46 U.S.C. § 57513 — Minimum bid

Page 520 TITLE 46—SHIPPING § 57513 HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 57512(a) ...... 46 App.:1196(a) (1st sentence). June 29, 1936, ch. 858, title VII, § 706(a), (b) (1st sen- tence related to an- nouncement), 49 Stat. 2009; Pub. L. 97–31, § 12(108), Aug. 6, 1981, 95 Stat. 163. 57512(b) ...... 46 App.:1196(a) (last sentence), (b) (1st sentence related to announce- ment). 57512(c) ...... 46 App.:1193(c) (re- lated to char- tering). June 29, 1936, ch. 858, title VII, § 703(c) (related to chartering), 49 Stat. 2008; Pub. L. 97–31, § 12(105), Aug. 6, 1981, 95 Stat. 163. Subsection (b)(4) is substituted for ‘‘announce in his advertisements for bids that the Secretary of Transpor- tation reserves the right to, reject any and all bids sub- mitted’’ in 46 App. U.S.C. 1196(b) to improve the organi- zation. In subsection (c), the words ‘‘Bids required under this section’’ are substituted for ‘‘All bids required by the Secretary of Transportation . . . and for the chartering of the Secretary’s vessels hereinafter provided for’’ to eliminate unnecessary words. The word ‘‘hour’’ is omit- ted as covered by ‘‘time’’. § 57513. Minimum bid The Secretary of Transportation shall reject any bid for the charter under this subchapter of a vessel constructed under this subtitle or the Merchant Marine Act, 1936, if the charter hire offered is lower than the minimum charter hire would be if the vessel were chartered under sec- tion 57531 of this title. (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) 57513 .......... 46 App.:1196(b) (last sentence). June 29, 1936, ch. 858, title VII, § 706(b) (last sen- tence), as added Aug. 4, 1939, ch. 417, § 11(b), 53 Stat. 1186; Pub. L. 97–31, § 12(108), Aug. 6, 1981, 95 Stat. 163. Editorial Notes REFERENCES IN TEXT The Merchant Marine Act, 1936, referred to in text, is act June 29, 1936, ch. 858, 49 Stat. 1985, which was classi- fied 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 The Act, with the excep- tion of title V, most of title VI, and sections 301, 801, 802, 809(a), and 909 thereof, was repealed and restated, mainly in this subtitle, by Pub.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. § 57514. Qualifications of bidders (a) CONSIDERATIONS.—In deciding whether to award a charter to a bidder, the Secretary of Transportation shall consider— (1) the bidder’s financial resources, credit standing, and practical experience in oper- ating vessels; and (2) other factors a prudent business person would consider in entering into a transaction involving a large capital investment. (b) DISQUALIFICATIONS.—The Secretary may not charter a vessel to a person appearing to lack sufficient capital, credit, and experience to operate the vessel successfully over the period covered by the charter. (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) 57514 .......... 46 App.:1203. June 29, 1936, ch. 858, title VII, § 713, 49 Stat. 2010; Pub. L. 97–31, § 12(115), Aug. 6, 1981, 95 Stat. 164. § 57515. Awarding of charters (a) IN GENERAL.—The Secretary of Transpor- tation shall award the charter to the bidder pro- posing to pay the highest monthly charter hire. However, the Secretary may reject the highest or most advantageous or any other bid if the Secretary considers the charter hire offered too low or determines that the bidder lacks the qualifications required by section 57514 of this title. (b) HIGHEST BID REJECTED.—If the Secretary rejects the highest bid, the Secretary may— (1) award the charter to the next highest bid- der; or (2) reject all bids and either readvertise the line or operate the line until conditions appear more favorable to reoffer the line for private charter. (c) REASON FOR REJECTION.—On request of a bidder, the reason for rejection shall be stated in writing to the bidder. (Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1667.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 57515 .......... 46 App.:1196(b) (1st sentence related to authority). June 29, 1936, ch. 858, title VII, §§ 706(b) (1st sentence related to authority), 707, 49 Stat. 2009; Pub. L. 97–31, § 12(108), (109), Aug. 6, 1981, 95 Stat. 163. 46 App.:1197. In subsection (a), the words ‘‘if the Secretary con- siders the charter hire offered too low’’ are substituted for ‘‘if, in the Secretary’s discretion, the charter hire offered is deemed too low’’ to eliminate unnecessary words. The words ‘‘lacks the qualifications required by section 57514 of this title’’ are substituted for ‘‘lacks sufficient capital, credit, or experience to operate suc- cessfully the line’’ to avoid repeating the qualifications in more than one place. § 57516. Operating-differential subsidies If the Secretary of Transportation considers it necessary, the Secretary may make a contract with a charterer of a vessel owned by the Sec- retary for payment of an operating-differential subsidy, on the same terms and conditions, and subject to the same limitations and restrictions,