H. R. 1442—77
The report shall include, with respect to activities of the Secretary 
under this subtitle, the results of investigations, a summary of 
transactions, a statement of all expenditures and receipts, the pur-
poses for which all expenditures were made, and any recommenda-
tions for legislation. 
‘‘(b) ADMINISTERED AND OVERSIGHT FUNDS.—The Secretary, in 
the report under subsection (a) and in the annual budget estimate 
for the Maritime Administration submitted to Congress, shall state 
separately the amount, source, intended use, and nature of any 
funds (other than funds appropriated to the Administration or 
to the Secretary of Transportation for use by the Administration) 
administered, or subject to oversight, by the Administration. 
‘‘(c) ADDITIONAL RECOMMENDATIONS
FOR LEGISLATION.—The 
Secretary, from time to time, shall make recommendations to Con-
gress for legislation the Secretary considers necessary to better 
achieve the objectives and policy of section 50101 of this title. 
‘‘§ 50112. National Maritime Enhancement Institutes 
‘‘(a) DESIGNATION.—The Secretary of Transportation may des-
ignate National Maritime Enhancement Institutes. 
‘‘(b) ACTIVITIES.—Activities undertaken by an institute may 
include—
‘‘(1) conducting research about methods to improve the 
performance of maritime industries; 
‘‘(2) enhancing the competitiveness of domestic maritime 
industries in international trade; 
‘‘(3) forecasting trends in maritime trade; 
‘‘(4) assessing technological advancements; 
‘‘(5) developing management initiatives and training; 
‘‘(6) analyzing economic and operational impacts of regu-
latory policies and international negotiations or agreements 
pending before international bodies; 
‘‘(7) assessing the compatibility of domestic maritime infra-
structure systems with overseas transport systems; 
‘‘(8) fostering innovations in maritime transportation 
pricing; and 
‘‘(9) improving maritime economics and finance. 
‘‘(c) APPLICATION
FOR DESIGNATION.—An institution seeking 
designation as a National Maritime Enhancement Institute shall 
submit an application under regulations prescribed by the Sec-
retary. 
‘‘(d) CRITERIA FOR DESIGNATION.—The Secretary shall designate 
an institute under this section on the basis of the following criteria: 
‘‘(1) The demonstrated research and extension resources 
available to the applicant for carrying out the activities specified 
in subsection (b). 
‘‘(2) The ability of the applicant to provide leadership in 
making national and regional contributions to the solution of 
both long-range and immediate problems of the domestic mari-
time industry. 
‘‘(3) The existence of an established program of the 
applicant encompassing research and training directed to 
enhancing maritime industries. 
‘‘(4) The demonstrated ability of the applicant to assemble 
and evaluate pertinent information from national and inter-
national sources and to disseminate results of maritime
H. R. 1442—78
industry research and educational programs through a con-
tinuing education program. 
‘‘(5) The qualification of the applicant as a nonprofit institu-
tion of higher learning. 
‘‘(e) FINANCIAL AWARDS.—The Secretary may make awards on 
an equal matching basis to an institute designated under subsection 
(a) from amounts appropriated. The aggregate annual amount of 
the Federal share of the awards by the Secretary may not exceed 
$500,000. 
‘‘(f) UNIVERSITY TRANSPORTATION RESEARCH FUNDS.—The Sec-
retary may make a grant under section 5505 of title 49 to an 
institute designated under subsection (a) for maritime and maritime 
intermodal research under that section as if the institute were 
a university transportation center. In making a grant, the Secretary, 
through the Research and Innovative Technology Administration, 
shall advise the Maritime Administration on the availability of 
funds for the grants and consult with the Administration on making 
the grants. 
‘‘§ 50113. Use and performance reports by operators of ves-
sels 
‘‘(a) FILING REQUIREMENT.—The Secretary of Transportation 
by regulation may require the operator of a vessel in the waterborne 
foreign commerce of the United States to file such report, account, 
record, or memorandum on the use and performance of the vessel 
as the Secretary considers desirable to assist in carrying out this 
subtitle. The report, account, record, or memorandum shall be 
signed and verified, and be filed at the times and in the manner, 
as provided by regulation. 
‘‘(b) CIVIL PENALTY.—An operator not filing a report, account, 
record, or memorandum required by the Secretary under this section 
is liable to the United States Government for a civil penalty of 
$50 for each day of the violation. A penalty imposed under this 
section on the operator of a vessel constitutes a lien on the vessel 
involved in the violation. A civil action in rem to enforce the 
lien may be brought in the district court of the United States 
for any district in which the vessel is found. The Secretary may 
remit or mitigate any penalty imposed under this section.
‘‘CHAPTER 503—ADMINISTRATIVE
‘‘Sec. 
‘‘50301.
Vessel Operations Revolving Fund. 
‘‘50302.
Port development. 
‘‘50303.
Operating property and extending term of notes. 
‘‘50304.
Sale and transfer of property. 
‘‘50305.
Appointment of trustee or receiver and operation of vessels. 
‘‘50306.
Requiring testimony and records in investigations.
‘‘§ 50301. Vessel Operations Revolving Fund 
‘‘(a) IN GENERAL.—There is a ‘Vessel Operations Revolving 
Fund’ for use by the Secretary of Transportation in carrying out 
duties and powers related to vessel operations, including charter, 
operation, maintenance, repair, reconditioning, and improvement 
of merchant vessels under the jurisdiction of the Secretary. The 
Fund has a working capital of $20,000,000, to remain available 
until expended. 
‘‘(b) RELATIONSHIP
TO OTHER LAWS.—Notwithstanding any 
other law, rates for shipping services provided under the Fund
H. R. 1442—79
shall be prescribed by the Secretary and the Fund shall be credited 
with receipts from vessel operations conducted under the Fund. 
Sections 1(a) and (c), 3(c), and 4 of the Act of March 24, 1943 
(50 App. U.S.C. 1291(a), (c), 1293(c), 1294), apply to those operations 
and to seamen employed through general agents as employees 
of the United States Government. Notwithstanding any other law 
on the employment of persons by the Government, the seamen 
may be employed in accordance with customary commercial prac-
tices in the maritime industry. 
‘‘(c) ADVANCEMENTS.—With the approval of the Director of the 
Office of Management and Budget, the Secretary may advance 
amounts the Secretary considers necessary, but not more than 
2 percent of vessel operating expenses, from the Fund to the appro-
priation ‘Salaries and Expenses’ in carrying out duties and powers 
related to vessel operations, without regard to the limitations on 
amounts stated in that appropriation. 
‘‘(d) TRANSFERS.—The unexpended balances of working funds 
or of allocation accounts established after January 1, 1951, for 
the activities provided for in subsection (a), and receipts received 
from those activities, may be transferred to the Fund, which shall 
be available for the purposes of those working funds or allocation 
accounts. 
‘‘(e) LIMITATION.—
‘‘(1) IN GENERAL.—Amounts made available to the Secretary 
for maritime activities by this section or any other law may 
not be used to pay for a vessel described in paragraph (2) 
unless the compensation to be paid is computed under section 
56303 of this title as that section is interpreted by the Comp-
troller General. 
‘‘(2) APPLICABLE
VESSELS.—Paragraph (1) applies to a 
vessel—
‘‘(A) the title to which is acquired by the Government 
by requisition or purchase; 
‘‘(B) the use of which is taken by requisition or agree-
ment; or 
‘‘(C) lost while insured by the Government. 
‘‘(3) NONAPPLICABLE
VESSELS.—Paragraph (1) does not 
apply to a vessel under a construction-differential subsidy con-
tract. 
‘‘(f) AVAILABILITY
FOR ADDITIONAL PURPOSES.—The Fund is 
available for—
‘‘(1) necessary expenses incurred in the protection, 
preservation, maintenance, acquisition, or use of vessels 
involved in mortgage foreclosure or forfeiture proceedings 
instituted by the Government, including payment of prior 
claims and liens, expenses of sale, or other related charges; 
‘‘(2) necessary expenses incident to the redelivery and lay-
up, in the United States, of vessels chartered as of June 20, 
1956, under agreements not calling for their return to the 
Government; 
‘‘(3) the activation, repair, and deactivation of merchant 
vessels chartered for limited emergency purposes during fiscal 
year 1957 under the jurisdiction of the Secretary; and 
‘‘(4) payment of expenses of custody and maintenance of 
Government-owned vessels not in the National Defense Reserve 
Fleet.
H. R. 1442—80
‘‘(g) EXPENSES
AND RECEIPTS RELATED
TO CHARTER OPER-
ATIONS.—The Fund is available for expenses incurred in activating, 
repairing, and deactivating merchant vessels chartered under the 
jurisdiction of the Secretary. Receipts from charter operations of 
Government-owned vessels under the jurisdiction of the Secretary 
shall be credited to the Fund. 
‘‘§ 50302. Port development 
‘‘(a) GENERAL REQUIREMENTS.—With the objective of promoting, 
encouraging, and developing ports and transportation facilities in 
connection with water commerce over which the Secretary of 
Transportation has jurisdiction, the Secretary, in cooperation with 
the Secretary of the Army, shall—
‘‘(1) investigate territorial regions and zones tributary to 
ports, taking into consideration the economies of transportation 
by rail, water, and highway and the natural direction of the 
flow of commerce; 
‘‘(2) investigate the causes of congestion of commerce at 
ports and applicable remedies; 
‘‘(3) investigate the subject of water terminals, including 
the necessary docks, warehouses, and equipment, to devise 
and suggest the types most appropriate for different locations 
and for the most expeditious and economical transfer or inter-
change of passengers or property between water carriers and 
rail carriers; 
‘‘(4) consult with communities on the appropriate location 
and plan of construction of wharves, piers, and water terminals; 
‘‘(5) investigate the practicability and advantages of harbor, 
river, and port improvements in connection with foreign and 
coastwise trade; and 
‘‘(6) investigate any other matter that may tend to promote 
and encourage the use by vessels of ports adequate to care 
for the freight that naturally would pass through those ports. 
‘‘(b) SUBMISSION
OF FINDINGS
TO SURFACE TRANSPORTATION 
BOARD.—After an investigation under subsection (a), if the Sec-
retary of Transportation believes that the rates or practices of 
a rail carrier subject to the jurisdiction of the Surface Transpor-
tation Board are detrimental to the objective specified in subsection 
(a), or that new rates or practices, new or additional port terminal 
facilities, or affirmative action by a rail carrier is necessary to 
promote that objective, the Secretary may submit findings to the 
Board for action the Board considers appropriate under existing 
law. 
‘‘§ 50303. Operating property and extending term of notes 
‘‘(a) GENERAL AUTHORITY.—The Secretary of Transportation 
may—
‘‘(1) operate or lease docks, wharves, piers, or real property 
under the Secretary’s control; and 
‘‘(2) make extensions and accept renewals of—
‘‘(A) promissory notes and other evidences of indebted-
ness on property; and 
‘‘(B) mortgages and other contracts securing the prop-
erty. 
‘‘(b) TERMS OF TRANSACTIONS.—A transaction under subsection 
(a) shall be on terms the Secretary considers necessary to carry