46 U.S.C. § 55332: Designating American Great…

Summary

The Secretary of Transportation must label a ship as an American Great Lakes vessel when the owner applies under the Secretary’s rules, the ship is registered under U.S. law, the ship is between 1 and 6 years old on the day it gets the label (or between 1 and 11 years old if the Secretary finds no suitable ships are available), the ship has not had that label before, and the owner signs the required agreement. Under that agreement, if the Secretary says the ship is needed for U.S. defense, the United States has the only right to buy the ship for 120 days after the designation is revoked. The purchase price must be the higher of the ship’s world market value or the owner’s cost minus reasonable depreciation. If the Government does not buy the ship, the owner may register it in another country or sell it to a non‑U.S. person. The Secretary must create rules for how to apply.

Title 46, §55332

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(a)Designations.—

The Secretary of Transportation shall designate a vessel as an American Great Lakes vessel if—

(1)an application for designation is submitted to the Secretary under regulations prescribed by the Secretary;

(2)the vessel is documented under the laws of the United States;

(3)the vessel, on the effective date of the designation, is—

(A)at least 1, but not more than 6, years old; or

(B)at least 1, but not more than 11, years old if the Secretary finds that suitable vessels are not available to provide the type of service for which the vessel will be used after the designation;

(4)the vessel has not previously been designated as an American Great Lakes vessel; and

(5)the owner makes an agreement as provided under subsection (b).

(b)Agreements.—

A vessel may be designated as an American Great Lakes vessel only if the person that will be the owner of the vessel at the time of the designation makes an agreement with the Secretary providing that if the Secretary determines that the vessel is necessary to the defense of the United States, the United States Government will have an exclusive right, during the 120-day period following the date of a revocation of the designation under section 55335 of this title, to purchase the vessel for a price equal to the greater of— (1)

(2)the cost of the vessel to the owner less a reasonable amount for depreciation.

(c)Certain Foreign Documentation and Sale Not Prohibited.—

Notwithstanding any other law, if the Government does not exercise its right of purchase under an agreement under subsection (b), the owner of the vessel is not prohibited from—

(1)documenting the vessel under the laws of a foreign country; or

(2)selling the vessel to a person not a citizen of the United States.

(d)Regulations.—

The Secretary shall prescribe regulations establishing requirements for submitting applications under this section.

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 5533246 App.:1241r.Pub. L. 101–624, title XV, § 1522, Nov. 28, 1990, 104 Stat. 3665. In subsection (a), the words “for purposes of sections 1241q to 1241v of this Appendix” are omitted as unnecessary. In subsection (c), before paragraph (1), the words “

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and purchase” before “agreement” are omitted because the source provision for subsection (b) does not say anything about

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. In subsection (d), the words “Not later than 60 days after November 28, 1990” are omitted as obsolete.

§55332 Designating American Great Lakes Vessels

Summary

Title 46, §55332

Notes & Related Subsidiaries

Historical and Revision Notes

Construction

Construction

Citations & Metadata