46 U.S.C. § 58104 — Willful violation constitutes breach of

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