560 



the United States, (5) that the applicant will em- 

 ploy on the vessel only citizens of the United States 

 or aliens legally domiciled in the United States, (6) 

 the vessel will be documented under the laws of the 

 United States, (7) the vessel will be modern In de- 

 sign and equipment, be capable, when appropriate, 

 to operate in expanded areas, and will not operate 

 In a fishery if such operation would cause economic 

 hardship to operators of efficient vessels already op- 

 erating in that fishery unless such vessel will replace 

 a vessel of the applicant operating in the same fish- 

 ery during the twenty-four-month period immedi- 

 ately preceding the date an application is filed by 

 the applicant, and having a comparable fishing ca- 

 pacity of the replacement vessel, and (8) such other 

 conditions as the Secretary may consider to be In 

 the public interest. (Pub. L. 86-516. § 2, June 12. 

 1960, 74 Stat. 212; Pub. L. 88-498, §2(2), Aug. 30, 

 1964. 78 Stat. 614; Pub. L. 91-279, § 1, June 12, 1970, 

 84 Stat. 307.) 



Amendments 



1970 — Pub. L. 91-279 authorized application for con- 

 struction subsidy to aid In remodeling of any vessel; 

 Inserted In cl. (1) after "and suitable" the words ", in 

 the case of a new fishing vessel and, when appropriate, 

 a remodeled vessel, "; deleted In cl. (2) the term "new" 

 from the phrase "new fishing vessel"; and. In rewrit- 

 ing cl. (7). required the vessel to be modem In design 

 rather than of advance design, that It be modern In equip- 

 ment rather than that it be equipped with newly developed 

 gear, and that It replace a vessel of the applicant operating 

 In the same fishery during the twenty-four month period 

 Immediately preceding the date an application Is filed by 

 the applicant, and having a comparable fishing capacity of 

 the replacement vessel, respectively. 



1964 — Pub. L. 88-498 required the Secretary to determine 

 that the vessel will be of advance design, which will en- 

 able It to operate In expanded areas, and be equipped 

 with newly developed gear, and will not operate in a 

 fishery. If such operation would cause economic hardship 

 to efficient vessel operators already operating In that 

 fishery. 



§1403. Approval of application; contract for payment 

 of subsidy. 



If the Secretary, in the exercise of his discretion, 

 after notice and opportunity for a public hearing, 

 determines that the granting of a subsidy applied for 

 is reasonably calculated to carry out the pxirposes of 

 this chapter, he may approve such application and 

 enter Into a contract or contracts with the appli- 

 cant which will provide for payment by the United 

 States of a construction subsidy in accordance with 

 the purposes and provisions of this chapter and in 

 accordance with any other conditions or limitations 

 which may be prescribed by the Secretary. (Pub. L. 

 86-516. § 3, June 12, 1960, 74 Stat. 212; Pub. L. 88- 

 498, § 2(3), Aug. 30, 1964, 78 Stat. 614; Pub. L. 91- 

 279. 5 2. June 12, 1970. 84 Stat. 307.) 



Amendments 



1970 — Pub. L. 91-279 substituted "notice and oppor- 

 tunity for a public hearing" for "notice and hearing". 



1964— Pub L. 88-498 Inserted words "after notice and 

 hearing" preceding "determines." 



§ 1404. Repealed. Pub. L. 88-498, §2(4), Aug. 30, 1964, 

 78 Stat. 614. 



Section, Pub. L. 86-516. § 4, June 12, 1960, 74 Stat. 212, 

 related to the operation of fishing vessels In fisheries 

 suffering Injury. 



§ 1405. Cost determination and limitation. 



(a) Within sixty days after the date of enact- 

 ment of this subsection, and from time to time 

 thereafter, the Martime ^ Administrator shall sur- 

 vey foreign shipyards to determine the estimated 

 difference between the cost of constructing various 

 classes of new fishing vessels engaged In the fisheries 

 of the United States in such shipyards, and the cost 

 of remodeling various classes of vessels in such ship- 

 yards, and the cost of constructing or remodeling 

 such vessels in a shipyard of the United States. 



(b) The Secretary may pay, from funds appro- 

 priated under this chapter for fiscal year 1970 and 

 subsequent fiscal years with respect to any new fish- 

 ing vessel for which an application is received in 

 such years and approved under section 1403 of this 

 title, a construction subsidy of not less than 35 per 

 centum and not more than 50 per centum of the 

 lowest responsible bid for the construction of such 

 vessel in a shipyard of the United States, as deter- 

 mined and certified to the Secretary by the Maritime 

 Administrator, excluding the costs, if any, of any 

 feature Incorporated in the vessel for national de- 

 fense uses which costs shall be paid by the Depart- 

 ment of Defense In addition to such subsidy. The 

 amount of such subsidy for each such vessel shall be 

 determined and certified to the Secretary by the 

 Maritime Administrator based on the periodic sur- 

 vey conducted under subsection (a) of this section. 



(c) The Secretary may pay, from funds appro- 

 priated under this chapter for fiscal year 1970 and 

 subsequent fiscal years with respect to any vessel for 

 which an application is received in such years and 

 approved under section 1403 of this title for the 

 remodeling of any vessel, a construction subsidy of 

 not more than 35 per centum of the lowest responsible 

 bid for the remodeling of such vessel as a fishing 

 vessel in a shipyard of the United States, as deter- 

 mined and certified to the Secretary by the Maritime 

 Administrator, excluding the costs, if any, of any 

 feature Incorporated in the vessel for national de- 

 fense uses which costs shall be paid by the Depart- 

 ment of Defense in addition to such subsidy. The 

 amount of such subsidy of each such vessel shall be 

 determined and certified to the Secretary by the 

 Maritime Administrator baJ&d on the periodic survey 

 conducted under subsection (a) of this section. (Pub. 

 L. 86-516, 5, June 12, 1960, 74 Stat. 213; Pub. L. 

 88-498, §2(5), Aug. 30, 1964, 78 Stat. 614; Pub. L. 

 91-279, § 3, June 12, 1970, 84 Stat. 307.) 



Amendments 



1970 — Pub. L. 61-279, In rewriting existing paragraph, 

 enacted provisions designated as subsec. (a) and provid- 

 ing for survey of foreign shipyards to determine estimated 

 difference between construction and remodeling costs In 

 foreign as compared with United States shipyards; in- 

 corporated In provisions designated as subsec. (b) pro- 

 visions of existing paragraph for a construction subsidy 

 for construction of fishing vessels with Defense Depart- 

 ment payments for features for national defense uses, 

 prescribed minimum construction subsidy payment of 35 

 per centum of lowest responsible bid for construction of 

 such vessel In a United States shipyard, and provided for 

 payment from appropriated funds and for determination 

 of amount of subsidy on basis of the periodic survey; and 

 enacted provlslorts designated as subsec. (c) for a con- 



' So In original. The term should read "Maritime" 



