46 U.S.C. § 57506 — Minimum selling price of vessels

Page 519 TITLE 46—SHIPPING § 57512 In subsection (a), the words ‘‘As soon as practicable after June 29, 1936, and continuing thereafter’’ are omitted as obsolete. The words ‘‘However, the Sec- retary shall first determine that those routes are not being adequately served’’ are substituted for ‘‘Provided, That such needs are not being adequately served’’ for clarity and because provisos are disfavored in modern drafting. In subsection (b)(1), the words ‘‘in the manner pro- vided in section 7 of the Merchant Marine Act, 1920 [46 App. U.S.C. 866], and in strict accordance with the pro- visions of section 5 of said Act’’ are omitted because section 5 of that Act was repealed in 1988, and section 7 is being repealed as obsolete by this bill without being restated. § 57506. Minimum selling price of vessels (a) IN GENERAL.—A vessel constructed under this subtitle or the Merchant Marine Act, 1936, may not be sold by the Secretary of Transpor- tation for less than the price specified in this section. (b) OPERATION IN FOREIGN TRADE.—If the vessel is to be operated in foreign trade, the minimum price is the estimated foreign construction cost (exclusive of national defense features) deter- mined as of the date the construction contract is executed, less depreciation under subsection (d). (c) OPERATION IN DOMESTIC TRADE.—If the ves- sel is to be operated in domestic trade, the min- imum price is the cost of construction in the United States (exclusive of national defense fea- tures), less depreciation under subsection (d). (d) DEPRECIATION.—Depreciation under sub- sections (b) and (c) shall be based on— (1) a 25-year life for dry-cargo and passenger vessels; and (2) a 20-year life for tankers and other bulk liquid carrier vessels. (Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1665.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 57506 .......... 46 App.:1195 (last sentence). June 29, 1936, ch. 858, title VII, § 705 (last sentence), as added Aug. 4, 1939, ch. 417, § 11(a), 53 Stat. 1185; Pub. L. 86–518, § 1, June 12, 1960, 74 Stat. 216; Pub. L. 97–31, § 12(107), Aug. 6, 1981, 95 Stat. 163. 46 App.:1125 note. Pub. L. 86–518, § 9, June 12, 1960, 74 Stat. 217. Subsection (d) is substituted for ‘‘less depreciation based on a twenty-five year life’’ because of section 9 of Public Law 86–518 (June 12, 1960, 74 Stat. 217), which provided that ‘‘Nothing in any amendment made by this Act [including section 1 substituting ‘twenty-five’ for ‘twenty’ in 46 App. U.S.C. 1195] shall operate or be interpreted to change from twenty to twenty-five years the provisions of the Merchant Marine Act, 1936, as amended, relating to the commercial expectancy or pe- riod of depreciation of any tanker or other liquid bulk carrier.’’ Editorial Notes REFERENCES IN TEXT The Merchant Marine Act, 1936, referred to in subsec. (a), is act June 29, 1936, ch. 858, 49 Stat. 1985, which was classified principally to chapter 27 (§ 1101 et seq.) of the former Appendix to this title. The Act, with the excep- tion of title V, most of title VI, and sections 301, 801, 802, 809(a), and 909 thereof, was repealed and restated, mainly in this subtitle, by Pub. L. 109–304, §§ 8, 19, Oct. 6, 2006, 120 Stat. 1555, 1710. Title V and sections 301 and 909 of the Act are set out as notes under section 53101 of this title. Those portions of title VI not repealed by Pub. L. 109–304 and sections 802 and 809(a) of the Act were repealed by Pub. L. 114–120, title III, § 313(a), Feb. 8, 2016, 130 Stat. 58. Section 801 of the Act was trans- ferred to section 57522 of this title by Pub. L. 114–120, title III, § 313(c)(1)(A), Feb. 8, 2016, 130 Stat. 58. For com- plete classification of the Act to the Code, see Tables. For disposition of sections of the former Appendix to Title 46, see Disposition Table preceding section 101 of this title. SUBCHAPTER II—CHARTERS § 57511. Demise charters A charter by the Secretary of Transportation under this chapter shall demise the vessel to the charterer subject to all usual conditions con- tained in a bareboat charter. The charter shall be for a term the Secretary considers to be in the best interest of the United States Govern- ment and the merchant marine. (Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1666.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 57511 .......... 46 App.:1201. June 29, 1936, ch. 858, title VII, § 711, 49 Stat. 2010; Pub. L. 97–31, § 12(113), Aug. 6, 1981, 95 Stat. 163. The words ‘‘for a term the Secretary considers to be’’ are substituted for ‘‘until January 1, 1940, shall be for terms of three years or less as the Secretary of Trans- portation may decide: Provided, That after January 1, 1940, charters may be executed by the Secretary of Transportation for such terms as the experience gained by the Secretary of Transportation shall indicate are’’ to eliminate unnecessary and obsolete words. § 57512. Competitive bidding (a) IN GENERAL.—The Secretary of Transpor- tation may charter a vessel of the Department of Transportation to a private operator only on the basis of competitive sealed bidding. The bids must be submitted in strict compliance with the terms and conditions of a public advertisement soliciting the bids. (b) ADVERTISEMENT FOR BIDS.—An advertise- ment for bids shall state— (1) the number, type, and tonnage of the ves- sels being offered for bareboat charter for op- eration as a steamship line on a designated trade route; (2) the minimum number of sailings re- quired; (3) the length of time of the charter; (4) the right of the Secretary to reject all bids; and (5) other information the Secretary con- siders necessary for the information of pro- spective bidders. (c) OPENING OF BIDS.—Bids required under this section shall be opened at the time and place stated in the advertisement for bids. All inter- ested persons, including representatives of the press, shall be permitted to attend. The results of the bidding shall be publicly announced. (Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1666.)