EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. Underlining indicates amendments to bill. Strike out indicates matter stricken from the bill by amendment or deleted from the law by amendment. *hb0719* HOUSE BILL 719 M1 5lr0347 CF 5lr0348 By: Chair, Environment and Transportation Committee (By Request – Departmental – Natural Resources) Introduced and read first time: January 27, 2025 Assigned to: Environment and Transportation Committee Report: Favorable with amendments House action: Adopted Read second time: February 27, 2025 CHAPTER ______ 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 as it applies to the rental of livery vessels; repealing the definition of “personal 5 flotation device” as it applies to certain waterskiing restrictions; repealing certain 6 advertising and public hearing requirements for proposed regulations implementing 7 the State Boat Act; increasing the funding threshold certain funding thresholds for 8 certain projects financed by the Waterway Improvement Fund; altering the fees for 9 manufacturer and dealer licenses, certificates of number, Maryland use stickers, and 10 the issuance of certificates of title, transfer of title, or duplicate or corrected 11 certificates of title; authorizing the owner of certain vessels to apply to the 12 Department of Natural Resources for a nonmotorized vessel decal; authorizing the 13 Department to establish or alter certain speed zones or restricted areas by public 14 notice; altering the requirements for a personal flotation device worn by a child in 15 certain vessels; and generally relating to the State 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 2024 Supplement) 21 BY repealing and reenacting, with amendments, 22 2 HOUSE BILL 719 Article – Natural Resources 1 Section 8–701(m), 8–708(b), 8–709(b), 8–710(a) and (c), 8–712(c), 8–712.1(a) and (b), 2 8–712.3(a) and (b), 8–714(c), 8–716(b) and (c), 8–725(c), and 8–743(a) and 3 (b)(1) 4 Annotated Code of Maryland 5 (2023 Replacement Volume and 2024 Supplement) 6 BY repealing 7 Article – Natural Resources 8 Section 8–704(e) 9 Annotated Code of Maryland 10 (2023 Replacement Volume and 2024 Supplement) 11 BY adding to 12 Article – Natural Resources 13 Section 8–712.4 and 8–725.9 14 Annotated Code of Maryland 15 (2023 Replacement Volume and 2024 Supplement) 16 BY renumbering 17 Article – Natural Resources 18 Section 8–704(f) through (i) 19 to be Section 8–704(e) through (h), respectively 20 Annotated Code of Maryland 21 (2023 Replacement Volume and 2024 Supplement) 22 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 23 That the Laws of Maryland read as follows: 24 Article – Natural Resources 25 8–701. 26 (a) In this subtitle the following words have the meanings indicated. 27 (m) (1) “Personal watercraft” means a [Class A vessel that: 28 (1) Has an inboard motor which uses an internal combustion engine 29 powering a water jet pump as its primary source of motive propulsion; 30 (2) Is designed for the operator and passenger to ride on the outside 31 surfaces of the vessel rather than inside the vessel; 32 (3) Has the probability that the operator and passenger may, in the normal 33 course of use, fall overboard; and 34 HOUSE BILL 719 3 (4) Is designed with no open load–carrying area which would retain water] 1 VESSEL THAT IS: 2 (I) PROPELLED BY A WATER –JET PUMP OR OTHER MA CHINERY 3 AS ITS PRIMARY SOURC E OF MOTIVE POWER ; AND 4 (II) DESIGNED TO BE OPERAT ED BY A PERSON SITTI NG, 5 STANDING, OR KNEELING ON THE V ESSEL. 6 (2) “PERSONAL WATERCRAFT ” DOES NOT INCLUDE A V ESSEL THAT IS 7 DESIGNED TO BE OPERA TED BY A PERSON SITT ING, STANDING, OR KNEELING IN THE 8 VESSEL’S HULL. 9 8–704. 10 [(e) Department regulations do not become effective unless advertised publicly in 11 at least 2 daily newspapers of general circulation and at least 1 weekly newspaper serving 12 the area or areas involved at least 45 days before the effective date. If 50 citizens of the 13 State file a petition with the Department at least 15 days prior to the effective date, the 14 Department shall conduct a public hearing on the proposed regulations.] 15 8–708. 16 (b) (1) Except for the construction of pump–out stations for use by the general 17 boating public at public and private marinas, the governing body and the Waterway 18 Improvement Fund jointly shall finance projects to construct marine facilities beneficial to 19 the boating public. 20 (2) Except as provided in paragraph (3) PARAGRAPHS (3) AND (4) of this 21 subsection, the contribution of the Waterway Improvement Fund shall be limited to not 22 more than 50% of the cost of each project. 23 (3) The Waterway Improvement Fund may finance completely: 24 (i) 1. [Any] SUBJECT TO ITEM 2 OF THIS ITEM , ANY 25 construction project beneficial to the boating public [which] THAT costs $250,000 $500,000 26 or less, regardless of its location; AND 27 2. ANY MARINA CONSTRUCTI ON PROJECT BENEFICIA L 28 TO THE GENERAL BOATI NG PUBLIC THAT COSTS $1,000,000 OR LESS, REGARDLESS 29 OF ITS LOCATION; 30 (ii) A project that involves the beneficial use of dredged material; 31 and 32 4 HOUSE BILL 719 (iii) Any water quality monitoring by the Department. 1 (4) THE WATERWAY IMPROVEMENT FUND MAY FINANCE NOT MORE 2 THAN 50% OF THE COSTS EXCEEDI NG: 3 (I) $500,000 FOR CONSTRUCTION PRO JECTS BENEFICIAL TO 4 THE BOATING PUBLIC ; AND 5 (II) $1,000,000 FOR MARINA CONSTRUCT ION PROJECTS 6 BENEFICIAL TO THE GE NERAL BOATING PUBLIC . 7 8–709. 8 (b) Notwithstanding the provisions of subsection (a) of this section, in any fiscal 9 year the Department may expend from the Waterway Improvement Fund without 10 legislative approval a total sum of not more than [$225,000. Of this amount, a sum of not 11 more than $125,000 may be expended for small projects under § 8–707(a)(3) and (4) of this 12 subtitle] $350,000 IN OPERATING FUNDS F OR SMALL PROJECTS , subject to the 13 limitation that a single project of this kind may not exceed [$5,000] $25,000 in cost to the 14 Waterway Improvement Fund, and a sum of not more than $100,000 may be expended for 15 boating safety and education. 16 8–710. 17 (a) A manufacturer or dealer may not conduct [his] business in the State unless 18 licensed as a manufacturer or dealer [pursuant to] IN ACCORDANCE WITH regulations 19 ADOPTED BY the Department [adopts]. 20 (c) (1) Application for a manufacturer’s or dealer’s license is made on the form 21 the Department prescribes and contains the name and address of the applicant. 22 (2) If the applicant is a partnership, the application shall include the name 23 and address of each partner. 24 (3) If the applicant is a corporation, the application shall contain the names 25 of the principal officers of the corporation, the state of incorporation, the addresses of every 26 place where the business is conducted, the nature of the business, and any other 27 information the Department requires. 28 (4) Every application shall be verified by oath or affirmation of the 29 applicant if an individual, or by the partner or officer if the applicant is a partnership or 30 corporation. 31 (5) (I) A license fee [fixed by the Department not to exceed $25] shall 32 accompany every application. 33 HOUSE BILL 719 5 (II) THE DEPARTMENT SHALL SET THE LICENSE FEE AT A N 1 AMOUNT NOT TO EXCEED $50. 2 8–712. 3 (c) (1) (I) Certificates of number issued under this section shall be valid for 4 a period not to exceed 2 years. 5 (II) The owner of the vessel may apply every other year for renewal 6 of the certificate. 7 (III) The renewed certificate shall expire on December 31 of the 8 calendar year following the year the certificate is issued. [The fee for a 2–year certificate 9 for vessels is $24. Vessels 16 feet in length or less and equipped with a 7 1/2 horsepower 10 motor or less are exempt from this fee. The fee to replace a lost, destroyed, or corrected 11 certificate is $2.] 12 (IV) The Department shall record any transaction or transfer of 13 numbered boats. 14 (V) The Department may record any amount of money owing on a 15 vessel required to be numbered at the time of sale. 16 (VI) The Department may not effect a transfer of ownership until the 17 amount of money owed as shown on the records of the Department is fully paid or recorded 18 on the new title. 19 (VII) Any vessel that is required to be numbered under this section 20 that is exempt [prior to] BEFORE January 1, 1974, shall be exempt from payment of [this 21 title] THE EXCISE tax IMPOSED UNDER § 8–716 OF THIS SUBTITLE . 22 (2) EXCEPT AS PROVIDED IN PARAGRAPH (3) OF THIS SUBSECTION , 23 THE FEE FOR: 24 (I) AN APPLICATION FOR A CERTIFICATE OF NUMBE R IS $70; 25 AND 26 (II) A REPLACEMENT OR CORRE CTED CERTIFICATE OF NUMBER 27 IS $20. 28 (3) Emergency rescue boats and fire boats that belong to fire departments 29 or rescue squads in Maryland: 30 (i) Shall be exempt from all registration fees, INCLUDING A FEE 31 FOR A CERTIFICATE OF NUMBER ; but 32 6 HOUSE BILL 719 (ii) Shall apply for a registration renewal every 3 2 years. 1 8–712.1. 2 (a) (1) An owner of a vessel that has a valid document issued by the [United 3 States] U.S. Coast Guard and that is used principally on the waters of the State for 4 pleasure shall apply to the Department for a Maryland use sticker. 5 (2) The Department shall issue a Maryland use sticker to any person who 6 submits an application and pays a fee as required by subsection (b) of this section. 7 (3) The Maryland use sticker issued under this section shall be valid for a 8 period not to exceed 2 years expiring on December 31 of the calendar year following the 9 year the sticker is issued. 10 (b) The owner of the vessel shall: 11 (1) Submit an application to the Department on the form that the 12 Department requires and that is signed by every owner of the vessel; and 13 (2) Pay to the Department [an] THE FOLLOWING FEES : 14 (I) AN application fee of [$10] $70 for the 2–year sticker; AND 15 (II) A FEE OF $20 FOR A REPLACEMENT ST ICKER. 16 8–712.3. 17 (a) (1) In this section the following words have the meanings indicated. 18 (2) “Livery vessel owner” means a person who engages in whole or in part 19 in the business of renting, leasing, or chartering a [Class A] vessel THAT IS LESS THAN 16 20 FEET IN LENGTH for a period of less than 24 hours. 21 (3) [“Class A vessel” means a motorboat that is less than 16 feet in length 22 as defined by the U.S. Coast Guard in 46 C.F.R. § 24.10–17. 23 (4)] “Seaworthy condition” means the ability to withstand ordinary stress of 24 wind, waves, and other weather that the vessel might normally be expected to encounter. 25 (b) A livery vessel owner or an agent or employee of the livery vessel owner may 26 not rent or offer for rent a [Class A] vessel THAT IS LESS THAN 16 FEET IN LENGTH to 27 be operated on the waters of the State unless: 28 HOUSE BILL 719 7 (1) Each vessel is in seaworthy condition and equipped for the waters 1 where the vessel is intended to be used; and 2 (2) The livery vessel owner or agent or employee of the livery vessel owner 3 possesses a boating safety certificate approved by the Department. 4 8–712.4. 5 (A) (1) AN OWNER OF A VESSEL MAY APPLY TO THE DEPARTMENT FOR A 6 NONMOTORIZED VESSEL DECAL IF THE VESSE L IS: 7 (I) NOT EQUIPPED WITH PRO PULSION MACHINERY ; 8 (II) USED PRINCIPALLY ON T HE WATERS OF THE STATE; AND 9 (III) NOT SUBJECT TO THE RE QUIREMENTS OF § 8–712 OR § 10 8–712.1 OF THIS SUBTITLE . 11 (2) THE OWNER SHALL APPLY FOR A NONMOTORIZED VESSEL DECAL 12 ON A FORM APPROVED B Y THE DEPARTMENT . 13 (B) A NONMOTORIZED VESSEL DECAL: 14 (1) IS VALID FOR A PERIOD NOT TO EXCEED 2 YEARS; AND 15 (2) EXPIRES ON DECEMBER 31 OF THE CALENDAR YEAR FOLLOWING 16 THE YEAR THE DECAL W AS ISSUED. 17 (C) THE FEE FOR A NONMOTORIZED VESSEL D ECAL IS $12. 18 (D) THE NONMOTORIZED VESS EL DECAL SHALL BE DI SPLAYED ON THE 19 EXTERIOR OF THE VESS EL. 20 (E) WITHIN 30 DAYS AFTER THE SALE OR OTHER TRANSFER OF A VESSEL 21 DISPLAYING A NONMOTO RIZED VESSEL DECAL U NDER THIS SECTION : 22 (1) THE TRANSFEROR SHALL GIVE NOTICE OF THE TRANSF ER TO THE 23 DEPARTMENT ON A FORM THAT THE DEPARTMENT REQUIRES ; AND 24 (2) IF THE TRANSFEREE INT ENDS TO CONTINUE TO USE THE VESSEL 25 PRINCIPALLY ON THE W ATERS OF THE STATE, THE TRANSFEREE MAY S UBMIT AN 26 APPLICATION FOR A NONMOTORIZED VESSEL DECAL AND PAY THE FE E REQUIRED 27 UNDER SUBSECTION (C) OF THIS SECTION. 28 8–714. 29 8 HOUSE BILL 719 (c) (1) Each application for the manufacturer’s or dealer’s certificates of 1 number shall be on forms the Department approves and be accompanied by a fee of [$24] 2 $70. 3 (2) The certificate of number issued under this section is valid for a period 4 not to exceed 2 years and shall expire on December 31 of the calendar year following the 5 year the certificate is issued. 6 8–716. 7 (b) The Department shall charge a [$2] $20 fee to issue a certificate of title, a 8 transfer of title, or a duplicate or corrected certificate of title. 9 (c) (1) Subject to the limitation under paragraph (3) of this subsection and 10 except as provided in § 8–715(d) of this subtitle and in subsections (e) and (f) of this section, 11 and in addition to the fees prescribed in subsection (b) of this section, an excise tax is levied 12 at the rate of 5% of the fair market value of the vessel on: 13 (i) The issuance of every original certificate of title required for a 14 vessel under this subtitle; 15 (ii) The issuance of every subsequent certificate of title for the sale, 16 resale, or transfer of the vessel; 17 (iii) The sale within the State of every other vessel; and 18 (iv) The possession within the State of a vessel used or to be used 19 principally in the State. 20 (2) (I) Notwithstanding the provisions of this subsection, no tax is paid 21 on issuance of any certificate of title if the owner of the vessel for which a certificate of title 22 is sought was the owner of the vessel [prior to] BEFORE June 1, 1965, or paid Maryland 23 sales and use tax on the vessel as required by law at the time of acquisition. 24 (II) The Department may require the applicant for titling to submit 25 satisfactory proof that the applicant owned the vessel [prior to] BEFORE June 1, 1965. 26 (3) (i) Subject to subparagraph (ii) of this paragraph, the excise tax 27 imposed under this subsection may not exceed $15,000 for any vessel. 28 (ii) The maximum amount of the excise tax imposed for any vessel 29 as specified in subparagraph (i) of this paragraph shall be increased by $100 on: 30 1. July 1, 2016; and 31 HOUSE BILL 719 9 2. July 1 of each subsequent year. 1 8–725. 2 (c) [(1) In this subsection, “personal flotation device” includes: 3 (i) A life jacket; 4 (ii) A life vest; 5 (iii) A life preserver; 6 (iv) A barefoot wet suit; or 7 (v) A trick skiing wet suit. 8 (2)] A person who is in or over the waters of the State and is being towed 9 behind a vessel must wear a personal flotation device, A BAREFOOT WET SUIT , OR A 10 TRICK SKIING WET SUI T. 11 8–725.9. 12 (A) NOTWITHSTANDING ANY O THER PROVISION OF TH IS TITLE, THE 13 DEPARTMENT MAY ESTABL ISH OR ALTER BY PUBL IC NOTICE: 14 (1) IF THE DEPARTMENT DETERMINES PUBLIC SAFETY IS AT RISK 15 AND IT IS CONTRARY T O THE PUBLIC INTERES T TO DELAY ACTION , A SPEED ZONE 16 NEAR: 17 (I) A CONSTRUCTION PROJECT ON OR ADJACENT TO STATE 18 WATERS; 19 (II) A MARINE EVENT ; OR 20 (III) AN ACCIDENT OR OTHER EMERGENT SITUATION ; OR 21 (2) AN AREA WHERE VESSEL MOVEMENT IS CONTROLL ED, LIMITED, 22 OR RESTRICTED AS DES IGNATED BY THE U.S. COAST GUARD OR ANOTHER FEDE RAL 23 AGENCY. 24 (B) THE DEPARTMENT MAY ADOPT REGULATIONS TO IMPLE MENT THIS 25 SECTION. 26 8–743. 27 10 HOUSE BILL 719 (a) (1) In this section the following words have the meanings indicated. 1 (2) “Child” means an individual who is under the age of 13 years. 2 (3) “Personal flotation device” means a [Type I, II, III, or V U.S. Coast 3 Guard approved personal flotation device that is: 4 (i) The proper size for the child; and 5 (ii) In good and serviceable condition] FLOTATION DEVICE THA T IS 6 APPROVED BY THE U.S. COAST GUARD. 7 (4) (i) “Vessel” means: 8 1. A vessel used for recreational purposes; or 9 2. A vessel leased, rented, or chartered for noncommercial 10 use. 11 (ii) “Vessel” does not include a vessel carrying passengers for hire 12 under the command of an individual licensed by the U.S. Coast Guard to carry passengers 13 for hire, or a vessel displaying a valid seafood harvester’s license number while engaged in 14 the harvesting of seafood for sale. 15 (b) (1) A person may not operate or [permit] ALLOW the operation of a vessel 16 under 21 feet in length [while] IF there is [present in the vessel] a child [not] PRESENT IN 17 THE VESSEL UNLESS TH E CHILD IS wearing a personal flotation device [which] THAT is 18 [securely]: 19 (I) PROPERLY SIZED FOR TH E CHILD; 20 (II) IN GOOD AND SERVICEAB LE CONDITION; AND 21 (III) SECURELY and properly attached to the child. 22 SECTION 2. AND BE IT FURTHER ENACTED, That Section(s) 8 –704(f) through 23 (i) of Article – Natural Resources of the Annotated Code of Maryland be renumbered to be 24 Section(s) 8–704(e) through (h), respectively. 25 SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 26 October 1, 2025. 27