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46 U.S.C. § 57103Donation of vessels in the National Defense Reserve Fleet

submitted 20 years ago by Pub. L. 109-304 to r/title-46-SHIPPING · 579 words · no verdicts yet

in plain englishAI-generated · not legal advice

This law lets the Secretary of Transportation give away obsolete National Defense Reserve Fleet vessels to nonprofits, states, or local governments, if the recipient agrees not to use it commercially, keeps it available if the government needs it back, and meets several other planning, funding, and liability conditions.

(a) In General. The Secretary of Transportation may transfer the government's full ownership of an obsolete National Defense Reserve Fleet vessel, but only if the recipient meets all of these conditions: (1) it is a nonprofit organization, a state, or a municipal government or part of one; (2) it agrees not to use the vessel, or let anyone else use it, for commercial transportation; (3) it agrees to make the vessel available to the government again whenever the Secretary says it's needed; (4) it agrees to protect the government from any claims about exposure to asbestos, PCBs, lead paint, or other hazardous substances that arise after the transfer, except claims that arise from the government's own later use of the vessel; (5) it has submitted, and gotten approval for, a plan describing how the vessel will be transferred and used; (6) it has proven it has enough money to complete the transfer, make needed repairs, and start using the vessel as planned; and (7) it agrees that if it no longer needs the vessel for its planned use, it will either (A) give the vessel back to the government in good condition (minus normal wear and tear), if the Secretary asks — or (B) if the recipient's board decides to dissolve the organization under state law, then (i) give the vessel, as an asset, to a tax-exempt charity or to a government body for a public purpose, and (ii) have a court in the county where the recipient is based decide how to finally dispose of the vessel. (b) Other Equipment. At the Secretary's discretion, extra equipment taken from other obsolete Fleet vessels may also be given to the recipient, to help with maintenance, repairs, or modifications. (c) Additional Terms. The Secretary may add any other terms considered appropriate. (d) Delivery of Vessel. If a transfer happens under this section, the vessel is delivered to the recipient at a time and place the Secretary picks, and it is delivered "as is." (e) Limitations. If, before delivery, the Secretary decides a different plan for the vessel would better serve the government, the Secretary can switch to that better option — and is not responsible for any losses that an intended recipient suffers from having relied on the earlier proposed transfer. (f) Reversion. Every transfer under this section must include a term saying that if the Secretary later finds the vessel was used differently from the approved plan, full ownership reverts back to the government.
the actual law source: uscode.house.gov ↗public domain
(a)In General.—

The Secretary of Transportation may convey the right, title, and interest of the United States Government in any vessel of the National Defense Reserve Fleet that has been identified by the Secretary as an obsolete vessel, if the recipient—

(1)

is a non-profit organization, a State, or a municipal corporation or political subdivision of a State;

(2)

agrees not to use, or allow others to use, the vessel for commercial transportation purposes;

(3)

agrees to make the vessel available to the Government whenever the Secretary indicates that it is needed by the Government;

(4)

agrees to hold the Government harmless for any claims arising from exposure to asbestos, polychlorinated biphenyls, lead paint, or other hazardous substances after conveyance of the vessel, except for claims arising from use of the vessel by the Government;

(5)

has a conveyance plan and a business plan that describes the intended use of the vessel, each of which has been submitted to and approved by the Secretary;

(6)

has provided proof, as determined by the Secretary, of resources sufficient to accomplish the transfer, necessary repairs and modifications, and initiation of the intended use of the vessel; and

(7)

agrees that when the recipient no longer requires the vessel for use as described in the business plan required under paragraph (5)—

(A)

the recipient will, at the discretion of the Secretary, reconvey the vessel to the Government in good condition except for ordinary wear and tear; or

(B)

if the Board of Trustees of the recipient has decided to dissolve the recipient according to the laws of the State in which the recipient is incorporated, then—

(i)

the recipient shall distribute the vessel, as an asset of the recipient, to a person that has been determined exempt from taxation under section 501(c)(3) of the Internal Revenue Code of 1986 (26 U.S.C. 501(c)(3)), or to the Federal Government or a State or local government for a public purpose; and

(ii)

the vessel shall be disposed of by a court of competent jurisdiction of the county in which the principal office of the recipient is located, for such purposes as the court shall determine, or to such organizations as the court shall determine are organized exclusively for public purposes.

(b)Other Equipment.—

At the Secretary’s discretion, additional equipment from other obsolete vessels of the Fleet may be conveyed to assist the recipient with maintenance, repairs, or modifications.

(c)Additional Terms.—

The Secretary may require any additional terms the Secretary considers appropriate.

(d)Delivery of Vessel.—

If conveyance is made under this section, the vessel shall be delivered to the recipient at a time and place to be determined by the Secretary. The vessel shall be conveyed in an “as is” condition.

(e)Limitations.—

If at any time prior to delivery of the vessel to the recipient, the Secretary determines that a different disposition of the vessel would better serve the interests of the Government, the Secretary shall pursue the more favorable disposition of the obsolete vessel and shall not be liable for any damages that may result from an intended recipient’s reliance upon a proposed transfer.

(f)Reversion.—

The Secretary shall include in any conveyance under this section terms under which all right, title, and interest conveyed by the Secretary shall revert to the Government if the Secretary determines the vessel has been used other than as described in the business plan required under subsection (a)(5).

Source credit: (Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1659; Pub. L. 112–213, title IV, § 408(a), Dec. 20, 2012, 126 Stat. 1571; Pub. L. 118–31, div. C, title XXXV, § 3514(j)(5), Dec. 22, 2023, 137 Stat. 812.)

history & why it existsrecord from the source credit
  • 2006Enacted · Pub. L. 109-304 · 120 Stat. 1659
  • 2012Amended · Pub. L. 112-213 · 126 Stat. 1571
  • 2023Amended · Pub. L. 118-31 · 137 Stat. 812

A history note hasn’t been published yet. The record shows enactment by Pub. L. 109-304 on 2006-10-06.

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