EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. *sb0304* SENATE BILL 304 M1 4lr0297 (PRE–FILED) CF HB 239 By: Chair, Education, Energy, and the Environment Committee (By Request – Departmental – Natural Resources) Requested: September 15, 2023 Introduced and read first time: January 10, 2024 Assigned to: Education, Energy, and the Environment A BILL ENTITLED AN ACT concerning 1 Natural Resources – State Boat Act – Alterations 2 FOR the purpose of altering the definition of “personal watercraft” and “personal flotation 3 device” for purposes of the State Boat Act; repealing the definition of “Class A vessel” 4 for purposes of the State Boat Act; repealing the definition of “personal flotation 5 device” for certain waterskiing restrictions; repealing certain advertising and public 6 hearing requirements for proposed regulations implementing provisions of the State 7 Boat Act; altering the fees for manufacturer and dealer licenses, certificates of 8 number, Maryland use stickers, and the issuance of certificates of title, transfers of 9 title, or duplicate or corrected certificates of title; requiring that certain vessels 10 equipped with a sail be numbered for identification; authorizing the owner of certain 11 vessels to apply to the Department of Natural Resources for a nonmotorized vessel 12 decal; authorizing the Department to establish or alter certain speed zones and 13 vessel prohibition zones by public notice; altering requirements for a personal 14 flotation device worn by a child in certain vessels; and generally relating to the State 15 Boat Act. 16 BY repealing and reenacting, without amendments, 17 Article – Natural Resources 18 Section 8–701(a) 19 Annotated Code of Maryland 20 (2023 Replacement Volume and 2023 Supplement) 21 BY repealing and reenacting, with amendments, 22 Article – Natural Resources 23 Section 8–701(m), 8–710(a) and (c), 8–712(a) through (d), 8–712.1, 8–712.3(a) and 24 (b), 8–716(b) and (c), 8–725(c), and 8–743(a) and (b)(1) 25 Annotated Code of Maryland 26 (2023 Replacement Volume and 2023 Supplement) 27 2 SENATE BILL 304 BY repealing 1 Article – Natural Resources 2 Section 8–704(e) 3 Annotated Code of Maryland 4 (2023 Replacement Volume and 2023 Supplement) 5 BY adding to 6 Article – Natural Resources 7 Section 8–712.4 and 8–725.9 8 Annotated Code of Maryland 9 (2023 Replacement Volume and 2023 Supplement) 10 BY renumbering 11 Article – Natural Resources 12 Section 8–704(f) through (i) 13 to be Section 8–704(e) through (h), respectively 14 Annotated Code of Maryland 15 (2023 Replacement Volume and 2023 Supplement) 16 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 17 That the Laws of Maryland read as follows: 18 Article – Natural Resources 19 8–701. 20 (a) In this subtitle the following words have the meanings indicated. 21 (m) (1) “Personal watercraft” means a [Class A vessel that: 22 (1) Has an inboard motor which uses an internal combustion engine 23 powering a water jet pump as its primary source of motive propulsion; 24 (2) Is designed for the operator and passenger to ride on the outside 25 surfaces of the vessel rather than inside the vessel; 26 (3) Has the probability that the operator and passenger may, in the normal 27 course of use, fall overboard; and 28 (4) Is designed with no open load–carrying area which would retain water] 29 VESSEL THAT IS: 30 (I) PROPELLED BY A WATER –JET PUMP OR OTHER TYPE OF 31 MACHINERY AS ITS PRI MARY SOURCE OF MOTIV E POWER; AND 32 SENATE BILL 304 3 (II) DESIGNED TO BE OPERAT ED BY A PERSON SITTI NG, 1 STANDING, OR KNEELING ON THE V ESSEL. 2 (2) “PERSONAL WATERCRAFT ” DOES NOT INCLUDE A V ESSEL THAT IS 3 DESIGNED TO BE OPERA TED BY A PERSON SITT ING, STANDING, OR KNEELING IN THE 4 VESSEL’S HULL. 5 8–704. 6 [(e) Department regulations do not become effective unless advertised publicly in 7 at least 2 daily newspapers of general circulation and at least 1 weekly newspaper serving 8 the area or areas involved at least 45 days before the effective date. If 50 citizens of the 9 State file a petition with the Department at least 15 days prior to the effective date, the 10 Department shall conduct a public hearing on the proposed regulations.] 11 8–710. 12 (a) A manufacturer or dealer may not conduct [his] business in the State unless 13 licensed as a manufacturer or dealer [pursuant to] IN ACCORDANCE WITH regulations 14 ADOPTED BY the Department [adopts]. 15 (c) (1) Application for a manufacturer’s or dealer’s license is made on the form 16 the Department prescribes and contains the name and address of the applicant. 17 (2) If the applicant is a partnership, the application shall include the name 18 and address of each partner. 19 (3) If the applicant is a corporation, the application shall contain the names 20 of the principal officers of the corporation, the state of incorporation, the addresses of every 21 place where the business is conducted, the nature of the business, and any other 22 information the Department requires. 23 (4) Every application shall be verified by oath or affirmation of the 24 applicant if an individual, or by the partner or officer if the applicant is a partnership or 25 corporation. 26 (5) (I) A license fee [fixed by the Department not to exceed $25] shall 27 accompany every application. 28 (II) THE DEPARTMENT SHALL SET THE LICENSE FEE AT AN 29 AMOUNT NOT TO EXCEED $50. 30 8–712. 31 4 SENATE BILL 304 (a) (1) (I) [Any] EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 1 PARAGRAPH , ANY vessel equipped with A SAIL OR propulsion machinery of any type on 2 the waters of the State shall be numbered for identification in accordance with this subtitle 3 and any regulation [pursuant to it] ADOPTED IN ACCORDANC E WITH THIS SUBTITLE . 4 (II) [This provision] SUBPARAGRAPH (I) OF THIS PARAGRAPH 5 does not apply to the following vessels: 6 [(i)] 1. A vessel which has a valid document issued by the 7 United States Coast Guard or its successor; 8 [(ii)] 2. A vessel with a valid number awarded [pursuant to] 9 IN ACCORDANCE WITH federal law or a federally approved numbering system of another 10 state, if the number awarded is displayed in accordance with the requirements of that 11 system, and the certificate of number is available for inspection whenever the vessel is in 12 use; 13 [(iii)] 3. A vessel from a country other than the United 14 States temporarily using the waters of the State for less than 90 days; 15 [(iv)] 4. A vessel used for public service and owned by the 16 United States government, another state, or any political subdivision; 17 [(v)] 5. A ship’s lifeboat; 18 [(vi)] 6. A vessel LESS THAN 16 FEET IN LENGTH THAT IS 19 propelled only by sail; 20 [(vii)] 7. A vessel numbered according to the Federal Boat 21 Safety Act of 1971; or 22 [(viii)] 8. A vessel manually propelled. 23 (2) The Department, by regulation[,] AND for the period the Department 24 prescribes, may exempt any vessel or class of vessels from the numbering provisions of this 25 subtitle[,] if the vessel or class of vessels is exempted from the federal numbering 26 requirements by statute, [or] rule, or regulation. 27 (b) (1) The owner of any vessel to be numbered by this subtitle shall file an 28 application for a certificate of number with the Department. 29 (2) The application [is on] FOR A CERTIFICATE OF NUMBER SHALL BE : 30 (I) ON forms APPROVED BY the Department [approves, 31 accompanied]; 32 SENATE BILL 304 5 (II) ACCOMPANIED by the requisite fee[,]; and [signed] 1 (III) SIGNED by every vessel owner. 2 (c) (1) (I) Certificates of number issued under this section shall be valid for 3 a period not to exceed 2 years. 4 (II) The owner of the vessel may apply every other year for renewal 5 of the certificate. 6 (III) The renewed certificate shall expire on December 31 of the 7 calendar year following the year the certificate is issued. [The fee for a 2–year certificate 8 for vessels is $24. Vessels 16 feet in length or less and equipped with a 7 1/2 horsepower 9 motor or less are exempt from this fee. The fee to replace a lost, destroyed, or corrected 10 certificate is $2.] 11 (IV) The Department shall record any transaction or transfer of 12 numbered boats. 13 (V) The Department may record any amount of money owing on a 14 vessel required to be numbered at the time of sale. 15 (VI) The Department may not effect a transfer of ownership until the 16 amount of money owed as shown on the records of the Department is fully paid or recorded 17 on the new title. 18 (VII) Any vessel that is required to be numbered under this section 19 that is exempt [prior to] BEFORE January 1, 1974, shall be exempt from payment of [this 20 title] THE EXCISE tax IMPOSED UNDER § 8–716 OF THIS SUBTITLE . 21 (2) EXCEPT AS PROVIDED IN PARAGRAPH (3) OF THIS SUBSECTION , 22 AN APPLICATION FOR A CERTIFICATE OF NUMBE R SHALL BE ACCOMPANI ED BY THE 23 FOLLOWING FEES : 24 (I) VESSEL LESS THAN 16 FEET IN LENGTH AND E QUIPPED 25 WITH A 7.5 HORSEPOWER MOTOR OR LESS ………… ……..……....……….......……...$20 26 (II) VESSEL LESS THAN 16 FEET IN LENGTH AND E QUIPPED 27 WITH A MOTOR MORE TH AN 7.5 HORSEPOWER ……………… ………………… ……...$50 28 (III) VESSEL 16 FEET TO LESS THAN 32 FEET IN 29 LENGTH ………………………………………… ……..…………………………………....$75 30 6 SENATE BILL 304 (IV) VESSEL 32 FEET TO LESS THAN 45 FEET IN 1 LENGTH ……………………………………………………………………… ……….…...$100 2 (V) VESSEL 45 FEET TO 65 FEET IN LENGTH ……….…….....$125 3 (VI) VESSEL LONGER THAN 65 FEET ….….………….………..$150 4 (VII) REPLACEMENT OR CORRECTED CERTIFICAT E ……..…...$20 5 (3) Emergency rescue boats and fire boats that belong to fire departments 6 or rescue squads in Maryland: 7 (i) Shall be exempt from all registration fees, INCLUDING A FEE 8 FOR A CERTIFICATE OF NUMBER; but 9 (ii) Shall apply for a registration renewal every 3 years. 10 (d) (1) [Upon] ON receipt of the application in approved form, the Department 11 shall issue to the applicant a certificate of boat number which shall contain the boat number 12 issued to the vessel and additional information the Department prescribes by regulation. 13 (2) The certificate of boat number shall be available for inspection when 14 the vessel is in use. 15 (3) The owner shall paint on or attach the boat number to each side of the 16 forward half of the vessel’s hull or superstructure for which the boat number is issued, 17 displaying the boat number in the manner required by Department regulations and 18 maintaining the boat number in legible condition. 19 8–712.1. 20 (a) (1) An owner of a vessel that has a valid document issued by the [United 21 States] U.S. Coast Guard and that is used principally on the waters of the State for 22 pleasure shall apply to the Department for a Maryland use sticker. 23 (2) The Department shall issue a Maryland use sticker to any person who 24 submits an application and pays a fee as required by subsection (b) of this section. 25 (3) The Maryland use sticker issued under this section shall be valid for a 26 period not to exceed 2 years expiring on December 31 of the calendar year following the 27 year the sticker is issued. 28 (b) The owner of the vessel shall: 29 (1) Submit an application to the Department on the form that the 30 Department requires and be signed by every owner of the vessel; and 31 SENATE BILL 304 7 (2) Pay to the Department [an application fee of $10 for the 2–year sticker.] 1 THE FOLLOWING FEES : 2 (I) VESSEL LESS THAN 16 FEET IN LENGTH AND E QUIPPED 3 WITH A 7.5 HORSEPOWER MOTOR OR LESS ………………..……....……….......……...$20 4 (II) VESSEL LESS THAN 16 FEET IN LENGTH AND E QUIPPED 5 WITH A MOTOR MORE THAN 7.5 HORSEPOWER ………………………………………...$50 6 (III) VESSEL 16 FEET TO LESS THAN 32 FEET IN 7 LENGTH ………………………………………………..…………………………………....$75 8 (IV) VESSEL 32 FEET TO LESS THAN 45 FEET IN 9 LENGTH …………………………………………………………………………….……...$100 10 (V) VESSEL 45 FEET TO 65 FEET IN LENGTH ……….…….....$125 11 (VI) VESSEL LONGER THAN 65 FEET ….….………….………..$150 12 (VII) REPLACEMENT STICKER………………………... ……..…...$20 13 (c) Within 30 days after the sale or other transfer of a vessel that is displaying or 14 should display a sticker under this section: 15 (1) The transferor shall give notice of the transfer to the Department on a 16 form that the Department requires; and 17 (2) If the transferee intends to continue to use the vessel principally on the 18 waters of the State, the transferee shall submit an application for a Maryland use sticker 19 and pay the fee as required [by] UNDER subsection (b) of this section. 20 (d) The Maryland use sticker shall be displayed on or about the forward half of 21 the vessel. 22 (e) Unless the vessel that is subject to the requirement of this section displays a 23 current sticker: 24 (1) A person may not operate the vessel on the waters of the State; and 25 (2) The owner may not knowingly [permit] ALLOW the vessel to be 26 operated on the waters of the State. 27 8–712.3. 28 8 SENATE BILL 304 (a) (1) In this section the following words have the meanings indicated. 1 (2) “Livery vessel owner” means a person who engages in whole or in part 2 in the business of renting, leasing, or chartering a [Class A] vessel THAT IS LESS THAN 16 3 FEET IN LENGTH for a period of less than 24 hours. 4 (3) [“Class A vessel” means a motorboat that is less than 16 feet in length 5 as defined by the U.S. Coast Guard in 46 C.F.R. § 24.10–17. 6 (4)] “Seaworthy condition” means the ability to withstand ordinary stress of 7 wind, waves, and other weather that the vessel might normally be expected to encounter. 8 (b) A livery vessel owner or an agent or employee of the livery vessel owner may 9 not rent or offer for rent a [Class A] vessel THAT IS LESS THAN 16 FEET IN LENGTH to be 10 operated on the waters of the State unless: 11 (1) Each vessel is in seaworthy condition and equipped for the waters 12 where the vessel is intended to be used; and 13 (2) The livery vessel owner or agent or employee of the livery vessel owner 14 possesses a boating safety certificate approved by the Department. 15 8–712.4. 16 (A) (1) AN OWNER OF A VESSEL MAY APPLY TO THE DEPARTMENT FOR A 17 NONMOTORIZED VESSEL DECAL IF THE VESSEL IS: 18 (I) NOT EQUIPPED WITH PRO PULSION MACHINERY ; 19 (II) USED PRINCIPALLY ON T HE WATERS OF THE STATE; AND 20 (III) NOT SUBJECT TO THE RE QUIREMENTS OF § 8–712 OR § 21 8–712.1 OF THIS SUBTITLE . 22 (2) THE OWNER SHALL APPLY FOR A NONMOTORIZED V ESSEL DECAL 23 ON A FORM APPROVED B Y THE DEPARTMENT . 24 (B) A NONMOTORIZED VESSEL DECAL: 25 (1) IS VALID FOR A PERIOD N OT TO EXCEED 2 YEARS; AND 26 (2) EXPIRES ON DECEMBER 31 OF THE CALENDAR YEAR FOLLOWING 27 THE YEAR THE DECAL W AS ISSUED. 28 (C) THE FEE FOR A NONMOTO RIZED VESSEL DECAL I S $12. 29 SENATE BILL 304 9 (D) THE NONMOTORIZED VESS EL DECAL SHALL BE DI SPLAYED ON THE 1 EXTERIOR OF THE VESS EL. 2 (E) WITHIN 30 DAYS AFTER THE SALE OR OTHER TRANSFER OF A VESSEL 3 DISPLAYING A NONMOTORIZED VESSE L DECAL UNDER THIS S ECTION: 4 (1) THE TRANSFEROR SHALL GIVE NOTICE OF THE T RANSFER TO THE 5 DEPARTMENT ON A FORM THAT THE DEPARTMENT REQUIRES ; AND 6 (2) IF THE TRANSFEREE INT ENDS TO CONTINUE TO USE THE VESSEL 7 PRINCIPALLY ON THE W ATERS OF THE STATE, THE TRANSFEREE MAY SUBMIT AN 8 APPLICATION FOR A NO NMOTORIZED VESSEL DE CAL AND PAY THE FEE REQUIRED 9 UNDER SUBSECTION (C) OF THIS SECTION. 10 8–716. 11 (b) The Department shall charge a [$2] $20 fee to issue a certificate of title, a 12 transfer of title, or a duplicate or corrected certificate of title. 13 (c) (1) Subject to the limitation under paragraph (3) of this subsection and 14 except as provided in § 8–715(d) of this subtitle and in subsections (e) and (f) of this section, 15 and in addition to the fees prescribed in subsection (b) of this section, an excise tax is levied 16 at the rate of 5% of the fair market value of the vessel on: 17 (i) The issuance of every original certificate of title required for a 18 vessel under this subtitle; 19 (ii) The issuance of every subsequent certificate of title for the sale, 20 resale, or transfer of the vessel; 21 (iii) The sale within the State of every other vessel; and 22 (iv) The possession within the State of a vessel used or to be used 23 principally in the State. 24 (2) (I) Notwithstanding the provisions of this subsection, no tax is paid 25 on issuance of any certificate of title if the owner of the vessel for which a certificate of title 26 is sought was the owner of the vessel [prior to] BEFORE June 1, 1965, or paid Maryland 27 sales and use tax on the vessel as required by law at the time of acquisition. 28 (II) The Department may require the applicant for titling to submit 29 satisfactory proof that the applicant owned the vessel [prior to] BEFORE June 1, 1965. 30 10 SENATE BILL 304 (3) (i) Subject to subparagraph (ii) of this paragraph, the excise tax 1 imposed under this subsection may not exceed $15,000 for any vessel. 2 (ii) The maximum amount of the excise tax imposed for any vessel 3 as specified in subparagraph (i) of this paragraph shall be increased by $100 on: 4 1. July 1, 2016; and 5 2. July 1 of each subsequent year. 6 8–725. 7 (c) [(1) In this subsection, “personal flotation device” includes: 8 (i) A life jacket; 9 (ii) A life vest; 10 (iii) A life preserver; 11 (iv) A barefoot wetsuit; or 12 (v) A trick skiing wetsuit. 13 (2)] A person who is in or over the waters of the State and is being towed 14 behind a vessel must wear a personal flotation device, A BAREFOOT WE TSUIT, OR A TRICK 15 SKIING WETSUIT . 16 8–725.9. 17 (A) NOTWITHSTANDING ANY O THER PROVISIONS OF T HIS TITLE, THE 18 DEPARTMENT MAY ESTABL ISH OR ALTER BY PUBL IC NOTICE: 19 (1) IF THE DEPARTMENT DETERMINES PUBLIC SAFETY IS AT RISK 20 AND IT IS CONTRARY T O THE PUBLIC INTE REST TO DELAY ACTION , A SPEED ZONE 21 NEAR: 22 (I) A CONSTRUCTION PROJECT ON OR ADJACENT TO STATE 23 WATERS; OR 24 (II) A MARINE EVENT ; AND 25 (2) A VESSEL PROHIBITION Z ONE FOR AN AREA ESTABLISHED B Y THE 26 U.S. COAST GUARD AS A DANGER ZONE OR RESTR ICTED AREA. 27 SENATE BILL 304 11 (B) THE DEPARTMENT MAY ADOPT REGULATIONS TO IMPLE MENT THE 1 PROVISIONS OF THIS S ECTION, INCLUDING REGULATION S: 2 (1) ESTABLISHING OR ALTER ING SPEED ZONES ; AND 3 (2) ESTABLISHING VESSEL P ROHIBITION ZONES . 4 8–743. 5 (a) (1) In this section the following words have the meanings indicated. 6 (2) “Child” means an individual who is under the age of 13 years. 7 (3) “Personal flotation device” means a [Type I, II, III, or V U.S. Coast 8 Guard approved personal flotation device that is: 9 (i) The proper size for the child; and 10 (ii) In good and serviceable condition] FLOTATION DEVICE THAT IS 11 APPROVED BY THE U.S. COAST GUARD. 12 (4) (i) “Vessel” means: 13 1. A vessel used for recreational purposes; or 14 2. A vessel leased, rented, or chartered for noncommercial 15 use. 16 (ii) “Vessel” does not include a vessel carrying passengers for hire 17 under the command of an individual licensed by the U.S. Coast Guard to carry passengers 18 for hire, or a vessel displaying a valid seafood harvester’s license number while engaged in 19 the harvesting of seafood for sale. 20 (b) (1) A person may not operate or [permit] ALLOW the operation of a vessel 21 under 21 feet in length [while] IF there is [present in the vessel] a child [not] PRESENT IN 22 THE VESSEL UNLESS TH E CHILD IS wearing a personal flotation device [which] THAT is 23 [securely]: 24 (I) PROPERLY SIZED FOR TH E CHILD; 25 (II) IN GOOD AND SERVICEAB LE CONDITION; AND 26 (III) SECURELY and properly attached to the child. 27 12 SENATE BILL 304 SECTION 2. AND BE IT FURTHER ENACTED, That Sec tion(s) 8–704(f) through 1 (i) of Article – Natural Resources of the Annotated Code of Maryland be renumbered to be 2 Section(s) 8–704(e) through (h), respectively. 3 SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect June 4 1, 2024. 5