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HR 5122 PCS 
(2) by moving paragraph (1) (as designated by 
the amendment made by paragraph (1) of this sub-
section) so as to appear immediately below the head-
ing for such subsection, and 2 ems to the right; and 
(3) by adding at the end the following: 
‘‘(2) LIMITATION.—The Secretary of Defense 
may not approve under paragraph (1) transfer of an 
operating agreement to a person that is not a citizen 
of the United States under section 2 of the Shipping 
Act, 1916 (46 U.S.C. App. 802), unless the Sec-
retary of Defense determines that there is no person 
who is a citizen under such section and is interested 
in obtaining the operating agreement for a vessel 
that is otherwise eligible to be included in the Fleet 
under section 53102(b).’’. 
SEC. 3503. APPLICABILITY TO CERTAIN MARITIME ADMIN-
ISTRATION VESSELS OF LIMITATIONS ON 
OVERHAUL, REPAIR, AND MAINTENANCE OF 
VESSELS IN FOREIGN SHIPYARDS. 
Section 11 of the Merchant Ship Sales Act of 1946 
(50 U.S.C. App. 1744) is amended by inserting after sub-
section (c) the following: 
‘‘(d) APPLICABILITY OF LIMITATIONS ON OVERHAUL, 
REPAIR, AND MAINTENANCE IN FOREIGN SHIPYARDS.— 
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HR 5122 PCS 
‘‘(1) APPLICATION OF LIMITATION.—The provi-
sions of section 7310 of title 10, United States 
Code, shall apply to vessels specified in subsection 
(b), and to the Secretary of Transportation with re-
spect to those vessels, in the same manner as those 
provisions apply to vessels specified in subsection (b) 
of such section, and to the Secretary of the Navy, 
respectively. 
‘‘(2) COVERED VESSELS.—Vessels specified in 
this paragraph are vessels maintained by the Sec-
retary of Transportation in support of the Depart-
ment of Defense, including any vessel assigned by 
the Secretary of Transportation to the Ready Re-
serve Force that is owned by the United States.’’. 
SEC. 3504. VESSEL TRANSFER AUTHORITY. 
The Secretary of Transportation may transfer or oth-
erwise make available without reimbursement to any other 
department a vessel under the jurisdiction of the Depart-
ment of Transportation, upon request by the Secretary of 
the department that receives the vessel. 
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585 
HR 5122 PCS 
SEC. 3505. UNITED STATES MERCHANT MARINE ACADEMY 
GRADUATES: ALTERNATE SERVICE REQUIRE-
MENTS. 
(a) SERVICE ON ACTIVE DUTY.—Section 1303(e) of 
the Merchant Marine Act, 1936 (46 U.S.C. App. 
1295b(e)) is amended by adding at the end the following: 
‘‘(6)(A) An individual who for the 5-year period fol-
lowing graduation from the Academy, serves as a commis-
sioned officer on active duty in an armed force of the 
United States or as a commissioned officer in the National 
Oceanic and Atmospheric Administration shall be excused 
from the requirements of subparagraphs (C), (D), and (E) 
of paragraph (1). 
‘‘(B) The Secretary may modify or waive any of the 
terms and conditions set forth in paragraph (1) through 
the imposition of alternative service requirements.’’. 
(b) APPLICATION.—Paragraph (6) of section 1303(e) 
of the Merchant Marine Act, 1936 (46 U.S.C. App. 
1295b(e)), as added by this subsection, applies only to an 
individual who enrolls as a cadet at the United States Mer-
chant Marine Academy, and signs an agreement under 
section paragraph (1) of that section, after the date of 
the enactment of this Act. 
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HR 5122 PCS 
SEC. 3506. UNITED STATES MERCHANT MARINE ACADEMY 
GRADUATES: 
SERVICE 
OBLIGATION 
PER-
FORMANCE REPORTING REQUIREMENT. 
(a) IN GENERAL.—Section 1303(e) of the Merchant 
Marine Act, 1936 (46 U.S.C. App. 1295b(e)) is further 
amended by adding at the end the following: 
‘‘(7)(A) Subject to any otherwise applicable restric-
tions on disclosure in section 552a of title 5, United States 
Code, the Secretary of Defense or the Secretary of the 
department in which the Coast Guard is operating, and 
the Administrator of the National Oceanic and Atmos-
pheric Administration— 
‘‘(i) shall report the status of obligated 
service of an individual graduate of the Acad-
emy upon request of the Secretary; and 
‘‘(ii) may, in their discretion, notify the 
Secretary of any failure of the graduate to per-
form the graduate’s duties, either on active 
duty or in the Ready Reserve component of 
their respective service, or as a commissioned 
officer of the National Oceanic and Atmos-
pheric Administration, respectively. 
‘‘(B) A report or notice under subparagraph (A) shall 
identify any graduate determined to have failed to comply 
with service obligation requirements and provide all re-
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HR 5122 PCS 
quired information as to why such graduate failed to com-
ply. 
‘‘(C) Upon receipt of such a report or notice, such 
graduate may be considered to be in default of the grad-
uate’s service obligations by the Secretary, and subject to 
all remedies the Secretary may have with respect to such 
a default.’’. 
(b) APPLICATION.—The amendment made by this 
section does not apply with respect to an agreement en-
tered into under section 1303(e) of the Merchant Marine 
Act, 1936 (46 U.S.C. 1295b(e)) before the date of the en-
actment of this Act. 
SEC. 3507. TEMPORARY AUTHORITY TO TRANSFER OBSO-
LETE COMBATANT VESSELS TO NAVY FOR 
DISPOSAL. 
The Secretary of Transportation shall, subject to the 
availability of appropriations and consistent with section 
1535 of title 31, United States Code, popularly known as 
the Economy Act, transfer to the Secretary of the Navy 
during fiscal year 2006 for disposal by the Navy, no fewer 
than 6 combatant vessels in the nonretention fleet of the 
Maritime Administration that are acceptable to the Sec-
retary of the Navy. 
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588 
HR 5122 PCS 
SEC. 
3508. 
TEMPORARY 
REQUIREMENT 
TO 
MAINTAIN 
READY RESERVE FORCE. 
(a) REPORT TO CONGRESS.—The Secretary of De-
fense, in consultation with the Secretary of Transpor-
tation, shall submit to Congress by not later than March 
1, 2007, a report describing a five-year plan for maintain-
ing the capability of the Ready Reserve Force of the Na-
tional Defense Reserve Fleet necessary to support Depart-
ment of Defense wartime missions and support to civil au-
thority missions. 
(b) REQUIREMENT TO MAINTAIN THE READY RE-
SERVE FORCE AT CURRENT STRENGTH.—The Secretary 
of Transportation shall maintain 58 vessels in the Ready 
Reserve Force of the National Defense Reserve Fleet until 
the end of the 45-day period beginning on the date the 
report required under subsection (a) is submitted to Con-
gress. 
Passed the House of Representatives May 11, 2006. 
Attest: 
KAREN L. HAAS, 
Clerk. 
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Calendar No. 431 
109TH CONGRESS 
2D SESSION 
H. R. 5122 
AN ACT 
To authorize appropriations for fiscal year 2007 for 
military activities of the Department of Defense, 
for military construction, and for defense activi-
ties of the Department of Energy, to prescribe 
military personnel strengths for such fiscal year, 
and for other purposes. 
MAY 15, 2006 
Received; read twice and placed on the calendar 
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