---
kind: "range"
citation: "10 U.S.C. §§ 8674–8678"
title: "10"
from: "8674"
to: "8678"
count: 8
release: "119-102"
url: "https://uscodex.org/usc/10/8674..8678"
---

# §8674. Examination of vessels; striking of vessels from Naval Vessel Register

- (a) **Boards of Officers To Examine Naval Vessels.—**
  - (1) The Secretary of the [Navy](/usc/10/8001.md?p=a-1) shall designate boards of naval [officers](/usc/10/8001.md?p=a-5) to examine naval vessels, including unfinished vessels, for the purpose of making a recommendation to the Secretary as to which vessels, if any, should be stricken from the Naval Vessel Register. Each vessel shall be examined at least once every three years if practicable.
  - (2)
    - (A) Except as provided in [subparagraph (B)](#a-2-B), any naval vessel examined under this section on or after January 1, 2020, shall be examined with minimal notice provided to the crew of the vessel.
    - (B) [Subparagraph (A)](#a-2-A) shall not apply to a vessel undergoing necessary trials before acceptance into the fleet.
- (b) **Actions by Board.—** A board designated under [subsection (a)](#a) shall submit to the Secretary in writing its recommendations as to which vessels, if any, among those it examined should be stricken from the Naval Vessel Register.
- (c) **Action by Secretary.—** If the Secretary concurs with a recommendation by a board that a vessel should be stricken from the Naval Vessel Register, the Secretary shall strike the name of that vessel from the Naval Vessel Register.
- (d) **Annual Report.—**
  - (1) Not later than March 1 each year, the board designated under [subsection (a)](#a) shall provide to the [congressional defense committees](/usc/10/101.md?p=a-16) a briefing and submit to such committees a report regarding the following:
    - (A) An overall narrative summary of the material readiness of [Navy](/usc/10/8001.md?p=a-1) ships as compared to established material requirements standards.
    - (B) The overall number and types of vessels inspected during the preceding fiscal year.
    - (C) For in-service vessels, material readiness trends by inspected functional area as compared to the previous five years.
  - (2) Each report under this subsection shall be submitted in—
    - (A) a classified form; and
    - (B) an unclassified form that is releasable to the public without further redaction.

# §8675. Vessels stricken from Naval Vessel Register: sale

- (a) **Appraisal of Vessels Stricken From Naval Vessel Register.—** The Secretary of the [Navy](/usc/10/8001.md?p=a-1) shall appraise each vessel stricken from the Naval Vessel Register under [section 8674 of this title](/usc/10/8674.md).
- (b) **Authority To Sell Vessel.—** If the Secretary considers that the sale of the vessel is in the national interest, the Secretary may sell the vessel. Any such sale shall be in accordance with regulations prescribed by the Secretary for the purposes of this section.
- (c) **Procedures for Sale.—**
  - (1) A vessel stricken from the Naval Vessel Register and not subject to disposal under any other law may be sold under this section.
  - (2) In such a case, the Secretary may—
    - (A) sell the vessel to the highest acceptable bidder, regardless of the appraised value of the vessel, after publicly advertising the sale of the vessel for a period of not less than 30 days; or
    - (B) subject to [paragraph (3)](#c-3), sell the vessel by competitive negotiation to the acceptable offeror who submits the offer that is most advantageous to the [United States](/usc/10/101.md?p=a-1) (taking into account price and such other factors as the Secretary determines appropriate).
  - (3) Before entering into negotiations to sell a vessel under [paragraph (2)(B)](#c-2-B), the Secretary shall publish notice of the intention to do so in the Commerce Business Daily sufficiently in advance of initiating the negotiations that all interested parties are given a reasonable opportunity to prepare and submit proposals. The Secretary shall afford an opportunity to participate in the negotiations to all acceptable offerors submitting proposals that the Secretary considers as having the potential to be the most advantageous to the [United States](/usc/10/101.md?p=a-1) (taking into account price and such other factors as the Secretary determines appropriate).
- (d) **Applicability.—** This section does not apply to a vessel the disposal of which is authorized by subtitle I of [title 40](/usc/40.md) and division C (except sections [3302](/usc/10/3302.md), [3501(b)](/usc/10/3501.md?p=b), 3509, 3906, 4710, and 4711) of subtitle I of [title 41](/usc/41.md), if it is to be disposed of under those provisions.

# §8675a. Vessels stricken from Naval Vessel Register: contracts for dismantling on net-cost basis

- (a) **Authority for Net-Cost Basis Contracts.—** When the Secretary of the [Navy](/usc/10/8001.md?p=a-1) awards a contract for the dismantling of a vessel stricken from the Naval Vessel Register, the Secretary may award the contract on a [net-cost basis](#c-1).
- (b) **Retention by Contractor of Proceeds of Sale of Scrap and Reusable Items.—** When the Secretary awards a contract on a [net-cost basis](#c-1) under [subsection (a)](#a), the Secretary shall provide in the contract that the [contractor](/usc/10/9511.md?p=7) may retain the proceeds from the sale of [scrap](#c-2) and [reusable items](#c-3) removed from the vessel dismantled under the contract.
- (c) **Definitions.—** In this section:
  - (1) The term “net-cost basis”, with respect to a contract for the dismantling of a vessel, means that the amount to be paid to the [contractor](/usc/10/9511.md?p=7) under the contract for dismantling and for removal and disposal of hazardous waste material is discounted by the offeror’s estimate of the value of [scrap](#c-2) and [reusable items](#c-3) that the [contractor](/usc/10/9511.md?p=7) will remove from the vessel during performance of the contract.
  - (2) The term “scrap” means personal property that has no value except for its basic material content.
  - (3) The term “reusable item” means a demilitarized component or a removable portion of a vessel or equipment that the Secretary of the [Navy](/usc/10/8001.md?p=a-1) has identified as excess to the needs of the [Navy](/usc/10/8001.md?p=a-1) but which has potential resale value on the open market.

# §8676. Vessels stricken from Naval Vessel Register; captured vessels: conveyance by donation

- (a) **Authority to Make Transfer.—** The Secretary of the [Navy](/usc/10/8001.md?p=a-1) may convey, by donation, all right, title, and interest to any vessel stricken from the Naval Vessel Register or any captured vessel, for use as a museum or memorial for public display in the [United States](/usc/10/101.md?p=a-1), to—
  - (1) any [State](/usc/10/2815a.md?p=g-2), the District of Columbia, any Commonwealth or possession of the [United States](/usc/10/101.md?p=a-1), or any municipal corporation or political subdivision thereof; or
  - (2) any [nonprofit entity](#e-1).
- (b) **Limitations on Liability and Responsibility.—**
  - (1) The [United States](/usc/10/101.md?p=a-1) and all [departments](/usc/10/101.md?p=a-6) and [agencies](/usc/10/4701.md?p=g-1) thereof, and their [officers](/usc/10/8001.md?p=a-5) and employees, shall not be liable at law or in equity for any injury or damage to any person or property occurring on a vessel donated under this section.
  - (2) Notwithstanding any other law, the [Department](/usc/10/101.md?p=a-6) of Defense, and the [officers](/usc/10/8001.md?p=a-5) and employees of the [Department](/usc/10/101.md?p=a-6) of Defense, shall have no responsibility or obligation to make, engage in, or provide funding for, any improvement, upgrade, modification, maintenance, preservation, or repair to a vessel donated under this section.
- (c) **Transfers To Be at No Cost to Department of Defense.—** Any transfer of a vessel under this section, the maintenance and preservation of that vessel as a museum or memorial, and the ultimate disposal of that vessel, including demilitarization of [Munitions List](#e-2) items at the end of the useful life of the vessel as a museum or memorial, shall be made at no cost to the [Department](/usc/10/101.md?p=a-6) of Defense.
- (d) **Application of Environmental Laws.—** Nothing in this section shall affect the applicability of Federal, [State](/usc/10/2815a.md?p=g-2), interstate, and local environmental laws and regulations, including the Toxic Substances Control Act ([15 U.S.C. 2601](/usc/15/2601.md) et seq.) and the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 ([42 U.S.C. 9601](/usc/42/9601.md) et seq.), to the [Department](/usc/10/101.md?p=a-6) of Defense or to a [donee](#e-3).
- (e) **Definitions.—** In this section:
  - (1) The term “nonprofit entity” means any entity qualifying as an exempt organization under section 501(c)(3) of the Internal Revenue Code of 1986.
  - (2) The term “Munitions List” means the [United States](/usc/10/101.md?p=a-1) Munitions List created and controlled under section 38 of the Arms Export Control Act ([22 U.S.C. 2778](/usc/22/2778.md)).
  - (3) The term “donee” means any entity receiving a vessel pursuant to [subsection (a)](#a).

# §8676a. Vessels stricken from Naval Vessel Register: use for experimental purposes

- (a) **Authority.—** The Secretary of the [Navy](/usc/10/8001.md?p=a-1) may [use for experimental purposes](#c) any vessel stricken from the Naval Vessel Register.
- (b) **Stripping and Environmental Remediation of Vessel.—**
  - (1) Before using a vessel for an experimental purpose pursuant to [subsection (a)](#a), the Secretary shall carry out such stripping of the vessel as is practicable and such environmental remediation of the vessel as is required for the use of the vessel for experimental purposes.
  - (2) Material and equipment stripped from a vessel under [paragraph (1)](#b-1) may be sold by the [contractor](/usc/10/9511.md?p=7) or by a sales agent approved by the Secretary.
  - (3) Amounts received as proceeds from the stripping of a vessel pursuant to this subsection shall be credited to appropriations available for the procurement of services needed for such stripping and for environmental remediation required for the use of the vessel for experimental purposes. Amounts received in excess of amounts needed for reimbursement of those costs shall be deposited into the account from which the stripping and environmental remediation expenses were incurred and shall be available for stripping and environmental remediation of other vessels to be used for experimental purposes.
- (c) **Use for Experimental Purposes Defined.—** In this section, the term “use for experimental purposes”, with respect to a vessel, [includes](/usc/10/101.md?p=g-4) use of the vessel in a [Navy](/usc/10/8001.md?p=a-1) sink exercise or for target purposes.

# §8676b. Vessels stricken from Naval Vessel Register: transfer by gift or otherwise for use as artificial reefs

- (a) **Authority To Make Transfer.—** The Secretary of the [Navy](/usc/10/8001.md?p=a-1) may transfer, by gift or otherwise, any vessel stricken from the Naval Vessel Register to any [State](/usc/10/2815a.md?p=g-2), Commonwealth, or possession of the [United States](/usc/10/101.md?p=a-1), or any municipal corporation or political subdivision thereof, for use as provided in [subsection (b)](#b).
- (b) **Vessel To Be Used as Artificial Reef.—** An agreement for the transfer of a vessel under [subsection (a)](#a) shall require that—
  - (1) the recipient use, site, construct, monitor, and manage the vessel only as an artificial reef in accordance with the requirements of the National Fishing Enhancement Act of 1984 ([33 U.S.C. 2101](/usc/33/2101.md) et seq.), except that the recipient may use the artificial reef to enhance diving opportunities if that use does not have an adverse effect on fishery resources (as that term is defined in [section 3(14)](/usc/33/3.md) of the Magnuson-Stevens Fishery Conservation and Management Act ([16 U.S.C. 1802(14)](/usc/16/1802.md?p=14))); and
  - (2) the recipient obtain, and bear all responsibility for complying with, applicable Federal, [State](/usc/10/2815a.md?p=g-2), interstate, and local permits for using, siting, constructing, monitoring, and managing the vessel as an artificial reef.
- (c) **Preparation of Vessel for Use as Artificial Reef.—** The Secretary shall ensure that the preparation of a vessel transferred under [subsection (a)](#a) for use as an artificial reef is conducted in accordance with—
  - (1) the environmental best management practices developed pursuant to section 3504(b) of the Bob Stump National Defense Authorization Act for Fiscal Year 2003 (Public Law 107–314; [16 U.S.C. 1220](/usc/16/1220.md) note); and
  - (2) any applicable environmental laws.
- (d) **Cost Sharing.—** The Secretary may share with the recipient of a vessel transferred under [subsection (a)](#a) any costs associated with transferring the vessel under that subsection, including costs of the preparation of the vessel under [subsection (c)](#c).
- (e) **No Limitation on Number of Vessels Transferable to Particular Recipient.—** A [State](/usc/10/2815a.md?p=g-2), Commonwealth, or possession of the [United States](/usc/10/101.md?p=a-1), or any municipal corporation or political subdivision thereof, may be the recipient of more than one vessel transferred under [subsection (a)](#a).
- (f) **Additional Terms and Conditions.—** The Secretary may require such additional terms and conditions in connection with a transfer authorized by [subsection (a)](#a) as the Secretary considers appropriate.
- (g) **Construction.—** Nothing in this section shall be construed to establish a preference for the use as artificial reefs of vessels stricken from the Naval Vessel Register in lieu of other authorized uses of such vessels, including the domestic scrapping of such vessels, or other disposals of such vessels, under this chapter or other applicable authority.

# §8677. Disposals to foreign nations

- (a) **Larger or Newer Vessels.—** A naval vessel that is in excess of 3,000 tons or that is less than 20 years of age may not be disposed of to another nation (whether by sale, lease, grant, loan, barter, transfer, or otherwise) unless the disposal of that vessel, or of a vessel of the class of that vessel, is authorized by law enacted after August 5, 1974. A lease or loan of such a vessel under such a law may be made only in accordance with the provisions of [chapter 6](/usc/10/chstA-ptI-ch6.md) of the Arms Export Control Act ([22 U.S.C. 2796](/usc/22/2796.md) et seq.) or [chapter 2](/usc/10/chstA-ptI-ch2.md) of part II of the Foreign Assistance Act of 1961 ([22 U.S.C. 2311](/usc/22/2311.md) et seq.). In the case of an authorization by law for the disposal of such a vessel that names a specific vessel as being authorized for such disposal, the Secretary of Defense may substitute another vessel of the same class, if the vessel substituted has virtually identical capabilities as the named vessel. In the case of an authorization by law for the disposal of vessels of a specified class, the Secretary may dispose of vessels of that class pursuant to that authorization only in the number of such vessels specified in that law as being authorized for disposal.
- (b) **Other Vessels.—**
  - (1) A naval vessel not subject to [subsection (a)](#a) may be disposed of to another nation (whether by sale, lease, grant, loan, barter, transfer, or otherwise) in accordance with applicable provisions of law, but only after—
    - (A) the Secretary of the [Navy](/usc/10/8001.md?p=a-1) notifies the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives in writing of the proposed disposition; and
    - (B) 30 days of continuous session of Congress have expired following the date on which such notice is sent to those committees.
  - (2) For purposes of [paragraph (1)(B)](#b-1-B), the continuity of a session of Congress is broken only by an adjournment of the Congress sine die, and the days on which either House is not in session because of an adjournment of more than 3 days to a day certain are excluded in the computation of such 30-day period.

# §8678. Chief of Naval Operations: certification required for disposal of combatant vessels


Notwithstanding any other provision of law, no combatant vessel of the [Navy](/usc/10/8001.md?p=a-1) may be sold, transferred, or otherwise disposed of unless the Chief of Naval Operations certifies that it is not essential to the defense of the [United States](/usc/10/101.md?p=a-1).