46 U.S.C. § 53104 — Effectiveness of operating agreements
submitted 23 years ago by Pub. L. 108-136 to r/title-46-SHIPPING · 505 words · no verdicts yet
This section sets the duration, renewal, termination, funding, and release rules for Maritime Security Fleet operating agreements.
(a) The Secretary* may make an agreement for fiscal year 2006. Unless (b) applies, it lasts one fiscal year and may be renewed, if money is available, for each later year through fiscal year 2040. (b) For a vessel* already chartered to the United States* Government, other than under a section 53107 Emergency Preparedness Agreement, the agreement starts when that Government charter expires or ends, or earlier when the vessel leaves the charter, unless the applicant asks for an earlier date. (c) Termination. (1) If a contractor* materially fails to comply, the Secretary must notify it and give a reasonable chance to comply, then must terminate the agreement if it fails. Funds obligated under it then remain available to the Secretary for this chapter. (2) A contractor may end the agreement on its stated date by notifying the Secretary at least 60 days beforehand. (d) If enough money is not appropriated by the first day of a fiscal year, the Secretary must notify the listed congressional committees that unfunded agreements will not be renewed if enough money is not appropriated by day 60. (e) If payment money is not appropriated by day 60, (1) each covered vessel is released from further obligations; (2) its owner or operator may transfer and register it under a foreign registry acceptable to both Secretaries despite section 56101; and (3) if chapter 563 applies after registration, the vessel may be requisitioned under that chapter.
The Secretary* may enter into an operating agreement under this chapter for fiscal year 2006. Except as provided in subsection (b), the agreement shall be effective only for 1 fiscal year, but shall be renewable, subject to the availability of appropriations, for each subsequent fiscal year through the end of fiscal year 2040.
Unless an earlier date is requested by the applicant, the effective date for an operating agreement with respect to a vessel* that is, on the date of entry into an operating agreement, on charter to the United States Government, other than a charter pursuant to an Emergency Preparedness Agreement under section 53107, shall be the expiration or termination date of the Government charter covering the vessel, or any earlier date the vessel is withdrawn from that charter.
If the contractor* with respect to an operating agreement materially fails to comply with the terms of the agreement—
the Secretary shall notify the contractor and provide a reasonable opportunity to comply with the operating agreement;
the Secretary shall terminate the operating agreement if the contractor fails to achieve such compliance; and
upon such termination, any funds obligated by the agreement shall be available to the Secretary to carry out this chapter.
An operating agreement under this chapter shall terminate on a date specified by the contractor if the contractor notifies the Secretary, by not later than 60 days before the effective date of the termination, that the contractor intends to terminate the agreement.
If, by the first day of a fiscal year, sufficient funds have not been appropriated under the authority provided by this chapter for that fiscal year, then the Secretary shall notify the Committee on Armed Services and the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Armed Services of the House of Representatives that operating agreements authorized under this chapter for which sufficient funds are not available will not be renewed for that fiscal year if sufficient funds are not appropriated by the 60th day of that fiscal year.
If funds are not appropriated for payments under an operating agreement under this chapter for any fiscal year by the 60th day of that fiscal year, then—
each vessel covered by the operating agreement is thereby released from any further obligation under the operating agreement;
the owner or operator of the vessel may transfer and register such vessel under a foreign registry that is acceptable to the Secretary of Transportation and the Secretary of Defense, notwithstanding section 56101 of this title; and
if chapter 563 of this title is applicable to such vessel after registration of the vessel under such a registry, then the vessel is available to be requisitioned by the Secretary of Transportation pursuant to chapter 563.
Source credit: (Added Pub. L. 108–136, div. C, title XXXV, § 3531(a), Nov. 24, 2003, 117 Stat. 1810; amended Pub. L. 109–304, § 13(a)(3), Oct. 6, 2006, 120 Stat. 1701; Pub. L. 111–383, div. C, title XXXV, § 3502(1), Jan. 7, 2011, 124 Stat. 4518; Pub. L. 112–239, div. C, title XXXV, § 3508(d), Jan. 2, 2013, 126 Stat. 2224; Pub. L. 116–92, div. C, title XXXV, § 3502(b), Dec. 20, 2019, 133 Stat. 1969; Pub. L. 118–159, div. C, title XXXV, § 3502(b), Dec. 23, 2024, 138 Stat. 2304.)
- 2003Enacted · Pub. L. 108-136 · 117 Stat. 1810
- 2006Amended · Pub. L. 109-304 · 120 Stat. 1701
- 2011Amended · Pub. L. 111-383 · 124 Stat. 4518
- 2013Amended · Pub. L. 112-239 · 126 Stat. 2224
- 2019Amended · Pub. L. 116-92 · 133 Stat. 1969
- 2024Amended · Pub. L. 118-159 · 138 Stat. 2304
A history note hasn’t been published yet. The record shows enactment by Pub. L. 108-136 on 2003-11-24.
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