Page:United States Statutes at Large Volume 110 Part 5.djvu/57

 PUBLIC LAW 104-239—OCT. 8, 1996 110 STAT. 3131 due to military contingency or other events beyond the contractor's control. "(3) The term 'participates in a noncontiguous domestic trade' means directly or indirectly owns, charters, or operates a vessel engaged in transportation of cargo between a point in the contiguous 48 states and a point in Alaska, Hawaii, or Puerto Rico, other than a point in Alaska north of the Arctic Circle. "(4) The term 'related party* means— "(A) a holding company, subsidiary, affiliate, or associate of a contractor who is a party t<5 an operating agreement under this subtitle; and "(B) an officer, director, agent, or other executive of a contractor or of a person referred to in subparagraph (A). ", (b) CONFORMING AMENDMENT.— Section 805 of the Merchant Marine Act, 1936 (46 U.S.C. App. 1223) is amended— (1) by striking "title VI of this Act" each place it appesirs and inserting "subtitle A of title VI of this Act"; and (2) by striking "under title VI" each place it appears and inserting "under subtitle A of title VI". SEC. 5. USE OF FOREIGN-FLAG VESSELS. (a) IN GENERAL. —Section 804 of the Merchant Marine Act, 1936 (46 U.S.C. App. 1222) is amended by adding at the end the following new subsection: "(f) The provisions of subsection (a) shall not preclude a contractor receiving assistance under subtitle A or B of title VI, or any holding company, subsidiary, or affiliate of the contractor, or any officer, director, agent, or executive thereof, from— "(1) owning, chartering, or operating any foreign-flag vessel on a voyage or a segment of a voyage that does not call at a port in the United States; "(2) owning, chartering, or operating any foreign-flag vessel in line haul service between the United States and foreign ports if— "(A) the foreign-flag vessel was owned, chartered, or operated by, or is a replacement for a foreign-flag vessel owned, chartered, or operated by, such owner or operator, or any holding company, subsidiary, affiliate, or associate of such owner or operator, on the date of enactment of the Maritime Security Act of 1996; "(B) the owner or operator, with respect to each additional foreign-flag vessel, other than a time chartered vessel, has first applied to have that vessel covered by an operating agreement under subtitle B of title VI, and the Secretary has not awarded an operating agreement with respect to that vessel within 90 days after the filing of the application; or "(C) the vessel has been placed under foreign documentation pursuant to section 9 of the Shipping Act, 1916 (46 U.S.C. App. 808), except that any foreign-flag vessel, other than a time chartered vessel, a replacement vessel under section 653(d), or a vessel operated by the owner or operator on the date of enactment of the Maritime Security Act of 1996, in line haul service between the United States and foreign ports is registered under the

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