§58101 — Title 46 Shipping | U.S. Code

Summary

The law stops the Department of Transportation from giving an operating-differential subsidy or chartering a ship under chapter 575 to a contractor if the contractor, its related companies, or their officers or agents either own, charter, or run a vessel in domestic intercoastal or coastwise service, or have a financial interest in someone who does. A person can ask the Secretary of Transportation for a waiver. The Secretary must offer a hearing before deciding. The waiver cannot be granted if it would cause unfair competition to someone who works only in the intercoastal or coastwise trade or would hurt the goals and policy of this part of the law. If the contractor (or its predecessor) was genuinely operating that route as a common carrier by water in 1935 and has kept doing so (or, for seasonal service, operated in 1935 during its usual season), the Secretary must grant the waiver without more proof, except for service breaks outside the applicant’s control. If a waiver is approved, the person cannot move money, property, or other value paid as a U.S. subsidy for foreign-trade operations into intercoastal or coastwise operations.

Title 46, §58101

Shipping — Source: USLM XML via OLRC

(a)A subsidy may not be awarded or paid to a contractor under the operating-differential subsidy program, and a vessel may not be chartered to a person under chapter 575 of this title, if the contractor or charterer, or a holding company, subsidiary, affiliate, or associate of the contractor or charterer, or an officer, director, agent, or executive thereof, directly or indirectly—

(1)owns, charters, or operates a vessel engaged in the domestic intercoastal or coastwise service; or

(2)owns a pecuniary interest in a person that owns, charters, or operates a vessel in the domestic intercoastal or coastwise service.

(b)A person may apply to the Secretary of Transportation for a waiver of subsection (a). Before deciding on the waiver, the Secretary shall give the applicant and other interested persons an opportunity for a hearing. The Secretary may not grant the waiver if the Secretary finds it would—

(1)result in unfair competition to a person operating exclusively in the domestic intercoastal or coastwise service; or

(2)be prejudicial to the objectives and policy of this subtitle.

(c)The Secretary shall grant an application under subsection (b) without requiring further proof that the public interest and convenience will be served and without further proceedings as to the competition in the route or trade, if the contractor or other person, or a predecessor in interest, was in bona-fide operation as a common carrier by water in the domestic intercoastal or coastwise trade in 1935 over the route or in the trade for which the application is made and has so operated since that time or, if engaged in furnishing seasonal service only, was in bona-fide operation in 1935 during the season ordinarily covered by its operation, except in either event as to interruptions of service over which the applicant or its predecessor in interest had no control.

(d)If an application under subsection (b) is approved, a person referred to in this section may not divert, directly or indirectly, money, property, or any other thing of value, used in a foreign-trade operation for which a subsidy is paid by the United States Government, into intercoastal or coastwise operations.

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 5810146 App.:1223(a).June 29, 1936, ch. 858, title VIII, § 805(a), 49 Stat. 2012; Pub. L. 97–31, § 12(122), Aug. 6, 1981, 95 Stat. 164; Pub. L. 104–239, § 4(b)(1), Oct. 8, 1996, 110 Stat. 3131. In this chapter, references to the “operating-differential subsidy program” are substituted for references to “part A of subchapter VI of this chapter”, meaning 46 App. U.S.C. 1171–1185a, because part A of subchapter VI contains the operating-differential subsidy program and under 46 App. U.S.C. 1185a that program is being phased out. Consequently, part A is being omitted from the revised title and will instead appear as a note under section 53101, except for 46 App. U.S.C. 1177 and 1177–l which are restated in chapter 535. References to “chapter 575 of this title” are substituted for references to “subchapter VII of this chapter”, meaning 46 App. U.S.C. 1191–1205, because those sections are restated in chapter 575. In subsection (b), the words “A person may apply to the Secretary of Transportation for a waiver of subsection (a). Before deciding on the waiver, the Secretary shall give the applicant and other interested persons an opportunity for a hearing.” are substituted for “without the written permission of the Secretary of Transportation. Every person, firm, or corporation having any interest in such application shall be permitted to intervene and the Secretary of Transportation shall give a hearing to the applicant and the intervenors.” for clarity. In subsection (c), the words “domestic intercoastal or coastwise trade” are substituted for “domestic, intercoastal, or coastwise trade” for consistency in the section. In subsection (d), the words “and whosoever shall violate this provision shall be guilty of a misdemeanor” are omitted because section 3559 of title 18 provides for the classification of offenses. See the revision notes for section 58109 of the revised title.

§58101 Operating in Domestic Intercoastal or Coastwise Service

Summary

Title 46, §58101

Notes & Related Subsidiaries

Historical and Revision Notes

Citations & Metadata