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‘‘(b) INDUCEMENTS TO IMPORTERS AND EXPORTERS.—The Secretary 
shall study and cooperate with vessel owners in devising means by which 
the importers and exporters of the United States can be induced to give 
preference to vessels of the United States. 
‘‘(c) LIAISON WITH AGENCIES
AND ORGANIZATIONS.—The Secretary 
shall establish and maintain liaison with such other agencies of the United 
States Government, and with such representative trade organizations 
throughout the United States, as may be concerned, directly or indirectly, 
with any movement of commodities in the waterborne export and import for-
eign commerce of the United States, for the purpose of securing preference 
to vessels of the United States in the shipment of those commodities. 
‘‘§ 50111. Reports to Congress 
‘‘(a) IN GENERAL.—Not later than April 1 of each year, the Secretary 
of Transportation shall submit a report to Congress. The report shall in-
clude, with respect to activities of the Secretary under this subtitle, the re-
sults of investigations, a summary of transactions, a statement of all ex-
penditures and receipts, the purposes for which all expenditures were made, 
and any recommendations for legislation. 
‘‘(b) ADMINISTERED AND OVERSIGHT FUNDS.—The Secretary, in the re-
port under subsection (a) and in the annual budget estimate for the Mari-
time 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 Sec-
retary, from time to time, shall make recommendations to Congress for leg-
islation 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 designate Na-
tional 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;
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‘‘(6) analyzing economic and operational impacts of regulatory poli-
cies and international negotiations or agreements pending before inter-
national bodies; 
‘‘(7) assessing the compatibility of domestic maritime infrastructure 
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 designa-
tion as a National Maritime Enhancement Institute shall submit an applica-
tion under regulations prescribed by the Secretary. 
‘‘(d) CRITERIA FOR DESIGNATION.—The Secretary shall designate an in-
stitute 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 na-
tional and regional contributions to the solution of both long-range and 
immediate problems of the domestic maritime industry. 
‘‘(3) The existence of an established program of the applicant encom-
passing research and training directed to enhancing maritime indus-
tries. 
‘‘(4) The demonstrated ability of the applicant to assemble and 
evaluate pertinent information from national and international sources 
and to disseminate results of maritime industry research and edu-
cational programs through a continuing education program. 
‘‘(5) The qualification of the applicant as a nonprofit institution 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 Secretary 
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 Tech-
nology Administration, shall advise the Maritime Administration on the 
availability of funds for the grants and consult with the Administration on 
making the grants.
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‘‘§ 50113. Use and performance reports by operators of ves-
sels 
‘‘(a) FILING REQUIREMENT.—The Secretary of Transportation by regula-
tion may require the operator of a vessel in the waterborne foreign com-
merce of the United States to file such report, account, record, or memo-
randum 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, re-
pair, reconditioning, and improvement of merchant vessels under the juris-
diction 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 shall be prescribed by 
the Secretary and the Fund shall be credited with receipts from vessel oper-
ations 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 em-
ployees of the United States Government. Notwithstanding any other law 
on the employment of persons by the Government, the seamen may be em-
ployed in accordance with customary commercial practices 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 Sec-
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retary considers necessary, but not more than 2 percent of vessel operating 
expenses, from the Fund to the appropriation ‘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 allo-
cation accounts established after January 1, 1951, for the activities pro-
vided 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 Comptroller General. 
‘‘(2) APPLICABLE VESSELS.—Paragraph (1) applies to a vessel— 
‘‘(A) the title to which is acquired by the Government by req-
uisition or purchase; 
‘‘(B) the use of which is taken by requisition or agreement; or 
‘‘(C) lost while insured by the Government. 
‘‘(3) NONAPPLICABLE VESSELS.—Paragraph (1) does not apply to a 
vessel under a construction-differential subsidy contract. 
‘‘(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 fore-
closure or forfeiture proceedings instituted by the Government, includ-
ing 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 agree-
ments 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 Govern-
ment-owned vessels not in the National Defense Reserve Fleet. 
‘‘(g) EXPENSES AND RECEIPTS RELATED TO CHARTER OPERATIONS.— 
The Fund is available for expenses incurred in activating, repairing, and de-
activating merchant vessels chartered under the jurisdiction of the Sec-