110 STAT. 424 PUBLIC LAW 104-106—FEB. 10, 1996 in (or to be placed in), the fleet, but only for vessels built in United States shipyards."; and (2) in subsection (i), by inserting "(other than subsection (c)(l)(E))" after "Nothing in this section". (b) CLARIFICATION OF EXEMPTION OF NDRF VESSELS FROM RETROFIT REQUIREMENT. —Section 11 of the Merchant Ship Sales Act of 1946 (50 U.S.C. App. 1744) is amended by adding at the end the following new subsection: "(e) Vessels in the National Defense Reserve Fleet are exempt from the provisions of section 3703a of title 46, United States Code. ". (c) AUTHORITY TO USE NATIONAL DEFENSE SEALIFT FUND TO CONVERT TWO VESSELS. —Of the amount authorized to be appropriated in section 302 for fiscal year 1996 for the National Defense Sealift Fund under section 2218 of title 10, United States Code, not more than $20,000,000 shall be available for conversion work on the following two roll-on/roll-ofT vessels, which were acquired by the Maritime Administration during fiscal year 1995: (1) MA^ Cape Knox (ON-1036323). (2) MN Cape Kennedy (ON-1036324). SEC. 1015. NAVAL SALVAGE FACILITIES. Chapter 637 of title 10, United States Code, is amended to read as follows: "CHAPTER 637—SALVAGE FACILITIES "Sec. "7361. Authority to provide for necessary salvage facilities. "7362. Acquisition and transfer of vessels and equipment. "7363. Settlement of claims. "7364. Disposition of receipts. Contracts. "§ 7361. Authority to provide for necessary salvage facilities "(a) AUTHORITY. —The Secretary of the Navy may provide, by contract or otherwise, necessary salvage facilities for public and private vessels. " (b) COORDINATION WITH SECRETARY OF TRANSPORTATION. — The Secretary shall submit to the Secretary of Transportation for comment each proposed contract for salvage facilities that affects the interests of the Department of Transportation. "(c) LIMITATION. —The Secretary of the Navy may enter into a term contract under subsection (a) only if the Secretary determines that available commercial salvage facilities are inadequate to meet the requirements of national defense. "(d) PUBLIC NOTICE. —The Secretary may not enter into a contract under subsection (a) until the Secretary has provided public notice of the intent to enter into such a contract. "§7362. Acquisition and transfer of vessels and equipment "(a) AUTHORITY. —The Secretary of the Navy may acquire or transfer for operation by private salvage companies such vessels and equipment as the Secretary considers necessary. "(b) AGREEMENT ON USE. — Before any salvage vessel or salvage gear is transferred by the Secretary to a private party, the private party must agree in writing with the Secretary that the vessel or gear will be used to support organized offshore salvage facilities for a period of as many years as the Secretary considers appropriate.
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