-CITE- 46 USC CHAPTER 503 - ADMINISTRATIVE 01/08/2008 -EXPCITE- TITLE 46 - SHIPPING Subtitle V - Merchant Marine Part A - General CHAPTER 503 - ADMINISTRATIVE -HEAD- CHAPTER 503 - ADMINISTRATIVE -MISC1- Sec. 50301. Vessel Operations Revolving Fund. 50302. Port development. 50303. Operating property and extending term of notes. 50304. Sale and transfer of property. 50305. Appointment of trustee or receiver and operation of vessels. 50306. Requiring testimony and records in investigations. -End- -CITE- 46 USC Sec. 50301 01/08/2008 -EXPCITE- TITLE 46 - SHIPPING Subtitle V - Merchant Marine Part A - General CHAPTER 503 - ADMINISTRATIVE -HEAD- Sec. 50301. Vessel Operations Revolving Fund -STATUTE- (a) In General. - There is a "Vessel Operations Revolving Fund" for use by the Secretary of Transportation in carrying out duties and powers related to vessel operations, including charter, operation, maintenance, repair, reconditioning, and improvement of merchant vessels under the jurisdiction of the Secretary. The Fund has a working capital of $20,000,000, to remain available until expended. (b) Relationship to Other Laws. - Notwithstanding any other law, rates for shipping services provided under the Fund shall be prescribed by the Secretary and the Fund shall be credited with receipts from vessel operations conducted under the Fund. Sections 1(a) and (c), 3(c), and 4 of the Act of March 24, 1943 (50 App. U.S.C. 1291(a), (c), 1293(c), 1294), apply to those operations and to seamen employed through general agents as employees of the United States Government. Notwithstanding any other law on the employment of persons by the Government, the seamen may be employed in accordance with customary commercial practices in the maritime industry. (c) Advancements. - With the approval of the Director of the Office of Management and Budget, the Secretary may advance amounts the Secretary considers necessary, but not more than 2 percent of vessel operating expenses, from the Fund to the appropriation "Salaries and Expenses" in carrying out duties and powers related to vessel operations, without regard to the limitations on amounts stated in that appropriation. (d) Transfers. - The unexpended balances of working funds or of allocation accounts established after January 1, 1951, for the activities provided for in subsection (a), and receipts received from those activities, may be transferred to the Fund, which shall be available for the purposes of those working funds or allocation accounts. (e) Limitation. - (1) In general. - Amounts made available to the Secretary for maritime activities by this section or any other law may not be used to pay for a vessel described in paragraph (2) unless the compensation to be paid is computed under section 56303 of this title as that section is interpreted by the Comptroller General. (2) Applicable vessels. - Paragraph (1) applies to a vessel - (A) the title to which is acquired by the Government by requisition or purchase; (B) the use of which is taken by requisition or agreement; or (C) lost while insured by the Government. (3) Nonapplicable vessels. - Paragraph (1) does not apply to a vessel under a construction-differential subsidy contract. (f) Availability for Additional Purposes. - The Fund is available for - (1) necessary expenses incurred in the protection, preservation, maintenance, acquisition, or use of vessels involved in mortgage foreclosure or forfeiture proceedings instituted by the Government, including payment of prior claims and liens, expenses of sale, or other related charges; (2) necessary expenses incident to the redelivery and lay-up, in the United States, of vessels chartered as of June 20, 1956, under agreements not calling for their return to the Government; (3) the activation, repair, and deactivation of merchant vessels chartered for limited emergency purposes during fiscal year 1957 under the jurisdiction of the Secretary; and (4) payment of expenses of custody and maintenance of Government-owned vessels not in the National Defense Reserve Fleet. (g) Expenses and Receipts Related to Charter Operations. - The Fund is available for expenses incurred in activating, repairing, and deactivating merchant vessels chartered under the jurisdiction of the Secretary. Receipts from charter operations of Government- owned vessels under the jurisdiction of the Secretary shall be credited to the Fund. -SOURCE- (Pub. L. 109-304, Sec. 8(b), Oct. 6, 2006, 120 Stat. 1562.) -MISC1- HISTORICAL AND REVISION NOTES -------------------------------------------------------------------- Revised Source (U.S. Code) Source (Statutes at Large) Section -------------------------------------------------------------------- 50301(a) 46 App.:1241a (1st June 2, 1951, ch. 121 (pars. sentence). under heading "Vessel Operations Revolving Fund"), 65 Stat. 59; Pub. L. 97-31, Sec. 12(128), Aug. 6, 1981, 95 Stat. 165; Pub. L. 108-271, Sec. 8(b), July 7, 2004, 118 Stat. 814. 50301(b) 46 App.:1241a (2d sentence words before 2d proviso). 50301(c) 46 App.:1241a (2d sentence 2d proviso). 50301(d) 46 App.:1241a (2d sentence last proviso). 50301(e) 46 App.:1241a (last sentence). 50301(f) 46 App.:1241b. June 20, 1956, ch. 415, title I, Sec. 101 (4th complete par. on p. 319), 70 Stat. 319; Pub. L. 97-31, Sec. 12(129), Aug. 6, 1981, 95 Stat. 165. 46 App.:1241b note. 50301(g) 46 App.:1241c. Aug. 1, 1956, ch. 846, 70 Stat. 897; Pub. L. 97-31, Sec. 12(130), Aug. 6, 1981, 95 Stat. 165. -------------------------------------------------------------------- In subsection (c), the words "Director of the Office of Management and Budget" are substituted for "Bureau of the Budget" in the Act of June 2, 1951 (ch. 121, 65 Stat. 59), because of sections 101 and 102 of Reorganization Plan No. 2 of 1970 (5 App. U.S.C.) and 31 U.S.C. ch. 5. The words "for the purposes of that appropriation" are omitted for clarity and for consistency in the subsection. In subsection (d), the words "notwithstanding any other provisions of law" and "and consolidated with" are omitted as unnecessary. In subsection (e), in paragraph (1), the words "Comptroller General" are substituted for "Government Accountability Office" for consistency in the revised title. Paragraph (3) is substituted for "(except in cases where section 1212 of this Appendix is applicable)" because section 1212 applies to all vessels under a construction-differential subsidy contract. In subsection (f), the words "On and after June 20, 1956", and the last proviso in the 4th complete par. at 70 Stat. 319 (46 App. U.S.C. 1241b note), are omitted as obsolete. In subsection (g), the words "beginning July 1, 1956" and "after July 1, 1956" are omitted as obsolete. -End- -CITE- 46 USC Sec. 50302 01/08/2008 -EXPCITE- TITLE 46 - SHIPPING Subtitle V - Merchant Marine Part A - General CHAPTER 503 - ADMINISTRATIVE -HEAD- Sec. 50302. Port development -STATUTE- (a) General Requirements. - With the objective of promoting, encouraging, and developing ports and transportation facilities in connection with water commerce over which the Secretary of Transportation has jurisdiction, the Secretary, in cooperation with the Secretary of the Army, shall - (1) investigate territorial regions and zones tributary to ports, taking into consideration the economies of transportation by rail, water, and highway and the natural direction of the flow of commerce; (2) investigate the causes of congestion of commerce at ports and applicable remedies; (3) investigate the subject of water terminals, including the necessary docks, warehouses, and equipment, to devise and suggest the types most appropriate for different locations and for the most expeditious and economical transfer or interchange of passengers or property between water carriers and rail carriers; (4) consult with communities on the appropriate location and plan of construction of wharves, piers, and water terminals; (5) investigate the practicability and advantages of harbor, river, and port improvements in connection with foreign and coastwise trade; and (6) investigate any other matter that may tend to promote and encourage the use by vessels of ports adequate to care for the freight that naturally would pass through those ports. (b) Submission of Findings to Surface Transportation Board. - After an investigation under subsection (a), if the Secretary of Transportation believes that the rates or practices of a rail carrier subject to the jurisdiction of the Surface Transportation Board are detrimental to the objective specified in subsection (a), or that new rates or practices, new or additional port terminal facilities, or affirmative action by a rail carrier is necessary to promote that objective, the Secretary may submit findings to the Board for action the Board considers appropriate under existing law. -SOURCE- (Pub. L. 109-304, Sec. 8(b), Oct. 6, 2006, 120 Stat. 1564.) -MISC1- HISTORICAL AND REVISION NOTES -------------------------------------------------------------------- Revised Source (U.S. Code) Source (Statutes at Large) Section -------------------------------------------------------------------- 50302(a) 46 App.:867 (words June 5, 1920, ch. 250, Sec. before proviso). 8, 41 Stat. 992; Exec. Order No. 6166, June 10, 1933, Sec. 12; June 29, 1936, ch. 858, title II, Sec. 204, title IX, Sec. 904, 49 Stat. 1987, 2016; Pub. L. 97-31, Sec. 12(40), Aug. 6, 1981, 95 Stat. 156; Pub. L. 104-88, Sec. 321(1), Dec. 29, 1995, 109 Stat. 949. 50302(b) 46 App.:867 (proviso). -------------------------------------------------------------------- In subsection (a), before paragraph (1), the words "Secretary of the Army" are substituted for "Secretary of War" in section 8 of the Merchant Marine Act, 1920 (ch. 250, 41 Stat. 992) because of section 205(a) of the National Security Act of 1947 (ch. 343, 61 Stat. 501). See 10 U.S.C. 3011 et seq. In paragraph (3), the words "apparatus" and "appliances" are omitted as unnecessary. In paragraph (4), the words "consult with" are substituted for "advise with" as being more grammatical. In subsection (b), the words "rates or practices" are substituted for "rates, charges, rules, or regulations" for consistency in the revised title and with other titles of the United States Code. -End- -CITE- 46 USC Sec. 50303 01/08/2008 -EXPCITE- TITLE 46 - SHIPPING Subtitle V - Merchant Marine Part A - General CHAPTER 503 - ADMINISTRATIVE -HEAD- Sec. 50303. Operating property and extending term of notes -STATUTE- (a) General Authority. - The Secretary of Transportation may - (1) operate or lease docks, wharves, piers, or real property under the Secretary's control; and (2) make extensions and accept renewals of - (A) promissory notes and other evidences of indebtedness on property; and (B) mortgages and other contracts securing the property. (b) Terms of Transactions. - A transaction under subsection (a) shall be on terms the Secretary considers necessary to carry out the purposes of this subtitle, but consistent with sound business practice. (c) Availability of Amounts. - Amounts received by the Secretary from a transaction under this section are available for expenditure by the Secretary as provided in this subtitle. -SOURCE- (Pub. L. 109-304, Sec. 8(b), Oct. 6, 2006, 120 Stat. 1564.) -MISC1- HISTORICAL AND REVISION NOTES -------------------------------------------------------------------- Revised Source (U.S. Code) Source (Statutes at Large) Section -------------------------------------------------------------------- 50303 46 App.:1112. June 29, 1936, ch. 858, title II, Sec. 202, 49 Stat. 1986; Aug. 26, 1937, ch. 822, Sec. 1, 50 Stat. 839; June 23, 1938, ch. 600, Sec. 1, 52 Stat. 953; Pub. L. 97-31, Sec. 12(60), Aug. 6, 1981, 95 Stat. 158. -------------------------------------------------------------------- In subsection (a), the words "Notwithstanding any other provision of law" are omitted as unnecessary. In paragraph (1), the word "lands" is omitted as included in "real property". In paragraph (2)(A), the word "promissory" is added for clarity. The words "hereby transferred", referring to the transfer under the first sentence of section 202 of the Merchant Marine Act, 1936 (repealed by section 12(60)(A) of Public Law 97-31), are omitted as obsolete. Subsection (b) is substituted for "in accordance with good business methods and on such terms and conditions as he determines to effectuate the policy of this chapter" and "upon such terms and conditions as he may prescribe in accordance with sound business practice" for consistency and to eliminate unnecessary words. -End- -CITE- 46 USC Sec. 50304 01/08/2008 -EXPCITE- TITLE 46 - SHIPPING Subtitle V - Merchant Marine Part A - General CHAPTER 503 - ADMINISTRATIVE -HEAD- Sec. 50304. Sale and transfer of property -STATUTE- (a) Authority To Sell. - The Secretary of Transportation may sell property (other than vessels transferred under section 4 of the Merchant Marine Act, 1920 (ch. 250, 41 Stat. 990)) on terms the Secretary considers appropriate. (b) Transfers From Military to Civilian Control. - When the President considers it in the interest of the United States, the President may transfer to the Secretary of Transportation possession and control of property described in the second paragraph of section 17 of the Merchant Marine Act, 1920 (ch. 250, 41 Stat. 994), as originally enacted, that is possessed and controlled by the Secretary of a military department. (c) Transfers From Civilian to Military Control. - When the President considers it necessary, the President by executive order may transfer to the Secretary of a military department possession and control of property described in section 17 of the Merchant Marine Act, 1920 (ch. 250, 41 Stat. 994), as originally enacted, that is possessed and controlled by the Secretary of Transportation. The President's order shall state the need for the transfer and the period of the need. When the President decides that the need has ended, the possession and control shall revert to the Secretary of Transportation. The property may not be sold except as provided by law. -SOURCE- (Pub. L. 109-304, Sec. 8(b), Oct. 6, 2006, 120 Stat. 1565.) -MISC1- HISTORICAL AND REVISION NOTES -------------------------------------------------------------------- Revised Source (U.S. Code) Source (Statutes at Large) Section -------------------------------------------------------------------- 50304(a) 46 App.:872. June 5, 1920, ch. 250, Secs. 13, 17, 41 Stat. 993, 994; Exec. Order No. 6166, June 10, 1933, Sec. 12; June 29, 1936, ch. 858, title II, Sec. 204, title IX, Sec. 904, 49 Stat. 1987, 2016; Pub. L. 97-31, Sec. 12(44), (45), Aug. 6, 1981, 95 Stat. 157. 50304(b) 46 App.:875 (1st par.). 50304(c) 46 App.:875 (last par.). -------------------------------------------------------------------- In subsections (b) and (c), the words "property described in the second paragraph of section 17 of the Merchant Marine Act, 1920 (ch. 250, 41 Stat. 994), as originally enacted" are substituted for "such other docks, piers, warehouses, wharves and terminal equipment and facilities or parts thereof, including all leasehold easements, rights of way, riparian rights and other rights, estates or interests therein or appurtenant thereto which were acquired . . . for military or naval purposes during the war emergency", and the words "property described in section 17 of the Merchant Marine Act, 1920 (ch. 250, 41 Stat. 994), as originally enacted" are substituted for "property taken over by or transferred to . . . under this section", because the first paragraph of section 17 of the Merchant Marine Act, 1920, was repealed in 1981 and reference to that paragraph is necessary for a complete understanding of these provisions. The words "Secretary of a military department" are substituted for "War Department or the Navy Department" and "Department of the Army, Department of the Air Force, or Department of the Navy" for consistency with other titles of the United States Code. For redesignation of the Department of War to the Department of the Army, and for transfer of certain functions to newly established Department of the Air Force, see sections 205(a) and 207(a) and (f) of the National Security Act of 1947 (ch. 343, 61 Stat. 501, 502, 503). In subsection (b), the words "possessed and controlled by" are substituted for "acquired by" for clarity and for consistency in the section. The word "best" is omitted as unnecessary. -REFTEXT- REFERENCES IN TEXT Section 4 of the Merchant Marine Act, 1920, referred to in subsec. (a), is section 4 of act June 5, 1920, ch. 250, 41 Stat. 990, which was classified to section 863 of former Title 46, Shipping, and was repealed by Pub. L. 100-710, title II, Sec. 202(4), Nov. 23, 1988, 102 Stat. 4753. Section 17 of the Merchant Marine Act, 1920 (ch. 250, 41 Stat. 994), as originally enacted, referred to in subsecs. (b) and (c), is section 17 of act June 5, 1920, ch. 250, 41 Stat. 994, which was classified to section 875 of the former Appendix to this title, was subsequently amended, and as amended, was repealed and restated in subsecs. (b) and (c) of this section by Pub. L. 109-304, Secs. 8(b), 19, Oct. 6, 2006, 120 Stat. 1556, 1710. -End- -CITE- 46 USC Sec. 50305 01/08/2008 -EXPCITE- TITLE 46 - SHIPPING Subtitle V - Merchant Marine Part A - General CHAPTER 503 - ADMINISTRATIVE -HEAD- Sec. 50305. Appointment of trustee or receiver and operation of vessels -STATUTE- (a) Appointment of Trustees and Receivers. - (1) Appointment of secretary. - In a proceeding in a court of the United States in which a trustee or receiver may be appointed for a corporation operating a vessel of United States registry between the United States and a foreign country, on which the United States Government holds a mortgage, the court may appoint the Secretary of Transportation as the sole trustee or receiver (subject to the direction of the court) if - (A) the court finds that the appointment will - (i) inure to the advantage of the estate and the parties in interest; and (ii) tend to carry out the purposes of this subtitle; and (B) the Secretary expressly consents to the appointment. (2) Appointment of other person. - The appointment of another person as trustee or receiver without a hearing becomes effective when ratified by the Secretary, but the Secretary may demand a hearing. (b) Operation of Vessels. - (1) In general. - If the court is unwilling to allow the trustee or receiver to operate the vessel in foreign commerce without financial aid from the Government pending termination of the proceeding, and the Secretary certifies to the court that the continued operation of the vessel is essential to the foreign commerce of the United States and is reasonably calculated to carry out the purposes of this subtitle, the court may allow the Secretary to operate the vessel, either directly or through a managing agent or operator employed by the Secretary. The Secretary must agree to comply with terms imposed by the court sufficient to protect the parties in interest. The Secretary also must agree to pay all operating losses resulting from the operation. The operation shall be for the account of the trustee or receiver. (2) Payment of operating losses and other amounts. - The Secretary has no claim against the corporation, its estate, or its assets for operating losses paid by the Secretary, but the Secretary may pay amounts for depreciation the Secretary considers reasonable and other amounts the court considers just. The payment of operating losses and the other amounts and compliance with terms imposed by the court shall be in satisfaction of any claim against the Secretary resulting from the operation of the vessel. (3) Deemed operation by government. - A vessel operated by the Secretary under this subsection is deemed to be a vessel operated by the United States under chapter 309 of this title. -SOURCE- (Pub. L. 109-304, Sec. 8(b), Oct. 6, 2006, 120 Stat. 1565.) -MISC1- HISTORICAL AND REVISION NOTES -------------------------------------------------------------------- Revised Source (U.S. Code) Source (Statutes at Large) Section -------------------------------------------------------------------- 50305 46 App.:1247. June 29, 1936, ch. 858, title IX, Sec. 908, as added Pub. L. 95-598, title III, Sec. 334, Nov. 6, 1978, 92 Stat. 2680; Pub. L. 97-31, Sec. 12(134), Aug. 6, 1981, 95 Stat. 165. -------------------------------------------------------------------- In subsection (a)(1), before subparagraph (A), the words "Notwithstanding any other provision of law" and "bankruptcy, equity, or admiralty" are omitted as unnecessary. In subsection (a)(2), the words "but the Secretary may demand a hearing" are substituted for "unless the Secretary shall deem a hearing necessary" for clarity. In subsection (b)(1), the words "subject to the orders of the court" and "comply with the terms imposed by the court" are omitted as unnecessary. In subsection (b)(2), the words "operating losses paid by the Secretary" are substituted for "the amount of such payments" for clarity. In subsection (b)(3), the words "vessel operated by the United States" are substituted for "vessel of the United States" for clarity and consistency with chapter 309. -End- -CITE- 46 USC Sec. 50306 01/08/2008 -EXPCITE- TITLE 46 - SHIPPING Subtitle V - Merchant Marine Part A - General CHAPTER 503 - ADMINISTRATIVE -HEAD- Sec. 50306. Requiring testimony and records in investigations -STATUTE- (a) In General. - In conducting an investigation that the Secretary of Transportation considers necessary and proper to carry out this subtitle, the Secretary may administer oaths, take evidence, and subpoena persons to testify and produce documents relevant to the matter under investigation. Persons may be required to attend or produce documents from any place in the United States at any designated place of hearing. (b) Fees and Mileage. - Persons subpoenaed by the Secretary under subsection (a) shall be paid the same fees and mileage paid to witnesses in the courts of the United States. (c) Enforcement of Subpoenas. - If a person disobeys a subpoena issued under subsection (a), the Secretary may seek an order enforcing the subpoena from the district court of the United States for the district in which the person resides or does business. Process may be served in the judicial district in which the person resides or is found. The court may issue an order to obey the subpoena and punish a refusal to obey as a contempt of court. -SOURCE- (Pub. L. 109-304, Sec. 8(b), Oct. 6, 2006, 120 Stat. 1566.) -MISC1- HISTORICAL AND REVISION NOTES -------------------------------------------------------------------- Revised Source (U.S. Code) Source (Statutes at Large) Section -------------------------------------------------------------------- 50306 46 App.:1124. June 29, 1936, ch. 858, title II, Sec. 214, 49 Stat. 1991; June 23, 1938, ch. 600, Sec. 3, 52 Stat. 954; Pub. L. 91-452, title II, Sec. 241, Oct. 15, 1970, 84 Stat. 930; Pub. L. 97-31, Sec. 12(72), Aug. 6, 1981, 95 Stat. 159; Pub. L. 98-237, Sec. 20(a), Mar. 20, 1984, 98 Stat. 89; Pub. L. 98-595, Sec. 2, Oct. 30, 1984, 98 Stat. 3132. -------------------------------------------------------------------- In subsection (a), the word "affirmations" is omitted as unnecessary because of the definition of "oath" in 1 U.S.C. 1. The words "or any territory, district, or possession thereof" are omitted as unnecessary because of the definition of "United States" in chapter 1 of the revised title. Subsection (c) is substituted for the source provision to eliminate unnecessary words. -End-