84 STAT. 1021 49 Stat. 1997. 46 USC 1152. 70 Stat. 657; 78 Stat. 385. 46 USC 11911206, 1159. 46 USC 11511161. 52 Stat. 957; 74 Stat. 216. 66 Stat. 761. 52 Stat. 958. Ante, p. 1019. tion the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the average maturities of such loans, adjusted to the nearest one-eighth of 1 per centum, plus (ii) an allowance adequate in the judgment of the Secretary of Commerce to cover administrative costs". (g) By striking out of the last sentence the words "of 31⁄2 per centum per annum" and inserting in lieu thereof the words "per annum applicable to payments that are chargeable to the purchaser's portion of the price of the vessel". (4) Subsection (e) is amended as follows: (a) By striking out of the first sentence the words "the applicant" and inserting in lieu thereof the words "a citizen of the United States". (b) By striking out of the third sentence the words "an applicant" and inserting in lieu thereof the words "a citizen of the United States". (5) Subsection (f) is amended as follows: (a) By striking out the words "title VII and section 509, and the Federal Maritime Board, in connection with ship construction, reconstruction, or reconditioning under title V (except section 509)," in the second sentence and inserting in lieu thereof "titles V and VÍÍ,”. (b) By striking out the words "in such manner as it may be determined" in the second sentence and inserting in lieu thereof "in such manner as he may determine". (c) By striking out the word "applicant" wherever it appears and inserting in lieu thereof the word "purchaser." (d) By striking out of the fourth sentence of the second paragraph the words "on any" and inserting in lieu thereof the words "in an". (e) By striking out of the fourth sentence of the second paragraph the words "of the operator". (6) Subsection (g) is amended as follows: (a) By striking out of the first sentence the word "agreement" and inserting in lieu thereof the word "application”. (b) By striking out of the first sentence the words "an applicant under this title" and inserting in lieu thereof the words “any citizen of the United States". SEC. 8. Section 503 of the Merchant Marine Act, 1936 (46 U.S.C. 1153), is amended as follows: (1) By striking out the word "applicant" wherever it appears and inserting in lieu thereof the word "purchaser”. (2) By striking out of the first sentence the words "purchase between the applicant and the Commission" and inserting in lieu thereof the words "sale between the purchaser and the Secretary of Commerce". SEC. 9. Section 504 of the Merchant Marine Act, 1936 (46 U.S.C. 1154), is amended as follows: (1) By striking out the first three sentences. (2) By inserting, after the section number, a new sentence to read as follows: "If a qualified purchaser under the terms of this title desires to purchase a vessel to be constructed in accordance with an application for construction-differential subsidy under this title, the Secretary of Commerce may, in lieu of contracting to pay the entire cost of the vessel under section 502, contract to pay only construction-differential subsidy and the cost of national defense features to the shipyard constructing such vessel. The construction-differential subsidy and payments for the cost of national defense features shall be based upon the lowest responsible domestic bid unless the vessel is constructed at a negotiated price as provided by section 502(a) or under a contract negotiated by the Secretary of Commerce as provided in section 84 STAT. 1022 502(b) in which event the construction-differential subsidy and pay- Ante, p. 1020. ments for the cost of national defense features shall be based upon such negotiated price." SEC. 10. Section 505 of the Merchant Marine Act, 1936 (46 U.S.C. 1155), is amended as follows: (1) Subsection (a) is amended as follows: (a) By striking out the designation "(a)". (b) By striking out of the first sentence the words "within the con tinental limits". (c) By striking out of the first sentence the words "the applicant to reject, and in". 49 Stat. 1998. (d) By inserting immediately before the period at the end of the Use of American second sentence the following: "; Provided, however, That with materials, waivrespect to other than major components of the hull, superstructure, er. and any material used in the construction thereof, (1) if the Secretary of Commerce determines that the requirements of this sentence will unreasonably delay completion of any vessel beyond its contract delivery date, and (2) if such determination includes or is accompanied by a concise explanation of the basis therefor, then the Secretary of Commerce may waive such requirements to the extent necessary to prevent such delay." 46 USC 1151– (e) By striking out the last sentence and inserting in lieu thereof the following sentence: "For the purposes of this title V, the term 'shipyard of the United States' means shipyards within any of the United States and the Commonwealth of Puerto Rico." (2) By striking out subsections (b), (c), (d), and (e). SEC. 11. Section 509 of the Merchant Marine Act, 1936 is amended 66 Stat. 761; as follows: (a) By striking out the word "Commission" wherever it appears and inserting in lieu thereof the words "Secretary of Commerce". (b) By striking out the word "applicant" wherever it appears and inserting in lieu thereof the word "purchaser”. (c) By striking out the words "at 312 per centum per annum," and inserting in lieu thereof, the words "at a rate not less than (i) a rate determined by the Secretary of the Treasury, taking into consideration the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the average maturities of such -loans, adjusted to the nearest one-eighth of 1 per centum, plus (ii) an allowance adequate in the judgment of the Secretary of Commerce to cover administrative costs, the balance of such purchase price being". SEC. 12. (a) Section 510(a) of the Merchant Marine Act, 1936 (46 U.S.C. 1160(a)), is amended as follows: (1) By striking out of paragraph (1) all of subdivision (B) other than the final word "and", and inserting in lieu thereof the words "in the judgment of the Secretary of Commerce, should, by reason of age, obsolescence, or otherwise, be replaced in the public interest". (2) By striking out of subdivision (C) of paragraph (1) the words "is owned" and inserting in lieu thereof the words "has been owned". (3) By striking out of subdivision (C) of paragraph (1) the words "and has been owned by such citizen or citizens". (4) By striking out of paragraph (1) the proviso in its entirety. (b) Section 510(b) of the Merchant Marine Act, 1936 (46 U.S.C. 1160(b)). is amended by striking out of the next to the last sentence the words "capital reserve fund" and inserting in lieu thereof the words "capital construction fund”. SEC. 13. Section 510(i) of the Merchant Marine Act, 1936 (46 U.S.C. 1160(i)), is amended as follows: 81 Stat. 660. 46 USC 1159 and note. 53 Stat. 1183. 75 Stat. 833. 74 Stat. 312; 79 Stat. 980. 84 STAT. 1023 49 Stat. 2001; 49 Stat. 1989. 75 Stat. 89. 46 USC 1183. (1) By striking out of the first paragraph the year “1970" and inserting in lieu thereof the year “1972“. (2) By striking out of the first paragraph the words "which were constructed or contracted for by the United States shipyards before September 3, 1945," and inserting in lieu thereof the words "which were constructed in the United States,". (3) By striking out of the first paragraph the words "war-built vessels (which are defined for purposes of this subsection as". (4) By striking out of the first paragraph the words "which were constructed or contracted for by the United States shipyards during the period beginning September 3, 1939, and ending September 2, 1945)". SEC. 14. Section 601 (a) of the Merchant Marine Act, 1936 (46 U.S.C. 1171(a)), is amended as follows: (1) By inserting after the first sentence a new sentence to read as follows: "In this title VI the term 'essential service' means the operation of a vessel on a service, route, or line described in section 211(a) or in bulk cargo carrying service described in section 211(b).". (2) By striking out of subdivision (1) the words "such service, route, or line" and inserting in lieu thereof the words "an essential service". (3) By striking from subdivision (2) the words "and maintain the service, route, or line" and inserting in lieu thereof the words "in an essential service". SEC. 15. Section 603 (a) of the Merchant Marine Act, 1936 (46 U.S.C. 1173(a)), is amended by striking out the words "such service, route, or line," and inserting in lieu thereof the words "an essential service". SEC. 16. Section 603 (b) of the Merchant Marine Act, 1936 (46 U.S.C. 1173(b)), is amended as follows: (1) By striking out the words "Such contract shall provide that the amount of the operating-differential subsidy for the operation of vessels on a service, route, or line shall not exceed the excess of" and inserting in lieu thereof the words "Such contract shall provide, except as the parties should agree upon a lesser amount, that the amount of the operating-differential subsidy for the operation of vessels in an essential service shall equal the excess of the subsidizable wage costs of the United States officers and crews,". (2) By inserting in the first sentence after the words "cost of insurance," the words "subsistence of officers and crews on passenger vessels, as defined in section 613 of this Act,". (3) By striking out of the first sentence the words "maintenance, repairs not compensated by insurance," and inserting in lieu thereof "maintenance, and repairs not compensated by insurance". (4) By striking out of the first sentence the words "wages and subsistence of officers and crews, and any other items of expense in which the Commission shall find and determine that the applicant is at a substantial disadvantage in competition with vessels of the foreign country hereinafter referred to," and inserting in lieu thereof “incurred". (5) By inserting before the period at the end of the first sentence a colon and a proviso to read as follows: "Provided, however, That the Secretary of Commerce may, with respect to any vessel in an essential bulk cargo carrying service as described in section 211(b), pay, in lieu of the operating-differential subsidy provided by this subsection (b), such sums as he shall determine to be necessary to make the cost of operating such vessel competitive with the cost of operating similar vessels under the registry of a foreign country”. SEC. 17. Section 603(c) of the Merchant Marine Act, 1936 (46 U.S.C. 1173 (c)), is amended as follows: 84 STAT. 1024 49 Stat. 2002; (1) By redesignating the subsection as subsection (f) and inserting 75 Stat. 513. new subsections (c), (d), and (e) as follows: "(c) (1) When used in this section bargaining oosts." "(A) The term 'collective bargaining costs' means the annual cost, "Collective calculated on the basis of the per diem rate of expense as of any date, of all items of expense required of the applicant through collective bargaining or other agreement, covering the employment of United States officers and crew of a vessel, including payments required by law to assure old-age pensions, unemployment benefits, or similar benefits and taxes or other governmental assessments on crew payrolls, but excluding subsistence of officers and crews on vessels other than passenger vessels as defined in section 613 of this Act and costs relating to: "(i) the officers or members of the crew that the Secretary of Commerce has found, prior to the award of a contract for the construction or reconstruction of a vessel, to be unnecessary for the efficient and economical operation of such vessel: Provided, That the Secretary of Commerce shall afford representatives of the collective-bargaining unit or units responsible for the manning of the vessel an opportunity to comment on such finding prior to the effective date of such finding: And provided further, That in determining whether officers or members of the crew are necessary for the efficient and economical operation of such vessel, the Secretary of Commerce shall give due consideration to, but shall not be bound by, wage and manning scales and working conditions required by a bona fide collective-bargaining agreement, or "(ii) those officers or members of the crew that the Secretary of Commerce has found, prior to ninety days following the date of enactment of this subsection, to be unnecessary for the efficient and economical operation of the vessel. "(B) The term 'base period costs' means for the base period beginning July 1, 1970, and ending June 30, 1971, the collective-bargaining costs as of January 1, 1971, less all other items of cost that have been disallowed by the Secretary of Commerce prior to ninety days following the date of enactment of this subsection, and not already excluded from collective-bargaining costs under subparagraph (A)(i) or (A) (ii) of this subsection. In any subsequent base period the term 'base period costs' means the average of the subsidizable wage cost of United States officers and crews for the preceding annual period ending June 30 (calculated without regard to the limitation of the last sentence of paragraph (D) of this subdivision but increased or decreased by the increase or decrease in the index described in subdivision (3) of this subsection from January 1 of such annual period to January 1 of the base period), and the collective-bargaining costs as of January 1 of the base period: Provided. That in no event shall the base period cost be such that the difference between the base period cost and the collective-bargaining costs as of January 1 of any base period subsequent to the first base period exceeds five-fourths of 1 per centum of the collective-bargaining costs as of such January 1 multiplied by the number of years that have elapsed since the most recent base period. "(C) The term 'base period' means any annual period beginning July 1, and ending June 30 with respect to which a base period cost is established. "(D) The term 'subsidizable wage costs of United States officers and crews in any period other than a base period means the most recent base period costs increased or decreased by the increase or decrease 75 Stat. 89. 46 USC 1183. "Base period costs." Post, p. 1025. "Base period." "Subsidizable wage costs of U.S. officers and crews." 84 STAT. 1025 Wage ohange index. Foreign wage computation. 66 Stat. 764; from January 1 of such base period to January 1 of such period in the index described in subdivision (3) hereof, and with respect to a base period means the base period cost. The subsidizable wage costs of United States officers and crews in any period other than a base period shall not be less than 90 per centum of the collective-bargaining costs as of January 1 of such period nor greater than 110 per centum of such collective-bargaining costs. "(2) The Secretary of Commerce shall determine the collectivebargaining costs on ships in subsidized operation as of January 1, 1971, and as of each January 1 thereafter, and shall as of intervals of not less than two years nor more than four years, establish a new base period cost, except that the Secretary shall not establish a new base period unless he announces his intention to do so prior to the December 31 that would be included in the new base period. "(3) The Bureau of Labor Statistics shall compile the index referred to in subdivision (1). Such index shall consist of the average annual change in wages and benefits placed into effect for employees covered by collective-bargaining agreements with equal weight to be given to changes affecting employees in the transportation industry (excluding the offshore maritime industry) and to changes affecting employees in private nonagricultural industries other than transportation. Such index shall be based on the materials regularly used by the Bureau of Labor Statistics in compiling its regularly published statistical series on wage and benefit changes arrived at through collective bargaining. Such materials shall remain confidential and not be subject to disclosure. "(d) Each foreign wage cost computation shall be made after an opportunity is given to the contractor to submit in writing and in timely fashion all relevant data, within his possession. In making the computation, the Secretary shall consider all relevant matter so presented and all foreign wage cost data collected at his request or on his behalf. Such foreign cost data shall be made available to an interested contractor, unless the Secretary shall find that disclosure of the data will prevent him from obtaining such data in the future. In determining foreign manning for purposes of this section, the foreign manning determined for any ship type with respect to any base period shall not be redetermined until the beginning of a new base period. "(e) The wage subsidy shall be payable monthly for the voyages completed during the month, upon the contractor's certification that the subsidized vessels were in authorized service during the month. The Secretary of Commerce shall prescribe procedures for the calculation and payment of subsidy on items of expense which are included in 'collective-bargaining costs' but are not included in the daily rate because they are unpredictably timed." (2) Redesignated subsection (f) is amended to read as follows: "(f) Ninety percent of the amount of the insurance and maintenance and repair and subsistence of officers and crews subsidy shall be payable monthly for the voyages completed during the month on the basis of the subsidy estimated to have accrued with respect to such voyages. Any such payment shall be made only after there has been furnished to the Secretary of Commerce such security as he deems to be reasonable and necessary to assure refund of any overpayment. The contractor and the Secretary of Commerce shall audit the voyage accounts as soon as practicable after such payment. The remaining 10 percent of such subsidy shall be payable after such audit." SEC. 18. Section 605(b) is amended by striking out the words 79 Stat. 1310. "except one whose life expectancy has been determined as provided in section 607 (b) for a period in no case to exceed the life expectancy 46 USC 1175. Post, p. 1027. |