PUBLIC LAW 104-239—OCT. 8, 1996 110 STAT. 3127 that it is in the public interest to grant such financial aid for the operation of such vessel.". (b) WIND-UP OF PROGRAM.— Subtitle A of such Act (46 U.S.C. App. 1171 et seq.), as designated by the amendment made by section 2(1), is further amended by adding at the end the following new section: "SEC. 616. (a) After the date of enactment of the Maritime Security Act of 1996, the Secretary of Transportation shall not enter into any new contract for operating-differential subsidy under this subtitle. "(b) Notwithstanding any other provision of this Act, any operating-differential subsidy contract in effect under this title on the day before the date of enactment of the Maritime Security Act of 1996 shall continue in effect and terminate as set forth in the contract, unless voluntarily terminated at an earlier date by the parties (other than the United States Government) to the contract. "(c) The essential service requirements of section 601(a) and 603(b), and the provisions of sections 605(c) and 809(a), shall not apply to the operating-differential subsidy program under this subtitle effective upon the earlier of— "(1) the date that a payment is made, under the Maritime Security Program established by subtitle B to a contractor under that subtitle who is not party to an operating-differential subsidy contract under this subtitle, with the Secretary to cause notice of the date of such payment to be published in the Federal Register as soon as possible; or "(2) with respect to a particular contractor under the operating-differential subsidy program, the date that contractor enters into a contract with the Secretary under the Maritime Security Progrsim established by subtitle B. "(d)(1) Notwithstanding any other provision of law, a vessel may be transferred and registered under an effective United Statescontrolled foreign flag if— "(A) the operator of the vessel receives an operatingdifferential subsidy pursuant to a contract under this subtitle which is in force on October 1, 1994, and the Secretary approves the replacement of such vessel with a comparable vessel, or "(B) the vessel is covered by an operating agreement under subtitle B, and the Secretary approves the replacement of such vessel with a comparable vessel for inclusion in the Maritime Security Fleet established under subtitle B. "(2) Any such vessel may be requisitioned by the Secretary of Transportation pursuant to section 902.". SEC. 4. DOMESTIC OPERATIONS. (a) IN GENERAL. —Subtitle B of title VI of the Merchant Marine Act, 1936, as amended by section 102 of this title, is further amended by adding at the end the following new section: "NONCONTIGUOUS DOMESTIC TRADES "SEC. 656. (a)(1) Except as otherwise provided in this section, no contractor or related party shall receive payments pursuant to this subtitle during a period when it participates in a noncontiguous domestic trade, except upon written permission of the Secretary of Transportation. Such written permission shall also be required for any material change in the number or frequency 46 USC app. 1185a. Federal Register, publication. 46 USC app. 11876.
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