dreamproit/uscode huggingface dataset:
46 U.S.C. § 57303 (SHIPPING)
§ 57303. Utility value and tonnage requirements
(a) Utility Value.—
The utility value of a new vessel to be acquired under this chapter for operation in the domestic or foreign commerce of the United States may not be substantially less than that of the obsolete vessel acquired in exchange under this chapter.
(b) Tonnage.—
If the Secretary of Transportation finds that the new vessel will have a utility value at least equal to that of the obsolete vessel, the new vessel may be of lesser gross tonnage than the obsolete vessel. However, the gross tonnage of the new vessel must be at least one-third the gross tonnage of the obsolete vessel.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1662.)
text: Historical and Revision Notes
Revised
Section
Source (U.S. Code)
Source (Statutes at Large)
57303
46 App.:1160(c).
June 29, 1936, ch. 858, title V, § 510(c), as added Aug. 4, 1939, ch. 417, § 7, 53 Stat. 1184; Pub. L. 97–31, § 12(91), Aug. 6, 1981, 95 Stat. 161.
46 U.S.C. § 57304 (SHIPPING)
§ 57304. Eligible acquisition dates
At the option of the owner, the acquisition of an obsolete vessel under this chapter shall occur—
(1) when the owner contracts for the construction or purchase of a new vessel; or
(2) within 5 days of the actual date of delivery of the new vessel to the owner.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1662.)
text: Historical and Revision Notes
Revised
Section
Source (U.S. Code)
Source (Statutes at Large)
57304
46 App.:1160(b) (2d sentence).
June 29, 1936, ch. 858, title V, § 510(b) (2d sentence), as added Aug. 4, 1939, ch. 417, § 7, 53 Stat. 1184; Pub. L. 87–401, subdiv. (1), Oct. 5, 1961, 75 Stat. 833; Pub. L. 91–469, § 35(a), Oct. 21, 1970, 84 Stat. 1035; Pub. L. 97–31, § 12(91), Aug. 6, 1981, 95 Stat. 161.
The words “At the option of the owner” are substituted for “if the owner so requests” for clarity.
46 U.S.C. § 57305 (SHIPPING)
§ 57305. Determination of trade-in allowance
(a) In General.—
The Secretary of Transportation shall determine the trade-in allowance for an obsolete vessel at the time of acquisition of the vessel. The allowance shall be the fair value of the vessel. In determining the value, the Secretary shall consider—
(1) the scrap value of the obsolete vessel in American and foreign markets;
(2) the depreciated value based on a 20-year or 25-year life, whichever applies to the obsolete vessel; and
(3) the market value of the obsolete vessel for operation in world commerce or in the domestic or foreign commerce of the United States.
(b) Use of Obsolete Vessels.—
If acquisition of the obsolete vessel occurs when the owner contracts for the construction of the new vessel, and the owner uses the obsolete vessel during the period of construction of the new vessel, the Secretary shall reduce the trade-in allowance by an amount representing the fair value of that use. The Secretary shall establish the rate for use of the obsolete vessel when the contract for construction of the new vessel is made.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1663.)
text: Historical and Revision Notes
Revised
Section
Source (U.S. Code)
Source (Statutes at Large)
57305(a)
46 App.:1160(b) (3d sentence), (d) (1st, 2d sentences).
June 29, 1936, ch. 858, title V, § 510(b) (3d sentence), (d), as added Aug. 4, 1939, ch. 417, § 7, 53 Stat. 1184; July 17, 1952, ch. 939, § 8, 66 Stat. 762; Pub. L. 86–518, § 1, June 12, 1960, 74 Stat. 216; Pub. L. 87–401, Oct. 5, 1961, 75 Stat. 833; Pub. L. 91–469, § 35(a), Oct. 21, 1970, 84 Stat. 1035; Pub. L. 97–31, § 12(91), Aug. 6, 1981, 95 Stat. 161.
57305(b)
46 App.:1160(d) (3d, last sentences).
In subsection (a), the words “fair value” are substituted for “fair and reasonable value” to eliminate unnecessary words. In paragraph (3), the word “commerce” is substituted for “trade” for consistency in the chapter.
In subsection (b), the words “for the entire period of such use” are omitted as unnecessary.
46 U.S.C. § 57306 (SHIPPING)
§ 57306. Payment of trade-in allowance
(a) Acquisition at Time of Contract.—
If acquisition of an obsolete vessel under this chapter occurs when the owner contracts for the construction or purchase of the new vessel, the Secretary of Transportation shall apply the trade-in allowance to the purchase price of the new vessel rather than paying it to the owner. If the new vessel is constructed under this subtitle, the Secretary may apply the trade-in allowance to the required cash payments on terms and conditions the Secretary may prescribe. If the new vessel is not constructed under this subtitle, the Secretary shall pay the trade-in allowance to the builder of the vessel for the account of the owner when the Secretary acquires the obsolete vessel.
(b) Acquisition at Time of Delivery.—
If acquisition of the obsolete vessel occurs when the new vessel is delivered to the owner, the Secretary shall deposit the trade-in allowance in the owner’s capital construction fund.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1663.)
text: Historical and Revision Notes
Revised
Section
Source (U.S. Code)
Source (Statutes at Large)
57306
46 App.:1160(b) (4th–7th sentences).
June 29, 1936, ch. 858, title V, § 510(b) (4th–7th sentences), as added Aug. 4, 1939, ch. 417, § 7, 53 Stat. 1184; Pub. L. 87–401, subdiv. (1), Oct. 5, 1961, 75 Stat. 833; Pub. L. 91–469, §§ 12(b), 35(a), Oct. 21, 1970, 84 Stat. 1022, 1035; Pub. L. 97–31, § 12(91), Aug. 6, 1981, 95 Stat. 161.
In subsection (b), the words “acquisition of the obsolete vessel occurs” are substituted for “title to the obsolete vessel is acquired” for consistency in the chapter.
46 U.S.C. § 57307 (SHIPPING)
§ 57307. Recognition of gain for tax purposes
The owner of an obsolete vessel does not recognize a gain under the Federal income tax laws when the vessel is transferred to the Secretary of Transportation in exchange for a trade-in allowance under this chapter. The basis of the new vessel acquired with the allowance is the same as the basis of the obsolete vessel—
(1) increased by the difference between the cost of the new vessel and the trade-in allowance of the obsolete vessel; and
(2) decreased by the amount of loss recognized on the transfer.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1663.)
text: Historical and Revision Notes
Revised
Section
Source (U.S. Code)
Source (Statutes at Large)
57307
46 App.:1160(e).
June 29, 1936, ch. 858, title V, § 510(e), as added Aug. 4, 1939, ch. 417, § 7, 53 Stat. 1184; Pub. L. 97–31, § 12(91), Aug. 6, 1981, 95 Stat. 161.
The words “for gain or loss upon a sale or exchange and for depreciation under the applicable Federal income-tax laws” and “or vessels exchanged for credit upon the acquisition of such new vessel” are omitted as unnecessary. In paragraph (1), the words “the difference between the cost of the new vessel and the trade-in allowance of the obsolete vessel” are substituted for “the amount of the cost of such vessel (other than the cost represented by such obsolete vessel or vessels)” for clarity.
46 U.S.C. § 57308 (SHIPPING)
§ 57308. Use of vessels at least 25 years old
An obsolete vessel acquired under this chapter that is or becomes at least 25 years old may not be used for commercial operation. However, the vessel may be used—
(1) during a period in which vessels may be requisitioned under chapter 563 of this title; or
(2) except as otherwise provided in this subtitle, on trade routes serving only the foreign trade of the United States.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1664.)
text: Historical and Revision Notes
Revised
Section
Source (U.S. Code)
Source (Statutes at Large)
57308
46 App.:1160(g).
June 29, 1936, ch. 858, title V, § 510(g), as added Aug. 4, 1939, ch. 417, § 7, 53 Stat. 1185; Pub. L. 86–518, § 1, June 12, 1960, 74 Stat. 216; Pub. L. 97–31, § 12(91), Aug. 6, 1981, 95 Stat. 161.
The words “and vessels presently in the Secretary’s laid-up fleet which are or become twenty-five years old or more” and “or any such vessel in the laid-up fleet” are omitted as obsolete. In paragraph (2), the words “for the employment of the Secretary’s vessels in steamship lines” are omitted as unnecessary.
46 U.S.C. § 57501 (SHIPPING)
§ 57501. Completion of long-range program
Whenever the Secretary of Transportation determines that the objectives and policies declared in sections 50101 and 50102 of this title cannot be fully realized within a reasonable time under titles V and VI of the Merchant Marine Act, 1936, and the President approves the determination, the Secretary, in accordance with this chapter, shall complete the long-range program described in section 50102 of this title.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1664.)
text: Historical and Revision Notes
Revised
Section
Source (U.S. Code)
Source (Statutes at Large)
57501
46 App.:1191.
June 29, 1936, ch. 858, title VII, § 701, 49 Stat. 2008; Pub. L. 97–31, § 12(103), Aug. 6, 1981, 95 Stat. 162.
The words “find and”, “finding and”, “in whole or in part”, and “previously adopted” are omitted as unnecessary. The word “shall” is substituted for “is authorized and directed to” to eliminate unnecessary words.
heading: References in Text
text: The Merchant Marine Act, 1936, referred to in text, is act June 29, 1936, ch. 858, 49 Stat. 1985. Titles V and VI of the Act enacted provisions set out as notes under section 53101 of this title. For complete classification of this Act to the Code, see Short Title of 1936 Amendment note set out under section 101 of this title and Tables.
46 U.S.C. § 57502 (SHIPPING)
§ 57502. Construction, reconditioning, and remodeling of vessels
(a) In General.—
The Secretary of Transportation may have new vessels constructed, and have old vessels reconditioned or remodeled, as the Secretary determines necessary to carry out the objectives of this subtitle.
(b) Place of Work.—
Construction, reconditioning, and remodeling of vessels under subsection (a) shall take place in shipyards in the continental United States (including Alaska and Hawaii). However, if satisfactory contracts cannot be obtained from private shipbuilders, the Secretary may have the work done in navy yards.
(c) Applicability of Construction-Differential Subsidy Provisions.—
Contracts for the construction, reconstruction, or reconditioning of a vessel by a private shipbuilder under this chapter are subject to the provisions of title V of the Merchant Marine Act, 1936, applicable to a contract with a private shipbuilder for the construction of a vessel under title V of that Act.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1664.)
text: Historical and Revision Notes
Revised
Section
Source (U.S. Code)
Source (Statutes at Large)
57502(a), (b)
46 App.:1192.
June 29, 1936, ch. 858, title VII, § 702, 49 Stat. 2008; Pub. L. 85–191, Aug. 28, 1957, 71 Stat. 471; Pub. L. 86–624, § 35(c), July 12, 1960, 74 Stat. 421; Pub. L. 97–31, § 12(104), Aug. 6, 1981, 95 Stat. 162.
57502(c)
46 App.:1193(b).
June 29, 1936, ch. 858, title VII, § 703(b), 49 Stat. 2008.
In subsection (b), the words “for such new construction or reconstruction, in accordance with the provisions of this chapter” are omitted as unnecessary.
heading: References in Text
text: The Merchant Marine Act, 1936, referred to in subsec. (c), is act June 29, 1936, ch. 858, 49 Stat. 1985. Title V of the Act enacted provisions set out as notes under section 53101 of this title. For complete classification of this Act to the Code, see Short Title of 1936 Amendment note set out under section 101 of this title and Tables.
46 U.S.C. § 57503 (SHIPPING)
§ 57503. Competitive bidding
(a) Advertisement and Bidding.—
The Secretary of Transportation may make a contract with a private shipbuilder for the construction of a new vessel, or for the reconstruction or reconditioning of an existing vessel, only after due advertisement and upon sealed competitive bids.
(b) Opening of Bids.—
Bids required under this section shall be opened at the time and place stated in the advertisement for bids. All interested persons, including representatives of the press, shall be permitted to attend. The results of the bidding shall be publicly announced.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1665.)
text: Historical and Revision Notes
Revised
Section
Source (U.S. Code)
Source (Statutes at Large)
57503(a)
46 App.:1193(a).
June 29, 1936, ch. 858, title VII, § 703(a), (c) (related to construction, reconstruction, or reconditioning), 49 Stat. 2008; Pub. L. 97–31, § 12(105), Aug. 6, 1981, 95 Stat. 163.
57503(b)
46 App.:1193(c) (related to construction, reconstruction, or reconditioning).
In subsection (b), the words “Bids required under this section” are substituted for “All bids required by the Secretary of Transportation for the construction, reconstruction, or reconditioning of vessels” to eliminate unnecessary words. The word “hour” is omitted as covered by “time”.
46 U.S.C. § 57504 (SHIPPING)
§ 57504. Charter or sale of vessels acquired by Department of Transportation
Vessels transferred to or otherwise acquired by the Department of Transportation in any manner may be chartered or sold by the Secretary of Transportation as provided in this chapter.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1665.)
text: Historical and Revision Notes
Revised
Section
Source (U.S. Code)
Source (Statutes at Large)
57504
46 App.:1194.
June 29, 1936, ch. 858, title VII, § 704, 49 Stat. 2008; Apr. 1, 1937, ch. 64, 50 Stat. 57; Pub. L. 97–31, § 12(106), Aug. 6, 1981, 95 Stat. 163.
46 U.S.C. § 57505 (SHIPPING)
§ 57505. Employment of vessels on foreign trade routes
(a) In General.—
The Secretary of Transportation shall arrange for the employment of the Department of Transportation’s vessels in steamship lines on such trade routes, exclusively serving the foreign trade of the United States, as the Secretary determines are essential for the development and maintenance of the commerce of the United States and the national defense. However, the Secretary shall first determine that those routes are not being adequately served by existing steamship lines privately owned and operated by citizens of the United States and documented under the laws of the United States.
(b) Policy To Encourage Private Operation.—
The Secretary shall have a policy of encouraging private operation of each essential steamship line now owned by the United States Government by—
(1) selling the line to a citizen of the United States; or
(2) demising the Secretary’s vessels on bareboat charter to citizens of the United States who agree to maintain the line in the manner provided in this chapter.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1665.)
text: Historical and Revision Notes
Revised
Section
Source (U.S. Code)
Source (Statutes at Large)
57505(a)
46 App.:1195 (1st sentence).
June 29, 1936, ch. 858, title VII, § 705 (1st, 2d sentences), 49 Stat. 2009; Pub. L. 97–31, § 12(107), Aug. 6, 1981, 95 Stat. 163.
57505(b)
46 App.:1195 (2d sentence).
In subsection (a), the words “As soon as practicable after June 29, 1936, and continuing thereafter” are omitted as obsolete. The words “However, the Secretary shall first determine that those routes are not being adequately served” are substituted for “Provided, That such needs are not being adequately served” for clarity and because provisos are disfavored in modern drafting.
In subsection (b)(1), the words “in the manner provided in section 7 of the Merchant Marine Act, 1920 [46 App. U.S.C. 866], and in strict accordance with the provisions of section 5 of said Act” are omitted because section 5 of that Act was repealed in 1988, and section 7 is being repealed as obsolete by this bill without being restated.
46 U.S.C. § 57506 (SHIPPING)
§ 57506. Minimum selling price of vessels
(a) In General.—
A vessel constructed under this subtitle or the Merchant Marine Act, 1936, may not be sold by the Secretary of Transportation for less than the price specified in this section.
(b) Operation in Foreign Trade.—
If the vessel is to be operated in foreign trade, the minimum price is the estimated foreign construction cost (exclusive of national defense features) determined as of the date the construction contract is executed, less depreciation under subsection (d).
(c) Operation in Domestic Trade.—
If the vessel is to be operated in domestic trade, the minimum price is the cost of construction in the United States (exclusive of national defense features), less depreciation under subsection (d).
(d) Depreciation.—
Depreciation under subsections (b) and (c) shall be based on—
(1) a 25-year life for dry-cargo and passenger vessels; and
(2) a 20-year life for tankers and other bulk liquid carrier vessels.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1665.)
text: Historical and Revision Notes
Revised
Section
Source (U.S. Code)
Source (Statutes at Large)
57506
46 App.:1195 (last sentence).
June 29, 1936, ch. 858, title VII, § 705 (last sentence), as added Aug. 4, 1939, ch. 417, § 11(a), 53 Stat. 1185; Pub. L. 86–518, § 1, June 12, 1960, 74 Stat. 216; Pub. L. 97–31, § 12(107), Aug. 6, 1981, 95 Stat. 163.
46 App.:1125 note.
Pub. L. 86–518, § 9, June 12, 1960, 74 Stat. 217.
Subsection (d) is substituted for “less depreciation based on a twenty-five year life” because of section 9 of Public Law 86–518 (June 12, 1960, 74 Stat. 217), which provided that “Nothing in any amendment made by this Act [including section 1 substituting ‘twenty-five’ for ‘twenty’ in 46 App. U.S.C. 1195] shall operate or be interpreted to change from twenty to twenty-five years the provisions of the Merchant Marine Act, 1936, as amended, relating to the commercial expectancy or period of depreciation of any tanker or other liquid bulk carrier.”
heading: References in Text
text: The Merchant Marine Act, 1936, referred to in subsec. (a), is act June 29, 1936, ch. 858, 49 Stat. 1985, which enacted provisions set out as notes under section 53101 of this title. For complete classification of this Act to the Code, see Short Title of 1936 Amendment note set out under section 101 of this title and Tables.
46 U.S.C. § 57511 (SHIPPING)
§ 57511. Demise charters
A charter by the Secretary of Transportation under this chapter shall demise the vessel to the charterer subject to all usual conditions contained in a bareboat charter. The charter shall be for a term the Secretary considers to be in the best interest of the United States Government and the merchant marine.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1666.)
text: Historical and Revision Notes
Revised
Section
Source (U.S. Code)
Source (Statutes at Large)
57511
46 App.:1201.
June 29, 1936, ch. 858, title VII, § 711, 49 Stat. 2010; Pub. L. 97–31, § 12(113), Aug. 6, 1981, 95 Stat. 163.
The words “for a term the Secretary considers to be” are substituted for “until January 1, 1940, shall be for terms of three years or less as the Secretary of Transportation may decide: Provided, That after January 1, 1940, charters may be executed by the Secretary of Transportation for such terms as the experience gained by the Secretary of Transportation shall indicate are” to eliminate unnecessary and obsolete words.
46 U.S.C. § 57512 (SHIPPING)
§ 57512. Competitive bidding
(a) In General.—
The Secretary of Transportation may charter a vessel of the Department of Transportation to a private operator only on the basis of competitive sealed bidding. The bids must be submitted in strict compliance with the terms and conditions of a public advertisement soliciting the bids.
(b) Advertisement for Bids.—
An advertisement for bids shall state—
(1) the number, type, and tonnage of the vessels being offered for bareboat charter for operation as a steamship line on a designated trade route;
(2) the minimum number of sailings required;
(3) the length of time of the charter;
(4) the right of the Secretary to reject all bids; and
(5) other information the Secretary considers necessary for the information of prospective bidders.
(c) Opening of Bids.—
Bids required under this section shall be opened at the time and place stated in the advertisement for bids. All interested persons, including representatives of the press, shall be permitted to attend. The results of the bidding shall be publicly announced.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1666.)
text: Historical and Revision Notes
Revised
Section
Source (U.S. Code)
Source (Statutes at Large)
57512(a)
46 App.:1196(a) (1st sentence).
June 29, 1936, ch. 858, title VII, § 706(a), (b) (1st sentence related to announcement), 49 Stat. 2009; Pub. L. 97–31, § 12(108), Aug. 6, 1981, 95 Stat. 163.
57512(b)
46 App.:1196(a) (last sentence), (b) (1st sentence related to announcement).
57512(c)
46 App.:1193(c) (related to chartering).
June 29, 1936, ch. 858, title VII, § 703(c) (related to chartering), 49 Stat. 2008; Pub. L. 97–31, § 12(105), Aug. 6, 1981, 95 Stat. 163.
Subsection (b)(4) is substituted for “announce in his advertisements for bids that the Secretary of Transportation reserves the right to, reject any and all bids submitted” in 46 App. U.S.C. 1196(b) to improve the organization.
In subsection (c), the words “Bids required under this section” are substituted for “All bids required by the Secretary of Transportation . . . and for the chartering of the Secretary’s vessels hereinafter provided for” to eliminate unnecessary words. The word “hour” is omitted as covered by “time”.
46 U.S.C. § 57513 (SHIPPING)
§ 57513. Minimum bid
The Secretary of Transportation shall reject any bid for the charter under this subchapter of a vessel constructed under this subtitle or the Merchant Marine Act, 1936, if the charter hire offered is lower than the minimum charter hire would be if the vessel were chartered under section 57531 of this title.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1666.)
text: Historical and Revision Notes
Revised
Section
Source (U.S. Code)
Source (Statutes at Large)
57513
46 App.:1196(b) (last sentence).
June 29, 1936, ch. 858, title VII, § 706(b) (last sentence), as added Aug. 4, 1939, ch. 417, § 11(b), 53 Stat. 1186; Pub. L. 97–31, § 12(108), Aug. 6, 1981, 95 Stat. 163.
heading: References in Text
text: The Merchant Marine Act, 1936, referred to in text, is act June 29, 1936, ch. 858, 49 Stat. 1985, which enacted provisions set out as notes under section 53101 of this title. For complete classification of this Act to the Code, see Short Title of 1936 Amendment note set out under section 101 of this title and Tables.
46 U.S.C. § 57514 (SHIPPING)
§ 57514. Qualifications of bidders
(a) Considerations.—
In deciding whether to award a charter to a bidder, the Secretary of Transportation shall consider—
(1) the bidder’s financial resources, credit standing, and practical experience in operating vessels; and
(2) other factors a prudent business person would consider in entering into a transaction involving a large capital investment.
(b) Disqualifications.—
The Secretary may not charter a vessel to a person appearing to lack sufficient capital, credit, and experience to operate the vessel successfully over the period covered by the charter.
(Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1666.)
text: Historical and Revision Notes
Revised
Section
Source (U.S. Code)
Source (Statutes at Large)
57514
46 App.:1203.
June 29, 1936, ch. 858, title VII, § 713, 49 Stat. 2010; Pub. L. 97–31, § 12(115), Aug. 6, 1981, 95 Stat. 164.