46 U.S.C. § 53103 — Award of operating agreements

(a) The Secretary^* must require the vessel’s owner or operator under section 53102(c) to make an operating agreement as a condition of putting the vessel^* in the Fleet^*. (b) Extension of Existing Agreements. (1) Within 60 days after enactment, the Secretary must offer each existing contractor^* an extension through September 30, 2040. The extension may use terms authorized by this chapter as amended. (2) The contractor has 120 days after the offer to agree. (3) If it does not agree, the Secretary may award an agreement for fiscal years 2016 through 2040 to another eligible applicant. (c) New Agreements. The Secretary may make a new agreement with an applicant meeting section 53102(c) for a qualified vessel, using vessel-type priority based on Defense military needs. The Secretary must allow at least 30 days for an application. After military needs are considered, priority goes to a section 50501 United States^* citizen. Defense must consent. The Secretary must either make the agreement or give the applicant a written reason for denial. (d) The Secretary may not award agreements requiring section 53106 payments for more than 60 vessels in a fiscal year.