An Act to provide a program of assistance to correct inequities in the construction of fishing vessels and to enable the fishing industry of the United States to regain a favorable economic status, and for other purposes
PL 86-516 (H.R.5421), enacted 06/12/1960

212 
PUBLIC LAW 86-516-JUNE 12, I960 
[74 ST A T . 
40 u s e 258a-e. 
Transfer of juris-
diction. 
the Act approved February 26, 1931 (46 Stat. 1421; 40 U.S.C., sees. 
257ar-e) and the Act approved October 21, 1942 (56 Stat. Y97; 40 
U.S.C., sec. 258f), shall be applicable to any condemnation proceed-
ings instituted pursuant to authority of this Act. 
(b) When any land under the jurisdiction of any department or 
agency of the United States may be needed for the construction or 
operation of the Potomac interceptor, the appropriate officer of such 
d.epartment or agency is authorized, upon re<juest of the Commis-
sioners, to transfer to the Commissioners jurisdiction over so much of 
such land, or of such interests therein, as the Commissioners shall 
request. 
Approved June 12, 1960. 
June 12, 1960 
[H. R. 5421] 
Public Law 86-516 
AN ACT 
To provide a program of assistance to correct inequities in the construction of 
Ashing vessels and to enable the fishing industry of the United States to 
regain a favorable economic status, and for other purposes. 
Fishing vessels. 
Construction as-
sistance. 
Subsidies. 
Applications. 
"Contracts. 
Subsidies, 
ditlons. 
72 Stat, 676. 
19 u s e 1364. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That in order to 
assist certain depressed segments of the fishing industry the Secretary 
of the Interior is hereby authorized to pay in accordance with this Act 
a subsidy for the construction of fishing vessels in the shipyards of the 
United States. 
SEC. 2. Any citizen of the United States may apply to the Secretary 
for a construction subsidy to aid in construction of a new fishing vessel 
in accordance with this Act. No such application shall be approved by 
the Secretary unless he determined that (1) the plans and specifica-
tions for the fishing vessel are suitable for use in the fishery in which 
that vessel will operate and suitable for use by the United States for 
National Defense or military purposes in time of war or National 
emergency, (2) that the applicant possesses the ability, experience, re-
sources, and other qualifications necessary to enable him to operate 
and maintain the proposed new fishing vessel, (3) will aid in the de-
velopment of the United States fisheries under conditions that the 
Secretary considers to be in the public interest, (4) that the vessel, 
except under force majeure will deliver its full catch to a port of 
the United States, (5) that the applicant will employ on the vessel 
only citizens of the United States or aliens legally domiciled in the 
United States, (6) the vessel will be documented under the laws of the 
United States, and ^(7) such other conditions as the Secretary may 
consider to be in the'public interest. 
SEC. 3. If the Secretary, in the exercise of his discretion, determines 
that the granting of a subsidy applied for is reasonably calculated to 
carry out the purposes of this Act, he may approve such application 
and enter into a contract or contracts with the applicant which will 
provide for payment by the United States of a construction subsidy 
m accordance with the purposes and provisions of this Act and in 
accordance with any other conditions or limitations which may be pre-
scribed by the Secretary. 
SEC. 4. A construction subsidy shall be granted under this Act only 
to assist in the construction of a fishing vessel to be operated in (1) a 
fishery suffering injury from which escape clause relief has been rec-
ommended by the Tariff Commission under the Trade Agreements 
Assistance Act of 1951, as amended (65 Stat. 74), but where such relief 
has been or is hereafter denied under section 7(c) of such Act; (2) a 
fishery found by the Secretary to be injured or threatened with injury 
S ub m i s s ion of 
plans to Secretary 
74 S T A T . ] 
PUBLIC LAW 86-516-JUNE 12, 1960 
213 
by reason of increased imports, either actual or relative, of a fish or 
shellfish product, not the subject of a trade agreement tariff concession, 
which is like or directly competitive with the fishery's product; or (3) 
a fishery found by the Secretary to be injured or threatened with 
injury by reason of increased imports, either actual or relative, of a 
fish or shellfish product that is provided for in the Free List of the 
Tariff Act of 1930, whether or not the subject of a trade agreement 
•*! ^^^' 5|o^ 
tariff concession. 
* 
SEC. 5. The construction subsidy which the Secretary may pay with ti^n°a^^ umitSio^ 
respect to any fishing vessel under this Act shall be an amount equal to 
the difference, as determined by the Maritime Administrator, between 
the cost of constructing such vessel in a shipyard in the United States 
based upon the lowest responsible domestic bid for the construction of 
such vessel and the estimated cost, as determined by the Maritime 
Administrator, of constructing such vessel under similar plans and 
specifications in a foreign shipbuilding center which is determined 
by the Maritime Administrator to furnish a fair and representative 
example for the determination of the estimated total cost of construct-
ing a vessel of the type proposed to be constructed, but in no event 
shall the subsidy exceed 331/3 per centum of the cost of constructing 
such vessel in a shipyard in the United States based upon the lowest 
responsible domestic bid excluding the cost of any features incor-
porated in the vessel for national defense uses, which shall be paid 
by the Department of Defense in addition to the subsidy. For the 
purposes of this section, the Maritime Administrator shall determine, 
and certify to the Secretary, the lowest responsible domestic bid. 
SEC. 6. Any fishing vessel for which a construction subsidy is paid 
under this Act shall be constructed under the supervision of the Mari- oroefens'e 
time Administrator. The Maritime Administrator shall submit the 
plans and specifications for the proposed vessel to the Department of 
Defense for examination thereof and suggestions for such changes 
therein as may be deemed necessary or proper in order that such 
vessel shall be suitable for economical and speedy conversion into a 
naval or military auxiliary or otherwise suitable for the use of the 
United States Government in time of war or national emergency. 
If the Secretary of Defense approves such plans and specifications 
as submitted, or as modified, in accordance with the provisions of this 
subsection, he shall certify such approval to the Administrator. No 
construction subsidy shall be paid by the Secretary under this Act 
unless all contracts between the applicant for such subsidy and the 
shipbuilder who is to construct such vessel contain such provisions 
with respect to the construction of the vessel as the Maritime Ad-
ministrator determines necessary to protect the interests of the 
United States. 
SEC. 7. All construction with respect to which a construction sub- ^„^ °,",*i,SVr,° "^ °* 
• ! • 
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1 
! • * 
1
1
1
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construction. 
Sidy IS granted under this Act shall be performed in a shipyard m the 
United States as a result of competitive bidding, after due advertising, 
with the rights reserved in the applicant, and in the Maritime Ad-
ministrator, to disapprove any or all bids. In all such construction 
the shipbuilder, subcontractor, material men, and suppliers shall use, 
so far as practicable, only articles, materials, and supplies of the 
growth, production, and manufacture of the United States as defined 
in paragraph K of section 401 of the Tariff Act of 1930. No ship- 
^e sta^. 7
^
0
8
^
. 
builder shall be deemed a responsible builder unless he possesses the 
experience, ability, financial resources, equipment, and other qualifica-
tions necessary properly to perform the proposed contract. The sub-
mitted bid shall be accompanied by all detailed estimates on which it is 
based, and the Maritime Administrator may require that the builder 
or an}^ subcontractor submit any other pertinent data relating to 
such bids. 
214 
PUBLIC LAW 86-516-JUNE 12, 1960 
[74 ST A T . 
Ac qui s i t i o n of 
ownership by U.S. 
Payment for use 
in other fisheries. 
Definitions. 
39 Stat. 729. 
46 u s e 802. 
Appr 
opri ati on. 
Expiration date. 
SEC. 8. (a) Every contract executed by the Secretary pursuant to 
section 3 of this Act shall provide that in the event the United States 
shall, through purchase or requisition, acquire ownership of any 
fishing vessel on which a construction subsidy was paid, the owner 
shall be paid therefor the value thereof, but in no event shall such 
payment exceed the actual depreciated construction cost thereof 
(together with the actual depreciated cost of capital improvements 
thereon) less the depreciated amount of construction subsidy thereto-
fore paid incident to the construction of such vessel, or the fair and 
reasonable scrap value of such vessel as determined by the Maritime 
Administrator, whichever is the greater. 
Such determination shall 
be final. In computing the depreciated value of such vessel, deprecia-
tion shall be computed on each vessel on the schedule accepted or 
adopted by the Internal Revenue Service for income tax purposes. 
(b^ The provisions of section 2 and subsection (a) of this section 
relating to the requisition or the acquisition of ownership by the 
United States shall run with the title of each fishing vessel and be 
binding on all owners thereof. 
SEC. 9. If any fishing vessel is operated during its useful life, as 
determined by the Secretary, in any fishery other than the particular 
fishery for which it was designed the owner of such vessel shall repay 
to the Secretary, in accordance with such terms and conditions as the 
Secretary shall prescribe, an amount which bears the same proportion 
to the total construction subsidy paid under this Act with respect to 
such vessel as the proportion that the number of years during which 
such vessel was not operated in the fishery for which it was designed 
bears to the total useful life of such vessel as determined by the Secre-
tary for the purposes of this section. Obligations under this provision 
shall run with the title to the vessel. 
SEC. 10. The Secretary shall make such rules and regulations as may 
be necessary to carry out the purposes of this Act. 
SEC. 11. As used in this Act the terms— 
(1) "Secretary" means the Secretary of the Interior, 
(2) "fishing v^sel" means any vessel designed to be used in 
catching fish, processing or transporting fish loaded on the high 
seas, or any vessel outfitted for such activity, 
(3) "citizen of the United States" includes a corporation, part-
nership, or association if it is a citizen of the United States 
within the meaning of section 2 of the Shipping Act, 1916, as 
amended, 
(4) "construction" includes designing, inspecting, outfitting, 
and equipping, and 
(5) "Maritime Administrator" means the Maritime Adminis-
trator in the Department of Commerce. 
SEC. 12. There is authorized to be appropriated the sum of not more 
than $2,500,000 annually to carry out the purposes of this Act. 
SEC. 13. No application for a subsidy for the construction of a fish-
ing vessel may be accepted by the Secretary after the day which is 
three years after the date of enactment of this Act. 
Approved June 12, 1960.