PRIA, Government Policy, Made Personal

Summary

The Secretary of Transportation can transfer ownership of an obsolete ship from the National Defense Reserve Fleet to a nonprofit, a State, or a city/local government if the recipient follows certain rules. The recipient must not use the ship for commercial transport, must make it available to the federal government when asked, must protect the government from claims about asbestos, PCBs, lead paint, or other hazardous materials after the transfer (unless the government caused the harm), and must have an approved transfer plan and business plan plus proof of money to move, repair, and start using the ship. If the recipient no longer needs the ship, they must either return it in good condition (normal wear allowed) or, if they are dissolving, give it to a 501(c)(3) charity, a government, or let a court order its disposal. The Secretary may also give extra equipment from other obsolete ships, add other terms, set the time and place of delivery, and deliver the ship in “as‑is” condition. The Secretary can change the plan before delivery if a different use better serves the government and is not liable for damages from a canceled transfer. Any transfer must include terms that return ownership to the government if the ship is used outside the approved business plan.

Title 46, §57103

Shipping, Source: USLM XML via OLRC

(a)In General.—

The Secretary of Transportation may convey the right, title, and interest of the United States Government in any vessel of the National Defense Reserve Fleet that has been identified by the Secretary as an obsolete vessel, if the recipient—

(1)is a non-profit organization, a State, or a municipal corporation or political subdivision of a State;

(2)agrees not to use, or allow others to use, the vessel for commercial transportation purposes;

(3)agrees to make the vessel available to the Government whenever the Secretary indicates that it is needed by the Government;

(4)agrees to hold the Government harmless for any claims arising from exposure to asbestos, polychlorinated biphenyls, lead paint, or other hazardous substances after conveyance of the vessel, except for claims arising from use of the vessel by the Government;

(5)has a conveyance plan and a business plan that describes the intended use of the vessel, each of which has been submitted to and approved by the Secretary;

(6)has provided proof, as determined by the Secretary, of resources sufficient to accomplish the transfer, necessary repairs and modifications, and initiation of the intended use of the vessel; and

(7)agrees that when the recipient no longer requires the vessel for use as described in the business plan required under paragraph (5)—

(A)the recipient will, at the discretion of the Secretary, reconvey the vessel to the Government in good condition except for ordinary wear and tear; or

(B)if the Board of Trustees of the recipient has decided to dissolve the recipient according to the laws of the State in which the recipient is incorporated, then—

(i)the recipient shall distribute the vessel, as an asset of the recipient, to a person that has been determined exempt from taxation under section 501(c)(3) of the Internal Revenue Code of 1986 (26 U.S.C. 501(c)(3)), or to the Federal Government or a State or local government for a public purpose; and

(ii)the vessel shall be disposed of by a court of competent jurisdiction of the county in which the principal office of the recipient is located, for such purposes as the court shall determine, or to such organizations as the court shall determine are organized exclusively for public purposes.

(b)Other Equipment.—

At the Secretary’s discretion, additional equipment from other obsolete vessels of the Fleet may be conveyed to assist the recipient with maintenance, repairs, or modifications.

(c)Additional Terms.—

The Secretary may require any additional terms the Secretary considers appropriate.

(d)Delivery of Vessel.—

If conveyance is made under this section, the vessel shall be delivered to the recipient at a time and place to be determined by the Secretary. The vessel shall be conveyed in an “as is” condition.

(e)Limitations.—

If at any time prior to delivery of the vessel to the recipient, the Secretary determines that a different disposition of the vessel would better serve the interests of the Government, the Secretary shall pursue the more favorable disposition of the obsolete vessel and shall not be liable for any damages that may result from an intended recipient’s reliance upon a proposed transfer.

(f)Reversion.—

The Secretary shall include in any conveyance under this section terms under which all right, title, and interest conveyed by the Secretary shall revert to the Government if the Secretary determines the vessel has been used other than as described in the business plan required under subsection (a)(5).

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 5710346 App.:1158(b).June 29, 1936, ch. 858, title V, § 508(b), as added Pub. L. 108–136, title XXXV, § 3512(2), Nov. 24, 2003, 117 Stat. 1789. In subsection (a), before paragraph (1), the words “Notwithstanding section 1160(j) of this title” are omitted as unnecessary because section 46 App. U.S.C. 1160(j) is restated in section 57101 of the revised title and that section contains an exception which includes this section. In paragraph (1), the words “Commonwealth, or possession of the United States” and “or the District of Columbia” are omitted as unnecessary because of the definition of “State” in chapter 1 of the revised title.

Editorial Notes

Amendments

2023—Pub. L. 118–31, § 3514(j)(5)(A), struck out “nonretention” before “vessels” in section catchline. Subsec. (a). Pub. L. 118–31, § 3514(j)(5)(B), struck out “of insufficient value to warrant its further preservation” after “obsolete vessel”. 2012—Pub. L. 112–213 substituted “Donation of nonretention vessels in the National Defense Reserve Fleet” for “Sale of obsolete vessels in National Defense Reserve Fleet” in section catchline.

§57103 Donation of Vessels in the National Defense Reserve Fleet