46 U.S.C. § 57105 — Acquisition of vessels for essential services, routes, or lines
submitted 20 years ago by Pub. L. 109-304 to r/title-46-SHIPPING · 234 words · no verdicts yet
This law lets the Secretary of Transportation buy a U.S.-built vessel needed to serve an essential foreign trade route, if the Navy certifies it's suitable for military conversion. The price is capped at roughly the owner's cost plus reconditioning, minus depreciation, and the vessel must become U.S.-documented if it isn't already.
(a) In General. The Secretary of Transportation may buy a vessel*, or acquire it another way, if: (1) the Secretary considers it necessary to establish, maintain, improve, or replace a vessel on an essential foreign-trade route, as determined under section 50103; (2) the vessel was built in the United States; and (3) the Secretary of the Navy has certified that the vessel could be economically and quickly converted for military use, or is otherwise fit for the government to use during war or a national emergency.
(b) Price. The price must be based on a fair, reasonable valuation. It cannot be more than 5 percent above what the vessel cost its owner (not counting any construction subsidy or defense-feature costs the government already paid), plus the actual cost of any prior reconditioning, minus depreciation — figured on a 25-year life for dry-cargo or passenger vessels, and a 20-year life for tankers or other liquid-bulk vessels.
(c) Documentation. If the vessel isn't already documented under U.S. law when acquired, it must be documented as soon as practically possible.
The Secretary of Transportation may acquire a vessel*, by purchase or otherwise, if—
the Secretary considers the vessel necessary to establish, maintain, improve, or serve as a replacement on an essential service, route, or line in the foreign commerce of the United States, as determined under section 50103 of this title;
the vessel was constructed in the United States; and
the Secretary of the Navy has certified to the Secretary of Transportation that the vessel is suitable for economical and speedy conversion into a naval or military auxiliary or otherwise suitable for use by the United States Government in time of war or national emergency.
The price paid for the vessel shall be based on a fair and reasonable valuation. However, the price may not exceed by more than 5 percent the cost of the vessel to the owner (excluding any construction-differential subsidy and the cost of national defense features paid by the Secretary of Transportation) plus the actual cost previously expended for reconditioning, less depreciation based on a 25-year life for a dry-cargo or passenger vessel and a 20-year life for a tanker or other liquid bulk carrier vessel.
A vessel acquired under this section that is not documented under the laws of the United States at the time of acquisition shall be so documented as soon as practicable.
Source credit: (Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1660.)
- 2006Enacted · Pub. L. 109-304 · 120 Stat. 1660
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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