110 STAT. 3120 PUBLIC LAW 104-239—OCT. 8, 1996 by this subtitle shall not subject a contractor to section 805 or to any provision of subtitle A. " (d) EFFECTIVENESS AND ANNUAL PAYMENT REQUIREMENTS OF OPERATING AGREEMENTS.— "(1) EFFECTIVENESS. —The Secretary of Transportation may enter into an operating agreement under this subtitle for fiscal year 1996. The agreement shall be effective only for 1 fiscal year, but shall be renewable, subject to the availability of appropriations, for each subsequent fiscal year through the end of fiscal year 2005. "(2) ANNUAL PAYMENT. —An operating agreement under this subtitle shall require, subject to the availability of appropriations and the other provisions of this section, that the Secretary of Transportation pay each fiscal year to the contractor, for each vessel that is covered by the operating agreement, an amount equal to $2,300,000 for fiscal year 1996 and $2,100,000 for each fiscal year thereafter in which the agreement is in effect. The amount shall be paid in equal monthly installments at the end of each month. The amount shall not be reduced except as provided by this section. " (e) CERTIFICATION REQUIRED FOR PAYMENT.^AS a condition of receiving payment under this section for a fiscal year for a vessel, the contractor for the vessel shall certify, in accordance with regulations issued by the Secretary of Transportation, that the vessel has been and will be operated in accordance with subsection (b)(1) for at least 320 days in the fiscal year. Days during which the vessel is drydocked, surveyed, inspected, or repaired shall be considered days of operation for purposes of this subsection. "(f) OPERATING AGREEMENT IS OBLIGATION OF UNITED STATES GOVERNMENT.— An operating agreement under this subtitle constitutes a contractual obligation of the United States Government to pay the amounts provided for in the agreement to the extent of actual appropriations. "(g) LIMITATIONS. —The Secretary of Transportation shall not make any pa5anent under this subtitle for a vessel with respect to any days for which the vessel is— "(1) subject to an operating-differential subsidy contract under subtitle A or under a charter to the United States Government, other than a charter pursuant to section 653; "(2) not operated or maintained in accordance with an operating agreement under this subtitle; or "(3) more than 25 years of age, except that the Secretary may make such payments for a LASH vessel for any day for which the vessel is more than 25 years of age if that vessel— "(A) is modernized after January 1, 1994, "(B) is modernized before it is 25 years of age, and "(C) is not more than 30 years of age. "(h) PAYMENTS. —With respect to payments under this subtitle for a vessel covered by an operating agreement, the Secretary of Transportation— "(1) except as provided in paragraph (2), shall not reduce any payment for the operation of a vessel to carry military or other preference cargoes under section 2631 of title 10, United States Code, the Act of March 26, 1934 (46 U.S.C. App. 1241 -1), section 901(a), 901(b), or 901b of this Act, or any other cargo preference law of the United States;
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