provided by the 60th day. If no payments are funded by the 60th day, each covered vessel is released from the agreement; the owner may transfer and register the vessel under a foreign registry acceptable to the Secretaries of Transportation and Defense (notwithstanding section 56101 of this title); and if chapter 563 applies after that registration, the vessel may be requisitioned under chapter 563.