Military Auxiliary Vessel Revolving Fund Act

reportedUnited States· United States Congress· EN

Introduced

6 February 1986

Last action

15 August 1986 · Reported

Status

Reported to House (Amended) by House Committee on Merchant Marine and Fisheries. Report No: 99-795 (Part I).

Summary

Amends the Merchant Marine Act, 1936 to add to such Act a new title, "Title XIV-Build and Charter," which establishes in the Treasury the Military Auxiliary Revolving Fund (the Fund). Provides that the Fund shall consist of: (1) all moneys appropriated to the Fund; (2) all moneys received from the charter or sale of merchant vessels constructed under this Act; (3) all moneys received from repayment of construction differential subsidies; and (4) any other moneys made available for the Fund. Directs that the Fund be administered by the Secretary of the Navy, and that moneys in the Fund shall be used only for the construction in private U.S. shipyards of merchant vessels capable of serving as naval and military auxiliaries in time of war or national emergency. Prohibits the making of any contract for the construction of a vessel under this Act with a private shipbuilder, except after due advertisement and upon sealed competitive bids. Authorizes the Secretary to charter or sell any naval vessel constructed under this Act to a citizen of the United States for operation in the foreign commerce, after due advertisement and upon competitive bids. Outlines information regarding the price to be charged by the Secretary for the sale or charter of such vessels. Provides that a citizen who charters or purchases a vessel under this Act shall not be eligible to receive an operating differential subsidy for the operation of any such vessel. Prohibits the Secretary from chartering the Department of the Navy's vessels to private operators except upon competitive sealed bids after due public advertisement. Outlines information to be included in advertisements for bids. Allows the Secretary to reject any or all bids received, provided that reasons for such rejections are given in writing. Outlines factors to be considered by the Secretary in the awarding of charters, such as financial resources, credit standing, and practical experience of the bidders. Provides circumstances under which the Secretary may reject a bid. Authorizes the Secretary to implement regulations to carry out this provision. Provides that every charter made by the Secretary under this Act shall contain a profit-sharing clause whereby the charterer of such vessel pays (in addition to the charter price) to the Secretary one-half of all net profits in excess of ten percent per year. Requires certain chartering terms of art to be defined in every charter, with such definitions having been approved by the Secretary and published in the advertisement for bids. Requires every vessel charterer under this Act to deposit with the Secretary certain security for the faithful performance of all the charter conditions. Outlines other provisions to be included in every charter, concerning: (1) the maintaining of proper insurance; (2) proper upkeep of vessels during charter periods; and (3) termination of such charter at any time for national security reasons. Prohibits the Secretary from chartering or selling any vessel constructed under this Act for operation in the trans-Pacific or trans-Atlantic general dry cargo service for the ten-year period after the construction of such vessel unless the Secretary makes certain findings concerning the need for such vessel. Prohibits the charter or sale of such vessel for operation in the coastwise or intercoastal trade unless the Secretary of Defense directs a waiver of compliance for such vessel in the national defense. Directs the Administrator of the Maritime Administration to conduct a certain study concerning the costs of vessels engaged in the coastwise trade, their future costs, and the differential between such vessels and those built in foreign shipyards. Directs the Administrator to submit such study to the Congress by January 1, 1987. Authorizes appropriations to the Fund.

This text is taken from the official record. PoliticalRepo does not editorialize.

Timeline

6 February 1986
Introduced
Referred to House Committee on Armed Services.
Source: IntroReferral
6 February 1986
Introduced
Introduced in House
Source: IntroReferral
6 February 1986
Introduced
Introduced in House
Source: IntroReferral
13 February 1986
Referred
Referred to Subcommittee on Merchant Marine.
Source: Committee
13 February 1986
Committee
Executive Comment Requested from Treasury, Navy, DOD, DOT.
Source: Committee
14 February 1986
Referred
Referred to Subcommittee on Seapower and Strategic and Critical Materials.
Source: Committee
14 February 1986
Committee
Executive Comment Requested from DOD.
Source: Committee
4 March 1986
Committee
Subcommittee Hearings Held.
Source: Committee
11 March 1986
Committee
Subcommittee Hearings Held.
Source: Committee
10 April 1986
Committee
Forwarded by Subcommittee to Full Committee (Amended).
Source: Committee
10 April 1986
Committee
Subcommittee Consideration and Mark-up Session Held.
Source: Committee
29 April 1986
Committee
Subcommittee Consideration and Mark-up Session Held.
Source: Committee
8 May 1986
Committee
Subcommittee Consideration and Mark-up Session Held.
Source: Committee
8 May 1986
Committee
See H.R.4420.
Source: Committee
14 May 1986
Committee
Unfavorable Executive Comment Received From Navy.
Source: Committee
21 May 1986
Committee
Unfavorable Executive Comment Received From Navy.
Source: Committee
4 June 1986
Reported
Ordered to be Reported (Amended).
Source: Committee
4 June 1986
Committee
Committee Consideration and Mark-up Session Held.
Source: Committee
15 August 1986
Reported
Reported to House (Amended) by House Committee on Merchant Marine and Fisheries. Report No: 99-795 (Part I).
Source: Committee
15 August 1986
Reported
Reported to House (Amended) by House Committee on Merchant Marine and Fisheries. Report No: 99-795 (Part I).
Source: Committee

Votes

No vote records are attached yet.

Versions

No version snapshots stored. Document URLs remain at the source.

Documents

2 official files

Reported to House amended, Part I
summary · EN · 15 August 1986
Open at official source
Introduced in House
summary · EN · 6 February 1986
Open at official source

Related records

Sources

PoliticalRepo is an index and interpretation layer, not the authoritative legal source.

Official source: https://www.congress.gov/bill/99th-congress/house-bill/4136
Open data entity: https://api.congress.gov/v3/bill/99/hr/4136
us · 99-hr-4136 · source updated 6 June 2025