SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1152 of this title.

§ 1125a. Construction, repair, etc., of vessels for Government agencies

The Secretary of Transportation is authorized to construct, reconstruct, repair, equip, and outfit, by contract or otherwise, vessels or parts thereof, for any other department or agency of the Government, to the extent that such other department or agency is authorized by law to do so for its own account, and any obligations heretofore or hereafter incurred by the Secretary for any of the aforesaid purposes shall not diminish or otherwise affect any contract authorization granted to the Secretary: Provided, The obligations incurred or the expenditures made are charged against and, to the amount of such obligation or expenditure, diminish the existing appropriation or contract authorization of such department or agency.

(Feb. 6, 1941, ch. 5, § 4, 55 Stat. 6; Aug. 6, 1981, Pub. L. 97-31, § 12(74), 95 Stat. 160.)

CODIFICATION

Section was not enacted as part of the Merchant Marine Act, 1936, which comprises this chapter.

AMENDMENTS

1981-Pub. L. 97-31 substituted "Secretary of Transportation" for "Commission" the first time it appeared and "Secretary" for "Commission" the next two times it appeared. For prior transfers of functions of the Commission, meaning the United States Maritime Commission, see Transfer of Functions note below.

TRANSFER OF FUNCTIONS

For transfer of functions of United States Maritime Commission, see Reorg. Plan No. 6 of 1949 and Reorg. Plan No. 21 of 1950, set out under section 1111 of this title.

§ 1126. Repealed. Pub. L. 96-453, § 3(d), Oct. 15, 1980, 94 Stat. 2009

Section, acts June 29, 1936, ch. 858, title II, § 216, as added June 23, 1938, ch. 600, § 44, 52 Stat. 965, and amended Aug. 4, 1939, ch. 417, § 5, 53 Stat. 1182; 1950 Reorg. Plan No. 21, § 204, eff. May 24, 1950, 15 F.R. 3178, 64 Stat. 1276; Feb. 20, 1956, ch. 64, 70 Stat. 25; Feb. 20, 1958, Pub. L. 85-331, § 1, 72 Stat. 16; July 20, 1961, Pub. L. 87-93, 75 Stat. 212; Sept. 6, 1961, Pub. L. 87-199, 75 Stat. 468; Sept. 6, 1961, Pub. L. 87-208, 75 Stat. 480; Oct. 2, 1964, Pub. L. 88-611, § 4(a)(3), 78 Stat. 991; 1967 Reorg. Plan No. 3, § 401, eff. Nov. 3, 1967, 32 F.R. 11669, 81 Stat. 951; Pub. L. 93-198, title IV. § 421, Dec. 24, 1973, 87 Stat. 789; Nov. 12, 1977, Pub. L. 95-173, § 7, 91 Stat. 1360; July 28, 1978, Pub. L. 95-323, § 1, 92 Stat. 396; Aug. 6, 1981, Pub. L. 97-31, § 12(75), 95 Stat. 160, provided for the training of Merchant Marine personnel. See section 1295b of this title.

EFFECTIVE DATE OF REPEAL

Section repealed effective Oct. 1, 1981, see section 4 of Pub. L. 96-453, set out as an Effective Date note under section 1295 of this title.

Naval Reserve Officer Training Corps programs at merchant marine academies for promotion of maximum integration of naval and merchant marine seapower of the Nation

(a) It is the policy of the United States that the United States Navy and the Merchant Marine of the United States work closely together to promote the maximum integration of the total seapower forces of the Nation. In furtherance of this policy, it is necessary and desirable that special steps be taken to assure that Naval Reserve Officer Training Corps programs (for training future naval officers) be maintained at Federal and State merchant marine academies.

(b) It is the sense of the Congress that the Secretary of the Navy should work with the Maritime Administrator and the administrators of the several merchant marine academies to assure that the training available at these academies is consistent with Navy standards and needs.

(Pub. L. 94-361, title VI, § 603, July 14, 1976, 90 Stat. 929; Pub. L. 97-31, § 12(76), Aug. 6, 1981, 95 Stat. 160.)

CODIFICATION

Section was enacted as part of Pub. L. 94-361, popularly known as the Department of Defense Appropriation Authorization Act, 1977, and not as part of the Merchant Marine Act, 1936, which comprises this chapter.

AMENDMENTS

1981-Subsec. (b). Pub. L. 97-31 substituted "Maritime Administrator" for "Assistant Secretary of Commerce for Maritime Affairs".

§ 1126a. Repealed. Aug. 10, 1956, ch. 1041, § 53, 70A Stat. 641

Section, acts May 25, 1933, ch. 37, 48 Stat. 73; July 8, 1937, ch. 441, 50 Stat. 477; Aug. 9, 1946, ch. 932, 60 Stat. 968; Aug. 4, 1949, ch. 393, § 13, 63 Stat. 559; Aug. 18, 1949, ch. 476, 63 Stat. 614, authorized the issuance of a bachelor of science degree on graduation from United States Merchant Marine Academy. See section 1295b(g) of this title.

§ 1126a-1. Repealed. Pub. L. 96-453, § 3(i), Oct. 15, 1980, 94 Stat. 2009

Section, act Aug. 10, 1956, ch. 1041, § 34, 70A Stat. 634; Aug. 6, 1981, Pub. L. 97-31, § 12(77), 95 Stat. 160, provided for the conferring of the degree of bachelor of science upon graduates of the Academy. See section 1295b(g) of this title.

EFFECTIVE DATE OF REPEAL

Section repealed effective Oct. 1, 1981, see section 4 of Pub. L. 96-453, set out as an Effective Date note under section 1295 of this title.

§ 1126b. Repealed. Pub. L. 96-453, § 3(g), Oct. 15, 1980, 94 Stat. 2009

Section, act Aug. 9, 1946, ch. 928, 60 Stat. 961; 1950 Reorg. Plan No. 21, § 204, eff. May 24, 1950, 15 F.R. 3178, 64 Stat. 1276; Aug. 6, 1981, Pub. L. 97-31, § 12(78), 95 Stat. 160, provided for the admission of persons from other American republics to the United States Merchant Marine Academy. See section 1295b(b)(5) of this title.

EFFECTIVE DATE OF REPEAL

EFFECTIVE DATE OF REPEAL

Section repealed effective Oct. 1, 1981, see section 4 of Pub. L. 96-453, set out as an Effective Date note under section 1295 of this title.

§ 1126c. Repealed. Pub. L. 96-453, § 3(f), Oct. 15, 1980, 94 Stat. 2009

Section, act May 11, 1944, ch. 194, 58 Stat. 220; 1950 Reorg. Plan No. 21, § 204, eff. May 24, 1950, 15 F.R. 3178, 64 Stat. 1276; Aug. 6, 1981, Pub. L. 97-31, § 12(80), 95 Stat. 160, related to the Board of Visitors for United States Merchant Marine Academy. See section 1295b(h) of this title.

EFFECTIVE DATE OF REPEAL

Section repealed effective Oct. 1, 1981, see section 4 of Pub. L. 96-453, set out as an Effective Date note under section 1295 of this title.

§ 1126d. Repealed. Pub. L. 96-453, § 3(h), Oct. 15, 1980, 94 Stat. 2009

Section, acts July 22, 1947, ch. 290, 61 Stat. 401; July 11, 1956, ch. 564, 70 Stat. 524; Aug. 6, 1981, Pub. L. 97-31, § 12(81), 95 Stat. 160, provided for the appointment of an Advisory Board to the Merchant Marine Academy. See section 1295b(i) of this title.

EFFECTIVE DATE OF REPEAL

Section repealed effective Oct. 1, 1981, see section 4 of Pub. L. 96-453, set out as an Effective Date note under section 1295 of this title.

§ 1127. Repealed. Pub. L. 86-360, Sept. 22, 1959, 73 Stat. 643

Section, act June 29, 1936, ch. 858, title II, § 217, as added Mar. 14, 1942, ch. 186, 56 Stat. 171, and amended Aug. 30, 1954, ch. 1076, § 1(9), 68 Stat. 967, related to coordination of forwarding and similar servicing of waterborne export and import foreign commerce.

SUBDIVISION-INSURANCE

88 1128 to 1128e. Repealed. July 25, 1947, ch. 327, § 1, 61 Stat. 449

Section 1128, act June 29, 1936, ch. 858, title II, § 221, as added June 29, 1940, ch. 447, 54 Stat. 689, and amended Apr. 11, 1942, ch. 240, 56 Stat. 214, related to the authority of the United States Maritime Commission to provide marine and war-risk insurance, duration of such authority, reports, and an insurance fund. See section 1281 et seq. of this title.

Section 1128a, act June 29, 1936, ch. 858, title II, § 222, as added June 29, 1940, ch. 447, 54 Stai. 690, and amended Mar. 6, 1942, ch. 154, 56 Stat. 140; Apr. 11, 1942, ch. 240, 56 Stat. 214; Mar. 24, 1943, ch. 26, § 2(a), 57 Stat. 47, related to authority of United States Maritime Commission to insure against loss or damage by risks of war, persons, property and certain insurable interests. See section 1281 et seq. of this title.

Section 1128b, act June 29, 1936, ch. 858, title II, § 223, as added June 29, 1940, ch. 447, 54 Stat. 690, and

amended Apr. 11, 1942, ch. 240, 56 Stat. 215; Mar. 24, 1943, ch. 26, § 3(e), 57 Stat. 50, related to reinsurance, prohibition against fees to brokers, and rates. See section 1287 of this title.

Section 1128c, act June 29, 1936, ch. 858, title II, § 224, as added June 29, 1940, ch. 447, 54 Stat. 690, and amended Apr. 11, 1942, ch. 240, 56 Stat. 215; Mar. 24, 1943, ch. 26, § 3(f), 57 Stat. 50, related to insurance of government departments and agencies. See section 1285 of this title.

Section 1128d, act June 29, 1936, ch. 858, title II, § 225, as added June 29, 1940, ch. 447, 54 Stat. 690, and amended Apr. 11, 1942, ch. 240, 56 Stat. 215; Mar. 24, 1943, ch. 26, § 3(g), 57 Stat. 50, related to actions on claims for losses and jurisdiction of courts. See section 1292 of this title.

Section 1128e, act June 29, 1936, ch. 858, title II, § 226, as added June 29, 1940, ch. 447, 54 Stat. 691, and amended Apr. 11, 1942, ch. 240, 56 Stat. 216; Mar. 24, 1943, ch. 26, § 3(h), 57 Stat. 51; Apr. 24, 1944, ch. 178, § 1, 58 Stat. 216, related to general administrative provisions, suspension of statute of limitations and definitions. See sections 1281 and 1289 of this title.

SAVINGS PROVISIONS

Act July 25, 1947, provided that section 1 of act Apr. 24, 1944, ch. 178, 58 Stat. 216, which added second sentence to section 1128e(a) of this title, was repealed, "except that any suspension of the statute of limitations heretofore provided for in an agreement entered into under the authority of such section shall continue in effect for the period provided in such agreement, but in no case longer than two years after the date of enactment of this joint resolution [July 25, 1947]."

§ 1128e-1. Omitted

CODIFICATION

Section, act Apr. 24, 1944, ch. 178, § 2, 58 Stat. 216, which related to compromise or settlement, by the Administrator of the War Shipping Administration, of claims after expiration of time for filing, has been omitted in view of termination of War Shipping Administration on Sept. 1, 1946. See note set out under section 1291 of Title 50, Appendix, War and National Defense.

§§ 1128f to 1128h. Repealed. July 25, 1947, ch. 327, § 1, 61 Stat. 449

Section 1128f, act June 29, 1936, ch. 858, title II, § 227, as added June 29, 1940, ch. 447, 54 Stat. 691, and amended Apr. 11, 1942, ch. 240, 56 Stat. 216, related to effect of former sections 1128 to 1128h of this title on seamen's rights under existing laws. See section 1290 of this title.

Section 1128g, act June 29, 1936, ch. 858, § 228, as added June 29, 1940, ch. 447, 54 Stat. 691, and amended Apr. 11, 1942, ch. 240, 56 Stat. 217, vested United States Maritime Commission's authority in Administrator of War Shipping Administration. See section 1251 et seq. of this title.

Section 1128h, act June 29, 1936, ch. 858, § 229, as added Mar. 24, 1943, ch. 26, § 3(i), 57 Stat. 51, authorized War Shipping Administration to insure directly or to reinsure. See section 1251 et seq. of this title.

SUBCHAPTER III-AMERICAN SEAMEN

§ 1131. Manning and wage scales; subsidy contracts (a) Investigation of wages and working conditions; establishment of wage and manning scales; incorporation in subsidy contracts

The Secretary of Transportation is authorized and directed to investigate the employment and wage conditions in ocean-going shipping and, after making such investigation and

after appropriate hearings, to incorporate in the contracts authorized under subchapters VI and VII of this chapter minimum manning scales and minimum wage scales, and minimum working conditions for all officers and crews employed on all types of vessels receiving an operating-differential subsidy. After such minimum manning and wage scales, and working conditions shall have been adopted by the Secretary of Transportation, no change shall be. made therein by the Secretary of Transportation except upon public notice of the hearing to be had, and a hearing by the Secretary of Transportation of all interested parties, under such rules as the Secretary of Transportation shall prescribe. The duly elected representatives of the organizations certified as the proper collective bargaining agencies shall have the right to represent the employees who are members of their organizations at any such hearings. Every contractor receiving an operating-differential subsidy shall post and keep posted in a conspicuous place on each such vessel operated by such contractor a printed copy of the minimum manning and wage scales, and working conditions prescribed by his contract and applicable to such vessel: Provided, however, That any increase in the operating expenses of the subsidized vessel occasioned by any change in the wage or manning scales or working conditions as provided in this section shall be added to the operating-differential subsidy previously authorized for the vessel. (b) Subsidy contracts; provisions relative to officers and crew

Every contract executed under authority of subchapters VI and VII or this chapter shall require

(1) Insofar as is practicable, officers' living quarters shall be kept separate and apart from those furnished for members of the crew;

(2) Licensed officers and unlicensed members of the crew shall be entitled to make complaints or recommendations to the Secretary of Transportation providing they file such complaint or recommendation directly with the Secretary of Transportation, or with their immediate superior officer who shall be required to forward such complaint or recommendation with his remarks to the Secretary of Transportation, or with the authorized representatives of the respective collective bargaining agencies;

(3) Licensed officers who are members of the United States Naval Reserve shall wear on their uniforms such special distinguishing insignia as may be approved by the Secretary of the Navy; officers being those men serving under licenses issued by the Bureau of Marine Inspection and Navigation or the Coast Guard;

(4) The uniform stripes, decoration, or other insignia shall be of gold braid or woven gold or silver material, to be worn by officers, and no member of the ship's crew other than licensed officers shall be allowed to wear any uniform with such officer's identifying insignia;

(5) No discrimination shall be practiced against licensed officers, who are otherwise

qualified, because of their failure to qualify as members of the United States Naval Reserve.

(June 29, 1936, ch. 858, title III, § 301, 49 Stat. 1992; June 23, 1938, ch. 600, §§ 5, 6, 52 Stat. 954, 955; 1946 Reorg. Plan No. 3, §§ 101-104, eff. July 16, 1946, 11 F.R. 7875, 60 Stat. 1097; Aug. 6, 1981, Pub. L. 97-31, § 12(82), 95 Stat. 160.)

AMENDMENTS

1981-Subsec. (a). Pub. L. 97-31 substituted "Secretary of Transportation" for "Commission" in five instances. For prior transfers of functions of the Commission, meaning the United States Maritime Commission, see Transfer of Functions note below.

Subsec. (b)(2). Pub. L. 97-31 substituted "Secretary of Transportation" for "Commission" in three instances. For prior transfers of functions of the Commission, meaning the United States Maritime Commission, see Transfer of Functions note set out below.

1938-Subsec. (a). Act June 23, 1938, § 5, substituted "minimum working conditions" for "reasonable working conditions," eliminated provisions which required a formal complaint before any change in scales or working conditions, and permitted representatives of organizations certified as the proper collective bargaining agencies to represent employees at hearings.

Subsec. (b). Act June 23, 1938, § 6, eliminated provisions which permitted complaints and recommendations to be made to the Coast Guard or the Department of Labor, and which required licensed officers to take their meals in the main dining salon of the vessel.

TRANSFER OF FUNCTIONS

For transfer of functions of United States Maritime Commission, see Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and Reorg. Plan No. 7 of 1961, set out under section 1111 of this title.

The Coast Guard was transferred to the Department of Transportation, and all functions, powers, and duties relating to the Coast Guard of the Secretary of the Treasury and of other officers and offices of the Department of the Treasury were transferred to the Secretary of Transportation by Pub. L. 89-670, § 6(b)(1), Oct. 15, 1966, 80 Stat. 938. Section 6(b)(2) of Pub. L. 89-670, however, provided that notwithstanding such transfer of functions, the Coast Guard shall operate as part of the Navy in time of war or when the President directs as provided in section 3 of Title 14, Coast Guard. See section 108 of Title 49, Transportation.

For transfer of functions of other officers, employees, and agencies of the Department of the Treasury, with certain exceptions, to the Secretary of the Treasury with power to delegate, see Reorg. Plan No. 26 of 1950, §§ 1, 2, eff. July 31, 1950, 15 F.R. 4935, 64 Stat. 1280, 1281, set out in the Appendix to Title 5, Government Organization and Employees. Functions of the Coast Guard, and the Commandant of the Coast Guard, were excepted from transfer when the Coast Guard is operating as part of the Navy under sections 1 and 3 of Title 14.

Phrase "or the Coast Guard” was inserted in subsec. (b)(3) on authority of Reorg. Plan No. 3 of 1946, §§ 101-104, set out as a note under section 1 of this title.

§ 1132. Citizenship of officers and crew

(a) Vessels documented under laws of United States

All licensed officers of vessels documented under the laws of the United States, as now required by law, shall be citizens of the United States, native-born or completely naturalized; and upon each departure from the United States of a cargo vessel in respect of which a

construction or operating subsidy has been granted all of the crew (crew including all employees of the ship) shall be citizens of the United States, native-born or completely naturalized.

(b) Passenger vessels granted subsidies

For a period of one year after the effective date of this chapter upon each departure from the United States of a passenger vessel in respect of which a construction or operation subsidy has been granted, all licensed officers shall be citizens of the United States as defined above, and no less than 80 per centum of the crew (crew including all employees of the ship other than officers) shall be citizens of the United States, native-born or completely naturalized, and thereafter the percentage of citizens, as above defined, shall be increased 5 per centum per annum until 90 per centum of the entire crew, including all licensed officers of any such vessel, shall be citizens of the United States, native-born or completely naturalized. (c) Aliens; conditions of employment

Any member of the crew, not required by this section to be a citizen of the United States, may be an alien only if he is in possession of a valid declaration of intention to become a citizen of the United States, or other evidence of legal admission to the United States for permanent residence. Such alien, as above defined, may be employed only in the steward's department on passenger vessels.

(d) Filling vacancies while on foreign voyage

If any such vessel (as above defined) while on a foreign voyage is for any reason deprived of the services of any employee below the grade of master, his place or a vacancy caused by the promotion of another to his place may be supplied by a person other than defined in subsections (a) and (b) of this section, until the first return of such vessel to a port in the United States.

(e) Penalty for violations

The owner, agent, or officer of any such vessel who knowingly employs any person in violation of the provisions of this chapter shall, upon conviction thereof, be fined $50 for each person so employed.

(f) Enforcement; effective date; repeal of other laws

This section shall be enforced by the Secretary of the Department in which the Coast Guard is operating or the Secretary of the Treasury, for the purpose of carrying out the provisions of this section, and shall take effect ninety days after June 29, 1936.

(g) Membership of officers in United States Naval Re

serve

All of the deck and engineer officers employed on vessels on which an operating-differential subsidy is paid under authority of subchapter VI of this chapter, or employed on the Transportation Department's vessels, after one year after June 29, 1936, shall, if eligible, be members of the United States Naval Reserve. (h) Suspension of section during emergency

During a national emergency as proclaimed by the President he may, in his discretion, suspend any or all of the provisions of this section.

(June 29, 1936, ch. 858, title III, § 302, 49 Stat. 1992; Aug. 6, 1981, Pub. L. 97-31, § 12(83), 95 Stat. 160.)

AMENDMENTS

1981-Subsec. (f). Pub. L. 97-31, § 12(83)(A), substituted "Secretary of the Department in which the Coast Guard is operating or the Secretary of the Treasury" for "Secretary of Commerce". For prior transfers of functions of the Secretary of Commerce, see Transfer of Functions note below.

Subsec. (g). Pub. L. 97-31, § 12(83)(B), substituted "Transportation Department's vessels" for "Commission's vessels". For prior transfers of functions of the Commission, meaning the United States Maritime Commission, see Transfer of Functions note below.

TRANSFER OF FUNCTIONS

For transfer of functions of United States Maritime Commission, see Reorg. Plan No. 6 of 1949 and Reorg. Plan No. 21 of 1950, set out under section 1111 of this title.

For transfer of functions of Secretary of Commerce, see sections 101 to 104 of Reorg. Plan No. 3 of 1946, set out as a note under section 1 of this title, Reorg. Plan No. 26 of 1950, set out in the Appendix to Title 5, Government Organization and Employees, and section 108 of Title 49, Transportation.

TERMINATION OF WAR AND EMERGENCIES

Act July 25, 1947, ch. 327, § 3, 61 Stat. 451, provided that in the interpretation of subsec. (h) of this section, the date July 25, 1947, shall be deemed to be the date of termination of any state of war theretofore declared by Congress and of the national emergencies proclaimed by the President on Sept. 8, 1939, and May 27, 1941.

SUBCHAPTER IV-OCEAN MAIL

CONTRACTS

§§ 1141 to 1144. Omitted

CODIFICATION

Sections 1141 to 1144, related to termination and settlement of ocean mail contracts existing when this chapter became effective.

Section 1141, act June 29, 1936, ch. 858, title IV, § 401, 49 Stat. 1993, related to termination of ocean mail contracts, made prior to June 29, 1936, by June 30, 1937.

Section 1142, acts June 29, 1936, ch. 858, title IV, § 402, 49 Stat. 1993; June 1, 1938, ch. 311, 52 Stat. 606; June 23, 1938, ch. 600, § 7, 52 Stat. 955, related to adjustment of rights under terminated contracts.

Section 1143, act June 29, 1936, ch. 858, title IV, § 403, 49 Stat. 1994, related to credit of sum payable to contractor on loans and mortgage notes.

Section 1144, act June 29, 1936, ch. 858, title IV, § 404, 49 Stat. 1995, transferred powers under then existing ocean mail contracts from Postmaster General to United States Maritime Commission.

§ 1145. Repealed. Pub. L. 86-682, § 12(c), Sept. 2, 1960, 74 Stat. 725, eff. Sept. 1, 1960

Section, act June 29, 1936, ch. 858, title IV, § 405, 49 Stat. 1995, related to the carriage of United States mails on vessels and to the transportation of Postal Service employees on mail-carrying vessels without charge when on duty.

Such provisions were reenacted by section 1 of Pub. L. 86-682 as sections 6104 and 6433 of Title 39, The Postal Service. Title 39 was revised and reenacted by Pub. L. 91-375, § 2, Aug. 12, 1970, 84 Stat. 719, and the provisions contained in former sections 6104 and 6433 are covered by sections 5005 and 5007 of Title 39.

SUBCHAPTER V-CONSTRUCTION

DIFFERENTIAL SUBSIDY

SUBCHAPTER REFERRED TO IN OTHER SECTIONS This subchapter is referred to in sections 1161, 1191, 1193, 1204, 1212, 1244, 1274 of this title.

§ 1151. Subsidy authorized for vessels to be operated in foreign trade

(a) Application for subsidy for construction; conditions precedent to granting

Any proposed ship purchaser who is a citizen of the United States or any shipyard of the United States may make application to the Secretary of Transportation for a construction-differential subsidy to aid in the construction of a new vessel to be used in the foreign commerce of the United States. No such application shall be approved by the Secretary of Transportation unless he determines that (1) the plans and specifications call for a new vessel which will meet the requirements of the foreign commerce of the United States, will aid in the promotion and development of such commerce, and be suitable for use by the United States for national defense or military purposes in time of war or national emergency; (2) if the applicant is the proposed ship purchaser, the applicant possesses the ability, experience, financial resources, and other qualifications necessary for the operation and maintenance of the proposed new vessel, and (3) the granting of the aid applied for is reasonably calculated to carry out effectively the purposes and policy of this chapter. The contract of sale, and the mortgage given to secure the payment of the unpaid balance of the purchase price shall not restrict the lawful or proper use or operation of the vessel except to the extent expressly required by law. The Secretary of Transportation may give preferred consideration to applications that will tend to reduce construction-differential subsidies and that propose the construction of ships of higher transport capability and productivity. (b) Submission of plans to Navy Department; certification of approval

The Secretary of Transportation shall submit the plans and specifications for the proposed vessel to the Navy Department for examination thereof and suggestions for such changes therein as may be deemed necessary or proper in order that such vessel shall be suitable for economical and speedy conversion into a naval or military auxiliary, or otherwise suitable for the use of the United States Government in time of war or national emergency. If the Secretary of the Navy approves such plans and specifications as submitted, or as modified, in accordance with the provisions of this subsection, he shall certify such approval to the Secretary of Transportation.

(c) Application for subsidy for reconstruction or reconditioning; conditions precedent to granting; contracts

Any citizen of the United States or any shipyard of the United States may make application to the Secretary of Transportation for a construction-differential subsidy to aid in reconstructing or reconditioning any vessel that

is to be used in the foreign commerce of the United States. If the Secretary of Transportation, in the exercise of his discretion, shall determine that the granting of the financial aid applied for is reasonably calculated to carry out effectively the purposes and policy of this chapter, the Secretary of Transportation may approve such application and enter into a contract or contracts with the applicant therefor providing for the payment by the United States of a construction-differential subsidy that is to be ascertained, determined, controlled, granted, and paid, subject to all the applicable conditions and limitations of this subchapter and under such further conditions and limitations as may be prescribed in the rules and regulations of the Secretary of Transportation has adopted as provided in section 1114(b) of this title; but the financial aid authorized by this subsection shall be extended to reconstruction or reconditioning only in exceptional cases and after a thorough study and a formal determination by the Secretary of Transportation that the proposed reconstruction or reconditioning is consistent with the purposes and policy of this chapter.

(June 29, 1936, ch. 858, title V, § 501, 49 Stat. 1995; June 23, 1938, ch. 600, § 8, 52 Stat. 955; July 17, 1952, ch. 939, §§ 1, 2, 66 Stat. 760, 761; Oct. 21, 1970, Pub. L. 91-469, §§ 6, 35(a), (c), (d), 84 Stat. 1019, 1035; Dec. 31, 1970, Pub. L. 91-603, § 4(a), 84 Stat. 1675; Aug. 6, 1981, Pub. L. 97-31, § 12(84), 95 Stat. 161.)

AMENDMENTS

1981-Pub. L. 97-31 substituted "Secretary of Transportation" for "Secretary of Commerce" wherever appearing.

1970-Pub. L. 91-469, § 35(a), substituted "Secretary of Commerce" for "Commission", twice in subsecs. (a) and (b) and five times in subsec. (c).

Subsec. (a). Pub. L. 91-603 substituted "for the operation and maintenance of" for "to enable it to operate and maintain" in cl. (2).

Pub. L. 91-469, §§ 6(1), 35(c), substituted "Any proposed ship purchaser who is a citizen of the United States or any shipyard of the United States" for "Any citizen of the United States", inserted in subd. (2) the introductory words "if the applicant is the proposed ship purchaser," struck out of subd. (3) "to replace wornout or obsolete tonnage with new and modern ships, or otherwise" following "reasonably calculated", and authorized the Secretary of Commerce to give preferred consideration to applications that will tend to reduce construction-differential subsidies and that propose the construction of ships of high transport capability and productivity; and substituted "he" for "it" preceding "determines", respectively.

Subsec. (c). Pub. L. 91-469, §§ 6(2), 35(d), inserted "or any shipyard of the United States" following "Any citizen of the United States" and substituted "his" for "its" preceding "discretion", respectively.

1952-Subsecs. (a), (c). Act July 17, 1952, §§ 1, 2, eliminated requirements as to essentiality of the service, route, or line to be served by the vessel and provided that the lawful or proper use of the vessel may not be restricted.

1938-Subsec. (c). Act June 23, 1938, inserted reference to section 1114(b).

COMMISSION ON AMERICAN SHIPBUILDING Section 4 of Pub. L. 91-469 established a Commission on American Shipbuilding, provided for the appointment and compensation of an Executive Director of