46 U.S.C. § 51509 — Student incentive payment agreements

Page 380 TITLE 46—SHIPPING § 51509 HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 51508 .......... 46 App.:1295c(c) (3)(B). June 29, 1936, ch. 858, title XIII, § 1304(c)(3)(B), as added Pub. L. 96–453, § 2, Oct. 15, 1980, 94 Stat. 2004. § 51509. Student incentive payment agreements (a) GENERAL AUTHORITY.—If a State maritime academy has an agreement with the Secretary of Transportation under section 51505 of this title, the Secretary may make an agreement with a student at the academy who is a citizen of the United States to make student incentive payments to the individual. An agreement with a student may not be effective for more than 4 academic years. The Secretary shall allocate payments under this section among the various State maritime academies in an equitable man- ner. (b) PAYMENTS.— (1) IN GENERAL.—Except as provided in para- graph (2), payments under an agreement under this section shall be equal to $16,000 each aca- demic year and be paid in such installments as the Secretary shall determine while the indi- vidual is attending the academy, as prescribed by the Secretary. (2) EXCEPTION.—The Secretary may modify the payments made to an individual under paragraph (1), but the total amount of pay- ments to that individual may not exceed $64,000. (3) AUTHORIZED USES.—The payments shall be used for uniforms, tuition, books, and sub- sistence. (c) ENLISTED RESERVE STATUS.—An agreement under this section shall require the student to accept enlisted reserve status in the Navy Re- serve (including the Strategic Sealift Officer Program, Navy Reserve) or the Coast Guard Re- serve before receiving any payments under the agreement. (d) AGREEMENT REQUIREMENTS.—An agreement under this section shall require the student to— (1) complete the course of instruction at the academy the individual is attending; (2) obtain a merchant mariner license, with- out limitation as to tonnage or horsepower, from the Coast Guard as an officer in the mer- chant marine of the United States, accom- panied by the appropriate national and inter- national endorsements and certification re- quired by the Coast Guard for service aboard vessels on domestic and international voyages, without limitation, within three months of completion of the course of instruction at the academy the individual is attending; (3) for at least 6 years after graduation from the academy, maintain— (A) a valid merchant mariner license, un- limited as to horsepower or tonnage, issued by the Coast Guard as an officer in the mer- chant marine of the United States, accom- panied by the appropriate national and international endorsements and certifi- cations required by the Coast Guard for serv- ice aboard vessels on domestic and inter- national voyages, without limitation; (B) a valid transportation worker identi- fication credential; and (C) a Coast Guard medical certificate; (4) apply for, and accept, if tendered, an ap- pointment as a commissioned officer in the Navy Reserve (including the Strategic Sealift Officer Program, Navy Reserve), the Coast Guard Reserve, or any other reserve compo- nent of an armed force of the United States, and, if tendered the appointment, to serve and meet the participation requirements and to maintain active status in good standing, as de- termined by the program manager of the ap- propriate military service, for at least 8 years after the date of commissioning; (5) serve the foreign and domestic commerce and the national defense of the United States for at least 3 years after graduation from the academy— (A) as a merchant marine officer on a doc- umented vessel or a vessel owned and oper- ated by the United States Government or by a State; (B) as an employee in a United States mar- itime-related industry, profession, or marine science (as determined by the Secretary), if the Secretary determines that service under subparagraph (A) is not available to the in- dividual; (C) as a commissioned officer on active duty in an armed force of the United States, as a commissioned officer in the National Oceanic and Atmospheric Administration, or in other maritime-related Federal employ- ment which serves the national security in- terests of the United States, as determined by the Secretary; or (D) by a combination of the service alter- natives referred to in subparagraphs (A)–(C); and (6) report to the Secretary on compliance with this subsection. (e) FAILURE TO COMPLETE COURSE OF INSTRUC- TION.— (1) ACTIVE DUTY.— (A) IN GENERAL.—The Secretary of Defense may order an individual to serve on active duty in the armed forces of the United States for a period of not more than 2 years if— (i) the individual has attended an acad- emy under this section for more than 2 academic years, but less than 3 academic years; (ii) the individual has accepted the pay- ments described in subsection (b) in an amount totaling at least $8,000; and (iii) the Secretary of Transportation has determined that the individual has failed to fulfill the part of the agreement de- scribed in subsection (d)(1). (B) 3 OR MORE YEARS.—The Secretary of Defense may order an individual to serve on active duty in the armed forces of the United States for a period of not more than 3 years if— (i) the individual has attended an acad- emy under this section for 3 or more aca- demic years; Page 381 TITLE 46—SHIPPING § 51509 (ii) the individual has accepted the pay- ments described in subsection (b) in an amount totaling at least $16,000; and (iii) the Secretary of Transportation has determined that the individual has failed to fulfill the part of the agreement de- scribed in subsection (d)(1). (C) HARDSHIP WAIVER.—In cases of hardship as determined by the Secretary of Transpor- tation, the Secretary of Transportation may waive this paragraph in whole or in part. (2) RECOVERY OF COST.—If the Secretary of Defense is unable or unwilling to order an in- dividual to serve on active duty under para- graph (1), or if the Secretary of Transportation determines that reimbursement of the cost of education provided would better serve the in- terests of the United States, the Secretary of Transportation may recover from the indi- vidual the amount of student incentive pay- ments, plus interest and attorney fees. The Secretary may reduce the amount to be recov- ered to reflect partial performance of service obligations and other factors the Secretary de- termines merit a reduction. (f) FAILURE TO CARRY OUT OTHER REQUIRE- MENTS.— (1) ACTIVE DUTY.—If the Secretary of Trans- portation determines that an individual has failed to fulfill any part of the agreement de- scribed in subsection (d)(2)–(6), the individual may be ordered to serve on active duty for a period of at least 2 years but not more than the unexpired period (as determined by the Secretary) of the service required by sub- section (d)(5). The Secretary of Transpor- tation, in consultation with the Secretary of Defense, shall determine in which service the individual shall serve. In cases of hardship as determined by the Secretary of Transpor- tation, the Secretary of Transportation may waive this paragraph in whole or in part. (2) RECOVERY OF COST.—If the Secretary of Defense is unable or unwilling to order an in- dividual to serve on active duty under para- graph (1), or if the Secretary of Transportation determines that reimbursement of the cost of education provided would better serve the in- terests of the United States, the Secretary of Transportation may recover from the indi- vidual the amount of student incentive pay- ments, plus interest and attorney fees. The Secretary may reduce the amount to be recov- ered to reflect partial performance of service obligations and other factors the Secretary de- termines merit a reduction. (g) ACTIONS TO RECOVER COST.—To aid in the recovery of the cost of education provided by the Government under a commitment agree- ment under this section, the Secretary of Trans- portation may— (1) request the Attorney General to bring a civil action against the individual; and (2) make use of the Federal debt collection procedures in chapter 176 of title 28 or other applicable administrative remedies. (h) ALTERNATIVE SERVICE.— (1) SERVICE AS COMMISSIONED OFFICER.—An individual who, for the 5-year period following graduation from an academy, serves as a com- missioned officer on active duty in an armed force of the United States or as a commis- sioned officer of the National Oceanic and At- mospheric Administration or the Public Health Service shall be excused from the re- quirements of paragraphs (3) through (5) of subsection (d). (2) MODIFICATION OR WAIVER.—The Secretary may modify or waive any of the terms and conditions set forth in subsection (d) through the imposition of alternative service require- ments. (i) AGE REQUIREMENT.—The Secretary may make an agreement under this section only with a qualified student who will meet the age re- quirement for enlistment or commission in the Navy Reserve at the time of graduation from the academy. (Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1579; Pub. L. 109–163, div. A, title V, § 515(g)(2)(A), Jan. 6, 2006, 119 Stat. 3236; Pub. L. 109–364, div. C, title XXXV, § 3508, Oct. 17, 2006, 120 Stat. 2517; Pub. L. 110–181, div. C, title XXXV, §§ 3523(a)(1), (b), 3526(d), (g), Jan. 28, 2008, 122 Stat. 598, 600, 602; Pub. L. 110–417, div. C, title XXXV, § 3503, Oct. 14, 2008, 122 Stat. 4762; Pub. L. 111–8, div. I, title I, § 177, Mar. 11, 2009, 123 Stat. 944; Pub. L. 111–84, div. C, title XXXV, § 3507, Oct. 28, 2009, 123 Stat. 2721; Pub. L. 114–92, div. C, title XXXV, § 3507, Nov. 25, 2015, 129 Stat. 1221; Pub. L. 118–7, § 2, June 30, 2023, 137 Stat. 52; Pub. L. 118–31, div. C, title XXXV, § 3501(b), Dec. 22, 2023, 137 Stat. 808.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 51509(a) ...... 46 App.:1295c(g)(1) (words before 5th comma, cl. (A)), (8). June 29, 1936, ch. 858, title XIII, § 1304(g)(1)–(5), (8), as added Pub. L. 96–453, § 2, Oct. 15, 1980, 94 Stat. 2004, 2006; Pub. L. 97–31, § 12(145)(A), Aug. 6, 1981, 95 Stat. 166; Pub. L. 101–115, § 2(a)–(d), Oct. 13, 1989, 103 Stat. 691; Pub. L. 102–587, title VI, § 6201(a)(1), (b), (c), Nov. 4, 1992, 106 Stat. 5093; Pub. L. 108–136, title XXXV, § 3515(d), Nov. 24, 2003, 117 Stat. 1794. 51509(b) ...... 46 App.:1295c(g)(1) (words between 5th comma and dash, cls. (B), (C)). 51509(c) ...... 46 App.:1295c(g)(2) 51509(d) ...... 46 App.:1295c(g)(3) 51509(e) ...... 46 App.:1295c(g)(4) 51509(f) ....... 46 App.:1295c(g)(5) 51509(g) ...... 46 App.:1295c(g)(6) In subsection (a), the text of 46 App. U.S.C. 1295c(g)(8) is omitted as obsolete. In subsection (g), the words ‘‘bring a civil action’’ are substituted for ‘‘begin court proceedings’’ for consist- ency in the revised title and with rule 2 of the Federal Rules of Civil Procedure (28 App. U.S.C.). Editorial Notes AMENDMENTS 2023—Subsec. (b)(1). Pub. L. 118–31, § 3501(b)(1), sub- stituted ‘‘$16,000’’ for ‘‘$8,000’’. Subsec. (b)(2). Pub. L. 118–31, § 3501(b)(2), substituted ‘‘$64,000’’ for ‘‘$32,000’’. Subsec. (i). Pub. L. 118–7 added subsec. (i). 2015—Subsec. (b). Pub. L. 114–92, § 3507(1), designated first sentence as par. (1) and last sentence as par. (3), inserted headings, realigned margins, in par. (1), sub- Page 382 TITLE 46—SHIPPING § 51510 stituted ‘‘Except as provided in paragraph (2), pay- ments’’ for ‘‘Payments’’, and added par. (2). Subsec. (c). Pub. L. 114–92, § 3507(2), substituted ‘‘Stra- tegic Sealift Officer Program’’ for ‘‘Merchant Marine Reserve’’. Subsec. (d)(2). Pub. L. 114–92, § 3507(3)(A), amended par. (2) generally. Prior to amendment, par. (2) read as follows: ‘‘take the examination for a license as an offi- cer in the merchant marine of the United States before graduation from the academy and fulfill the require- ments for such a license within 3 months after gradua- tion from the academy;’’. Subsec. (d)(3). Pub. L. 114–92, § 3507(3)(B), amended par. (3) generally. Prior to amendment, par. (3) read as follows: ‘‘maintain a valid license as an officer in the merchant marine of the United States for at least 6 years after graduation from the academy, accompanied by the appropriate national and international endorse- ments and certification required by the Coast Guard for service aboard vessels on domestic and international voyages;’’. Subsec. (d)(4). Pub. L. 114–92, § 3507(3)(C), amended par. (4) generally. Prior to amendment, par. (4) read as follows: ‘‘accept, if tendered, an appointment as a com- missioned officer in the Navy Reserve (including the Merchant Marine Reserve, Navy Reserve), the Coast Guard Reserve, or any other reserve unit of an armed force of the United States, and, if tendered the appoint- ment, to serve for at least 6 years after graduation from the academy;’’. Subsec. (e)(1). Pub. L. 114–92, § 3507(4), amended par. (1) generally. Prior to amendment, text read as follows: ‘‘If the Secretary of Transportation determines that an individual who has accepted the payments described in subsection (b) for a minimum of 2 academic years has failed to fulfill the part of the agreement described in subsection (d)(1), the individual may be ordered by the Secretary of Defense to serve on active duty in the armed forces of the United States for a period of not more than 2 years. In cases of hardship as determined by the Secretary of Transportation, the Secretary of Transportation may waive this paragraph in whole or in part.’’ Subsec. (h). Pub. L. 114–92, § 3507(5), added subsec. (h). 2009—Pub. L. 111–84, § 3507(a), substituted ‘‘and be paid in such installments as the Secretary shall determine’’ for ‘‘and be paid before the start of each academic year, as prescribed by the Secretary,’’ and ‘‘academy, as pre- scribed by the Secretary.’’ for ‘‘academy.’’. Pub. L. 111–8, § 177, which directed amendment iden- tical to that made by Pub. L. 110–417, § 3503(1), (2), was repealed by Pub. L. 111–84, § 3507(b), with Pub. L. 111–8, § 177, to have no force or effect. See 2008 Amendment note below. 2008—Pub. L. 110–181, § 3526(g), repealed Pub. L. 109–364, § 3508. See 2006 Amendment note below. Pub. L. 110–181, § 3523(b), repealed Pub. L. 109–163, § 515(g)(2)(A). See 2006 Amendment note below. Subsec. (b). Pub. L. 110–417, § 3503(3), inserted ‘‘before the start of each academic year’’ after ‘‘and be paid’’. Pub. L. 110–417, § 3503(1), (2), substituted ‘‘$8,000’’ for ‘‘$4,000’’ and inserted ‘‘tuition,’’ after ‘‘uniforms,’’. Subsec. (c). Pub. L. 110–181, § 3526(d), incorporated the substance of the amendments by Pub. L. 109–364, § 3508, into this section by striking out ‘‘Midshipman and’’ be- fore ‘‘Enlisted’’ in heading and ‘‘midshipman and’’ be- fore ‘‘enlisted’’ in text and inserting ‘‘or the Coast Guard Reserve’’ after ‘‘Reserve)’’. See 2006 Amendment note below and section 18(a) of Pub. L. 109–304, set out as a Legislative Purpose and Construction note pre- ceding section 101 of this title. Pub. L. 110–181, § 3523(a)(1), incorporated the sub- stance of the amendments by Pub. L. 109–163, § 515(g)(2)(A), into this section by substituting ‘‘Navy Reserve’’ for ‘‘Naval Reserve’’ in two places. See 2006 Amendment note below and section 18(a) of Pub. L. 109–304, set out as a Legislative Purpose and Construc- tion note preceding section 101 of this title. Subsec. (d)(4). Pub. L. 110–181, § 3523(a)(1), incor- porated the substance of the amendments by Pub. L. 109–163, § 515(g)(2)(A), into this section by substituting ‘‘Navy Reserve’’ for ‘‘Naval Reserve’’ in two places. See 2006 Amendment note below and section 18(a) of Pub. L. 109–304, set out as a Legislative Purpose and Construc- tion note preceding section 101 of this title. 2006—Pub. L. 109–364, § 3508, which directed the amendment of section 1295c(g)(2) of the former Appen- dix to this title from which subsec. (c) of this section was derived, was repealed by Pub. L. 110–181, § 3526(g). See 2008 Amendment note for subsec. (c) and Historical and Revision notes above. Pub. L. 109–163, § 515(g)(2)(A), which directed the amendment of section 1295c of the former Appendix to this title from which this section was derived, was re- pealed by Pub. L. 110–181, § 3523(b). See 2008 Amendment notes for subsecs. (c) and (d)(4) and Historical and Revi- sion notes above. § 51510. Deferment of service obligation under student incentive payment agreements The Secretary of Transportation may defer the service commitment of an individual under section 51509(d)(5) of this title (as specified in the agreement under section 51509) for not more than 2 years if the individual is engaged in a graduate course of study approved by the Sec- retary. However, deferment of service as a com- missioned officer on active duty must be ap- proved by the Secretary of the affected military department (or the Secretary of Commerce, for service with the National Oceanic and Atmos- pheric Administration). (Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1581.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 51510 .......... 46 App.:1295c(g)(7). June 29, 1936, ch. 858, title XIII, § 1304(g)(7), as added Pub. L. 96–453, § 2, Oct. 15, 1980, 94 Stat. 2006; Pub. L. 97–31, § 12(145)(B), Aug. 6, 1981, 95 Stat. 166; Pub. L. 108–136, title XXXV, § 3515(d)(7), Nov. 24, 2003, 117 Stat. 1795. The words ‘‘affected military department’’ are sub- stituted for ‘‘military department . . . which has juris- diction over such service’’ for clarity and to eliminate unnecessary words. § 51511. Midshipman status in the Navy Reserve A citizen of the United States attending a State maritime academy may be appointed by the Secretary of the Navy as a midshipman in the Navy Reserve (including the Merchant Ma- rine Reserve, Navy Reserve). (Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1582; Pub. L. 109–163, div. A, title V, § 515(g)(2), Jan. 6, 2006, 119 Stat. 3236; Pub. L. 110–181, div. C, title XXXV, § 3523(a)(1), (b), Jan. 28, 2008, 122 Stat. 598, 600.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 51511 .......... 46 App.:1295c(h). June 29, 1936, ch. 858, title XIII, § 1304(h), as added Pub. L. 96–453, § 2, Oct. 15, 1980, 94 Stat. 2006.