Member Advisory: June 9, 2011


Membership Advisory

MRAA JOINS BUSINESS COALITION TO KEEP

POLITICS OUT OF FEDERAL CONTRACT AND GRANT PROCESS

MRAA is an active member of a coalition of 156 organizations spearheaded by the U.S. Chamber of Commerce that is urging Congress to pass the “Keep Politics Out of the Federal Contracting Act of 2011.” Several letters have already been sent to both the Senate and the House of Representatives where in the House Rep. Tom Cole (R-Oklahoma)has been successful in getting the bill attached to two important bills, the Department of Homeland Security Appropriations Act and the massive $690 billion National Defense Authorization Act (H.R. 1540). The Cole Amendment would ensure that “None of the funds made available by this Act may be used to implement any rule, regulation, or executive order regarding the disclosure of political contributions that takes effect on or after the date of enactment of this Act.”

In addition, a group of Republican senators, including Minority Leader Mitch McConnell (R-Kentucky) announced they were supporting legislation in the Senate to block the Obama Executive Order. Senate Republicans have not said, though, if they would try to follow up on the amendment offered by Rep. Cole, which had the support of all Republicans but one and 26 Democrats.

The letters MRAA has singed remind Congress that the federal acquisition process has worked well free of political influence.

The Congressional actions are in response to a draft Presidential Executive Order under consideration that would force companies and non-profit organizations vying for federal contracts and grants to reveal employee donations and membership payments to advocacy groups and trade associations, like MRAA, that is engage in even a small amount of political speech.. Contributions to political candidates, parties, and PACs are already disclosed as part of the federal law governing federal elections. The draft order is meant to target organizations that are not political organizations but may engage in some political speech as part of their broader mission.

“The draft Executive Order strikes at the heart of representative government and freedom under the First Amendment. Much of the information on campaign contributions is already public and reported to the Federal Election Commission,” said Phil Keeter, MRAA President. “MRAA will continue to support efforts to block the contractor disclosure order and to stop efforts to politicize the federal procurement process,” he added.

Published by Larry Innis, Director of Government Affairs

Gruhn named next MRAA President

The Marine Retailers Association of America named Matt Gruhn the next President of the organization. He will succeed Phil Keeter, who is retiring at the end of 2011.

As Group Publisher overseeing Affinity Media’s trade group ¿ Boating Industry as well as Powersports Business magazines and their ancillary products ¿ Gruhn has been instrumental in the implementation and execution of Boating Industry‘s Top 100 Dealers Program and the Marine Dealer Conference & Expo, working on the latter in conjunction with the MRAA Convention Committee. A 14-year veteran of the marine industry, Gruhn has spent the last eight years at the helm of Boating Industry magazine.

“Matt’s skills and experience are perfectly aligned with what we were looking for in a new leader for this association,” says MRAA Chairman David Foulkrod. “Our Board of Directors is excited that he’s joining us as our new President because of his knowledge of the industry and his passion for working with and helping marine retailers grow their businesses.”

The search for the incoming President began January 2, 2011, and during the first quarter of the year, the seven-member MRAA Selection Committee, chaired by Larry Russo Sr., collected more than 90 resumes. The committee narrowed the candidates down to a top-10 list after a formal resume review and scoring process. After the completion of phone interviews with the remaining candidates, five candidates were asked to be evaluated through a Caliper job placement test, and they then interviewed, in person, before the Selection Committee and the MRAA Board of Directors. The MRAA committee invested more than 500 hours collectively reviewing resumes and interviewing candidates.

Gruhn’s leadership of the Boating Industry team, which was responsible for the planning, marketing and implementation of the Marine Dealer Conference & Expo, helped to revitalize and rebrand the MRAA’s annual convention and ultimately helped to grow both the attendance and revenue by 375 percent over the last three years.

“I”m extremely honored to be selected as the next MRAA President,” Gruhn said. “Having worked with boat dealers so closely over the years, I really believe this position is a natural fit for my passion, and I’m excited to begin ramping up all that the MRAA has to offer today’s dealers.”

Gruhn will retain his role at Boating Industry for the next several months and will begin phasing into the President’s position around the start of the fourth quarter of 2011, working alongside Keeter. Keeter was one of the 12 founding dealer members of the MRAA in 1972. He served on the MRAA’s Board of Directors from 1972 through 1982 and was selected as President of the association in February of 1988.

“The entire membership of MRAA will greatly benefit from the extensive process used by the selection committee to choose my successor,” Keeter says. “I’m delighted they chose Matt. I’ve worked closely with Matt the last few years and have grown to appreciate his passion for our industry. Matt will bring new ideas and concepts to the association that will benefit each of our members in the coming years.”

“Of course, I’m sorry that Matt will be leaving,” says Steve Hedlund, President of Boating Industry, “but MRAA is such a valued partner that this move can only enhance our relationship further. MRAA is getting a terrific leader.”

Member Advisory: April 12, 2011

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.

Member Advisory: March 7, 2011

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.

Member Advisory: March 3, 2011

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.

Member Advisory: March 3, 2011


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

Member Advisory: March 2, 2011


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.