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74 STAT. 261.

the efficient dispatching of vessels and rendering of pilotage services required under the provisions of this Act. The Secretary may

(i) establish such rules and regulations for the operation of a pool or pools as he may deem necessary;

(ii) require that pooling be coordinated on a reciprocal basis with similar arrangements established by the appropriate agency of Canada;

(iii) limit the number of pools;

(iv) audit and inspect the administration and operation of a pool or pools;

(v) prescribe uniform systems of accounts for a pool or pools.

SEC. 5. (a) The Secretary is authorized and directed to establish Services, rates, by regulations the rates, charges, and any other conditions or terms charges, etc. for services performed by registered pilots to meet the provisions of

this Act.

(b) The Secretary is authorized to arrange with the appropriate agency of Canada for the establishment of joint or identical rates, charges, and any other conditions or terms for services by registered pilots in the waters of the Great Lakes.

(c) The rates, charges, and any other conditions or terms for pilotage services by registered pilots established by the Secretary in accordance with subdivisions (a) and (b) of this section shall be fair and equitable, giving due consideration to the public interest and the reasonable cost and expense of providing and maintaining such facilities and arrangements as are required for the efficient performance of pilotage services in accordance with the provisions of this Act. SEC. 6. Any written arrangements between the Secretary and the appropriate agency of Canada under the provisions of this Act shall be subject to the concurrence of the Secretary of State.

SEC. 7. (a) Any owner, master, or person in charge of a vessel sub- Violations, ject to this Act who permits the navigation of the vessel by a person peñaltics. not a registered pilot in the waters designated by the President pursuant to section 3(a) of this Act or who permits the navigation of the vessel without having on board a registered pilot or other officer in the waters described in section 3(b) of this Act shall be liable to the United States in a civil penalty not exceeding $500 for each violation, for which sum the vessel shall be liable and may be seized and proceeded against by way of libel in any district court of the United States having jurisdiction thereof. Each day the vessel shall be so navigated shall constitute a separate violation. This subsection shall be enforced by the head of the Department in which the Coast Guard is operating.

(b) Any person, not a registered pilot, who directs the navigation of a vessel subject to this Act in the waters designated by the President pursuant to section 3(a) of this Act, shall be subject to a civil penalty in an amount not exceeding $500 for each violation. Each day such person so directs the navigation of such vessel shall constitute a separate violation. This subsection shall be enforced by the head of the Department in which the Coast Guard is operating.

(c) A person who violates any regulation issued pursuant to sections 4 and 5 of this Act shall be liable to the United States in a civil penalty not exceeding $500 for each violation. The provisions of this subsection shall be enforced by the Secretary, who may, upon application therefor, remit or mitigate the penalty provided for herein, upon such terms as he, in his discretion, shall think proper.

Operation with

out registered pilots.

74 STAT. 261.

74 STAT. 262.

SEC. 8. Notwithstanding any other provision of this Act, a vessel may be navigated in the United States waters of the Great Lakes without a United States or Canadian registered pilot when

(a) the Secretary, or his designee, with the concurrence of the head of the Department in which the Coast Guard is operating, or his designee, notifies the master that a United States or Canadian registered pilot is not available, or

(b) the vessel or its cargo is in distress or jeopardy.

Local authority. SEC. 9. (a) No State, municipal, or other local authority shall have any power to require the use of pilots or to regulate any aspect of pilotage in any of the waters specified in this Act.

"Laker" vessels. (b) Nothing in this Act shall apply to any vessel of the United States which, in its navigation of waters to which this Act is applicable, is required by any other Act to have in its service and on board pilots or other navigating officers licensed by the United States for such waters.

Advisory
Committee.

Use of serv

(c) The exceptions in section 2(f) applying to Canadian vessels shall be effective only so long as Canada permits enrolled vessels of the United States to be navigated on Canadian waters of the Great Lakes solely by qualified officers licensed by the head of the Department in which the Coast Guard is operating.

SEC. 10. (a) The Secretary is authorized to appoint an Advisory Committee of three public members, each of whom shall have had at least five years of practical experience in maritime operations. The term for which a member may be appointed or reappointed shall not exceed five years.

(b) The Advisory Committee shall meet at the call of the Secretary. The Advisory Committee may review proposed pilotage regulations and policies and make such recommendations as are deemed appropriate.

(c) Members of the Advisory Committee shall be compensated at a rate not exceeding $75 per day when actually engaged in the performance of their duties, together with their necessary travel expenses while going to and from meetings and when engaged on business at the call of the Secretary.

SEC. 11. The Secretary may use, with their consent, the available ices, equip services, equipment, personnel, and facilities of agencies and instrumentalities of the Federal Government, on a reimbursable basis when appropriate.

ment, etc.

Effective date.

SEC. 12. If a provision of this Act or the application of such provision to any person or circumstances shall be held invalid, the remainder of the Act and the application of such provision to persons or circumstances other than those to which it is held invalid shall not be affected thereby.

SEC. 13. This Act shall become effective upon the date of its enactment, except that the pilotage provisions of this Act shall not become effective until the first day of the fourth month following the issuance of regulations pursuant hereto by the Secretary.

Approved June 30, 1960.

86th Congress, S. 2618
July 5, 1960

AN ACT

74 STAT. 312.

To authorize the exchange of certain war-built vessels for more modern and efficient war-built vessels owned by the United States.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 510 of War-built the Merchant Marine Act, 1936, is amended by adding a new subsection vessels. as follows:

Exchange.

"(i) In order to improve the type and suitability of vessels operat- 53 Stat. 1183. ing in the domestic and foreign commerce of the United States, and 46 USC 1160. to further the policies of this Act, the Secretary of Commerce is authorized (subject to the provisions of this subsection) to acquire at any time within five years from the date of enactment of this Act war-built vessels (which are defined for purposes of this subsection as oceangoing vessels of one thousand five hundred gross tons or over which were constructed or contracted for by the United States shipyards during the period beginning September 3, 1939, and ending September 2, 1945) in exchange for more modern or efficient war-built vessels owned by the United States. Such exchanges shall be subject to the following conditions:

"(1) The traded-in vessels shall have been owned and operated Conditions. without subsidy under title VI of this Act by a citizen or citizens of the United States, and documented under the laws of the United States, for at least three years immediately prior to the date of the exchange.

"(2) The fair and reasonable value of the traded-in and traded-out vessels shall be determined, as of the date of the exchange, pursuant to subsection (d) of this section.

"(3) In determining said fair and reasonable value the Secretary shall consider the cost of placing the vessels in class with respect to hull and machinery, and, with respect to any traded-out vessels of the military type, the cost of reconverting and restoring such vessels for normal operation in commercial service. The Secretary of Commerce shall consult with and obtain the approval of the Defense Department before any vessel of a military type is traded out under the provisions of this subsection. In determining the value of the traded-in vessel or vessels the Secretary may take into consideration the cost to the owner of compliance with subparagraph (8), clauses (A) and (B), of this subsection.

"(4) The value of the traded-out vessel which is in excess of the value of the traded-in vessel or vessels shall be paid in cash at the time of the exchange. No payments shall be made by the United States to the owner of a traded-in vessel in connection with any exchange under this subsection.

"(5) A contract shall be entered into under this subsection by any person acquiring a traded-out vessel, which shall provide (A) that in the event the United States shall, through purchase or requisition or otherwise, reacquire ownership of said vessel, at any time within twenty years of the date of construction thereof, the owner shall be paid therefor the value thereof, but in no event shall such payment exceed the fair and reasonable exchange value determined under this subsection (together with the actual cost of capital improvements thereon) depreciated to the date of such purchase or acquisition, or the fair and reasonable scrap value of such vessel, as determined by the Secretary of Commerce, whichever is the greater; (B) that such determination shall be final; (C) that in computing the depreciated exchange value of such vessel, the depreciation shall be computed on the vessel on the schedule adopted or accepted by the Secretary of the

74 STAT. 313.

Treasury for Federal income tax purposes as applicable to such vessel; (D) that such vessel shall remain documented under the laws of the United States for a period of at least five years after the date of the exchange, or twenty years from the date of its construction, whichever is the later date; and (E) that the foregoing conditions respecting requisition or acquisition of ownership by the United States and documentation shall run with the title to such vessel and be binding on all owners thereof. Any other conditions respecting purchase or requisition by the United States heretofore applicable by statute to any traded-out vessel are hereby made inapplicable to such vessel.

"(6) Neither subsection (e) of this section, nor the nontaxable exchange provisions of the Internal Revenue Code, shall apply to the exchange of vessels under this subsection.

"(7) Any repairs or reconversion necessary at the time of the exchange to place the traded-out vessel in class and prepare it for commercial operation shall be performed in a shipyard within the continental United States.

"(8) The owner of the traded-in vessel, at his own expense and in a manner satisfactory to the Secretary of Commerce, shall (A) effect deactivation and preparation of the traded-in vessel and its equipment for storage or layup; (B) make delivery of such vessel and its equipment at a location designated by the Secretary of Commerce; and (C) execute a bond, with one or more approved sureties, conditioned upon indemnifying the United States from all loss resulting from any lien against such vessel existing at the time of the exchange. "(9) No tanker vessel shall be traded out under the provisions of this subsection."

Approved July 5, 1960.

86th Congress, S. 2481

July 5, 1960

AN ACT

74 STAT. 314.

To continue the application of the Merchant Marine Act of 1936, as amended, to certain functions relating to fishing vessels transferred to the Secretary of the Interior, and for other purposes.

Be it enacted by the Senate and House of Representatives of the

United States of America in Congress assembled, That in order to Fishing vessels. permit the efficient execution of functions relating to the issuance of Mortgage insurFederal ship mortgage insurance on fishing vessels, pursuant to the ance. Merchant Marine Act of June 29, 1936, as amended (49 Stat. 1985; 46 U.S.C., 1952 edition, sec. 1271 and the following), which functions

relating to fishing vessels have been transferred to the Secretary of

the Interior pursuant to the Fish and Wildlife Act of 1956, the Sec- 70 Stat. 1119.

retary of the Interior hereafter may exercise authority comparable to 16 USC 742a note. the authority of the Secretary of Commerce under the said Merchant

Marine Act of 1936, including, but not limited to, the authority con

tained in the amendment to such Act of July 15, 1958 (72 Stat. 358). 46 USC 1275. Approved July 5, 1960.

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