Page:United States Statutes at Large Volume 120.djvu/1702

 PUBLIC LAW 109–304—OCT. 6, 2006

120 STAT. 1671

and a vessel may not be chartered to a person under chapter 575 of this title, if the contractor or charterer, or a holding company, subsidiary, affiliate, or associate of the contractor or charterer, or an officer, director, agent, or executive thereof, directly or indirectly— ‘‘(1) owns, charters, or operates a vessel engaged in the domestic intercoastal or coastwise service; or ‘‘(2) owns a pecuniary interest in a person that owns, charters, or operates a vessel in the domestic intercoastal or coastwise service. ‘‘(b) WAIVER.—A person may apply to the Secretary of Transportation for a waiver of subsection (a). Before deciding on the waiver, the Secretary shall give the applicant and other interested persons an opportunity for a hearing. The Secretary may not grant the waiver if the Secretary finds it would— ‘‘(1) result in unfair competition to a person operating exclusively in the domestic intercoastal or coastwise service; or ‘‘(2) be prejudicial to the objectives and policy of this subtitle. ‘‘(c) CONTINUOUS OPERATION SINCE 1935.—The Secretary shall grant an application under subsection (b) without requiring further proof that the public interest and convenience will be served and without further proceedings as to the competition in the route or trade, if the contractor or other person, or a predecessor in interest, was in bona-fide operation as a common carrier by water in the domestic intercoastal or coastwise trade in 1935 over the route or in the trade for which the application is made and has so operated since that time or, if engaged in furnishing seasonal service only, was in bona-fide operation in 1935 during the season ordinarily covered by its operation, except in either event as to interruptions of service over which the applicant or its predecessor in interest had no control. ‘‘(d) DIVERSION INTO INTERCOASTAL OR COASTWISE OPERATIONS.—If an application under subsection (b) is approved, a person referred to in this section may not divert, directly or indirectly, money, property, or any other thing of value, used in a foreigntrade operation for which a subsidy is paid by the United States Government, into intercoastal or coastwise operations. ‘‘§ 58102. Default on payment or maintenance of reserves ‘‘The Secretary of Transportation may supervise the number and compensation of all officers and employees of a contractor under the operating-differential subsidy program or a charterer under chapter 575 of this title, receiving an operating-differential subsidy, if the contractor or charterer— ‘‘(1) is in default on a mortgage, note, purchase contract, or other obligation to the Secretary; or ‘‘(2) has not maintained, in a manner satisfactory to the Secretary, all of the reserves provided for in this subtitle. ‘‘§ 58103. Employing another person as managing or operating agent ‘‘(a) PROHIBITION.—Except with the written consent of the Secretary of Transportation, a contractor holding a contract under the operating-differential subsidy program or under chapter 575 of this title may not—

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