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Modification of authority to purchase used vessels with National Defense Sealift Fund

Division A · Title X: General Provisions · Subtitle B: Naval Vessels and Shipyards

Plain-language summaryAI

The law prohibits using funds to buy used vessels that were built or significantly modified in China or by Chinese military or controlled companies. It also requires that for every foreign-built used vessel purchased beyond 12, two new vessels must be built in U.S. shipyards. Additionally, it removes certain outdated rules and updates legal references related to these purchases.

AI-generated from this section’s text — a quick orientation, not a substitute for the full text below. Not legal advice.

Section Text · Sec. 1011.
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(a) Exclusion of vessels built in China

(1) Exclusion

Subsection (f)(3) of section 2218 of title 10, United States Code, is amended—

(A)

in subparagraph (A), by striking any used vessel, regardless of where such vessel was constructed and inserting any used vessel (other than an excluded vessel), regardless of where such vessel was constructed, ; and

(B)

in subparagraph (B), by inserting (other than an excluded vessel) after a used vessel .

(2) Definition of excluded vessel

Subsection (k) of such section is amended by adding at the end the following new paragraph:

(6)

The term excluded vessel means a vessel that was—

(A)

constructed or substantially modified in the People’s Republic of China; or

(B)

built by a Chinese military company or a Chinese owned or controlled entity.

(b) Requirement for purchase of two new United States-constructed vessels for each foreign-constructed used vessel purchased in excess of 12

Subparagraph (C) of paragraph (3) of subsection (f) of such section is amended to read as follows:

(C)

For each foreign-constructed vessel purchased by the Secretary under the authority of this paragraph in excess of 12, the Secretary shall contract for the purchase of two new vessels each of which is to be constructed in a shipyard located in the United States.

(c) Clarifying amendment

Such paragraph is further amended in subparagraph (D) by striking subparagraph (A) and inserting this paragraph .

(d) Repeal of obsolete provision

Such paragraph is further amended—

(1)

by striking subparagraph (E); and

(2)

by redesignating subparagraph (F) as subparagraph (E).

(e) Repeal of 30-day notice-and-wait period before certain purchases may be finalized

Such paragraph is further amended by striking subparagraph (G).

(f) Technical amendments to update citations

Such section is further amended—

(1)

in subsection (d)(3), by striking ( 10 U.S.C. 8661 note) and inserting ( Public Law 101–510 ; 10 U.S.C. 8661 note) ; and

(2)

in subsections (f)(2) and (k)(2)(A), by striking Public Law 101–510 (104 Stat. 1683) and inserting the National Defense Authorization Act for Fiscal Year 1991 ( Public Law 101–510 ; 10 U.S.C. 8661 note) .