Page:United States Statutes at Large Volume 104 Part 3.djvu/331

 PUBLIC LAW 101-510—NOV. 5, 1990 104 STAT. 1683 that naval station with the capability to be able to service nuclearpowered aircraft carriers and otherwise to serve as a homeport for nuclear-powered aircraft carriers. SEC. 1424. FAST SEALIFT PROGRAM 10 USC 7291 (a) ESTABLISHMENT OF PROGRAM.—The Secretary of the Navy shall establish a program for the construction and operation of cargo vessels that incorporate features essential for military use of the vessels. (b) PROGRAM REQUIREMENTS.—The program under this section shall be carried out as follows: (1) The Secretary of the Navy shall establish the design requirements for vessels to be constructed under the program. (2) In establishing the design requirements for vessels to be constructed under the program, the Secretary shall use commercial design standards and shall consult with the Administrator of the Maritime Administration. (3) Construction of the vessels shall be accomplished in private United States shipyards. (c) CHARTER OF VESSELS CONSTRUCTED. —(1) Except when the Secretary determines that having a vessel immediately available with a full or partial crew is in the national interest, the Secretary, in consultatiqn with the Administrator of the Maritime Administration, shall'charter each vessel constructed before October 1, 1995, under the program for commercial operation. Any such charter— (A) shall not permit the operation of the vessel other than in the forpign commerce of the United States; (B) may be made only with an individual or entity that is a citizen of the United States (which, in the case of a corporation, partnership, or association, shall be determined in the manner specified in section 2 of the Shipping Act, 1916 (46 U.S.C. App. 802)); and (C) shall require that the vessel be documented (and remain documented) under the laws of the United States. (2) The Secretary may enter into a charter under paragraph (1) . only through the use of competitive bidding procedures that ensure that the highest charter rates are obtained by the United States consistent with good business practice, except that the Secretary may operate the vessel (or contract to have the vessel operated) in direct support of United States military forces during a time of war or national emergency and at other times when the Administrator of the Maritime Administration determines that that operation would not unfairly compete with another United States-flag vessel. (3) If the Secretary determines that a vessel previously chartered under the program no longer has commercial utility, the Secretary may transfer the vessel to the National Defense Reserve Fleet. (4) A contract for the charter of a vessel under paragraph (1) shall include a provision that the charter may be terminated for national security reasons without cost to the United States. (d) REPORTS TO CONGRESS. — (1) Not later than six months after the date of the enactment of this Act, the Secretary of the Navy shall submit to Congress a report describing the Secretary's plan for implementing the fast sealift program authorized by this section. (2) Not later than three years after the date of the enactment of this Act, the Secretary shall submit to Congress a report on the implementation of the plan described in the report submitted under paragraph (1). The report shall include a description of vessels built

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