ance with regulations as the Secretary may prescribe. Title to all property, real and personal, acquired for the purposes of completing any project approved by the Secretary, vests in the State. PAY RATES (b) All laborers and mechanics employed by contractors or subcontractors on all construction projects assisted under this Act shall be paid wages at rates not less than those prevailing on similar contruction in the locality, as determined by the Secretary of Labor in accordance with the Davis-Bacon Act, as amended (40 U.S.C. 276a276a-5), and shall receive overtime pay in accordance with and subject to the provisions of the Contract Work Hours Standards Act (Public Law 87-581). The Secretary of Labor shall have with respect to the labor standards specified in this section the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (15 F.R. 3176; 5 U.S.C. 133z-15) and section 2 of the Act of June 13, 1934, as amended (40 U.S.C. 276c). (c) If a State disposes of any real or personal property acquired under this Act, the State shall pay into the Treasury of the United States the amount of any proceeds resulting from the property disposal to the extent of and in the same ratio that funds provided by this Act were used in the acquisition of the property. In no case shall the amount paid into the Treasury of the United States under this section exceed the amount of funds provided by this Act for the acquisition of the property involved. REGULATIONS SEC. 8. The Secretary is authorized to make such rules and regulations as he determines necessary to carry out the purposes of this Act. B. Fishing vessel construction differential subsidy program Act of June 12, 1960 (74 Stat. 212), as amended (46 U.S.C. 1401-1413) SHORT TITLE The Act of June 12, 1960, as amended by the Act of August 30, 1964, shall be cited as the "United States Fishing Fleet Improvement Act". TABLE OF CONTENTS Sec. 1. Authorization for payment of subsidies for construction of fishing vessels. Sec. 2. Application for subsidy; conditions. Sec. 3. Approval of application; contract for payment of subsidy. Sec. 4. Repealed. Sec. 5. Cost determination and limitation. Sec. 6. Supervision of construction; submission of plans to Secretary of Defense. Sec. 7. Conditions of construction. Sec. 8. Acquisition of ownership by United States; payment for vessel; finality of determination. Sec. 9. Transfer for use in other fisheries. Sec. 10. Rules and regulations. Sec. 11. Definitions. Sec. 12. Authorization of appropriations. AUTHORIZATION FOR PAYMENT OF SUBSIDIES FOR CONSTRUCTION OF FISHING VESSELS SECTION 1. In order to correct inequities in the construction of fishing vessels of the United States, the Secretary of the Interior is authorized to pay in accordance with this Act a subsidy for the construction of such vessels in the shipyards of the United States. (June 12, 1960, § 1, 74 Stat. 212; Aug. 30, 1964, § 2 (1), 78 Stat. 614.) APPLICATION FOR SUBSIDY; CONDITIONS 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 specifications 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, resources, and other qualifications necessary to enable him to operate and maintain the proposed new fishing vessel, (3) will aid in the development 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, (7) the vessel will be of advance design, which will enable it to operate in expanded areas, and be equipped with newly developed gear, and will not operate in a fishery, if such operation would cause economic hardship to efficient vessel operators already operating in that fishery, and (8) such other conditions as the Secretary may consider to be in the public interest. (June 12, 1960, § 2, 74 Stat. 212; Aug. 30, 1964, § 2(2), 78 Stat. 614.) APPROVAL OF APPLICATION; CONTRACT FOR PAYMENT OF SUBSIDY SEC. 3. If the Secretary, in the exercise of his discretion, after notice and hearing, 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 in accordance with the purposes and provisions of this Act and in accordance with any other conditions or limitations which may be prescribed by the Secretary. (June 12, 1960, § 3, 74 Stat. 212; Aug. 30, 1964, § 2(3), 78 Stat. 614.) SEC. 4. Repealed. COST DETERMINATION AND LIMITATION SEC. 5. The construction subsidy which the Secretary may pay with 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 constructing a vessel of the type proposed to be constructed, but in no event shall the subsidy exceed 50 percent 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 incorporated 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. (June 12, 1960, § 5, 74 Stat. 212; Aug. 30, 1964, § 2(5), 78 Stat. 614.) SUPERVISION OF CONSTRUCTION; SUBMISSION OF PLANS TO SECRETARY OF DEFENSE SEC. 6. Any fishing vessel for which a construction subsidy is paid under this Act shall be constructed under the supervision of the Maritime 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 Administrator determines necessary to protect the interests of the United States. CONDITIONS OF CONSTRUCTION SEC. 7. All construction with respect to which a construction subsidy is granted under this Act shall be performed in a shipyard in the United States as a result of competitive bidding, after due advertising, with the rights reserved in the applicant, and in the Maritime Administrator, 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 shipbuilder shall be deemed a responsible builder unless he possesses the experience, ability, financial resources, equipment, and other qualifications necessary properly to perform the proposed contract. The submitted bid shall be accompanied by all detailed estimates on which it is based, and the Maritime Administrator may require that the builder or any subcontractor submit any other pertinent data relating to such bids. ACQUISITION OF OWNERSHIP BY UNITED STATES; PAYMENT FOR VESSEL; FINALITY OF DETERMINATION 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 on 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 theretofore 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, depreciation 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. TRANSFER FOR USE IN OTHER FISHERIES SEC. 9. The Secretary of the Interior, in the exercise of his discretion, after notice and hearing, may approve the transfer of a vessel constructed with the aid of a construction subsidy, whose operations have become uneconomical or less economical because of an actual decline in the particular fishery for which it was designed, to another fishery where he determines that such transfer would not cause economic hardship or injury to efficient vessel operators already operating in that fishery. If any fishing vessel constructed with the aid of a construction subsidy in accordance with the provisions of this Act, as amended, is operated during its useful life, as determined by the Secretary, contrary to the provisions of this Act or any regulations issued thereunder, the owner of such vessel shall repay to the Secretary, in accordance with such terms and conditions as the Secretary shall prescribe an amount not to exceed the total depreciated construction subsidy paid by the Secretary pursuant to this Act and this shall constitute a maritime lien against such vessel. The obligations under this section shall run with the title to the vessel. RULES AND REGULATIONS SEC. 10. The Secretary shall make such rules and regulations as may be necessary to carry out the purposes of this Act. DEFINITIONS SEC. 11. As used in this Act the terms (1) "Secretary" means the Secretary of the Interior. (2) "fishing vessel" 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, partnership, 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 Administrator in the Department of Commerce. AUTHORIZATION OF APPROPRIATIONS SEC. 12. There is authorized to be appropriated the sum of not more than $10,000,000 annually to carry out the purposes of this Act. TERMINATION DATE SEC. 13. No application for a subsidy for the construction of a fishing vessel may be accepted by the Secretary after June 30, 1969. |