46 U.S.C. § 53101
Section 53101 · Definitions
Viewing 46 U.S.C. § 53101 as in effect on November 24, 2003. The text changed in 1 later edition (most recent January 2, 2013).
View current version →In this chapter:
(1) Bulk cargo.—The term “bulk cargo” means cargo that is loaded and carried in bulk without mark or count.
(2) Contractor.—The term “contractor” means an owner or operator of a vessel that enters into an operating agreement for the vessel with the Secretary under section 53103.
(3) Fleet.—The term “Fleet” means the Maritime Security Fleet established under section 53102(a).
(4) Foreign commerce.—The term “foreign commerce”—
(A) subject to subparagraph (B), means—
(i) commerce or trade between the United States, its territories or possessions, or the District of Columbia, and a foreign country; and
(ii) commerce or trade between foreign countries; and
(B) includes, in the case of liquid and dry bulk cargo carrying services, trading between foreign ports in accordance with normal commercial bulk shipping practices in such manner as will permit United States-documented vessels freely to compete with foreign-flag bulk carrying vessels in their operation or in competing for charters, subject to rules and regulations promulgated by the Secretary of Transportation pursuant to this chapter or subtitle D of the Maritime Security Act of 2003.
(5) LASH vessel.—The term “LASH vessel” means a lighter aboard ship vessel.
(6) Participating fleet vessel.—The term “participating fleet vessel” means any vessel that—
(A) on October 1, 2005—
(i) meets the requirements of paragraph (1), (2), (3), or (4) of section 53102(c); and
(ii) is less than 25 years of age, or less than 30 years of age in the case of a LASH vessel; and
(B) on December 31, 2004, is covered by an operating agreement under subtitle B of title VI of the Merchant Marine Act, 1936 (46 U.S.C. App. 1187 et seq.).
(7) Person.—The term “person” includes corporations, partnerships, and associations existing under or authorized by the laws of the United States, or any State, Territory, District, or possession thereof, or of any foreign country.
(8) Product tank vessel.—The term “product tank vessel” means a double hulled tank vessel capable of carrying simultaneously more than 2 separated grades of refined petroleum products.
(9) Secretary.—The term “Secretary” means the Secretary of Transportation.
(10) Tank vessel.—The term “tank vessel” has the meaning that term has under section 2101 of this title.
(11) United states.—The term “United States” includes the District of Columbia, the Commonwealth of Puerto Rico, the Northern Mariana Islands, Guam, American Samoa, the Virgin Islands.
(12) United states citizen trust.—(A) Subject to subparagraph (C), the term “United States citizen trust” means a trust that is qualified under this paragraph.
(B) A trust is qualified under this paragraph with respect to a vessel only if—
(i) each of the trustees is a citizen of the United States; and
(ii) the application for documentation of the vessel under chapter 121 of this title includes the affidavit of each trustee stating that the trustee is not aware of any reason involving a beneficiary of the trust that is not a citizen of the United States, or involving any other person that is not a citizen of the United States, as a result of which the beneficiary or other person would hold more than 25 percent of the aggregate power to influence or limit the exercise of the authority of the trustee with respect to matters involving any ownership or operation of the vessel that may adversely affect the interests of the United States.
(C) If any person that is not a citizen of the United States has authority to direct or participate in directing a trustee for a trust in matters involving any ownership or operation of the vessel that may adversely affect the interests of the United States or in removing a trustee for a trust without cause, either directly or indirectly through the control of another person, the trust is not qualified under this paragraph unless the trust instrument provides that persons who are not citizens of the United States may not hold more than 25 percent of the aggregate authority to so direct or remove a trustee.
(D) This paragraph shall not be considered to prohibit a person who is not a citizen of the United States from holding more than 25 percent of the beneficial interest in a trust.
(13) United states-documented vessel.—The term “United States-documented vessel” means a vessel documented under chapter 121 of this title.
Editorial notes U.S. Code · Office of the Law Revision Counsel
References in Text
The Maritime Security Act of 2003, referred to in par. (4)(B), is title XXXV of div. C of Pub. L. 108–136, Nov. 24, 2003, 117 Stat. 1788. Subtitle D of the Act amended section 1273 of the Appendix to this title and enacted provisions set out as a note under this section. For complete classification of this Act to the Code, see Short Title note set out under this section and Tables.
The Merchant Marine Act, 1936, referred to in par. (6)(B), is act June 29, 1936, ch. 858, 49 Stat. 1985, as amended. Subtitle B of title VI of the Act is classified generally to part B (§1187 et seq.) of subchapter VI of chapter 27 of the Appendix to this title. For complete classification of this Act to the Code, see section 1245 of the Appendix to this title and Tables.
Effective Date
Pub. L. 108–136, div. C, title XXXV, §3537, Nov. 24, 2003, 117 Stat. 1819, provided that:
“(a) In General.—Except as provided in subsections (b) and (c), this subtitle [subtitle C (§§3531–3537) of title XXXV of div. C of Pub. L. 108–136, enacting this chapter, amending section 12102 of this title and sections 808 and 1162 of the Appendix to this title, repealing sections 1187 to 1187e and 1222 of the Appendix to this title, enacting provisions set out as a note under section 53110 of this title, and amending provisions set out as a note under section 1187 of the Appendix to this title] shall take effect October 1, 2004.”
“(b) Repeals and Conforming Amendments.—Section 3534 [amending section 12102 of this title, repealing sections 1187 to 1187e and 1222 of the Appendix to this title, and amending provisions set out as a note under section 1187 of the Appendix to this title] shall take effect October 1, 2005.”
“(c) Other Provisions.—Sections 3533 [enacting provisions set out as a note under section 53110 of this title], 3535 [not classified to the Code], and this section shall take effect on the date of the enactment of this Act [Nov. 24, 2003].”
Short Title
Pub. L. 108–136, div. C, title XXXV, §3501, Nov. 24, 2003, 117 Stat. 1789, provided that: “This title [enacting this chapter and section 1280b of the Appendix to this title, amending section 12102 of this title and sections 808, 1158, 1162, 1241f, 1271, 1273, 1275, 1279a, 1295a to 1295c and 1295e of the Appendix to this title, repealing sections 1187 to 1187e and 1222 of the Appendix to this title, enacting provisions set out as notes under this section, section 53110 of this title, and section 1271 of the Appendix to this title, and amending provisions set out as notes under section 1220 of Title 16, Conservation, and section 1187 of the Appendix to this title] may be cited as the ‘Maritime Security Act of 2003’.”
Maintenance and Repair Reimbursement Pilot Program
Pub. L. 108–136, div. C, title XXXV, §3517, Nov. 24, 2003, 117 Stat. 1796, provided that:
“(a) Authority to Enter Agreements.—
“(1) In general.—The Secretary of Transportation may carry out a pilot program under which the Secretary may enter into an agreement with a contractor under chapter 531 of title 46, United States Code, as amended by this Act, regarding maintenance and repair of a vessel that is subject to an operating agreement under that chapter.
“(2) Limitation.—The Secretary may not require a person to enter into an agreement under this section, including as a condition of awarding an operating agreement to the person under chapter 531 of title 46, United States Code, as amended by this Act.
“(b) Terms of Agreement.—An agreement under this section—
“(1) shall require that except as provided in subsection (c), all qualified maintenance or repair on the vessel shall be performed in the United States;
“(2) shall require that the Secretary shall reimburse the contractor in accordance with subsection (d) for the costs of qualified maintenance or repair performed in the United States; and
“(3) shall apply to maintenance and repair performed during the 5-year period beginning on the date the vessel begins operating under the operating agreement under chapter 531 of title 46, United States Code.
“(c) Exception to Requirement to Perform Work in the United States.—A contractor shall not be required to have qualified maintenance or repair work performed in the United States under this section, if the Secretary determines that—
“(1) there is no facility in the United States available to perform the work; or
“(2) there is not available to the Secretary sufficient funds to pay reimbursement under subsection (d) with respect to the work.
“(d) Reimbursement.—
“(1) In general.—The Secretary shall, subject to the availability of appropriations, reimburse a contractor for costs incurred by the contractor for qualified maintenance or repair performed in the United States under this section.
“(2) Amount.—The amount of reimbursement shall be equal to 80 percent of the difference between—
“(A) the fair and reasonable cost of obtaining the qualified maintenance or repair in the United States; and
“(B) the fair and reasonable cost of obtaining the qualified maintenance or repair outside the United States, in the geographic region in which the vessel generally operates.
“(3) Determination of fair and reasonable costs.—The Secretary shall determine fair and reasonable costs for purposes of paragraph (2).
“(e) Notification Requirements.—
“(1) Notification by contractor.—The Secretary is not required to pay reimbursement to a contractor under this section for qualified maintenance or repair, unless the contractor—
“(A) notifies the Secretary of the intent of the contractor to obtain the qualified maintenance or repair, by not later than 180 days before the date of the performance of the qualified maintenance or repair; and
“(B) includes in such notification—
“(i) a description of all qualified maintenance or repair that the contractor should reasonably expect may be performed;
“(ii) an estimate of the cost of obtaining such qualified maintenance or repair in the United States; and
“(iii) an estimate of the cost of obtaining such qualified maintenance or repair outside the United States, in the geographic region in which the vessel generally operates.
“(2) Certification by secretary.—Not later than 60 days after the date of receipt of notification under paragraph (1), the Secretary shall certify to the contractor—
“(A) whether there is a facility in the United States available to perform the qualified maintenance or repair described in the notification by the contractor under paragraph (1); and
“(B) whether there is available to the Secretary sufficient funds to pay reimbursement under subsection (d) with respect to such work.
“(f) Qualified Maintenance or Repair Defined.—In this section the term ‘qualified maintenance or repair’—
“(1) except as provided in paragraph (2), means—
“(A) any inspection of a vessel that is—
“(i) required under chapter 33 of title 46, United States Code; and
“(ii) performed in the period in which the vessel is subject to an agreement under this section; and
“(B) any maintenance or repair of a vessel that is determined, in the course of an inspection referred to in subparagraph (A), to be necessary to comply with the laws of the United States; and
“(2) does not include—
“(A) routine maintenance or repair; or
“(B) any emergency work that is necessary to enable a vessel to return to a port in the United States.
“(g) Analysis.—
“(1) In general.—Not later than October 1, 2004, the Secretary of Transportation shall submit to the Committee on Armed Services of the House of Representatives and the Committee on Armed Services and the Committee on Commerce, Science, and Transportation of the Senate, an analysis of the need for agreements authorized by this section.
“(2) Conduct and considerations.—In conducting the analysis, the Secretary shall consider the overall costs and benefits of the pilot program, including the following:
“(A) The impact on operations of vessels in the program.
“(B) The availability of repair shipyards and drydocks in the various regions of the United States (as that term is defined in such chapter) that are capable of handling such vessels that are ocean-going vessels.
“(C) The experience of such shipyards in repairing the types of such vessels.
“(D) A comparison of drydock and repair costs between available United States and foreign shipyards located within the geographic range of the trading area of such vessels.
“(E) A comparison of the time period required for the drydocking and repair of such vessels between available United States shipyards and foreign shipyards.
“(F) The impact of the voyage deviation of such vessels to United States shipyards.
“(G) The benefits to the Department of Defense of having a vessel repair base in the United States to accelerate the activation of the Ready Reserve Fleet.
“(H) The benefits of extending the program to all vessels that are subject to operating agreements under chapter 531 of title 46, United States Code, as amended by this Act.
“(3) Recommendations.—The Secretary shall include in the analysis recommendations of any additional incentives that are necessary to encourage participation in the program.
“(h) Authorization of Appropriations.—In addition to the other amounts authorized by this subtitle [subtitle A (§§3511–3517) of title XXXV of div. C of Pub. L. 108–136, see Tables for classification], for reimbursement of costs of qualified maintenance or repair under this section there is authorized to be appropriated to the Secretary of Transportation $19,500,000 for each of fiscal years 2006 through 2011.”
National Defense Tank Vessel Construction Assistance
Pub. L. 108–136, div. C, title XXXV, subtitle D, Nov. 24, 2003, 117 Stat. 1820, provided that:
“SEC. 3541. NATIONAL DEFENSE TANK VESSEL CONSTRUCTION PROGRAM.
“The Secretary of Transportation shall establish a program for the provision of financial assistance for the construction in the United States of a fleet of up to 5 privately owned product tank vessels—
“(1) to be operated in commercial service in foreign commerce; and
“(2) to be available for national defense purposes in time of war or national emergency pursuant to an Emergency Preparedness Plan approved by the Secretary of Defense pursuant to section 3543(e).
“SEC. 3542. APPLICATION PROCEDURE.
“(a) Request for Proposals.—Within 90 days after the date of the enactment of this subtitle [Nov. 24, 2003], and on an as-needed basis thereafter, the Secretary, in consultation with the Secretary of Defense, shall publish in the Federal Register a request for competitive proposals for the construction of new product tank vessels necessary to meet the commercial and national security needs of the United States and to be built with assistance under this subtitle.
“(b) Qualification.—Any citizen of the United States or any shipyard in the United States may submit a proposal to the Secretary of Transportation for purposes of constructing a product tank vessel with assistance under this subtitle.
“(c) Requirement.—The Secretary, with the concurrence of the Secretary of Defense, may enter into an agreement with the submitter of a proposal for assistance under this subtitle if the Secretary determines that—
“(1) the plans and specifications call for construction of a new product tank vessel of not less than 35,000 deadweight tons and not greater than 60,000 deadweight tons, that—
“(A) will meet the requirements of foreign commerce;
“(B) is capable of carrying militarily useful petroleum products, and will be suitable for national defense or military purposes in time of war, national emergency, or other military contingency; and
“(C) will meet the construction standards necessary to be documented under the laws of the United States;
“(2) the shipyard in which the vessel will be constructed has the necessary capacity and expertise to successfully construct the proposed number and type of product tank vessels in a reasonable period of time as determined by the Secretary of Transportation, taking into consideration the recent prior commercial shipbuilding history of the proposed shipyard in delivering a vessel or series of vessels on time and in accordance with the contract price and specifications; and
“(3) the person proposed to be the operator of the proposed vessel possesses the ability, experience, financial resources, and any other qualifications determined to be necessary by the Secretary for the operation and maintenance of the vessel.
“(d) Priority.—The Secretary—
“(1) subject to paragraph (2), shall give priority consideration to a proposal submitted by a person that is a citizen of the United States under section 2 of the Shipping Act, 1916 (46 U.S.C. App. 802) [46 App. U.S.C. 802, 803]; and
“(2) may give priority to consideration of proposals that provide the best value to the Government, taking into consideration—
“(A) the costs of vessel construction; and
“(B) the commercial and national security needs of the United States.
“SEC. 3543. AWARD OF ASSISTANCE.
“(a) In General.—If after review of a proposal, the Secretary determines that the proposal fulfills the requirements under this subtitle, the Secretary may enter into a contract with the proposed purchaser and the proposed shipyard for the construction of a product tank vessel with assistance under this subtitle.
“(b) Amount of Assistance.—The contract shall provide that the Secretary shall pay, subject to the availability of appropriations, up to 75 percent of the actual construction cost of the vessel, but in no case more than $50,000,000 per vessel.
“(c) Construction in United States.—A contract under this section shall require that construction of a vessel with assistance under this subtitle shall be performed in a shipyard in the United States.
“(d) Documentation of Vessel.—
“(1) Contract requirement.—A contract under this section shall require that, upon delivery of a vessel constructed with assistance under the contract, the vessel shall be documented under chapter 121 of title 46, United States Code, with a registry endorsement only.
“(2) Restriction on coastwise endorsement.—A vessel constructed with assistance under this subtitle shall not be eligible for a certificate of documentation with a coastwise endorsement.
“(3) Authority to reflag not applicable.—Section 9(g) of the Shipping Act, 1916, (46 U.S.C. App. 808(g)) shall not apply to a vessel constructed with assistance under this subtitle.
“(e) Emergency Preparedness Agreement.—
“(1) In general.—A contract under this section shall require that the person who will be the operator of a vessel constructed with assistance under the contract shall enter into an Emergency Preparedness Agreement for the vessel under section 53107 of title 46, United States Code, as amended by this Act.
“(2) Treatment as contractor.—For purposes of the application, under paragraph (1), of section 53107 of title 46, United States Code, to a vessel constructed with assistance under this subtitle, the term ‘contractor’ as used in that section means the person who will be the operator of a vessel constructed with assistance under this subtitle.
“(f) Additional Terms.—The Secretary shall incorporate in the contract the requirements set forth in this subtitle, and may incorporate in the contract any additional terms the Secretary considers necessary.
“SEC. 3544. PRIORITY FOR TITLE XI ASSISTANCE.
[Amended section 1273 of the Appendix to this title.]
“SEC. 3545. DEFINITIONS.
“In this subtitle the definitions set forth in section 53101 of title 46, United States Code, as amended by this Act, shall apply.
“SEC. 3546. AUTHORIZATION OF APPROPRIATIONS.
“There are authorized to be appropriated to the Secretary to carry out this subtitle a total of $250,000,000 for fiscal years after fiscal year 2004.”