§ 50103. Determinations of essential services

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 2006

   Pub. L. 109–304 § 8(b) · 120 Stat. 1485

   Enacted · 46 U.S.C. § 50103

   (Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1557.)

   Source evidence

   Code source credit
   (Pub. L. 109–304, § 8(b), Oct. 6, 2006, 120 Stat. 1557.)

   Enacted provision · exact public law section
   (b) Chapters Preceding Chapter 531.— Subtitle V of title 46, United States Code, is amended by inserting after the subtitle analysis the following: “Part A— General “CHAPTER 501— POLICY, STUDIES, AND REPORTS “Sec. “50101.  Objectives and policy. “50102.  Survey of merchant marine. “50103.  Determinations of essential services. “50104.  Studies of general maritime problems. “50105.  Studies and cooperation relating to the construction of vessels. “50106.  Studies on the operation of vessels. “50107.  Studies on marine insurance. “50108.  Studies on cargo carriage and cargo containers. “50109.  Miscellaneous studies. “50110.  Securing preference to vessels of the United States. “50111.  Reports to Congress. “50112.  National Maritime Enhancement Institutes. “50113.  Use and performance reports by operators of vessels. “§ 50101.  Objectives and policy “(a) Objectives.— It is necessary for the national defense and the development of the domestic and foreign commerce of the United States that the United States have a merchant marine— “(1) sufficient to carry the waterborne domestic commerce and a substantial part of the waterborne export and import foreign commerce of the United States and to provide shipping service essential for maintaining the flow of the waterborne domestic and foreign commerce at all times; “(2) capable of serving as a naval and military auxiliary in time of war or national emergency; “(3) owned and operated as vessels of the United States by citizens of the United States; “(4) composed of the best-equipped, safest, and most suitable types of vessels and manned with a trained and efficient citizen personnel; and “(5) supplemented by efficient facilities for building and repairing vessels. “(b) Policy.— It is the policy of the United States to encourage and aid the development and maintenance of a merchant marine satisfying the objectives described in subsection (a). “§ 50102.  Survey of merchant marine “(a) In General.— The Secretary of Transportation shall survey the merchant marine of the United States to determine whether replacements and additions are required to carry out the objectives and policy of section 50101 of this title. The Secretary shall study, perfect, and adopt a long-range program for replacements and additions that will result, as soon as practicable, in— “(1) an adequate and well-balanced merchant fleet, including vessels of all types, that will provide shipping service essential for maintaining the flow of foreign commerce by vessels designed to be readily and quickly convertible into transport and supply vessels in a time of national emergency; “(2) ownership and operation of the fleet by citizens of the United States insofar as practicable; “(3) vessels designed to afford the best and most complete protection for passengers and crew against fire and all marine perils; and “(4) an efficient capacity for building and repairing vessels in the United States with an adequate number of skilled personnel to provide an adequate mobilization base. “(b) Cooperation With Secretary of Navy.— In carrying out subsection (a)(1), the Secretary of Transportation shall cooperate closely with the Secretary of the Navy as to national defense requirements. “§ 50103.  Determinations of essential services “(a) Essential Services, Routes, and Lines.— “(1) In general.— The Secretary of Transportation shall investigate, determine, and keep current records of the ocean services, routes, and lines from ports in the United States, or in the territories and possessions of the United States, to foreign markets, which the Secretary determines to be essential for the promotion, development, expansion, and maintenance of the foreign commerce of the United States. In making such a determination, the Secretary shall consider and give due weight to— “(A) the cost of maintaining each line; “(B) the probability that a line cannot be maintained except at a heavy loss disproportionate to the benefit to foreign trade; “(C) the number of voyages and types of vessels that should be employed in a line; “(D) the intangible benefit of maintaining a line to the foreign commerce of the United States, the national defense, and other national requirements; and “(E) any other facts and conditions a prudent business person would consider when dealing with the person’s own business. “(2) Saint lawrence seaway.— For purposes of paragraph (1), the Secretary shall establish services, routes, and lines that reflect the seasonal closing of the Saint Lawrence Seaway and provide for alternate routing of vessels through a different range of ports during that closing to maintain continuity of service on a year-round basis. “(b) Bulk Cargo Carrying Services.— The Secretary shall investigate, determine, and keep current records of the bulk cargo carrying services that should be provided by vessels of the United States (whether or not operating on particular services, routes, or lines) for the promotion, development, expansion, and maintenance of the foreign commerce of the United States and the national defense or other national requirements. “(c) Types of Vessels.— The Secretary shall investigate, determine, and keep current records of the type, size, speed, method of propulsion, and other requirements of the vessels, including express-liner or super-liner vessels, that should be employed in— “(1) the services, routes, or lines described in subsection (a), and the frequency and regularity of the voyages of the vessels, with a view to furnishing adequate, regular, certain, and permanent service; and “(2) the bulk cargo carrying services described in subsection (b). “§ 50104.  Studies of general maritime problems   “The Secretary of Transportation shall study all maritime problems arising in carrying out the policy in section 50101 of this title. “§ 50105.  Studies and cooperation relating to the construction of vessels “(a) Relative Costs and New Designs.— The Secretary of Transportation shall investigate, determine, and keep current records of— “(1) the relative cost of construction of comparable vessels in the United States and in foreign countries; and “(2) new designs, new methods of construction, and new types of equipment for vessels. “(b) Rules, Classifications, and Ratings.— The Secretary shall examine the rules under which vessels are constructed abroad and in the United States and the methods of classifying and rating the vessels. “(c) Collaboration With Owners and Builders.— The Secretary shall collaborate with vessel owners and shipbuilders in developing plans for the economical construction of vessels and their propelling machinery, of most modern economical types, giving thorough consideration to all well-recognized means of propulsion and taking into account the benefits from standardized production where practicable and desirable. “(d) Express-Liner and Super-Liner Vessels.— The Secretary shall study and cooperate with vessel owners in devising means by which there may be constructed, by or with the aid of the United States Government, express-liner or super-liner vessels comparable to those of other nations, especially with a view to their use in a national emergency, and the use of transoceanic aircraft service in connection with or in lieu of those vessels. “§ 50106.  Studies on the operation of vessels “(a) Relative Costs.— The Records. Secretary of Transportation shall investigate, determine, and keep current records of the relative cost of marine insurance, maintenance, repairs, wages and subsistence of officers and crews, and all other items of expense, in the operation of comparable vessels under the laws and regulations of the United States and those of the foreign countries whose vessels are substantial competitors of American vessels. “(b) Shipyards.— The Records. Secretary shall investigate, determine, and keep current records of the number, location, and efficiency of shipyards in the United States. “(c) Navigation Laws.— The Secretary shall examine the navigation laws and regulations of the United States and make such recommendations to Congress as the Secretary considers proper for the amendment, improvement, and revision of those laws and for the development of the merchant marine of the United States. “§ 50107.  Studies on marine insurance   “The Secretary of Transportation shall— “(1) examine into the subject of marine insurance, the number of companies in the United States, domestic and foreign, engaging in marine insurance, the extent of the insurance on hulls and cargoes placed or written in the United States, and the extent of reinsurance of American maritime risks in foreign companies; and “(2) ascertain what steps may be necessary to develop an ample marine insurance system as an aid in the development of the merchant marine of the United States. “§ 50108.  Studies on cargo carriage and cargo containers “(a) Studies.— The Secretary of Transportation shall study— “(1) the methods of encouraging the development and implementation of new concepts for the carriage of cargo in the domestic and foreign commerce of the United States; and “(2) the economic and technological aspects of the use of cargo containers as a method of carrying out the policy in section 50101 of this title. “(b) Restriction.— In carrying out subsection (a) and the policy in section 50101 of this title, the United States Government may not give preference as between carriers based on the length, height, or width of cargo containers or the length, height, or width of cargo container cells. This restriction applies to all existing container vessels and any container vessel to be constructed or rebuilt. “§ 50109.  Miscellaneous studies “(a) Foreign Subsidies.— The Secretary of Transportation shall investigate, determine, and keep current records of the extent and character of the governmental aid and subsidies granted by foreign governments to their merchant marine. “(b) Laws Applicable to Aircraft.— The Secretary shall investigate, determine, and keep current records of the provisions of law relating to shipping that should be made applicable to aircraft engaged in foreign commerce to further the policy in section 50101 of this title, and any appropriate legislation in this regard. “(c) Aid for Cotton, Coal, Lumber, and Cement.— The Secretary shall investigate, determine, and keep current records of the advisability of enactment of suitable legislation authorizing the Secretary, in an economic or commercial emergency, to aid farmers and producers of cotton, coal, lumber, and cement in any section of the United States in the transportation and landing of their products in any foreign port, which products can be carried in dry-cargo vessels by reducing rates, by supplying additional tonnage to any American operator, or by operation of vessels directly by the Secretary, until the Secretary considers the special rate reduction and operation unnecessary for the benefit of those farmers and producers. “(d) Intercoastal and Inland Water Transportation.— The Secretary shall investigate, determine, and keep current records of intercoastal and inland water transportation, including their relation to transportation by land and air. “(e) Obsolete Tonnage and Tramp Service.— The Reports. Secretary shall make studies and reports to Congress on— “(1) the scrapping or removal from service of old or obsolete merchant tonnage owned by the United States Government or in use in the merchant marine; and “(2) tramp shipping service and the advisability of citizens of the United States participating in that service with vessels under United States registry. “(f) Mortgage Loans.— The Secretary shall investigate the legal status of mortgage loans on vessel property, with a view to the means of improving the security of those loans and of encouraging investment in American shipping. “§ 50110.  Securing preference to vessels of the United States “(a) Possibilities of Promoting Carriage.— The Records. Secretary of Transportation shall investigate, determine, and keep current records of the possibilities of promoting the carriage of United States foreign trade in vessels of the United States. “(b) Inducements to Importers and Exporters.— The Secretary shall study and cooperate with vessel owners in devising means by which the importers and exporters of the United States can be induced to give preference to vessels of the United States. “(c) Liaison With Agencies and Organizations.— The Secretary shall establish and maintain liaison with such other agencies of the United States Government, and with such representative trade organizations throughout the United States, as may be concerned, directly or indirectly, with any movement of commodities in the waterborne export and import foreign commerce of the United States, for the purpose of securing preference to vessels of the United States in the shipment of those commodities. “§ 50111.  Reports to Congress “(a) In General.— Not later than April 1 of each year, the Secretary of Transportation shall submit a report to Congress. The report shall include, with respect to activities of the Secretary under this subtitle, the results of investigations, a summary of transactions, a statement of all expenditures and receipts, the purposes for which all expenditures were made, and any recommendations for legislation. “(b) Administered and Oversight Funds.— The Secretary, in the report under subsection (a) and in the annual budget estimate for the Maritime Administration submitted to Congress, shall state separately the amount, source, intended use, and nature of any funds (other than funds appropriated to the Administration or to the Secretary of Transportation for use by the Administration) administered, or subject to oversight, by the Administration. “(c) Additional Recommendations for Legislation.— The Secretary, from time to time, shall make recommendations to Congress for legislation the Secretary considers necessary to better achieve the objectives and policy of section 50101 of this title. “§ 50112.  National Maritime Enhancement Institutes “(a) Designation.— The Secretary of Transportation may designate National Maritime Enhancement Institutes. “(b) Activities.— Activities undertaken by an institute may include— “(1) conducting research about methods to improve the performance of maritime industries; “(2) enhancing the competitiveness of domestic maritime industries in international trade; “(3) forecasting trends in maritime trade; “(4) assessing technological advancements; “(5) developing management initiatives and training; “(6) analyzing economic and operational impacts of regulatory policies and international negotiations or agreements pending before international bodies; “(7) assessing the compatibility of domestic maritime infrastructure systems with overseas transport systems; “(8) fostering innovations in maritime transportation pricing; and “(9) improving maritime economics and finance. “(c) Application for Designation.— An institution seeking designation as a National Maritime Enhancement Institute shall submit an application under regulations prescribed by the Secretary. “(d) Criteria for Designation.— The Secretary shall designate an institute under this section on the basis of the following criteria: “(1) The demonstrated research and extension resources available to the applicant for carrying out the activities specified in subsection (b). “(2) The ability of the applicant to provide leadership in making national and regional contributions to the solution of both long-range and immediate problems of the domestic maritime industry. “(3) The existence of an established program of the applicant encompassing research and training directed to enhancing maritime industries. “(4) The demonstrated ability of the applicant to assemble and evaluate pertinent information from national and international sources and to disseminate results of maritime industry research and educational programs through a continuing education program. “(5) The qualification of the applicant as a nonprofit institution of higher learning. “(e) Financial Awards.— The Secretary may make awards on an equal matching basis to an institute designated under subsection (a) from amounts appropriated. The aggregate annual amount of the Federal share of the awards by the Secretary may not exceed $500,000. “(f) University Transportation Research Funds.— The Secretary may make a grant under section 5505 of title 49 to an institute designated under subsection (a) for maritime and maritime intermodal research under that section as if the institute were a university transportation center. In making a grant, the Secretary, through the Research and Innovative Technology Administration, shall advise the Maritime Administration on the availability of funds for the grants and consult with the Administration on making the grants. “§ 50113.  Use and performance reports by operators of vessels “(a) Filing Requirement.— The Secretary of Transportation by regulation may require the operator of a vessel in the waterborne foreign commerce of the United States to file such report, account, record, or memorandum on the use and performance of the vessel as the Secretary considers desirable to assist in carrying out this subtitle. The report, account, record, or memorandum shall be signed and verified, and be filed at the times and in the manner, as provided by regulation. “(b) Civil Penalty.— An operator not filing a report, account, record, or memorandum required by the Secretary under this section is liable to the United States Government for a civil penalty of $50 for each day of the violation. A penalty imposed under this section on the operator of a vessel constitutes a lien on the vessel involved in the violation. A civil action in rem to enforce the lien may be brought in the district court of the United States for any district in which the vessel is found. The Secretary may remit or mitigate any penalty imposed under this section. “CHAPTER 503— ADMINISTRATIVE “Sec. “50301.  Vessel Operations Revolving Fund. “50302.  Port development. “50303.  Operating property and extending term of notes. “50304.  Sale and transfer of property. “50305.  Appointment of trustee or receiver and operation of vessels. “50306.  Requiring testimony and records in investigations. “§ 50301.  Vessel Operations Revolving Fund “(a) In General.— There is a ‘Vessel Operations Revolving Fund’ for use by the Secretary of Transportation in carrying out duties and powers related to vessel operations, including charter, operation, maintenance, repair, reconditioning, and improvement of merchant vessels under the jurisdiction of the Secretary. The Fund has a working capital of $20,000,000, to remain available until expended. “(b) Relationship to Other Laws.— Notwithstanding any other law, rates for shipping services provided under the Fund shall be prescribed by the Secretary and the Fund shall be credited with receipts from vessel operations conducted under the Fund. Sections 1(a) and (c), 3(c), and 4 of the Act of March 24, 1943 (50 App. U.S.C. 1291(a), (c), 1293(c), 1294), apply to those operations and to seamen employed through general agents as employees of the United States Government. Notwithstanding any other law on the employment of persons by the Government, the seamen may be employed in accordance with customary commercial practices in the maritime industry. “(c) Advancements.— With the approval of the Director of the Office of Management and Budget, the Secretary may advance amounts the Secretary considers necessary, but not more than 2 percent of vessel operating expenses, from the Fund to the appropriation ‘Salaries and Expenses’ in carrying out duties and powers related to vessel operations, without regard to the limitations on amounts stated in that appropriation. “(d) Transfers.— The unexpended balances of working funds or of allocation accounts established after January 1, 1951, for the activities provided for in subsection (a), and receipts received from those activities, may be transferred to the Fund, which shall be available for the purposes of those working funds or allocation accounts. “(e) Limitation.— “(1) In general.— Amounts made available to the Secretary for maritime activities by this section or any other law may not be used to pay for a vessel described in paragraph (2) unless the compensation to be paid is computed under section 56303 of this title as that section is interpreted by the Comptroller General. “(2) Applicable vessels.— Paragraph (1) applies to a vessel— “(A) the title to which is acquired by the Government by requisition or purchase; “(B) the use of which is taken by requisition or agreement; or “(C) lost while insured by the Government. “(3) Nonapplicable vessels.— Paragraph (1) does not apply to a vessel under a construction-differential subsidy contract. “(f) Availability for Additional Purposes.— The Fund is available for— “(1) necessary expenses incurred in the protection, preservation, maintenance, acquisition, or use of vessels involved in mortgage foreclosure or forfeiture proceedings instituted by the Government, including payment of prior claims and liens, expenses of sale, or other related charges; “(2) necessary expenses incident to the redelivery and lay-up, in the United States, of vessels chartered as of June 20, 1956, under agreements not calling for their return to the Government; “(3) the activation, repair, and deactivation of merchant vessels chartered for limited emergency purposes during fiscal year 1957 under the jurisdiction of the Secretary; and “(4) payment of expenses of custody and maintenance of Government-owned vessels not in the National Defense Reserve Fleet. “(g) Expenses and Receipts Related to Charter Operations.— The Fund is available for expenses incurred in activating, repairing, and deactivating merchant vessels chartered under the jurisdiction of the Secretary. Receipts from charter operations of Government-owned vessels under the jurisdiction of the Secretary shall be credited to the Fund. “§ 50302.  Port development “(a) General Requirements.— With the objective of promoting, encouraging, and developing ports and transportation facilities in connection with water commerce over which the Secretary of Transportation has jurisdiction, the Secretary, in cooperation with the Secretary of the Army, shall— “(1) investigate territorial regions and zones tributary to ports, taking into consideration the economies of transportation by rail, water, and highway and the natural direction of the flow of commerce; “(2) investigate the causes of congestion of commerce at ports and applicable remedies; “(3) investigate the subject of water terminals, including the necessary docks, warehouses, and equipment, to devise and suggest the types most appropriate for different locations and for the most expeditious and economical transfer or interchange of passengers or property between water carriers and rail carriers; “(4) consult with communities on the appropriate location and plan of construction of wharves, piers, and water terminals; “(5) investigate the practicability and advantages of harbor, river, and port improvements in connection with foreign and coastwise trade; and “(6) investigate any other matter that may tend to promote and encourage the use by vessels of ports adequate to care for the freight that naturally would pass through those ports. “(b) Submission of Findings to Surface Transportation Board.— After an investigation under subsection (a), if the Secretary of Transportation believes that the rates or practices of a rail carrier subject to the jurisdiction of the Surface Transportation Board are detrimental to the objective specified in subsection (a), or that new rates or practices, new or additional port terminal facilities, or affirmative action by a rail carrier is necessary to promote that objective, the Secretary may submit findings to the Board for action the Board considers appropriate under existing law. “§ 50303.  Operating property and extending term of notes “(a) General Authority.— The Secretary of Transportation may— “(1) operate or lease docks, wharves, piers, or real property under the Secretary’s control; and “(2) make extensions and accept renewals of— “(A) promissory notes and other evidences of indebtedness on property; and “(B) mortgages and other contracts securing the property. “(b) Terms of Transactions.— A transaction under subsection (a) shall be on terms the Secretary considers necessary to carry out the purposes of this subtitle, but consistent with sound business practice. “(c) Availability of Amounts.— Amounts received by the Secretary from a transaction under this section are available for expenditure by the Secretary as provided in this subtitle. “§ 50304.  Sale and transfer of property “(a) Authority To Sell.— The Secretary of Transportation may sell property (other than vessels transferred under section 4 of the Merchant Marine Act, 1920 (ch. 250, 41 Stat. 990)) on terms the Secretary considers appropriate. “(b) Transfers From Military to Civilian Control.— When the President considers it in the interest of the United States, the President may transfer to the Secretary of Transportation possession and control of property described in the second paragraph of section 17 of the Merchant Marine Act, 1920 (ch. 250, 41 Stat. 994), as originally enacted, that is possessed and controlled by the Secretary of a military department. “(c) Transfers From Civilian to Military Control.— When the President considers it necessary, the President by executive order may transfer to the Secretary of a military department possession and control of property described in section 17 of the Merchant Marine Act, 1920 (ch. 250, 41 Stat. 994), as originally enacted, that is possessed and controlled by the Secretary of Transportation. The President’s order shall state the need for the transfer and the period of the need. When the President decides that the need has ended, the possession and control shall revert to the Secretary of Transportation. The property may not be sold except as provided by law. “§ 50305.  Appointment of trustee or receiver and operation of vessels “(a) Appointment of Trustees and Receivers.— “(1) Appointment of secretary.— In a proceeding in a court of the United States in which a trustee or receiver may be appointed for a corporation operating a vessel of United States registry between the United States and a foreign country, on which the United States Government holds a mortgage, the court may appoint the Secretary of Transportation as the sole trustee or receiver (subject to the direction of the court) if— “(A) the court finds that the appointment will— “(i) inure to the advantage of the estate and the parties in interest; and “(ii) tend to carry out the purposes of this subtitle; and “(B) the Secretary expressly consents to the appointment. “(2) Appointment of other person.— The appointment of another person as trustee or receiver without a hearing becomes effective when ratified by the Secretary, but the Secretary may demand a hearing. “(b) Operation of Vessels.— “(1) In general.— If the court is unwilling to allow the trustee or receiver to operate the vessel in foreign commerce without financial aid from the Government pending termination of the proceeding, and the Secretary certifies to the court that the continued operation of the vessel is essential to the foreign commerce of the United States and is reasonably calculated to carry out the purposes of this subtitle, the court may allow the Secretary to operate the vessel, either directly or through a managing agent or operator employed by the Secretary. The Secretary must agree to comply with terms imposed by the court sufficient to protect the parties in interest. The Secretary also must agree to pay all operating losses resulting from the operation. The operation shall be for the account of the trustee or receiver. “(2) Payment of operating losses and other amounts.— The Secretary has no claim against the corporation, its estate, or its assets for operating losses paid by the Secretary, but the Secretary may pay amounts for depreciation the Secretary considers reasonable and other amounts the court considers just. The payment of operating losses and the other amounts and compliance with terms imposed by the court shall be in satisfaction of any claim against the Secretary resulting from the operation of the vessel. “(3) Deemed operation by government.— A vessel operated by the Secretary under this subsection is deemed to be a vessel operated by the United States under chapter 309 of this title. “§ 50306.  Requiring testimony and records in investigations “(a) In General.— In conducting an investigation that the Secretary of Transportation considers necessary and proper to carry out this subtitle, the Secretary may administer oaths, take evidence, and subpoena persons to testify and produce documents relevant to the matter under investigation. Persons may be required to attend or produce documents from any place in the United States at any designated place of hearing. “(b) Fees and Mileage.— Persons subpoenaed by the Secretary under subsection (a) shall be paid the same fees and mileage paid to witnesses in the courts of the United States. “(c) Enforcement of Subpoenas.— If a person disobeys a subpoena issued under subsection (a), the Secretary may seek an order enforcing the subpoena from the district court of the United States for the district in which the person resides or does business. Process may be served in the judicial district in which the person resides or is found. The court may issue an order to obey the subpoena and punish a refusal to obey as a contempt of court. “CHAPTER 505— OTHER GENERAL PROVISIONS “Sec. “50501.  Entities deemed citizens of the United States. “50502.  Applicability to receivers, trustees, successors, and assigns. “50503.  Oceanographic research vessels. “50504.  Sailing school vessels. “§ 50501.  Entities deemed citizens of the United States “(a) In General.— In this subtitle, a corporation, partnership, or association is deemed to be a citizen of the United States only if the controlling interest is owned by citizens of the United States. However, if the corporation, partnership, or association is operating a vessel in the coastwise trade, at least 75 percent of the interest must be owned by citizens of the United States. “(b) Additional Requirements for Corporations.— In this subtitle, a corporation is deemed to be a citizen of the United States only if, in addition to satisfying the requirements in subsection (a)— “(1) it is incorporated under the laws of the United States or a State; “(2) its chief executive officer, by whatever title, and the chairman of its board of directors are citizens of the United States; and “(3) no more of its directors are noncitizens than a minority of the number necessary to constitute a quorum. “(c) Determination of Controlling Corporate Interest.— The controlling interest in a corporation is owned by citizens of the United States under subsection (a) only if— “(1) title to the majority of the stock in the corporation is vested in citizens of the United States free from any trust or fiduciary obligation in favor of a person not a citizen of the United States; “(2) the majority of the voting power in the corporation is vested in citizens of the United States; “(3) there is no contract or understanding by which the majority of the voting power in the corporation may be exercised, directly or indirectly, in behalf of a person not a citizen of the United States; and “(4) there is no other means by which control of the corporation is given to or permitted to be exercised by a person not a citizen of the United States. “(d) Determination of 75 Percent Corporate Interest.— At least 75 percent of the interest in a corporation is owned by citizens of the United States under subsection (a) only if— “(1) title to at least 75 percent of the stock in the corporation is vested in citizens of the United States free from any trust or fiduciary obligation in favor of a person not a citizen of the United States; “(2) at least 75 percent of the voting power in the corporation is vested in citizens of the United States; “(3) there is no contract or understanding by which more than 25 percent of the voting power in the corporation may be exercised, directly or indirectly, in behalf of a person not a citizen of the United States; and “(4) there is no other means by which control of more than 25 percent of any interest in the corporation is given to or permitted to be exercised by a person not a citizen of the United States. “§ 50502.  Applicability to receivers, trustees, successors, and assigns   “This subtitle applies to receivers, trustees, successors, and assigns of any person to whom this subtitle applies. “§ 50503.  Oceanographic research vessels   “An oceanographic research vessel (as defined in section 2101 of this title) is deemed not to be engaged in trade or commerce. “§ 50504.  Sailing school vessels “(a) Definitions.— In this section, the terms ‘sailing school instructor’, ‘sailing school student’, and ‘sailing school vessel’ have the meaning given those terms in section 2101 of this title. “(b) Not Seamen.— A sailing school student or sailing school instructor is deemed not to be a seaman under— “(1) parts B, F, and G of subtitle II of this title; or “(2) the maritime law doctrines of maintenance and cure or warranty of seaworthiness. “(c) Not Merchant Vessel or Engaged in Trade or Commerce.— A sailing school vessel is deemed not to be— “(1) a merchant vessel under section 11101(a)–(c) of this title; or “(2) a vessel engaged in trade or commerce. “(d) Evidence of Financial Responsibility.— The owner or charterer of a sailing school vessel shall maintain evidence of financial responsibility to meet liability for death or injury to sailing school students and sailing school instructors on a voyage on the vessel. The amount of financial responsibility shall be at least $50,000 for each student and instructor. Financial responsibility under this subsection may be evidenced by insurance or other adequate financial resources. “Part B— Merchant Marine Service “CHAPTER 511— GENERAL “Sec. “51101.  Policy. “51102.  Definitions. “51103.  General authority of Secretary of Transportation. “51104.  General authority of Secretary of the Navy. “§ 51101.  Policy   “It is the policy of the United States that merchant marine vessels of the United States should be operated by highly trained and efficient citizens of the United States and that the United States Navy and the merchant marine of the United States should work closely together to promote the maximum integration of the total seapower forces of the United States. “§ 51102.  Definitions   “In this part: “(1) Academy.— The term ‘Academy’ means the United States Merchant Marine Academy located at Kings Point, New York, and maintained under chapter 513 of this title. “(2) Cost of education provided.— The term ‘cost of education provided’ means the financial costs incurred by the United States Government for providing training or financial assistance to students at the Academy and the State maritime academies, including direct financial assistance, room, board, classroom academics, and other training activities. “(3) Merchant marine officer.— The term ‘merchant marine officer’ means an individual issued a license by the Coast Guard authorizing service as— “(A) a master, mate, or pilot on a documented vessel that— “(i) is of at least 1,000 gross tons as measured under section 14502 of this title or an alternate tonnage measured under section 14302 of this title as prescribed by the Secretary under section 14104 of this title; and “(ii) operates on the oceans or the Great Lakes; or “(B) an engineer officer on a documented vessel propelled by machinery of at least 4,000 horsepower. “(4) State maritime academy.— The term ‘State maritime academy’ means— “(A) a State maritime academy or college sponsored by a State and assisted under chapter 515 of this title; and “(B) a regional maritime academy or college sponsored by a group of States and assisted under chapter 515 of this title. “§ 51103.  General authority of Secretary of Transportation “(a) Education and Training.— The Secretary of Transportation may provide for the education and training of citizens of the United States for the safe and efficient operation of the merchant marine of the United States at all times, including operation as a naval and military auxiliary in time of war or national emergency. “(b) Surplus Property for Instructional Purposes.— “(1) In general.— The Secretary may cooperate with and assist the institutions named in paragraph (2) by making vessels, shipboard equipment, and other marine equipment, owned by the United States Government and determined to be excess or surplus, available to those institutions for instructional purposes, by gift, loan, sale, lease, or charter on terms the Secretary considers appropriate. “(2) Institutions.— The institutions referred to in paragraph (1) are— “(A) the United States Merchant Marine Academy; “(B) a State maritime academy; and “(C) a nonprofit training institution jointly approved by the Secretary of Transportation and the Secretary of the department in which the Coast Guard is operating as offering training courses that meet Federal regulations for maritime training. “(c) Assistance From Other Agencies.— “(1) In general.— The Secretary of Transportation may secure directly from an agency, on a reimbursable basis, information, facilities, and equipment necessary to carry out this part. “(2) Detailing personnel.— At the request of the Secretary, the head of an agency (including a military department) may detail, on a reimbursable basis, personnel from the agency to the Secretary to assist in carrying out this part. “(d) Academy Personnel.— To carry out this part, the Secretary may— “(1) employ an individual as a professor, lecturer, or instructor at the Academy, without regard to the provisions of title 5 governing appointments in the competitive service; and “(2) pay the individual without regard to chapter 51 and subchapter III of chapter 53 of title 5. “§ 51104.  General authority of Secretary of the Navy   “The Secretary of the Navy, in cooperation with the Maritime Administrator and the head of each State maritime academy, shall ensure that— “(1) the training of future merchant marine officers at the United States Merchant Marine Academy and at State maritime academies includes programs for naval science training in the operation of merchant vessels as a naval and military auxiliary; and “(2) naval officer training programs for future officers, insofar as possible, are maintained at designated maritime academies consistent with Navy standards and needs. “CHAPTER 513— UNITED STATES MERCHANT MARINE ACADEMY “Sec. “51301.  Maintenance of the Academy. “51302.  Nomination and competitive appointment of cadets. “51303.  Non-competitive appointments. “51304.  Additional appointments from particular areas. “51305.  Prohibited basis for appointment. “51306.  Cadet commitment agreements. “51307.  Places of training. “51308.  Uniforms, textbooks, and transportation allowances. “51309.  Academic degree. “51310.  Deferment of service obligation under cadet commitment agreements. “51311.  Midshipman status in the Naval Reserve. “51312.  Board of Visitors. “51313.  Advisory Board. “51314.  Limitation on charges and fees for attendance. “§ 51301.  Maintenance of the Academy   “The Secretary of Transportation shall maintain the United States Merchant Marine Academy to provide instruction to individuals to prepare them for service in the merchant marine of the United States. “§ 51302.  Nomination and competitive appointment of cadets “(a) Requirements.— An individual may be nominated for a competitive appointment as a cadet at the United States Merchant Marine Academy only if the individual— “(1) is a citizen or national of the United States; and “(2) meets the minimum requirements that the Secretary of Transportation shall establish. “(b) Nominators.— Nominations for competitive appointments for the positions allocated under subsection (c) may be made as follows: “(1) A Senator may nominate residents of the State represented by that Senator. “(2) A Member of the House of Representatives may nominate residents of the State in which the congressional district represented by that Member is located. “(3) A Delegate to the House of Representatives from the District of Columbia, the Virgin Islands, Guam, or American Samoa may nominate residents of the jurisdiction represented by that Delegate. “(4) The Resident Commissioner to the United States from Puerto Rico may nominate residents of Puerto Rico. “(5) The Governor of the Northern Mariana Islands may nominate residents of the Northern Mariana Islands. “(6) The Panama Canal Commission may nominate— “(A) residents, or sons or daughters of residents, of an area or installation in Panama and made available to the United States under the Panama Canal Treaty of 1977, the agreements relating to and implementing that Treaty, signed September 7, 1977, and the Agreement Between the United States of America and the Republic of Panama Concerning Air Traffic Control and Related Services, concluded January 8, 1979; and “(B) sons or daughters of personnel of the United States Government and the Panama Canal Commission residing in Panama. “(c) Allocation of Positions.— Positions for competitive appointments shall be allocated each year as follows: “(1) Positions shall be allocated for residents of each State nominated by the Members of Congress from that State in proportion to the representation in Congress from that State. “(2) Four positions shall be allocated for residents of the District of Columbia nominated by the Delegate to the House of Representatives from the District of Columbia. “(3) One position each shall be allocated for residents of the Virgin Islands, Guam, and American Samoa nominated by the Delegates to the House of Representatives from the Virgin Islands, Guam, and American Samoa, respectively. “(4) One position shall be allocated for a resident of Puerto Rico nominated by the Resident Commissioner to the United States from Puerto Rico. “(5) One position shall be allocated for a resident of the Northern Mariana Islands nominated by the Governor of the Northern Mariana Islands. “(6) Two positions shall be allocated for individuals nominated by the Panama Canal Commission. “(d) Competitive System for Appointment.— “(1) Establishment of system.— The Secretary shall establish a competitive system for selecting individuals nominated under subsection (b) to fill the positions allocated under subsection (c). The system must determine the relative merit of each individual based on competitive examinations, an assessment of the individual’s academic background, and other effective indicators of motivation and probability of successful completion of training at the Academy. “(2) Appointments by jurisdiction.— The Secretary shall appoint individuals to fill the positions allocated under subsection (c) for each jurisdiction in the order of merit of the individuals nominated from that jurisdiction. “(3) Remaining unfilled positions.— If positions remain unfilled after the appointments are made under paragraph (2), the Secretary shall appoint individuals to fill the positions in the order of merit of the remaining individuals nominated from all jurisdictions. “§ 51303.  Non-competitive appointments   “The Secretary of Transportation may appoint each year without competition as cadets at the United States Merchant Marine Academy not more than 40 qualified individuals with qualities the Secretary considers to be of special value to the Academy. In making these appointments, the Secretary shall try to achieve a national demographic balance at the Academy. “§ 51304.  Additional appointments from particular areas “(a) Other Countries in Western Hemisphere.— The President may appoint individuals from countries in the Western Hemisphere other than the United States to receive instruction at the United States Merchant Marine Academy. Not more than 12 individuals may receive instruction under this subsection at the same time, and not more than 2 individuals from the same country may receive instruction under this subsection at the same time. “(b) Other Countries Generally.— “(1) Appointment.— The Secretary of Transportation, with the approval of the Secretary of State, may appoint individuals from countries other than the United States to receive instruction at the Academy. Not more than 30 individuals may receive instruction under this subsection at the same time. “(2) Reimbursement.— The Secretary of Transportation shall ensure that the country from which an individual comes under this subsection will reimburse the Secretary for the cost (as determined by the Secretary) of the instruction and allowances received by the individual. “(c) Panama.— “(1) Appointment.— The Secretary of Transportation, with the approval of the Secretary of State, may appoint individuals from Panama to receive instruction at the Academy. Individuals appointed under this subsection are in addition to those appointed under any other provision of this chapter. “(2) Reimbursement.— The Secretary of Transportation shall be reimbursed for the cost (as determined by the Secretary) of the instruction and allowances received by an individual appointed under this subsection. “(d) Allowances and Regulations.— Individuals receiving instruction under this section are entitled to the same allowances and are subject to the same regulations on admission, attendance, discipline, resignation, discharge, dismissal, and graduation, as cadets at the Academy appointed from the United States. “§ 51305.  Prohibited basis for appointment   “Preference may not be given to an individual for appointment as a cadet at the United States Merchant Marine Academy because one or more members of the individual’s immediate family are alumni of the Academy. “§ 51306.  Cadet commitment agreements “(a) Agreement Requirements.— A citizen of the United States appointed as a cadet at the United States Merchant Marine Academy must sign, as a condition of the appointment, an agreement to— “(1) complete the course of instruction at the Academy; “(2) fulfill the requirements for a license as an officer in the merchant marine of the United States before graduation from the Academy; “(3) 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 endorsements and certification required by the Coast Guard for service aboard vessels on domestic and international voyages; “(4) apply for, and accept if tendered, an appointment as a commissioned officer in the Naval Reserve (including the Merchant Marine Reserve, Naval Reserve), the Coast Guard Reserve, or any other reserve unit of an armed force of the United States, and, if tendered the appointment, to serve for at least 6 years after graduation from the Academy; “(5) serve the foreign and domestic commerce and the national defense of the United States for at least 5 years after graduation from the Academy— “(A) as a merchant marine officer on a documented vessel or a vessel owned and operated by the United States Government or by a State; “(B) as an employee in a United States maritime-related industry, profession, or marine science (as determined by the Secretary of Transportation), if the Secretary determines that service under subparagraph (A) is not available to the individual; “(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 employment which serves the national security interests of the United States, as determined by the Secretary; or “(D) by a combination of the service alternatives referred to in subparagraphs (A)–(C); and “(6) report to the Secretary on compliance with this subsection. “(b) Failure To Complete Course of Instruction.— “(1) Active duty.— If the Secretary of Transportation determines that an individual who has attended the Academy for at least 2 years has failed to fulfill the part of the agreement described in subsection (a)(1), the individual may be ordered by the Secretary of Defense to serve on active duty in one of 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. “(2) Recovery of cost.— If the Secretary of Defense is unable or unwilling to order an individual to serve on active duty under paragraph (1), or if the Secretary of Transportation determines that reimbursement of the cost of education provided would better serve the interests of the United States, the Secretary of Transportation may recover from the individual the cost of education provided by the Government. “(c) Failure To Carry Out Other Requirements.— “(1) Active duty.— If the Secretary of Transportation determines that an individual has failed to fulfill any part of the agreement described in subsection (a)(2)–(6), the individual may be ordered to serve on active duty for a period of at least 3 years but not more than the unexpired period (as determined by the Secretary) of the service required by subsection (a)(5). The Secretary of Transportation, 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 Transportation, 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 individual to serve on active duty under paragraph (1), or if the Secretary of Transportation determines that reimbursement of the cost of education provided would better serve the interests of the United States, the Secretary of Transportation may recover from the individual the cost of education provided. The Secretary may reduce the amount to be recovered to reflect partial performance of service obligations and other factors the Secretary determines merit a reduction. “(d) Actions To Recover Cost.— To aid in the recovery of the cost of education provided by the Government under a commitment agreement under this section, the Secretary of Transportation 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. “§ 51307.  Places of training   “The Secretary of Transportation may provide for the training of cadets at the United States Merchant Marine Academy— “(1) on vessels owned or subsidized by the United States Government; “(2) on other documented vessels, with the permission of the owner; and “(3) in shipyards or plants and with industrial or educational organizations. “§ 51308.  Uniforms, textbooks, and transportation allowances   “The Secretary of Transportation shall provide cadets at the United States Merchant Marine Academy— “(1) all required uniforms and textbooks; and “(2) allowances for transportation (including reimbursement of traveling expenses) when traveling under orders as a cadet. “§ 51309.  Academic degree “(a) Bachelor’s Degree.— “(1) In general.— The Superintendent of the United States Merchant Marine Academy may confer the degree of bachelor of science on an individual who— “(A) has met the conditions prescribed by the Secretary of Transportation; and “(B) if a citizen of the United States, has passed the examination for a merchant marine officer’s license. “(2) Effect of physical disqualification.— An individual not allowed to take the examination for a merchant marine officer’s license only because of physical disqualification may not be denied a degree for not taking the examination. “(b) Master’s Degree.— The Superintendent of the Academy may confer a master’s degree on an individual who has met the conditions prescribed by the Secretary. A master’s degree program may be funded through non-appropriated funds. To maintain the appropriate academic standards, the program shall be accredited by the appropriate accreditation body. The Secretary may prescribe regulations necessary to administer such a program. “(c) Graduation Not Entitlement To Hold License.— Graduation from the Academy does not entitle an individual to hold a license authorizing service on a merchant vessel. “§ 51310.  Deferment of service obligation under cadet commitment agreements   “The Secretary of Transportation may defer the service commitment of an individual under section 51306(a)(5) of this title (as specified in the cadet commitment agreement) for not more than 2 years if the individual is engaged in a graduate course of study approved by the Secretary. However, deferment of service as a commissioned officer under section 51306(a)(5) must be approved by the Secretary of the military department that has jurisdiction over the service or by the Secretary of Commerce for service with the National Oceanic and Atmospheric Administration. “§ 51311.  Midshipman status in the Naval Reserve “(a) Application Requirement.— Before being appointed as a cadet at the United States Merchant Marine Academy, a citizen of the United States must agree to apply for midshipman status in the Naval Reserve (including the Merchant Marine Reserve, Naval Reserve). “(b) Appointment.— “(1) In general.— A citizen of the United States appointed as a cadet at the Academy shall be appointed by the Secretary of the Navy as a midshipman in the Naval Reserve (including the Merchant Marine Reserve, Naval Reserve). “(2) Rights and privileges.— The Secretary of the Navy shall provide for cadets of the Academy who are midshipmen in the United States Naval Reserve to be— “(A) issued an identification card (referred to as a ‘military ID card’); and “(B) entitled to all rights and privileges in accordance with the same eligibility criteria as apply to other members of the Ready Reserve of the reserve components of the armed forces. “(3) Coordination.— The Secretary of the Navy shall carry out paragraphs (1) and (2) in coordination with the Secretary of Transportation. “§ 51312.  Board of Visitors “(a) In General.— A Board of Visitors to the United States Merchant Marine Academy shall be established, for a term of 2 years commencing at the beginning of each Congress, to visit the Academy annually on a date determined by the Secretary of Transportation and to make recommendations on the operation of the Academy. “(b) Appointment.— “(1) In general.— The Board shall be composed of— “(A) 2 Senators appointed by the chairman of the Committee on Commerce, Science, and Transportation of the Senate; “(B) 3 Members of the House of Representatives appointed by the chairman of the Committee on Armed Services of the House of Representatives; “(C) 1 Senator appointed by the Vice President; “(D) 2 Members of the House of Representatives appointed by the Speaker of the House of Representatives; and “(E) the chairmen of the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Armed Services of the House of Representatives, as ex officio members. “(2) Substitute appointment.— If an appointed member of the Board is unable to visit the Academy as provided in subsection (a), another individual may be appointed as a substitute in the manner provided in paragraph (1). “(c) Staff.— The chairmen of the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Armed Services of the House of Representatives may designate staff members of their committees to serve without reimbursement as staff for the Board. “(d) Travel Expenses.— When serving away from home or regular place of business, a member of the Board or a staff member designated under subsection (c) shall be allowed travel expenses, including per diem in lieu of subsistence, as authorized by section 5703 of title 5. “§ 51313.  Advisory Board “(a) In General.— An Advisory Board to the United States Merchant Marine Academy shall be established to visit the Academy at least once during each academic year, for the purpose of examining the course of instruction and management of the Academy and advising the Maritime Administrator and the Superintendent of the Academy. “(b) Appointment and Terms.— The Board shall be composed of not more than 7 individuals appointed by the Secretary of Transportation. The individuals must be distinguished in education and other fields related to the Academy. Members of the Board shall be appointed for terms of not more than 3 years and may be reappointed. The Secretary shall designate one of the members as chairman. “(c) Travel Expenses.— When serving away from home or regular place of business, a member of the Board shall be allowed travel expenses, including per diem in lieu of subsistence, as authorized by section 5703 of title 5. “(d) Relationship to Other Law.— The Federal Advisory Committee Act (5 App. U.S.C.) does not apply to the Board. “§ 51314.  Limitation on charges and fees for attendance “(a) Prohibition.— Except as provided in subsection (b), no charge or fee for tuition, room, or board for attendance at the United States Merchant Marine Academy may be imposed unless the charge or fee is specifically authorized by a law enacted after October 5, 1994. “(b) Exception.— The prohibition specified in subsection (a) does not apply with respect to any item or service provided to cadets for which a charge or fee is imposed as of October 5, 1994. The Secretary of Transportation shall notify Congress of any change made by the Academy in the amount of a charge or fee authorized under this subsection. “CHAPTER 515— STATE MARITIME ACADEMY SUPPORT PROGRAM “Sec. “51501.  General support program. “51502.  Detailing of personnel. “51503.  Regional maritime academies. “51504.  Use of training vessels. “51505.  Annual payments for maintenance and support. “51506.  Conditions to receiving payments and use of vessels. “51507.  Places of training. “51508.  Allowances for students. “51509.  Student incentive payment agreements. “51510.  Deferment of service obligation under student incentive payment agreements. “51511.  Midshipman status in the Naval Reserve. “§ 51501.  General support program “(a) Assistance to State Maritime Academies.— The Secretary of Transportation shall cooperate with and assist State maritime academies in providing instruction to individuals to prepare them for service in the merchant marine of the United States. “(b) Course Development.— The Secretary shall provide to each State maritime academy guidance and assistance in developing courses on the operation and maintenance of new vessels, on equipment, and on innovations being introduced to the merchant marine of the United States. “§ 51502.  Detailing of personnel   “At the request of the Governor of a State, the President may detail, without reimbursement, personnel of the Navy, the Coast Guard, and the Maritime Service to a State maritime academy to serve as a superintendent, professor, lecturer, or instructor at the academy. “§ 51503.  Regional maritime academies   “The Governors of the States cooperating to sponsor a regional maritime academy shall designate in writing one of those States to conduct the affairs of that academy. A regional maritime academy is eligible for assistance from the United States Government on the same basis as a State maritime academy sponsored by a single State. “§ 51504.  Use of training vessels “(a) Applications To Use Vessels.— The Governor of a State sponsoring a State maritime academy (or the Governor of the State designated to conduct the affairs of a regional maritime academy) may apply in writing to the Secretary of Transportation to obtain the use of a training vessel for the academy. A vessel provided under this section remains the property of the United States Government. “(b) General Authority.— Subject to subsection (c), the Secretary may provide to a State maritime academy, for use as a training vessel, a suitable vessel under the control of the Secretary or made available to the Secretary under subsection (e). If a suitable vessel is not available, the Secretary may build and provide a suitable vessel. “(c) Approval Requirements.— The Secretary may provide a vessel under this section only if— “(1) an application has been made under subsection (a); “(2) the State maritime academy satisfies section 51506(a) of this title; and “(3) a suitable port will be available for the safe mooring of the vessel while the academy is using the vessel. “(d) Preparation and Maintenance.— A vessel provided under this section shall be— “(1) repaired, reconditioned, and equipped (with all apparel, charts, books, and instruments of navigation) as necessary for use as a training vessel; and “(2) maintained in good repair by the Secretary. “(e) Agency Vessels.— An agency may provide to the Secretary, for use by a State maritime academy, a vessel (including equipment) that— “(1) is suitable for training purposes; and “(2) can be provided without detriment to the service to which the vessel is assigned. “(f) Fuel Costs.— The Secretary may pay to a State maritime academy the costs of fuel used by a vessel provided under this section while used for training. “(g) Removing Vessels From Service and Vessel Sharing.— The Secretary may not— “(1) take a vessel, currently in use as a training vessel under this section, out of service to implement an alternative program (including vessel sharing) unless the vessel is incapable of being maintained in good repair as required by subsection (d); or “(2) implement a program requiring a State maritime academy to share its training vessel with another State maritime academy, except with the express consent of Congress. “§ 51505.  Annual payments for maintenance and support “(a) Payment Agreements.— The Secretary of Transportation may make an agreement (effective for not more than 4 years) with the following academies to provide annual payments to those academies for their maintenance and support: “(1) One State maritime academy in each State that satisfies section 51506(a) of this title. “(2) Each regional maritime academy that satisfies section 51506(a) of this title. “(b) Payments.— “(1) In general.— Subject to paragraph (2), an annual payment to an academy under subsection (a) shall be at least equal to the amount given to the academy for its maintenance and support by the State in which it is located, or, for a regional maritime academy, by all States cooperating to sponsor the academy. “(2) Maximum.— The amount under paragraph (1) may not be more than $25,000. However, if the academy satisfies section 51506(b) of this title, the amount shall be— “(A) $100,000 for a State maritime academy; and “(B) $200,000 for a regional maritime academy. “§ 51506.  Conditions to receiving payments and use of vessels “(a) General Conditions.— As conditions of receiving an annual payment or the use of a vessel under this chapter, a State maritime academy must— “(1) provide courses of instruction on navigation, marine engineering (including steam and diesel propulsion), the operation and maintenance of new vessels and equipment, and innovations being introduced to the merchant marine of the United States; “(2) agree in writing to conform to the standards for courses, training facilities, admissions, and instruction that the Secretary of Transportation may establish after consultation with the superintendents of State maritime academies; and “(3) agree in writing to require, as a condition for graduation, that each individual who is a citizen of the United States and who is attending the academy in a merchant marine officer preparation program pass the examination required for the issuance of a license under section 7101 of this title. “(b) Additional Condition to Payments of More Than $25,000.— As a condition of receiving an annual payment of more than $25,000 under section 51505 of this title, a State maritime academy also must agree to admit each year a number of citizens of the United States who meet its admission requirements and reside in a State not supporting that academy. The Secretary shall determine the number of individuals to be admitted by each academy under this subsection. The number may not be more than one-third of the total number of individuals attending the academy at any time. “§ 51507.  Places of training   “The Secretary of Transportation may provide for the training of students attending a State maritime academy— “(1) on vessels owned or subsidized by the United States Government; “(2) on other documented vessels, with the permission of the owner; and “(3) in shipyards or plants and with industrial or educational organizations. “§ 51508.  Allowances for students   “Under Regulations. regulations prescribed by the Secretary of Transportation, a student at a State maritime academy shall receive from the Secretary allowances for transportation (including reimbursement of traveling expenses) when traveling under orders to receive training under section 51507 of this title. “§ 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 manner. “(b) Payments.— Payments under an agreement under this section shall be equal to $4,000 each academic year and be paid, as prescribed by the Secretary, while the individual is attending the academy. The payments shall be used for uniforms, books, and subsistence. “(c) Midshipman and Enlisted Reserve Status.— An agreement under this section shall require the student to accept midshipman and enlisted reserve status in the Naval Reserve (including the Merchant Marine Reserve, Naval Reserve) 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) take the examination for a license as an officer in the merchant marine of the United States before graduation from the academy and fulfill the requirements for such a license within 3 months after graduation from the academy; “(3) 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 endorsements and certification required by the Coast Guard for service aboard vessels on domestic and international voyages; “(4) accept, if tendered, an appointment as a commissioned officer in the Naval Reserve (including the Merchant Marine Reserve, Naval Reserve), the Coast Guard Reserve, or any other reserve unit of an armed force of the United States, and, if tendered the appointment, to serve for at least 6 years after graduation from the academy; “(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 documented vessel or a vessel owned and operated by the United States Government or by a State; “(B) as an employee in a United States maritime-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 individual; “(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 employment which serves the national security interests of the United States, as determined by the Secretary; or “(D) by a combination of the service alternatives referred to in subparagraphs (A)–(C); and “(6) report to the Secretary on compliance with this subsection. “(e) Failure To Complete Course of Instruction.— “(1) Active duty.— 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. “(2) Recovery of cost.— If the Secretary of Defense is unable or unwilling to order an individual to serve on active duty under paragraph (1), or if the Secretary of Transportation determines that reimbursement of the cost of education provided would better serve the interests of the United States, the Secretary of Transportation may recover from the individual the amount of student incentive payments, plus interest and attorney fees. The Secretary may reduce the amount to be recovered to reflect partial performance of service obligations and other factors the Secretary determines merit a reduction. “(f) Failure To Carry Out Other Requirements.— “(1) Active duty.— If the Secretary of Transportation determines that an individual has failed to fulfill any part of the agreement described 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 subsection (d)(5). The Secretary of Transportation, 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 Transportation, 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 individual to serve on active duty under paragraph (1), or if the Secretary of Transportation determines that reimbursement of the cost of education provided would better serve the interests of the United States, the Secretary of Transportation may recover from the individual the amount of student incentive payments, plus interest and attorney fees. The Secretary may reduce the amount to be recovered to reflect partial performance of service obligations and other factors the Secretary determines 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 agreement under this section, the Secretary of Transportation 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. “§ 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 Secretary. However, deferment of service as a commissioned officer on active duty must be approved by the Secretary of the affected military department (or the Secretary of Commerce, for service with the National Oceanic and Atmospheric Administration). “§ 51511.  Midshipman status in the Naval 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 Naval Reserve (including the Merchant Marine Reserve, Naval Reserve). “CHAPTER 517— OTHER SUPPORT FOR MERCHANT MARINE TRAINING “Sec. “51701.  United States Maritime Service. “51702.  Civilian nautical schools. “51703.  Additional training. “51704.  Training for maritime oil pollution prevention, response, and clean-up. “§ 51701.  United States Maritime Service “(a) General Authority.— The Secretary of Transportation may establish and maintain a voluntary organization, to be known as the United States Maritime Service, for the training of citizens of the United States to serve on merchant vessels of the United States. “(b) Specific Authority.— The Secretary may— “(1) determine the number of individuals to be enrolled for training and reserve purposes in the Service; “(2) fix the rates of pay and allowances of the individuals without regard to chapter 51 or subchapter III of chapter 53 of title 5; “(3) prescribe the course of study and the periods of training for the Service; and “(4) prescribe the uniform of the Service and the rules on providing and wearing the uniform. “(c) Ranks, Grades, and Ratings.— The ranks, grades, and ratings for personnel of the Service shall be the same as those prescribed for personnel of the Coast Guard. “(d) Medals and Awards.— The Secretary may establish and maintain a medals and awards program to recognize distinguished service, superior achievement, professional performance, and other commendable achievement by personnel of the Service. “§ 51702.  Civilian nautical schools “(a) Definition.— In this section, the term ‘civilian nautical school’ means a school operated in the United States (except the United States Merchant Marine Academy, a State maritime academy, or another school operated by the United States Government) that offers instruction to individuals quartered on a vessel primarily to train them for service in the merchant marine. “(b) Inspection.— Each civilian nautical school is subject to inspection by the Secretary of Transportation. “(c) Rating and Certification.— The Secretary may, under regulations the Secretary may prescribe, provide for the rating and certification of civilian nautical schools as to the adequacy of their course of instruction, the competence of their instructors, and the suitability of the equipment used in their course of instruction. “§ 51703.  Additional training “(a) General Authority.— The Secretary of Transportation may provide additional training on maritime subjects to supplement other training opportunities and make the training available to the personnel of the merchant marine of the United States and individuals preparing for a career in the merchant marine of the United States. “(b) Equipment, Supplies, and Contracts.— The Secretary may— “(1) prepare or buy equipment or supplies required for the additional training; and “(2) without regard to section 3709 of the Revised Statutes (41 U.S.C. 5), make contracts for services the Secretary considers necessary to prepare the equipment and supplies and to supervise and administer the additional training. “§ 51704.  Training for maritime oil pollution prevention, response, and clean-up “(a) Assistance in Establishing Program.— The Secretary of Transportation shall assist maritime training institutions approved by the Secretary in establishing a training program for maritime oil pollution prevention, response, and clean-up. “(b) Providing Training Vessels.— Subject to subsection (c), the Secretary may provide, with title free of all liens, to maritime training institutions that have a program established under subsection (a), offshore supply vessels and tug/supply vessels that were built in the United States and are in the possession of the Maritime Administration because of a default on a loan guaranteed under chapter 537 of this title. “(c) Requirements.— In addition to any other requirements the Secretary considers appropriate, the following requirements apply to vessels provided under this section: “(1) The vessel shall be offered to the institution at a location selected by the Secretary. “(2) The institution shall use the vessel to train students and appropriate maritime industry personnel in oil spill prevention, response, clean-up, and related skills. “(3) The institution shall make the vessel and qualified students available to appropriate Federal, State, and local oil spill response authorities when there is a maritime oil spill. “(4) The institution may not sell, trade, charter, donate, scrap, or in any way alter or dispose of the vessel without prior approval of the Secretary. “(5) The institution may not use the vessel in competition with a privately-owned vessel documented under chapter 121 of this title or titled under the law of a State, unless necessary to carry out this section. “(6) When the institution can no longer use the vessel for its training program, the institution shall return the vessel to the Secretary. The Secretary shall take possession at the institution and thereafter may provide the vessel to another institution under this section or dispose of the vessel. “CHAPTER 519— MERCHANT MARINE AWARDS “Sec. “51901.  Awards for individual acts or service. “51902.  Gallant Ship Award. “51903.  Multiple awards. “51904.  Presentation to representatives. “51905.  Flags and grave markers. “51906.  Special certificates for civilian service to armed forces. “51907.  Manufacture and sale of awards and replacements. “51908.  Prohibition against unauthorized manufacture, sale, possession, or display of awards. “§ 51901.  Awards for individual acts or service “(a) General Authority.— The Secretary of Transportation may award decorations and medals of appropriate design (including ribbons, ribbon bars, emblems, rosettes, miniature facsimiles, plaques, citations, or other suitable devices or insignia) for individual acts or service in the merchant marine of the United States. The design may be similar to the design of a decoration or medal authorized for members of the armed forces for similar acts or service. “(b) Specific Authority.— The Secretary may award— “(1) a Merchant Marine Distinguished Service Medal to an individual for outstanding acts, conduct, or valor beyond the line of duty; “(2) a Merchant Marine Meritorious Service Medal to an individual for meritorious acts, conduct, or valor in the line of duty, but not of the outstanding character that would warrant the award of the Merchant Marine Distinguished Service Medal; “(3) a decoration or medal to an individual for service during a war, national emergency proclaimed by the President or Congress, or operations by the armed forces outside the continental United States under conditions of danger to life and property; and “(4) a decoration or medal to an individual for other acts or service of conspicuous gallantry, intrepidity, and extraordinary heroism under conditions of danger to life and property that would warrant a similar decoration or medal for a member of the armed forces. “§ 51902.  Gallant Ship Award “(a) Awards to Vessels.— The Secretary of Transportation may award a Gallant Ship Award and a citation to a vessel (including a foreign vessel) participating in outstanding or gallant action in a marine disaster or other emergency to save life or property at sea. The Secretary may award a plaque to the vessel, and a replica of the plaque may be preserved as a permanent historical record. “(b) Awards to Crews.— The Secretary of Transportation may award an appropriate citation ribbon bar to the master and each individual serving, at the time of the action, on a vessel issued an award under subsection (a). “(c) Consultation.— The Secretary of Transportation shall consult with the Secretary of State before awarding an award or citation to a foreign vessel or its crew under this section. “§ 51903.  Multiple awards   “An individual may not be awarded more than one of any type of decoration or medal under this chapter. For each succeeding act or service justifying the same decoration or medal, a suitable device may be awarded to be worn with the decoration or medal. “§ 51904.  Presentation to representatives   “If an individual to be issued an award under this chapter is unable to accept the award personally, the Secretary of Transportation may present the award to an appropriate representative. “§ 51905.  Flags and grave markers   “Except as authorized under another law, the Secretary of Transportation may issue, at no cost, a flag of the United States and a grave marker to the family or personal representative of a deceased individual who served in the merchant marine of the United States in support of the armed forces of the United States or its allies during a war or national emergency. “§ 51906.  Special certificates for civilian service to armed forces “(a) General Authority.— The Maritime Administrator may issue a special certificate to an individual, or the personal representative of an individual, in recognition of service of that individual in the merchant marine of the United States, if the service has been determined to be active duty under section 401 of the GI Bill Improvement Act of 1977 (Public Law 95–202; 38 U.S.C. 106 note). “(b) Relationship to Other Laws.— Issuance of a certificate under subsection (a) does not entitle an individual to any rights, privileges, or benefits under a law of the United States. “§ 51907.  Manufacture and sale of awards and replacements   “The Secretary of Transportation may— “(1) authorize private persons to manufacture decorations and medals authorized under this chapter or a prior law; and “(2) provide at cost, or authorize private persons to sell at reasonable prices, replacements for those decorations and medals. “§ 51908.  Prohibition against unauthorized manufacture, sale, possession, or display of awards “(a) Prohibition.— Except as authorized under this chapter, a person may not manufacture, sell, possess, or display a decoration or medal provided for in this chapter. “(b) Civil Penalty.— A person violating this section is liable to the United States Government for a civil penalty of not more than $2,000. “CHAPTER 521— MISCELLANEOUS “Sec. “52101.  Reemployment rights for certain merchant seamen. “§ 52101.  Reemployment rights for certain merchant seamen “(a) In General.— An individual who is certified by the Secretary of Transportation under subsection (c) shall be entitled to reemployment rights and other benefits substantially equivalent to the rights and benefits provided for by chapter 43 of title 38 for any member of a reserve component of the armed forces of the United States who is ordered to active duty. “(b) Time for Application.— An individual may submit an application for certification under subsection (c) to the Secretary not later than 45 days after the date the individual completes a period of employment described in subsection (c)(1)(A) with respect to which the application is submitted. “(c) Certification Determination.— Not Deadline. later than 20 days after the date the Secretary receives from an individual an application for certification under this subsection, the Secretary shall— “(1) determine whether the individual— “(A) was employed in the activation or operation of a vessel— “(i) in the National Defense Reserve Fleet maintained under section 11 of the Merchant Ship Sales Act of 1946 (50 App. U.S.C. 1744) in a period in which the vessel was in use or being activated for use under subsection (b) of that section; “(ii) requisitioned or purchased under chapter 563 of this title; or “(iii) owned, chartered, or controlled by the United States Government and used by the Government for a war, armed conflict, national emergency, or maritime mobilization need (including for training purposes or testing for readiness and suitability for mission performance); and “(B) during the period of that employment, possessed a valid license, certificate of registry, or merchant mariner’s document issued under chapter 71 or 73 of this title; and “(2) if the Secretary makes affirmative determinations under subparagraphs (A) and (B) of paragraph (1), certify that individual under this subsection. “(d) Equivalence to Military Selective Service Act Certificate.— For purposes of reemployment rights and benefits provided by this section, a certification under subsection (c) shall be considered to be the equivalent of a certificate described in section 9(a) of the Military Selective Service Act (50 App. U.S.C. 459(a)). “Part C— Financial Assistance Programs” .

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