MEMBERSHIP ADVISORY

NBSAC Approves Mandatory Life Jacket Resolution for Boaters

Meeting in Arlington, Virginia on April 1 and April 2, the Congressionally mandated advisory group to the Coast Guard on recreational boating safety called the National Boating Safety Advisory Council and approved a hard debated resolution for life jacket wear. NBSAC voted 15 in favor to 5 opposed to the resolution.

The resolution asks the Coast Guard to initiate efforts which target a future regulatory project to pursue requirements for life jacket wear for recreational boaters while underway and riding in or upon 1.) personal watercraft, regardless of length; 2.) human powered vessels (such as canoes, kayaks, rowboats, etc) regardless of length; 3.) any vessel less than 18-feet in length; and 4.) any person being towed while engaged in water sports.

The resolution further charges the Coast Guard to work with its partners to design a strategy to engage the boating public through in-person and electronic dialogue on this topic through pre-rulemaking consultation aimed at informing the public about the potential benefits of such regulation, gauging public opinion about life jacket wear based on boating type and activity, and making decisions on this topic based on a thorough understanding of both public sentiment and potential benefits.

In addition, the resolution asks the Coast Guard to streamline the life jacket testing and approval process to reduce the overall cost of highly comfortable life jackets, support innovation and creativity in life jacket design and technology, and allow improved life jacket models to reach the consumer quicker and easier. By doing so, the Coast Guard should give proper consideration to the acceptance of alternative life jackets by completing and accepting an harmonized North American standard.

The federal government has been pushing for mandatory adult life jacket wear for several years. The action of NBSAC followed on a test project of the Corps of Engineers on three lakes in Mississippi, Ohio, and California and a recent announcement that the National Park Service was going to initiate a test case of mandatory adult life jacket wear on Lake Mead. The Coast Guard has verbally expressed its desire to declare all federal waters an adult life jacket zone. According to a statistician at the meeting approximately 82 million Americans go boating each year with about 400 deaths resulting because a life jacket was not worn. If the recommendations of the NBSAC resolution were enacted, it was predicted about 70-80 additional lives would be saved.

MRAA is very interested in knowing what its members think about this resolution. MRAA recently issued a position paper opposing mandatory adult life jacket wear, which was distributed to all members and is posted on the www.MRAA.com website. Please contact mraa@mraa.com or LarryInnis@aol.com, if you have any comments to report.

Membership Advisory

Senate Passes Wallop-Breaux Extension

March 7, 2011 ~ On Thursday evening, March 3, the U.S. Senate approved legislation to extend the vital Sport Fish Restoration and Boating Safety Trust Fund for seven months or until the end of the federal fiscal year of September 30, 2011. The measure now heads to the President for his expected signature. The Senate cleared the bill, H.R. 662, by voice vote after the House of Representatives passed it on Wednesday afternoon.

“We are pleased the bill passed the House and Senate ensuring funding at 2010 and 2009 levels for important fish hatcheries, boating safety education and law enforcement, pump outs, boat access ramp construction, and outreach programs,” said Dave Foulkrod, MRAA Chairman.

This is the seventh short-term extension of the Safe, Accountable, Flexible, Efficient, Transportation Equity Act, a Legacy for Users, known as SAFETEA-LU, but the section important to anglers and boaters has been known as Wallop-Breaux for many years.

Membership Advisory

MRAA Issues Position Paper

Opposing Mandatory Adult Wear of Life Jackets

In the past few months, the Coast Guard and Army Corps of Engineers have been ratcheting up discussions, studies, and strategies to implement a mandatory adult wear requirement of recreational boats on federal waters. The Corps of Engineers has taken the lead with three studies of a mandatory requirement in Ohio, Mississippi and California with the Coast Guard pressuring the National Boating Safety Advisory Council to prepare a recommendation for a federal requirement on its waters.

The requirements vary from boat size of 18 feet and under, under 26 feet, and all boats while underway. The Corps is very interested in gauging public sentiment and is working with the Congressional offices in the area around the three lakes where the new policies are being tested. So far, according to the Corps, boaters have not contacted any Congressional office and have not expressed opposition to the new rules. The Corps staff is now writing its final report to leadership and it is expected it will recommend a mandatory adult wear requirement on all boats while underway. The three lakes also have placed a life jacket wear requirement on swimmers either when swimming outside designated swimming areas or when over 100 feet from shore.

“The MRAA Board believes strongly that the adult life jacket wear issue is one of the biggest threats to the economic viability of recreational boating and has issued its new position paper to help marine retailers challenge this upcoming threat locally or in Congress. The position paper is available on the MRAA website or can be obtained by calling the MRAA office at 941-964-2535,” said Phil Keeter, MRAA President.

“MRAA will fight this issue with all our strength and energy,” said Dave Foulkrod, MRAA Chairman.

MRAA believes boater education and effective educational campaigns will be more effective in reducing boating related fatalities than a mandatory wear law that is unwanted by the boating public. Recent boating surveys indicate the vast majority (usually in the 80% plus range) of recreational boaters is strongly opposed to mandatory adult life jacket wear. MRAA strongly supports mandatory life jacket requirements for young people under the age of 13 and on certain high risk boats, such as personal watercraft.

Membership Advisory

House of Representatives Passes Repeal of

1099 Requirement for Small Business

On March 3, the U.S. House of Representatives passed H.R. 4 to repeal the onerous IRS requirement that small businesses must file Form 1099s to all vendors where the small business made annual purchases over $600.00. This requirement was included in the unpopular Health Care Reform Bill signed into law last March.

MRAA has led a campaign since the passage of the Health Care bill to repeal this new requirement that is detrimental to marine dealers and other small businesses in their creation of jobs. “The additional paperwork created by this new requirement is nonproductive and inhibits job growth. We will now shift focus to the Senate to ensure H.R. 4 will get to the President as soon as possible for his approval,” said Dave Foulkrod, MRAA Chairman.

H.R. 4 is a good bill that greatly reduces IRS regulation of business, reduces the federal government’s paperwork requirements of small business and allows those businesses to focus on growth

Membership Advisory

Boaters Beware

E15 Can Damage Your Boat

Boca Grande—On January 21, 2011, the U.S. Environmental Protection Agency announced it would grant a waiver to allow the ethanol blend in certain automobile, SUV, and pick up engines to increase from 10 per cent to 15 per cent. This jump from E10 to E15 is designed for these on road vehicles produced between 2001 and 2006. This EPA decision comes after the October 13, 2010 decision to waive the limitation for E15 for model year 2007 and newer on road vehicles.

This EPA waiver from E10 does not apply for usage in boats. MRAA advises its members to inform boaters and anglers of the problems of using E15 gasoline in marine engines, to be careful if using gasoline purchased at gas station for a boat, and to use gas purchased at marine fuel docks where ever possible.

The problem is many boaters purchase their fuel for their boats at the same pump where they purchase fuel for their cars, SUVs or pick up trucks and easily could put E15 into a boat engine where E15 has not been approved.

To address this anticipated problem the EPA has authorized that a small label be placed on the gas pumps to warn purchasers not to use the E15 blended gas in boats. MRAA recommends boaters and anglers use only E10 or unblended gasoline in marine engines. It has become clear over the past few years that an ethanol blended fuel in boats can cause immense safety problems, such as fire and explosion or complete engine failure. The ethanol blended fuels used in the past are known to damage fuel tanks, fuel lines, and many components of the marine engine, especially outboard engines. Many anglers and boaters purchase gasoline for outboard engines at the same pumps where they buy gasoline for their pulling vehicle.

“I have seen many damaged engines and fuel line components because of the E10 blend. I can only anticipate damage from E15 will be worse, but the EPA has failed to conduct proper testing of the effects of E15 blended fuels on marine engines. Boaters must be aware of the potential damage that could result,” said Dave Foulkrod, MRAA President.

MEMBER ADVISORY

MRAA Announces New Certified Pre-Owned Program

Boca Grande, Florida ~ The Marine Retailers Association of America, in conjunction with Titan Certified, has developed a Certified Pre-Owned Program (CPO) that Guarantees the condition of the engine, transmission, outdrive and generator to all buyer’s and seller’s of used boats.

The auto industry has known for years that a certified car sells faster and for more money. Now the same holds true for the marine industry. With the MRAA’s exclusive Certified Pre-Owned Program, buyers are guaranteed the boat they buy will be trouble free for any issues relating to the boat’s drivetrain. If anything happens within the Guarantee’s time period, the problem will be fixed without a deductible or cost to the buyer.

The MRAA developed their program in conjunction with Titan Certified, a leader in the industry of Fluid Analysis. Through Titan’s laboratory testing, Titan analyzes 108 specific variables within engine oil and transmission fluid, and they can tell you the exact working condition of any motor, transmission or outdrive based on ASTM & OEM standards.

• After testing is complete and the components meet specifications, Titan guarantees the boat’s drivetrain against any internal failure for three (3) month or fifty-five (55) hours.
• Dealers can use this program for their pro-owned inventory or their consignment inventory.
• Any seller or buyer can bring a boat to any participating MRAA dealer and have their boat tested, certified and guaranteed bringing new profits and new customers to the dealership.
• The MRAA CPO programs works for any age of boat, make, model or number of hours – if it passes, it is certified.
• Boat owners not selling their boats can benefit from the MRAA CPO program by having their fluids tested and having their drivetrain guaranteed providing a trouble free boating season.
• The dealership service department will become pro-active in providing customers with added service and getting needed repairs done.

Phil Keeter, President of MRAA says, “This is an exciting opportunity for our Dealers to bring added value, profits, customer loyalty and new business to their locations. We are excited to be working with Titan and offering this exclusive program to our members.”

“We believe MRAA’s CPO Program will enable our members to participate in an even larger share of the pre-owned boat market. The Titan Certified Guarantee will be attractive to buyers, sellers and owners. Creative Service Managers will be able to turn this program into a money maker for their departments”, says Joe Lewis MRAA Director.

The MRAA Certified Pre-Owned Program is a win-win for all parties involved. It is inexpensive, comprehensive and just what the boating industry needs. For more information contact Joel Stebbins at 952-473-6978 or by email joel@titancertified.com.

MEMBERSHIP ADVISORY

MRAA Asks Dealers to Look for New Tax Breaks in Health Care

Tax season is here again, but this year brings opportunities that haven’t been available in the past. MRAA asks boat dealers to contact their tax professionals to look for new tax savings for small businesses.

Even though MRAA remains strongly opposed to the new Health Care Law, the newly enacted law does provide a tax credit for small businesses with fewer than 25 full-time employees and average wages of less than $50,000. According to the Health Care Law, these small businesses will be eligible for a tax credit on their 2010 returns of up to 35% of their health insurance costs.

Facing rising health care costs, the tax credit was included in the Patient Protection and Affordable Care Act to help the smallest businesses, the ones with the hardest time affording insurance, provide their employees with coverage without breaking the bank.

It is estimated that more than four million small businesses nationwide or about 83% are eligible to receive the tax credit for 2010 earnings. The problem is that few even know the tax credit exists.

MRAA encourages boat dealers to work with your tax professionals to verify your businesses are eligible and can take advantage of the tax credit.