46 U.S.C. § 58101 — Operating in domestic intercoastal or

Page 524 TITLE 46—SHIPPING § 57533 HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 57532 .......... 46 App.:1205. June 29, 1936, ch. 858, title VII, § 715, as added July 11, 1956, ch. 574, 70 Stat. 531; Pub. L. 97–31, § 12(117), Aug. 6, 1981, 95 Stat. 164. Subsection (d) is substituted for ‘‘Those provisions of law prescribed or incorporated under section 1241a of this Appendix, which relate to vessel operating activi- ties of the Secretary of Transportation and to employ- ment of seamen through general agents, shall be appli- cable in connection with charters and agreements en- tered into under this section’’ for clarity. Editorial Notes AMENDMENTS 2018—Subsec. (d). Pub. L. 115–232 substituted ‘‘(50 U.S.C. 4701(a), (c), 4703(c), and 4704)’’ for ‘‘(50 App. U.S.C. 1291(a), (c), 1293(c), 1294)’’. § 57533. Vessel chartering authority The Secretary of Transportation may enter into contracts or other agreements on behalf of the United States to purchase, charter, operate, or otherwise acquire the use of any vessels docu- mented under chapter 121 of this title and any other related real or personal property. The Sec- retary is authorized to use this authority as the Secretary deems appropriate. (Added Pub. L. 110–181, div. C, title XXXV, § 3511(a), Jan. 28, 2008, 122 Stat. 593.) PART G—RESTRICTIONS AND PENALTIES CHAPTER 581—RESTRICTIONS AND PENALTIES Sec. 58101. Operating in domestic intercoastal or coast- wise service. 58102. Default on payment or maintenance of re- serves. 58103. Employing another person as managing or op- erating agent. 58104. Willful violation constitutes breach of con- tract or charter. 58105. Preferences for cargo in which charterer has interest. 58106. Concerted discriminatory activities. 58107. Discrimination at ports by water common carriers. 58108. Charges for transportation subject to subtitle IV of title 49. 58109. Penalties. § 58101. Operating in domestic intercoastal or coastwise service (a) PROHIBITION.—A subsidy may not be award- ed or paid to a contractor under the operating- differential subsidy program, and a vessel may not be chartered to a person under chapter 575 of this title, if the contractor or charterer, or a holding company, subsidiary, affiliate, or asso- ciate of the contractor or charterer, or an offi- cer, director, agent, or executive thereof, di- rectly or indirectly— (1) owns, charters, or operates a vessel en- gaged in the domestic intercoastal or coast- wise service; or (2) owns a pecuniary interest in a person that owns, charters, or operates a vessel in the domestic intercoastal or coastwise service. (b) WAIVER.—A person may apply to the Sec- retary of Transportation for a waiver of sub- section (a). Before deciding on the waiver, the Secretary shall give the applicant and other in- terested persons an opportunity for a hearing. The Secretary may not grant the waiver if the Secretary finds it would— (1) result in unfair competition to a person operating exclusively in the domestic inter- coastal or coastwise service; or (2) be prejudicial to the objectives and policy of this subtitle. (c) CONTINUOUS OPERATION SINCE 1935.—The Secretary shall grant an application under sub- section (b) without requiring further proof that the public interest and convenience will be served and without further proceedings as to the competition in the route or trade, if the con- tractor or other person, or a predecessor in in- terest, was in bona-fide operation as a common carrier by water in the domestic intercoastal or coastwise trade in 1935 over the route or in the trade for which the application is made and has so operated since that time or, if engaged in fur- nishing seasonal service only, was in bona-fide operation in 1935 during the season ordinarily covered by its operation, except in either event as to interruptions of service over which the ap- plicant or its predecessor in interest had no con- trol. (d) DIVERSION INTO INTERCOASTAL OR COAST- WISE OPERATIONS.—If an application under sub- section (b) is approved, a person referred to in this section may not divert, directly or indi- rectly, money, property, or any other thing of value, used in a foreign-trade operation for which a subsidy is paid by the United States Government, into intercoastal or coastwise op- erations. (Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1670.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 58101 .......... 46 App.:1223(a). June 29, 1936, ch. 858, title VIII, § 805(a), 49 Stat. 2012; Pub. L. 97–31, § 12(122), Aug. 6, 1981, 95 Stat. 164; Pub. L. 104–239, § 4(b)(1), Oct. 8, 1996, 110 Stat. 3131. In this chapter, references to the ‘‘operating-differen- tial subsidy program’’ are substituted for references to ‘‘part A of subchapter VI of this chapter’’, meaning 46 App. U.S.C. 1171–1185a, because part A of subchapter VI contains the operating-differential subsidy program and under 46 App. U.S.C. 1185a that program is being phased out. Consequently, part A is being omitted from the revised title and will instead appear as a note under section 53101, except for 46 App. U.S.C. 1177 and 1177–l which are restated in chapter 535. References to ‘‘chap- ter 575 of this title’’ are substituted for references to ‘‘subchapter VII of this chapter’’, meaning 46 App. U.S.C. 1191–1205, because those sections are restated in chapter 575. In subsection (b), the words ‘‘A person may apply to the Secretary of Transportation for a waiver of sub- section (a). Before deciding on the waiver, the Sec- retary shall give the applicant and other interested persons an opportunity for a hearing.’’ are substituted Page 525 TITLE 46—SHIPPING § 58106 for ‘‘without the written permission of the Secretary of Transportation. Every person, firm, or corporation hav- ing any interest in such application shall be permitted to intervene and the Secretary of Transportation shall give a hearing to the applicant and the intervenors.’’ for clarity. In subsection (c), the words ‘‘domestic intercoastal or coastwise trade’’ are substituted for ‘‘domestic, inter- coastal, or coastwise trade’’ for consistency in the sec- tion. In subsection (d), the words ‘‘and whosoever shall vio- late this provision shall be guilty of a misdemeanor’’ are omitted because section 3559 of title 18 provides for the classification of offenses. See the revision notes for section 58109 of the revised title. § 58102. Default on payment or maintenance of reserves The Secretary of Transportation may super- vise the number and compensation of all officers and employees of a contractor under the oper- ating-differential subsidy program or a charterer under chapter 575 of this title, receiv- ing an operating-differential subsidy, if the con- tractor or charterer— (1) is in default on a mortgage, note, pur- chase contract, or other obligation to the Sec- retary; or (2) has not maintained, in a manner satisfac- tory to the Secretary, all of the reserves pro- vided for in this subtitle. (Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1671.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 58102 .......... 46 App.:1223(b). June 29, 1936, ch. 858, title VIII, § 805(b), 49 Stat. 2012; Pub. L. 97–31, § 12(122), Aug. 6, 1981, 95 Stat. 164; Pub. L. 104–239, § 4(b)(2), Oct. 8, 1996, 110 Stat. 3131. The words ‘‘contractor under the operating-differen- tial subsidy program or a charterer under chapter 575 of this title, receiving an operating-differential subsidy’’ are substituted for ‘‘contractor under part A of sub- chapter VI of this chapter or subchapter VII of this chapter receiving an operating-differential subsidy’’ for the reasons explained under section 58101. § 58103. Employing another person as managing or operating agent (a) PROHIBITION.—Except with the written con- sent of the Secretary of Transportation, a con- tractor holding a contract under the operating- differential subsidy program or under chapter 575 of this title may not— (1) employ another person as the managing or operating agent of the operator; or (2) charter a vessel, on which an operating- differential subsidy is to be paid, for operation by another person. (b) APPLICABILITY OF PROVISIONS TO CHARTERER.—If a charter prohibited by this sec- tion is made, the person operating the chartered vessel is subject to all the provisions of this sub- title and the operating-differential subsidy pro- gram, including limitations of profits and sala- ries. (Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1671.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 58103 .......... 46 App.:1223(d). June 29, 1936, ch. 858, title VIII, § 805(d), 49 Stat. 2013; June 23, 1938, ch. 600, §§ 36, 37, 52 Stat. 963; Pub. L. 91–603, § 4(e), Dec. 31, 1970, 84 Stat. 1675; Pub. L. 97–31, § 12(122), Aug. 6, 1981, 95 Stat. 164; Pub. L. 104–239, § 4(b)(2), Oct. 8, 1996, 110 Stat. 3131. In subsection (a), the words ‘‘contractor holding a contract under the operating-differential subsidy pro- gram or under chapter 575 of this title’’ are substituted for ‘‘contractor holding a contract authorized under part A of subchapter VI or VII of this chapter’’ for the reasons explained under section 58101. § 58104. Willful violation constitutes breach of contract or charter A willful violation of any provision of sections 58101–58103 of this title constitutes a breach of the contract or charter. On determining that a violation has occurred, the Secretary of Trans- portation may declare the contract or charter rescinded. (Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1672.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 58104 .......... 46 App.:1223(f). June 29, 1936, ch. 858, title VIII, § 805(f), 49 Stat. 2014; Pub. L. 97–31, § 12(122), Aug. 6, 1981, 95 Stat. 164. The words ‘‘in force under this chapter’’ and ‘‘forth- with’’ are omitted as unnecessary. The words ‘‘and any person willfully violating the provisions of this section shall be guilty of a misdemeanor’’ are omitted because section 3559 of title 18 provides for the classification of offenses. See the revision notes for section 58109 of the revised title. § 58105. Preferences for cargo in which charterer has interest A contractor receiving an operating-differen- tial subsidy, or a charterer under chapter 575 of this title, may not unjustly discriminate in any manner so as to give preference, directly or indi- rectly, to cargo in which the contractor or charterer has a direct or indirect ownership, purchase, or vending interest. (Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1672.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 58105 .......... 46 App.:1226. June 29, 1936, ch. 858, title VIII, § 808, 49 Stat. 2015. The words ‘‘and whosoever shall violate this provi- sion shall be guilty of a misdemeanor’’ are omitted be- cause section 3559 of title 18 provides for the classifica- tion of offenses. See the revision notes for section 58109 of the revised title. § 58106. Concerted discriminatory activities (a) PROHIBITION.—A contractor receiving an operating-differential subsidy, or a charterer under chapter 575 of this title, may not continue as a party to or conform to an agreement with