Sec. 1023. Authority for limited coastwise trade for certain vessels providing transportation services under a shipbuilding or ship repair contract with the Secretary of the Navy
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Chapter 645 of title 10, United States Code, is amended by adding at the end the following new section: In his section, the term contractor-owned vessel means a dry dock, a tugboat, or a towing vessel that— was built in the United States; is owned or operated by an individual or entity that— is under contract with the Navy to construct, maintain, or repair a vessel of the Navy; and in conjunction with such contract, is operating under a special security agreement with the Secretary of Defense; is used, pursuant to such contract, to construct, maintain, or repair a vessel of the Navy; and is manned by United States citizens.
A contractor-owned vessel may, at the direction of the Secretary of the Navy, engage in coastwise trade for the exclusive purpose of performing a contract with the Navy to construct, maintain, or repair a vessel of the Navy, and any law pertaining to coastwise trade shall not apply to such vessel, the owner or operator of such vessel, or the operation of such vessel. The Secretary of the Navy shall provide notice to the Secretary of Homeland Security if a contractor-owned vessel is authorized, pursuant to this section, to engage in coastwise trade.
An authorization to engage in coastwise trade pursuant to this section shall be non-transferrable and shall expire— on the date of the sale of the contractor-owned vessel; on the date of that the contract with the Navy to construct, maintain, or repair a vessel of the Navy expires or that the Secretary of the Navy terminates such contract; or in the event that the Secretary of Defense terminates the special security agreement with the contractor that owns the vessel. . The table of sections at the beginning of such chapter is amended by adding at the end the following new item: 7525.
Limited coastwise trade. .