Title 46, ShippingRelease 119-110
§58103 Employing Another Person as Managing or Operating Agent
Title 46 › Subtitle V — Merchant Marine › Part G — Restrictions and Penalties › CHAPTER 581 — RESTRICTIONS AND PENALTIES › § 58103
Summary
Contractors who get operating-differential subsidies cannot, without the Secretary of Transportation’s written permission, hire someone else to manage them or charter a subsidized vessel to another operator. If that prohibited charter happens, the vessel’s operator must follow all the subsidy program rules, including limits on profits and salaries.
Full Legal Text
Title 46, §58103
Shipping, Source: USLM XML via OLRC
(a)Prohibition.—
Except with the written consent of the Secretary of Transportation, a contractor holding a contract under the operating-differential subsidy program or under chapter 575 of this title may not—
(1)employ another person as the managing or operating agent of the operator; or
(2)charter a vessel, on which an operating-differential subsidy is to be paid, for operation by another person.
(b)Applicability of Provisions to Charterer.—
If a charter prohibited by this section is made, the person operating the chartered vessel is subject to all the provisions of this subtitle and the operating-differential subsidy program, including limitations of profits and salaries.
Legislative History
Notes & Related Subsidiaries
Historical and Revision Notes
Revised SectionSource (U.S. Code)Source (Statutes at Large) 5810346 App.:1223(d).June 29, 1936, ch. 858, title VIII, § 805(d), 49 Stat. 2013; June 23, 1938, ch. 600, §§ 36, 37, 52 Stat. 963; Pub. L. 91–603, § 4(e), Dec. 31, 1970, 84 Stat. 1675; Pub. L. 97–31, § 12(122), Aug. 6, 1981, 95 Stat. 164; Pub. L. 104–239, § 4(b)(2), Oct. 8, 1996, 110 Stat. 3131. In subsection (a), the words “contractor holding a contract under the operating-differential subsidy program or under chapter 575 of this title” are substituted for “contractor holding a contract authorized under part A of subchapter VI or VII of this chapter” for the reasons explained under section 58101.
Reference
Citations & Metadata
Citation
46 U.S.C. § 58103
Title 46, Shipping
Last Updated
Sep 22, 2026
Release point: 119-110