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SAVING PROVISIONS

Any criminal or civil penalty proceeding under the Motorboat Act of 1940, as amended, section 526 et seq. of this title, or the Federal Boating Act of 1958, as amended, former section 527 et seq. of this title, for a violation which occurred before Aug. 10, 1971, to be initiated and continue to conclusion as though the former Acts had not been amended or repealed by Pub. L. 92-75, Aug. 10, 1971, 85 Stat. 213, see section 41(f) of Pub. L. 92-75, set out as a note under section 1483 of this title.

§§ 526q, 526r.

SECTIONS REFERRED TO IN OTHER SECTIONS These sections are referred to in section 526u of this title.

§ 526t. Repealed. Pub. L. 85-911, § 12, Sept. 2, 1958, 72 Stat. 1758, eff. Apr. 1, 1960.

REPEAL

Section 12 of Pub. L. 85-911, Sept. 2, 1958, 72 Stat. 1758, was repealed by Pub. L. 92–75, § 41 (a) (2), Aug. 10, 1971, 85 Stat. 228.

§ 526u. Application of subchapter; "State" defined.

(a) This subchapter applies to every motorboat or vessel on the navigable waters of the United States, Guam, the Virgin Islands, the Commonwealth of Puerto Rico, and the District of Columbia, and every motorboat or vessel owned in a State and using the high seas, except that the provisions of this subchapter other than sections 526k, 526q, and 526r of this title do not apply to boats as defined in and subject to the Federal Boat Safety Act of 1971. (b) As used in this subchapter

The term "State" means a State of the United States, Guam, the Virgin Islands, the Commonwealth of Puerto Rico, and the District of Columbia.

(Apr. 25, 1940, ch. 155, § 22, as added Sept. 2, 1958, Pub. L. 85-911, § 6(c), 72 Stat. 1756, and amended Aug. 10, 1971, Pub. L. 92-75, § 41(b), 85 Stat. 228.)

REFERENCES IN TEXT

The Federal Boat Safety Act of 1971, referred to in text, is Pub. L. 92-75, Aug. 10, 1971, 85 Stat. 213, which is classified principally to section 1451 et seq. of this title.

CODIFICATION

Pub. L. 86-396, Mar. 28, 1960, 74 Stat. 10, formerly set out in the credit of this section, was repealed by Pub. L. 92-75, § 41(a) (3), Aug. 10, 1971, 85 Stat. 228.

AMENDMENTS

1971-Subsec. (a). Pub. L. 92-75 substituted "Guam, the Virgin Islands, the Commonwealth of Puerto Rico," for "its Territories" and added provisions excepting this subchapter, other than sections 526k, 526q, and 526r, from applicability to boats as defined in and subject to the Federal Boat Safety Act of 1971.

Subsec. (b). Pub. L. 92-75 substituted "Guam, the Virgin Islands, the Commonwealth of Puerto Rico" for "a Territory of the United States".

§§ 527 to 527h. Repealed. Pub. L. 92-75, § 41(a) (2), (4), Aug. 10, 1971, 85 Stat. 228.

Section 527, Pub. L. 85-911, § 2, Sept. 2, 1958, 72 Stat. 1754; Pub. L. 87-171, § 1(1), Aug. 30, 1961, 75 Stat. 408, defined the terms "undocumented vessel", "vessel", "Secretary", "owner" and "State" and is now covered by section 1452 of this title.

Section 527a, Pub. L. 85-911, § 3, Sept. 2, 1958, 72 Stat. 1754; Pub. L. 87-171, § 1(2), Aug. 30, 1961, 75 Stat. 408, provided for the numbering of vessels to be secured in the State of principal use or from the Federal numbering system if State of principal use has no approved numbering system, required the Secretary to establish an overall numbering system and set standards for the approval

by the Secretary of State numbering systems, provided for the duration of initial or renewal certificates under Federal system, required display of number, set size of the certificate, required its availability for inspection, set out the documentary nature of the certificate and provided for withdrawal of approval of State system upon notice and is now covered by sections 1466 to 1473 of this title.

Section 527b, Pub. L. 85-911, § 4, Sept. 2, 1958, 72 Stat. 1756, required the owner of any vessel numbered under the Federal system to notify the Secretary of transfer of interest, destruction or abandonment of the vessel or change of owner's address and is now covered by section 1469 (b) of this title.

Section 527c, Pub. L. 85-911, § 5, Sept. 2, 1958, 72 Stat. 1756, permitted the Secretary to prescribe reasonable fees for the numbering of a vessel or renewal thereof and is now covered in part by section 1472 of this title.

Section 527d, Pub. L. 85-911, § 7, Sept. 2, 1958, 72 Stat. 1757, required the Secretary to make rules and regulations necessary to carry out the provisions of this subchapter and permitted the Secretary to exempt vessels from the Federal numbering system and is now covered in part by sections 1468 (a) and 1472 of this title.

Section 527e, Pub. L. 85-911, § 8, Sept. 2, 1958, 72 Stat. 1757; Pub. L. 87-171, § 1(2), Aug. 30, 1961, 75 Stat. 408, established penalties for violations of numbering provisions of this subchapter, provided for assessment and collection of penalties by Secretary, and in his discretion the remission or mitigation of penalties or the discontinuance of prosecution for penalties under this section and permitted the inspection of a vessel covered by this subchapter or subchapter II by the Coast Guard and is now covered in part by sections 1462 and 1484 of this title. Section 5271, Pub. L. 85-911, § 9, Sept. 2, 1958, 72 Stat. 1757, set out a congressional declaration of policy with regard to this subchapter. For congressional declaration of policy with regard to the Federal Boat Safety Act of 1971, section 1451 et seq. of this title, see section 1451 of this title.

Section 527g, Pub. L. 85-911, § 10, Sept. 2, 1958, 72 Stat. 1757, authorized Secretary to compile, analyze and publish accident reports, findings concerning the causes of such accidents and recommendations for their prevention and provided these reports be available for public inspection and is now covered in part by section 1486(e) of this title. See also sections 1474, 1475, 1481, 1482 and 1486 of this title.

Section 527h, Pub. L. 85–911, § 13, Sept. 2, 1958, 72 Stat. 1758; Pub. L. 87-171, § 1(2), Aug. 30, 1961, 75 Stat. 408, provided enforcement provisions for the States and Federal government, declared State jurisdiction to be unimpaired and prohibited the Secretary from approving any State numbering system not complying with standards set forth in former section 527a and is now covered in part by sections 1467, 1472 and 1489 of this title.

SAVINGS PROVISIONS

Any criminal or civil penalty proceeding under the Motorboat Act of 1940, as amended, section 526 et seq. of this title, or the Federal Boating Act of 1958, as amended, former section 527 et seq. of this title, for a violation which occurred before Aug. 10, 1971, to be initiated and continue to conclusion as though the former Acts had not been amended or repealed by Pub. L. 92-75, Aug. 10, 1971, 85 Stat. 213, see section 41(f) of Pub. L. 92-75, set out as a note under section 1483 of this title.

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corporations mentioned in section 741 of this title, are, and each is, authorized to arbitrate, compromise, or settle any claim in which suit will lie under the provisions of sections 742, 744, and 750 of this title. (As amended Aug. 29, 1972, Pub. L. 92-417, § 3, 86 Stat. 656.)

AMENDMENTS

1972-Pub. L. 92-417 struck out "having control of the possession or operation of any merchant vessel" preceding "are, and each is".

Chapter 23.-SHIPPING ACT

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in section 1183 of this title.

§ 802. Corporation, partnership, or association as citi

zen.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1271 of this title.

§ 808. Registration, enrollment, and licensing of vessels purchased, chartered, or leased; regulations; coastwise trade.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 865a of this title.

§ 812. Rebates and discriminations by carriers by water prohibited; use of "fighting ship."

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 831 of this title.

§ 814. Contracts between carriers filed with Commission; definition of "agreement"; approval, disapproval, etc., by Commission; unlawful execution of agreements; conference agreements and antitrust laws exemptions; civil actions for penalties; terminal leases exemption.

Whoever violates any provision of this section or of section 813a of this title shall be subject to a civil penalty of not more than $1,000 for each day such violation continues: Provided, however, That the penalty provisions of this section shall not apply to leases, licenses, assignments, or other agreements of similar character for the use of terminal property or facilities which were entered into before the date of enactment of this Act, and, if continued in effect beyond said date, submitted to the Federal Maritime Commission for approval prior to or within ninety days after the enactment of this Act, unless such leases, licenses, assignments, or other agreements for the use of terminal facilities are disapproved, modified, or canceled by the Commission and are continued in operation without regard to the Commission's action thereon. The Commission shall promptly approve, disapprove, cancel, or modify each such agreement in accordance with the provisions of this section. (As amended Aug. 29, 1972, Pub. L. 92-416, § 1(a), 86 Stat. 653.)

AMENDMENTS

1972-Pub. L. 92-416 substituted a civil penalty of not more than $1,000 for each day of violation, for a penalty of not more than $1,000 for each day of violation, and struck out provisions relating to the recovery by the United States in a civil action, in the last paragraph relating to penalties.

COMPROMISE OR RECOVERY OF CIVIL PENALTY Section 3 of Pub. L. 92-416 provided that: "Any civil penalty provided herein [amending this section and sections 815, 817, 831, and 844 of this title] may be com

promised by the Federal Maritime Commission, or may be recovered by the United States in a civil action." § 815. Discriminatory acts prohibited.

Whoever violates any provision of this section other than paragraphs First and Third hereof shall be subject to a civil penalty of not more than $5,000 for each such violation.

Whoever violates paragraphs First and Third hereof shall be guilty of a misdemeanor punishable by a fine of not more than $5,000 for each offense. (As amended Aug. 29, 1972, Pub. L. 92-416, § 1(b), 86 Stat. 653.)

AMENDMENTS

1972-Pub. L. 92-416 substituted a civil penalty of not more than $5,000 for each violation of provisions of this section other than paragraphs (1) and (3), and a criminal penalty of not more than $5,000 for violation of paragraphs (1) and (3), for provisions providing for a penalty of $5,000 for violation of this section.

COMPROMISE OR RECOVERY OF CIVIL PENALTY

Civil penalty may be compromised by the Federal Maritime Commission or recovered by the United States in a civil action, see section 3 of Pub. L. 92-416, set out as a note under section 814 of this title.

§ 817. Carriers in interstate commerce to establish; observe, and enforce reasonable rates and regulations; carriers in foreign commerce to file tariffs of rates and charges.

(b)

(6) Whoever violates any provision of this section shall be subject to a civil penalty of not more than $1,000 for each day such violation continues. (As amended Aug. 29, 1972, Pub. L. 92-416, § 1(c), 86 Stat. 653.)

AMENDMENTS

1972 Subsec. (b) (6). Pub. L. 92-416 substituted civil penalty of not more than $1,000 for each day of violation, for a penalty of not more than $1,000 for each day of violation recoverable by the United States in a civil action.

COMPROMISE OR RECOVERY OF CIVIL PENALTY Civil penalty may be compromised by the Federal Maritime Commission or recovered by the United States in a civil action, see section 3 of Pub. L. 92-416, set out as a note under section 814 of this title.

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 831 of this title.

§§ 818 to 820.

SECTIONS REFERRED TO IN OTHER SECTIONS These sections are referred to in section 831 of this title.

§ 822. Orders of Commission made only after full hearing.

Orders of the Commission relating to any violation of this chapter or to any violation of any rule or regulation issued pursuant to this chapter shall be made only after full hearing, and upon a sworn complaint or in proceedings instituted of its own motion.

(As amended Aug. 29, 1972, Pub. L. 92-416, § 1(d), 86 Stat. 653.)

AMENDMENTS

1972-Pub. L. 92-416 made the hearing provisions applicable to orders of the Commission relating to violations of rules and regulations issued under this chapter.

§ 828. Enforcement of orders of Commission.

ADMINISTRATIVE ORDERS REVIEW ACT

Court of appeals exclusive jurisdiction respecting final orders of Federal Maritime Commission under this chapter as are subject to judicial review under section 830 of this title, see section 2342 (3) of Title 28, Judiciary and Judicial Procedure.

§ 830. Venue and procedure in suits to enforce, suspend, or set aside orders.

ADMINISTRATIVE ORDERS REVIEW ACT

Court of appeals exclusive jurisdiction respecting final orders of Federal Maritime Commission or Maritime Administration under Shipping Act, 1916, and Intercoastal Shipping Act, 1933 (chapters 23 and 23A of this title), as are subject to judicial review under this section, see section 2342 (3) of Title 28, Judiciary and Judicial Procedure. § 831. Civil and criminal penalties.

(a) Whoever violates any provision of sections 812 through 817, 818 through 820, and section 841b of this title, except where a different penalty is provided, shall be subject to a civil penalty not to exceed $5,000 for each such violation.

(b) Whoever violates any provision of any other section of this chapter, except where a different penalty is provided, shall be guilty of a misdemeanor, punishable by a fine not to exceed $5,000.

(c) Whoever violates any order, rule, or regulation of the Federal Maritime Commission made or issued in the exercise of its powers, duties, or functions, shall be subject to a civil penalty of not more than $1,000 for each day such violation continues. (As amended Aug. 29, 1972, Pub. L. 92-416, § 1(e), 86 Stat. 653.)

AMENDMENTS

1972-Pub. L. 92-416 substituted subsecs. (a)-(c) for provisions making any violation of this chapter a misdemeanor punishable by a fine not exceeding $5,000.

COMPROMISE OR RECOVERY OF CIVIL PENALTY

Civil penalty may be compromised by the Federal Maritime Commission or recovered by the United States in a civil action, see section 3 of Pub. L. 92-416, set out as a note under section 814 of this title.

§ 835. Restrictions on transfer of shipping facilities during war or national emergency.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 865a of this title.

§ 839. Approvals by Secretary.

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 865a of this title. § 841b. Licensing of ocean freight forwarders.

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 831 of this title.

Chapter 23A.-INTERCOASTAL SHIPPING CHAPTER REFERRED TO IN OTHER SECTIONS This chapter is referred to in title 49 section 903. § 844. Schedule of rates; filing; posting; availability; incorporation by reference in short form documents; penalties for violations.

Whoever violates any provision of this section shall be subject to a civil penalty of not more than $1,000 for each day such violation continues. (As amended Aug. 29, 1972, Pub. L. 92-416, § 2, 86 Stat. 653.)

AMENDMENTS

1972-Pub. L. 92-416 substituted a civil penalty of not more than $1,000 for each day of violation of this section, for a penalty of not more than $1,000 for each day of violation, recoverable by the United States in civil action, in the last paragraph of this section.

COMPROMISE OR RECOVERY OF CIVIL PENALTY Civil penalty may be compromised by the Federal Maritime Commission or recovered by the United States in a civil action, see section 3 of Pub. L. 92-416, set out as a note under section 814 of this title.

§ 845. Same; changes in rates; hearings on new schedules; suspension of rates pending hearing; burden of proof.

ADMINISTRATIVE ORDERS REVIEW ACT

Court of appeals exclusive jurisdiction respecting final orders of Maritime Administration under this chapter as are subject to judicial review under section 830 of this title, see section 2342 (3) of Title 28, Judiciary and Judicial Procedure.

§ 845a. Same; reasonable maximum and minimum rates, etc.

ADMINISTRATIVE ORDERS REVIEW ACT

Court of appeals exclusive jurisdiction respecting final orders of Maritime Administration under this chapter as are subject to judicial review under section 830 of this title, see section 2342 (3) of Title 28, Judiciary and Judicial Procedure.

Chapter 24.-MERCHANT MARINE ACT, 1920

Sec. 865a.

Sale of inactive passenger vessels to foreigners; conditions; requisition in emergency; surety bond [New].

§ 865a. Sale of inactive passenger vessels to foreigners; conditions; requisition in emergency; surety bond.

Notwithstanding any other provision of law or of prior contract with the United States, any vessel heretofore operated as a passenger vessel, as defined in section 1183 (a) of this title, under an operatingdifferential subsidy contract with the United States and now in inactive or layup status, except the steamship Independence and the steamship United States, may be sold and transferred to foreign ownership, registry, and flag, with the prior approval of the Secretary of Commerce. Such approval shall require (1) approval of the purchaser; (2) payment of existing debt and private obligations related to the vessel; (3) approval of the price, including terms of payment, for the sale of the vessel; (4) the seller to enter into an agreement with the Secretary whereby an amount equal to the net proceeds received from such sale in excess of existing obligations and expenses incident to the sale shall within a reasonable period not to exceed twelve months of receipt be committed and thereafter be used as equity capital for the construction of new vessels which the Secretary determines are built to effectuate the purposes and policy of the Merchant Marine Act, 1936, as amended; and (5) the purchaser to enter into an agreement with the Secretary, binding upon such purchaser and any later owner of the vessel and running with title to the vessel, that (a) the vessel will not carry passengers or cargo in competition, as determined by the Secretary, with any United States-flag passenger vessel for a period of two years from the date the transferred vessel goes into operation; (b) the vessel will be made available

to the United States in time of emergency and just compensation for title or use, as the case may be, shall be paid in accordance with section 1242 of this title; (c) the purchaser will comply with such further conditions as the Secretary may impose as authorized by sections 808, 835 and 839 of this title; and (d) the purchaser will furnish a surety bond in an amount and with a surety satisfactory to the Secretary to secure performance of the foregoing agreements.

In addition to any other provision such agreements may contain for enforcement of (4) and (5) above, the agreements therein required may be specifically enforced by decree for specific performance or injunction in any district court of the United States. In the agreement with the Secretary the purchaser shall irrevocably appoint a corporate agent within the United States for service of process upon such purchaser in any action to enforce the agreement. (Pub. L. 92-296, § 1, May 16, 1972, 86 Stat. 140.)

REFERENCES IN TEXT

Merchant Marine Act, 1936, as amended, referred to in text, is classified to chapter 27 of this title.

CODIFICATION

Section was not enacted as part of Merchant Marine Act, 1920, which comprises this chapter.

§ 883. Transportation of merchandise between points in United States in other than domestic-built or rebuilt and documented vessels.

No merchandise shall be transported by water, or by land and water, on penalty of forfeiture thereof, between points in the United States, including Districts, Territories, and possessions thereof embraced within the coastwise laws, either directly or via a foreign port, or for any part of the transportation, in any other vessel than a vessel built in and documented under the laws of the United States and owned by persons who are citizens of the United States, or vessels to which the privilege of engaging in the coastwise trade is extended by section 13 or 808 of this title: Provided, That no vessel having at any time acquired the lawful right to engage in the coastwise trade, either by virtue of having been built in, or documented under the laws of the United States, and later sold foreign in whole or in part, or placed under foreign registry, shall hereafter acquire the right to engage in the coastwise trade: Provided further, That no vessel of more than five hundred gross tons which has acquired the lawful right to engage in the coastwise trade, by virtue of having been built in or documented under the laws of the United States, and which has later been rebuilt shall have the right thereafter to engage in the coastwise trade, unless the entire rebuilding, including the construction of any major components of the hull or superstructure of the vessel, is effected within the United States, its territories (not including trust territories), or its possessions: Provided further, That this section shall not apply to merchandise transported between points within the continental United States, including Alaska, over through routes heretofore or hereafter recognized by the Interstate Commerce Commission for which routes rate tariffs have been or shall hereafter be filed with said Commission when such routes are in part over Canadian rail lines and their own or other connecting water

facilities: Provided further, That this section shall not become effective upon the Yukon River until the Alaska Railroad shall be completed and the Secretary of Commerce shall find that proper facilities will be furnished for transportation by persons citizens of the United States for properly handling the traffic: Provided further, That this section shall not apply to the transportation of merchandise loaded on railroad cars or to motor vehicles with or without trailers, and with their passengers or contents when accompanied by the operator thereof, when such railroad cars or motor vehicles are transported in any railroad car ferry operated between fixed termini on the Great Lakes as a part of a rail route, if such car ferry is owned by a common carrier by water and operated as part of a rail route with the approval of the Interstate Commerce Cornmission, and if the stock of such common carrier by water, or its predecessor, was owned or controlled by a common carrier by rail prior to June 5, 1920, and if the stock of the common carrier owning such car ferry is, with the approval of the Interstate Commerce Commission, now owned or controlled by any common carrier by rail and if such car ferry is built in and documented under the laws of the United States: Provided further, That upon such terms and conditions as the Secretary of the Treasury by regulation may prescribe, and, if the transporting vessel is of foreign registry, upon a finding by the Secretary of the Treasury, pursuant to information obtained and furnished by the Secretary of State, that the government of the nation of registry extends reciprocal privileges to vessels of the United States, this section shall not apply to the transportation by vessels of the United States not qualified to engage in the coastwise trade, or by vessels of foreign registry, of (a) empty cargo vans, empty lift vans, and empty shipping tanks, (b) equipment for use with cargo vans, lift vans, or shipping tanks, (c) empty barges specifically designed for carriage aboard a vessel and equipment, excluding propulsion equipment, for use with such barges, and (d) any empty instrument for international traffic exempted from application of the customs laws by the Secretary of the Treasury pursuant to the provisions of section 1322 (a) of Title 19, if the articles described in clauses (a) through (d) are owned or leased by the owner or operator of the transporting vessel and are transported for his use in handling his cargo in foreign trade; and (e) stevedoring equipment and material, if such equipment and material is owned or leased by the owner or operator of the transporting vessel, or is owned or leased by the stevedoring company contracting for the lading or unlading of that vessel, and is transported without charge for use in the handling of cargo in foreign trade: Provided further, That upon such terms and conditions as the Secretary of the Treasury by regulation may prescribe, and, if the transporting vessel is of foreign registry, upon his finding, pursuant to information furnished by the Secretary of State, that the government of the nation of registry extends reciprocal privileges to vessels of the United States, the Secretary of the Treasury may suspend the application of this section to the transportation of merchandise between points in the United States (excluding

transportation between the continental United States and noncontiguous states, districts, territories, and possessions embraced within the coastwise laws) which, while moving in the foreign trade of the United States, is transferred from a non-self-propelled barge certified by the owner or operator to be specifically designed for carriage aboard a vessel and regularly carried aboard a vessel in foreign trade to another such barge owned or leased by the same owner or operator, without regard to whether any such barge is under foreign registry or qualified to engage in the coastwise trade. (As amended Nov. 23, 1971, Pub. L. 92-163, § 1, 85 Stat. 486.)

AMENDMENTS

1971-Pub. L. 92-163 added "and equipment, excluding propulsion equipment, for use with such barges" following "(c) empty barges specifically designed for carriage aboard a vessel" and added reciprocity proviso reciprocally permitting foreign-flag specialty barges, specifically designed and regularly carried aboard a barge carrying ship in foreign trade to carry export or import cargo between United States points which has been transferred from one such barge to another.

REPORT TO CONGRESS REGARDING EFFECT OF RECIPROCITY PROVISIONS

Section 2 of Pub. L. 92-163 provided that: "For a period of five years following the enactment of this Act [Nov. 23, 1971], the Secretary of the Treasury shall at the beginning of each regular session make a report to the Congress regarding activities under this Act, including but not limited to the extent to which foreign governments are extending reciprocal privileges to the vessels of the United States."

Chapter 25.-SHIP MORTGAGES

CHAPTER REFERRED TO IN OTHER SECTIONS This chapter is referred to in section 1271 of this title. MARITIME LIENS FOR NECESSARIES

§ 973. Notice to person furnishing repairs, supplies, and necessaries.

The officers and agents of a vessel specified in section 972 of this title shall be taken to include such officers and agents when appointed by a charterer, by an owner pro hac vice, or by an agreed purchaser in possession of the vessel. (As amended Aug. 10, 1971, Pub. L. 92-79, 85 Stat. 285.)

AMENDMENTS

1971-Pub. L. 92-79 struck out provisions prohibiting the construction of this chapter to confer a lien when the furnisher knew, or by exercise of reasonable diligence could have ascertained that because of the terms of a charter party, agreement for sale of the vessel, or for any other reason, the person ordering the repairs, supplies, or other necessaries was without authority to bind the vessel.

Chapter 27.-MERCHANT MARINE ACT, 1936

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in section 865a of this title. SUBCHAPTER II.-CREATION AND FUNCTIONS OF MARITIME AGENCIES

§ 1114. Transfer of powers; rules and orders.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1244 of this title. § 1126d. Advisory Board of Merchant Marine Academy. TERMINATION OF ADVISORY BOARDS

Advisory Boards in existence on January 5, 1973, to terminate not later than the expiration of the two-year

period following January 5, 1973, unless, in the case of a board established by the President or an officer of the Federal Government, such board is renewed by appropriate action prior to the expiration of such two-year period, or in the case of a board established by the Congress, its duration is otherwise provided by law, see sections 3(2) and 14 of Pub. L. 92-463, Oct. 6, 1972, 86 Stat. 770, 776, set out in the Appendix to Title 5, Government Organization and Employees.

SUBCHAPTER V.-CONSTRUCTION

DIFFERENTIAL SUBSIDY

SUBCHAPTER REFERRED TO IN OTHER SECTIONS This subchapter is referred to in sections 1244, 1274 of this title.

§ 1152. Construction of vessels; bids; subsidies. (a) Approval of bids; contract with bidder; acceptance of negotiated price; shipyard records, availability; contract with applicant or qualified citizen for purchase of vessel.

If the Secretary of the Navy certifies his approval under section 1151(b) of this title, and the Secretary of Commerce approves the application, he may secure bids for the construction of the proposed vessel according to the approved plans and specifications. If the bid of the shipbuilder who is the lowest responsible bidder is determined by the Secretary of Commerce to be fair and reasonable, the Secretary of Commerce may approve such bid, and if such approved bid is accepted by the proposed shipbuilder, the Secretary of Commerce is authorized to enter into a contract with the successful bidder for the construction, outfitting, and equipment of the proposed vessel, and for the payment by the Secretary of Commerce to the shipbuilder, on terms to be agreed upon in the contract, of the contract price of the vessel, out of the construction fund hereinbefore referred to, or out of other available funds. Notwithstanding the provisions of the first sentence of section 1155 of this title with respect to competitive bidding, the Secretary of Commerce is authorized, at any time prior to June 30, 1976, to accept a price for the construction of the ship which has been negotiated between a shipyard and proposed ship purchaser if (i) the negotiated price will result in a construction-differential subsidy that is equal to or less than 45 per centum in fiscal 1971, 43 per centum in fiscal 1972, 41 per centum in fiscal 1973, 39 per centum in fiscal 1974, 37 per centum in fiscal 1975, and 35 per centum in fiscal 1976, (ii) the proposed ship purchaser and the shipyard submit backup cost details and evidence that the negotiated price is fair and reasonable; (iii) the Secretary of Commerce finds that the negotiated price is fair and reasonable; and (iv) the shipyard agrees that the Comptroller General of the United States or any of his duly authorized representatives shall, until the expiration of three years after final payment have access to and the right to examine any pertinent books, documents, papers, and records of the shipyard or any of its subcontractors related to the negotiation or performance of any contract or subcontract negotiated under this subsection and will include in its subcontracts a provision to that effect. Concurrently with entering into such contract with the shipbuilder, the Secretary of Commerce is authorized to enter into a contract for the sale of such vessel upon its completion, to the applicant if he is the proposed ship purchaser and if not to another

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