Maritime Appropriation Authorization Act for Fiscal Year 1980
PL 96-112 (S.640), enacted 11/16/1979

PUBLIC LAW 96-112—NOV. 16, 1979 
93 STAT. 847 
Public Law 96-
96th Congress 
112 
An Act 
To authorize appropriations for the fiscal year 1980 for certain maritime programs 
of the Department of Commerce, and for other purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, That this Act may be 
cited as the "Maritime Appropriation Authorization Act for Fiscal 
Year 1980". 
SEC. 2. Funds are authorized to be appropriated without fiscal year 
limitation as the appropriation Act may provide for the use of the 
Department of Commerce, for the fiscal year 1980, as follows: 
(1) For acquisition, construction, or reconstruction of vessels 
and construction-differential subsidy and cost of national defense 
features incident to the construction, reconstruction, or recondi-
tioning of ships, not to exceed $101,000,000; except that— 
(A) no funds authorized by this paragraph may be paid to 
subsidize the construction of any vessel which will not be 
offered for enrollment in a Sealift Readiness program 
approved by the Secretary of Defense; and 
(B) in paying the funds authorized by this paragraph, the 
construction subsidy rate otherwise applicable may be 
reduced by 5 percent unless the Secretary of Commerce, in 
his discretion, determines that the vessel to be constructed is 
part of an existing or future vessels series. 
(2) For payment of obligations incurred for operating-differen-
tial subsidy, not to exceed $256,208,000; except that— 
(A) no funds authorized by this paragraph may be paid for 
the operation of any vessel which is not offered for participa-
tion in a Sealift Readiness program approved by the Secre-
tary of Defense; and 
(B) an operator receiving funds under this paragraph may 
elect, for all or a portion of its ships, to suspend its operating 
differential subsidy contract with all attendant statutory 
and contractual restrictions, except as to those pertaining to 
the domestic intercosistal or coastwise service, including any 
agreement providing for the replacement of vessels, if— 
(i) the vessel is less than ten years of age, 
(ii) the suspension period is not less than twelve 
months, 
(iii) the operator's financial condition is maintained at 
a level acceptable to the Secretary of Commerce, and 
(iv) the owner agrees to pay to the Secretary, upon 
such terms and conditions as he may prescribe, an 
amount which bears the same proportion to the con-
struction-differential subsidy paid by the Secretary as 
the portion of the suspension period during which the 
vessel is operated in any preference trade from which a 
subsidized vessel would otherwise be excluded by law or 
contract bears to the entire economic life of the vessel. 
Any operator making an election under subparagraph (B) is 
entitled to full reinstatement of the suspended contract on 
Nov. 16, 1979 
[S. 640] 
Maritime 
Appropriation 
Authorization 
Act for Fiscal 
Year 1980. 
93 STAT. 848 
PUBLIC LAW 96-112—NOV. 16, 1979 
46 use 1126. 
Merchant 
Marine Act, 
amendment. 
request until October 1, 1984. The Secretary of Commerce may 
prescribe rules and regulations consistent with the purpose of 
subparagraph (B). 
(3) For expenses necessary for research and development 
activities, not to exceed $16,360,000, 
(4) For maritime education and training expenses, not to 
exceed $31,372,000; including not to exceed $17,132,000 for mari-
time training at the Merchant Marine Academy at Kings Point, 
New York; $10,285,000 for financial assistance to State marine 
schools; $1,998,000 for fuel oil for State marine school training 
vessels; and $1,957,000 for supplementary training courses 
authorized under section 216(c) of the Merchant Marine Act, 
1936. 
(5) For operating expenses, not to exceed $35,598,000; including 
not to exceed $6,377,000 for reserve fleet expenses; and 
$29,221,000 for other operating expenses. 
SEC. 3. There are authorized to be appropriated for the fiscal year 
1980, in addition to the amounts authorized by section 2 of this Act, 
such additional supplemental amounts for the activities for which 
appropriations are authorized under section 2 of this Act, as may be 
necessary for increases in salary, pay, retirement, or other employee 
benefits authorized by law, and for increased costs for public utilities, 
food service, and other expenses of the Merchant Marine Academy at 
Kings Point, New York. 
SEC. 4. Section 27 of the Merchant Marine Act, 1920 (46 U.S.C. 883) 
is amended by striking out the period at the end thereof and inserting 
the following new proviso: ": Provided further, That until April 1, 
1984, and notwithstanding any other provisions of this section, any 
vessel documented under the laws of the United States and owned by 
persons who are citizens of the United States may, when operated 
upon a voyage in foreign trade, transport merchandise in cargo vans, 
lift vans, and shipping-tanks between points embraced within the 
coastwise laws for transfer to or when transferred from another 
vessel or vessels, so documented and owned, of the same operator 
when the merchandise movement has either a foreign origin or a 
foreign destination; but this proviso (1) shall apply only to vessels 
which that same operator owned, chartered or contracted for the 
construction of prior to the date of the enactment of this proviso, and 
(2) shall not apply to movements between points in the contiguous 
United States and points in Hawaii, Alaska, the Commonwealth of 
Puerto Rico and United States territories and possessions.". 
PUBLIC LAW 96-112—NOV. 16, 1979 
93 STAT. 849 
SEC. 5. Subsection D(a)(5) of section 30 of the Merchant Marine Act, Merchant 
1920 (46 U.S.C. 922(aX5)) is amended to read as follows: 
Marine Act 
"(5) The mortgagee is a State, the District of Columbia, the amendment. 
Commonwealth of Puerto Rico, or a territory or possession of the 
United States, or is a citizen of the United States, and for the 
purposes of this Act the Reconstruction Finance Corporation shall, in 
addition to those designated in sections 37 and 38 of this Act, be 46 use 888,802, 
deemed a citizen of the United States." 
^^^• 
Approved November 16, 1979. 
LEGISLATIVE HISTORY: 
HOUSE REPORTS: No. 96-169 accompanying H.R. 2462 (Comm. on Merchant Marine 
and Fisheries) and No. 96-556 (Comm. of Conference). 
SENATE REPORT No. 96-105 (Comm. on Commerce, Science, and Transportation). 
CONGRESSIONAL RECORD, Vol. 125 (1979): 
May 24, considered and passed Senate. 
July 20, 27, H.R. 2462 considered and passed House; passage vacated and S. 640, 
amended, passed in lieu. 
Nov. 2, House agreed to conference report. 
Nov. 5, Senate agreed to conference report. 
59-194 O — 81 
56 : QL3