RELATED AMENDMENTS TO EXISTING LAW.

SEC. 3532. RELATED AMENDMENTS TO EXISTING LAW.(a) Amendment to Shipping Act, 1916.—Section 9 of the Shipping Act, 1916 (46 U.S.C. App. 808) is amended—(1) by redesignating subsection (e), as added by section 1136(b) of Public Law 104–324 (110 Stat. 3987), as subsection (f); and(2) by amending subsection (e), as added by section 6 of Public Law 104–239 (110 Stat. 3132), to read as follows:“(e) Notwithstanding subsection (c)(2), the Merchant Marine Act, 1936, or any contract entered into with the Secretary of Transportation under that Act, a vessel may be placed under a foreign registry, without approval of the Secretary, if—“(1)(A) the Secretary, in conjunction with the Secretary of Defense, determines that at least one replacement vessel of equal or greater military capability and of a capacity that is equivalent or greater, as measured by deadweight tons, gross tons, or container equivalent units, as appropriate, is documented under chapter 121 of title 46, United States Code, 117 STAT. 1818 by the owner of the vessel placed under the foreign registry; and“(B) the replacement vessel is not more than 10 years of age on the date of that documentation; or“(2) an operating agreement covering the vessel under chapter 531 of title 46, United States Code, has expired.”.(b) Merchant Marine Act, 1936.—Section 512 of the Merchant Marine Act, 1936 (46 U.S.C. 1162) is amended—(1) by striking “Notwithstanding” and inserting “(a) Except as provided in subsection (b), notwithstanding”; and(2) by adding at the end the following: “(b)(1) Except as provided in paragraph (2), the restrictions and requirements of section 506 shall terminate upon the expiration of the 20-year period beginning on the date of the original delivery of the vessel from the shipyard for operation of a vessel in any domestic trade in which it has operated at any time since 1996.“(2) Paragraph (1) shall not affect any requirement to make payments under section 506.”.