46 U.S.C. § 53404 — Effectiveness of operating agreements
submitted 5 years ago by Pub. L. 116-283 to r/title-46-SHIPPING · 449 words · no verdicts yet
This section sets Tanker Security Fleet agreement duration, termination, funding, and vessel-release rules.
(a) Subject to appropriations, the Secretary* may make an agreement for fiscal year 2022 and later years through 2040. It lasts one fiscal year and may be renewed each later year if money is available. (b) A vessel* under a long-term Government charter cannot participate. (c) (1) For material noncompliance, the Secretary must notify the participant and give a reasonable chance to comply, then terminate if it fails. (2) The participant may terminate on its stated date by giving notice at least 60 days beforehand. (d) If sufficient money is not appropriated by day one, the Secretary must notify the listed committees that unfunded agreements will not renew if money is not supplied by day 60. (e) If payment money is absent by day 60, each covered vessel is released; its participant may foreign-register it under a registry acceptable to both Secretaries despite section 56101; and, if chapter 563 applies after registration, the Secretary may requisition it.
Subject to the availability of appropriations for such purpose, the Secretary* may enter into an operating agreement under this chapter for fiscal year 2022 and any subsequent fiscal year. The agreement shall be effective only for 1 fiscal year, but shall be renewable, subject to the availability of appropriations, for each fiscal year through the end of fiscal year 2040.
Any vessel* under long term charter* to the United States is not eligible to participate in the Fleet.
If the program participant with respect to an operating agreement materially fails to comply with the terms of the agreement—
the Secretary shall notify the program participant and provide a reasonable opportunity to comply with the operating agreement; and
the Secretary shall terminate the operating agreement if the program participant fails to achieve such compliance.
If a program participant provides notice of the intent to terminate an operating agreement under this chapter on a date specified by not later than 60 days prior to the date specified by the program participant for such termination, such agreement shall terminate on the date specified by the program participant.
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 and the Committee on Transportation and Infrastructure 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 program participant for 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 the vessel after registration, then the vessel is available to be requisitioned by the Secretary pursuant to chapter 563 of this title.
Source credit: (Added Pub. L. 116–283, div. C, title XXXV, § 3511(a), Jan. 1, 2021, 134 Stat. 4413; amended Pub. L. 117–81, div. C, title XXXV, § 3515(b), Dec. 27, 2021, 135 Stat. 2243; Pub. L. 118–159, div. C, title XXXV, § 3531(a), Dec. 23, 2024, 138 Stat. 2312.)
- 2021Enacted · Pub. L. 116-283 · 134 Stat. 4413
- 2021Amended · Pub. L. 117-81 · 135 Stat. 2243
- 2024Amended · Pub. L. 118-159 · 138 Stat. 2312
A history note hasn’t been published yet. The record shows enactment by Pub. L. 116-283 on 2021-01-01.
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