Proposed Right Whale Rule Would Have Major Impact on East Coast Boating and Fishing

August 1, the National Marine Fisheries Service (NMFS) released a proposed rule to put in place additional vessel speed regulations to further protect North Atlantic right whales. The proposed rule would change the spatial and temporal boundaries of the speed reduction zones and include most vessels greater than or equal to 35 feet and less than 65 feet — directly impacting recreational boaters. Let’s take a look at the current status of North Atlantic right whales, explore the nuances of the proposed rule, share insights from the recreational fishing and boating community and supply you with tools for action.

This proposed regulation will have one of the largest impacts on recreational boating in our lifetime on the Eastern Seaboard, and for that reason it is imperative every member of the boating and fishing community stand united.

History

North Atlantic right whales are charismatic megafauna with a long and storied history inextricably tied to our nation’s industrial revolution and efforts to revitalize the population. Due to a variety of factors, such as their slow pace, thick blubber and tendency to float after being harpooned, the North Atlantic right whale quickly became the preferred whale to harvest and by the 1850s, the United States had become the leading whaling country in the world, with the majority of the activity coming from ports in Nantucket and New Bedford, Massachusetts.[1] At the time, right whales provided critical resources such as whale oil, which was burned in lamps, used in candles, as lubricant, and more, baleen, and ambergris.[2] Due to the reliance on the North Atlantic right whale the stock was quickly depleted and in 1935 the League of Nations banned the hunting of all right whales.[3]

Current Status of North Atlantic Right Whales

Currently, the North Atlantic right whale population is estimated to contain fewer than 350 individuals and are listed as “endangered” under the Endangered Species Act (ESA) and as “protected” under the Marine Mammal Protection Act (MMPA).[4] The listing of North Atlantic right whales under the ESA and MMPA provide significant protections for the species and there is already a slew of efforts underway to help the species recover after years of commercial harvest that dates back to whaling in the 1800s.

Protective Measures

Due to their listing under the ESA, the National Oceanographic and Atmospheric Administration Fisheries Department (NOAA Fisheries) is responsible for developing and implementing a “recovery plan” to guide the conservation and survival of the North Atlantic right whale. This recovery plan currently lays out various conservation actions such as protecting habitat essential to the survival and recovery of right whales, to efforts that minimize the effect of vessel disturbance and more. In 2008 NOAA put in place a mandatory vessel speed rule that requires vessels longer than 65 feet to slow their speed in certain seasonal management areas to 10knots or less. For any folks not familiar with maritime terms, knots, abbreviated kts, is defined as one nautical mile per hour and is used to measure speed. One knot is equivalent to 1.15 miles per hour. Currently, the areas subject to this speed rule, because right whales are likely to be there, are called “Seasonal Management Areas” (SMAs) and are generally located around major seaports along the East Coast. NOAA enforces this regulation by monitoring Automated Information Systems (AIS), a required location tracker on most vessels larger than 65 feet. By reviewing this data NOAA can determine which vessels are not in compliance with the speed rule. However, this technology is used primarily by commercial mariners to relay their position to other vessels on the high-seas for safety and navigational purposes, and is seldom featured on recreational boats especially in the 35- to 65-foot size class.

This is an example of a current Seasonal Management Area for the Northeast.

According to NOAA’s Office of Protected Resources North Atlantic Right Whale Vessel Speed Rule Assessment from June of 2020, there is a high degree of compliance with the speed rule as in 2018-2019, the proportion of total vessel transit distance through active Seasonal Management Areas (SMA) at speeds less than 10 knots was at 81 percent. The vessels in question here are large vessels, over 65 feet, and are being tracked through AIS.

How Does the Proposed Rule Compare with the Old Rule?

NOAA’s proposed changes to the mandatory vessel speed rule will pull recreational boaters into the fold and severely hamper fishing and high-seas adventures. According to the NOAA’s Draft Environmental Assessment for Amendments to the North Atlantic Right Whale Vessel Strike Reduction Rule (Draft EA), the new regulations will be making three primary changes:

  • Requiring most vessels greater than or equal to 35 feet in length and less than 65 feet in length to transit at 10 knots or less within active Seasonal Management Areas.
  • Expanding SMA (now called Seasonal Speed Zone) boundaries and timing to better capture areas and times with elevated vessel strike risk.
  • Implementing a new Dynamic Speed Zone (DSZ) framework to provide mandatory vessel speed reductions that are outside Seasonal Speed Zones.

The newly proposed regulations stand to drastically change recreational boating along the East Coast. For the first time ever, from Massachusetts to Florida, recreational class boats may be required to adhere to a speed limit. The map below outlines the newly proposed vessel speed boundaries. Northeast Ocean Data also created an interactive map.

While the map above outlines the newly proposed boundaries of the proposed regulations, it does not include additional zones that may be classified as a DSZ. A DSZ is put in place only after NOAA confirms that there are whales in a certain area and that there is more than a 50 percent chance the right whales remain in the area.

As currently drafted, these newly proposed regulations stand to dramatically impact recreational boating and fishing along the Eastern Seaboard. Whether you are a recreational angler, a yacht owner port-hopping along the coast, or a boater trying to get back ashore before weather conditions deteriorate, this rule will fundamentally impact every aspect of recreational boating for many months of the year.

What our Community is Doing

The MRAA has been working with a large coalition of boating and fishing groups to provide input to NOAA on the proposed rule. We, along with the American Sportfishing Association, Boat Owners Association of the United States, Bonefish and Tarpon Trust, Center for Sportfishing Policy, Coastal Conservation Association, Congressional Sportsmen’s Foundation, Guy Harvey Ocean Foundation, International Game Fish Association, National Marine Manufacturers Association, Recreational Fishing Alliance and Theodore Roosevelt Conservation Partnership first engaged on the rule by sending a letter to request that NOAA extend the comment period. It was granted, extending the comment period to October 31. Click here to view our extension request.

The recreational fishing and boating community prides ourselves on conservation and have a long track record of not only directly supporting conservation through excise taxes paid into the Sport Fish Restoration and Boating Trust Fund (SFRBTF) but through our advocacy efforts as well. In recent years the recreational fishing and boating community has been able to bridge partisan divide on Capitol Hill to move forward important conservation priorities like Americas Conservation Enhancement Act and reauthorizing the SFRBTF. However, our community also has a responsibility to intervene when decisions do not reflect proper natural resource management, to ensure an outcome that balances achieving conservation goals with practicality. For that reason, a coalition has been working hard to develop arguments and reasons why NOAA should pause and re-evaluate the rule. The coalition submitted comment to NOAA Monday, Oct. 3, which can be viewed here.  Among the recreational fishing and boating community’s many concerns with the proposed rule, most notable are:

  • An analysis of National Marine Fisheries Service (NMFS) data found approximately 5.1 million recreational fishing trips were taken in this region by vessels 35—65 feet in length since 2008. Assuming all five right whale strikes during that time were from recreational vessels, and that all these vessels were on fishing trips, the chance of a 35- to 65-foot recreational vessel striking a right whale during an offshore fishing trip is at most 0.000098%, or less than one-in-a-million. Attempting to predict risk on a one-in-a-million chance of a vessel strike is simply not an effective management strategy and highlights the futility of expanding the Seasonal Speed Zones (SSZs) to address such a small possibility of vessel strike interactions.
  • NMFS is using unrepresentative whale density values in their risk modelling, thereby creating a significant bias that may overestimate risk to whales from small vessel strikes. NMFS’ own technical memo states that, “the high densities predicted along the mid-Atlantic may not be realistic.”
  • The model assumes 10-meter draft depth criteria when calculating vessel strike risk. However, recreational vessels in this size class rarely have a static draft that exceeds 2 meters. This also creates bias that may overestimate risk to whales from small vessel strikes.
  • NMFS underestimates the number of recreational vessels that will be impacted by the proposed rule at 9,200 vessels. However, based on 2021 vessel registration data analyzed by Southwick Associates, there were more than 63,000 registered recreational saltwater vessels measuring 35—65 feet in states across the proposed SSZs.
  • NMFS estimates the positive economic output from whale watching in the northeast at $95.1 million. In contrast, NMFS estimates $46.2 million in negative impacts for all vessel size classes and regions combined. It is difficult to understand how the economic benefits of whale watching operations in the northeast exceeds the proposed rule’s economic harm to all recreational vessels.
  • Enforcement of the proposed rule using Automatic Identification Systems (AIS) would be impractical and could lead to significant human safety risk. AIS is mandatory for certain vessels over 65 feet to improve the navigational safety of the vessel and other vessels operating in the area. AIS is not required on recreational vessels 35—65 feet although many boat owners voluntarily carry and operate AIS for the added safety-at-sea benefits. It is a very real concern that operators of boats less than 65 feet may decide to turn off their AIS systems in fear of triggering a speed restriction enforcement action. This would have the unfortunate consequence of reducing navigational safety, boater safety and hampering efforts during search-and-rescue operations.
  • Vessel speed is a significant safety feature on a recreational boat. Most recreational boats lack high displacement hull design that often provides ocean-going and commercial vessel stability and the ability to operate safely in significant sea states. The 10-knot speed limit would force recreational boaters to operate in conditions that would compromise safety of the passengers and vessel.

In addition to this well-researched and reasoned comment letter, our community is still working to provide input to NOAA. Part of that input is getting MRAA members to submit comments. We encourage you to share feedback through the Boating United action alert, just click here.

 

 

 

[4] https://www.fisheries.noaa.gov/species/north-atlantic-right-whale#overview

MRAA Supports Bipartisan Youth Fishing Legislation

WASHINGTON D.C., September 2022 — Congress introduced the Youth Coastal Fishing Program Act of 2022 last week that would create opportunities for kids in underserved communities to get on the water. The bill was introduced in both the House and Senate September 22, and is supported broadly by the outdoor recreation community and members on both sides of the aisle. The House version, H.R. 8977, was introduced by Representatives Maria Salazar (R-FL-23) and Donald McEachin (D-VA-04), along with 19 other co-sponsors. The Senate Version, S. 4927, was introduced by Senators Roger Wicker (R-MS) and Maria Cantwell (D-WA).

Youth aboard boat.Image courtesy of the ASA.
Image courtesy of the ASA.

The bill’s focus is to get kids on the water and introduce them to the joys of fishing and boating. The legislation aims to establish a grant program, administered through the National Oceanographic and Atmospheric Administration, to fund community-based projects that take youth fishing on the ocean and the Great Lakes. The program, to be funded at $2 million per year, will also help drive efforts to attract new anglers, as priority will be given to projects targeted at underserved communities. 

“Representatives McEachin and Salazar and Senators Cantwell and Wicker displayed impressive leadership for introducing this important legislation,” said Chad Tokowicz, Marine Retailers Association of the Americas Government Relations Manager. “Right now, the recreational fishing and boating community is laser focused on Recruitment, Retainment and Reactivation (R3), and this bill is a recruitment driver. This bill aligns with the boating community’s focus on creating opportunities for everyone to experience life on the water, while also increasing diversity.”

Education is a core tenant of this new program. Projects must include a focus on marine science, conservation and both where and how to continue fishing. The program also advocates for sharing the marine world with more youth. The U.S. Fish and Wildlife Service and the U.S. Forest Service each have programs that connect youth to nature or provide fishing opportunities, however, NOAA the federal agency tasked with managing marine fisheries, does not. Aside from the importance of educating The Nation’s youth on marine conservation and science, getting outdoors is simply good for your health.

“Countless studies show that while there are ample health benefits to spending time on the water with family and friends, young people and those in underserved communities face significant barriers in accessing the outdoors,” said ASA’s Vice President of Government Affairs Mike Leonard. “The grants provided through this bill will go a long way to remove those barriers and help children develop a love of fishing. We thank Representatives Salazar and McEachin and Senators Wicker and Cantwell for their work on this issue and look forward to its bipartisan support in Congress.”

In supporting this legislation, the MRAA joins 21 conservation organizations and trade associations that also stand behind this bill (view the letter here). As this bill begins to make its way through the legislative process,  the MRAA will provide updates and, when possible, calls to action. If you have any questions about this bill or how to get more involved with advocacy, please contact the MRAA’s Chad Tokowicz at Chad@mraa.com or 978-569-5127.

About the Marine Retailers Association of the Americas
At the Marine Retailers Association of the Americas, we believe that for the marine industry to thrive, the retail organizations that interact with the boaters in their community must thrive. With that in mind, MRAA works to create a strong and healthy boating industry by uniting those retailers, providing them with opportunities for improvement and growth, and representing them with a powerful voice. For more information, visit MRAA.com or contact us at 763-315-8043.

Cassidy, Daines Introduce Bill to Protect Use of Traditional Ammo, Tackle

[Supplied Release]

WASHINGTON – U.S. Senators Bill Cassidy, M.D. (R-LA), Steve Daines (R-MT), and 21 colleagues today introduced the Protecting Access for Hunters and Anglers Act, which stops federal agencies from banning the use of traditional ammo or tackle on public lands without approval from scientific institutions and state wildlife agencies. Last week, the U.S. Fish and Wildlife Service passed a rule that bans the use of lead ammunition and fishing tackle on federal land.

“Every Louisianan knows how important outdoor recreation and conservation is to our state’s way of life,” said Dr. Cassidy. “A federal bureaucrat who has never cast a line or shot a rifle has no place telling Louisiana sportsmen how they can hunt and fish.”

“Sportsmen are the original conservationists and play an important role in wildlife management—the last thing we should do is limit their access to public lands by implementing a blanket-ban on traditional ammo and tackle. Not only would this affect our state agencies’ revenue but it’s also unfair to sportsmen who can’t access or afford lead alternatives and depend on hunting and fishing,” Senator Daines said. “Outdoor recreation is part of our Montana way of life—I’ll keep fighting to protect our hunting and fishing legacy and ensuring these decisions are guided by science, not politics.”

Cassidy and Daines are joined by Senators Jim Risch (R-ID), Mike Crapo (R-ID), Rick Scott (R-FL), Shelley Moore Capito (R-WV), Mike Braun (R-IN), John Barrasso (R-WY), Dan Sullivan (R-AK), Roger Marshall (R-KS), Kevin Cramer (R-ND), Mike Rounds (R-SD), Jim Inhofe (R-OK), Cynthia Lummis (R-WY), John Thune (R-SD), Tom Cotton (R-AR), John Hoeven (R-ND), Thom Tillis (R-NC), Cindy Hyde-Smith (R-MS), Roger Wicker (R-MS), Deb Fischer (R-NE), Marsha Blackburn (R-TN), and Todd Young (R-IN).

The legislation is supported by MT Outfitters and Guides Association, Boone and Crockett Club, American Sportfishing Association, National Rifle Association, The Bass Federation, The Walleye Federation, Safari Club International, Wildlife Mississippi, Dallas Safari Club, Congressional Sportsmen Foundation, Sportsmen’s Alliance, National Shooting Sports Foundation, Conservation Force, and Marine Retailers Association of the Americas.

Read the full text, which includes a quote from MRAA Government Relations Manager Chad Tokowicz (See pull quote below), of the bill here.

“The Marine Retailers Association of the Americas greatly appreciates Senator Daines’ commitment to science-based natural resource management and for being a continued ally of our nation’s sportsmen and sportswomen. This bill highlights the importance of basing policy decisions off of sound science while simultaneously working in concert with state resource agencies. It also works to maintain access for many recreational boaters and anglers, who choose to responsibly use lead tackle, or cannot find or afford suitable alternatives, and we applaud Sen. Daines’ commitment to keeping Americans on the water.” – Chad Tokowicz, Marine Retailers Association of the Americas, Government Relations Manager

Atlantic Marine Funds CFCC Scholarships

Wilmington, NC – Atlantic Marine recently donated $26,500 to the Cape Fear Community College Foundation to be used for student scholarships. The scholarships will be awarded to students in the Outboard Systems program. Students must complete the Intro to Outboard Systems course and have their instructor’s recommendation in order to be eligible for a scholarship. Scholarships fund tuition, books, and material fees that are required by the program.

Atlantic Marine donated $26,500 to the Cape Fear Community College Foundation to be used for scholarships.

“We are proud to support the Outboard Systems program at CFCC,” said Atlantic Marine President David Floyd. “By supporting this program, CFCC, in turn, is able to support our industry by training well-qualified technicians who are career ready.”

There is a growing need for service technicians within the marine industry, so this donation helps Outboard Systems students at CFCC in their pursuit of a career in the marine industry.

“Community partners like Atlantic Marine help CFCC provide workforce-ready employees for local businesses,” said Jim Morton, CFCC president. “Their ongoing support will benefit so many of our Outboard Systems students. We are grateful for this investment and look forward to seeing our students help meet the needs of the outboard motors and boating industries.”

For more information about the CFCC Outboard Systems, visit https://cfcc.edu/job-training/outboard-systems/

Barletta Boats Recommits to MRAA as Strategic Partner

  • Joins 10 Esteemed Marine Industry Companies Playing Vital Roles with MRAA

MINNEAPOLIS — The Marine Retailers Association of the Americas announced that Barletta Boats has increased its support of the MRAA by stepping up to become a Strategic Partner — the highest level of membership with the association.     

Barletta Boats, joins 10 existing Strategic Partners, which provide the highest level of sponsorship support for MRAA and Dealer Week, MRAA’s annual conference and expo. Strategic Partners serve as the tactical and financial backbone of the association, participating in regular dialogue with the MRAA Board of Directors and staff and helping to set the initiatives and priorities of the association in its mission to fuel the growth and success of today’s boat and engine dealers.

Barletta Boats logo

Since Barletta’s entrance into the marine market place in 2017, founder Bill Fenech has expressed his ongoing support of the dealer body and particularly the association in many ways. Barletta has supported MRAA as a member and as an exhibitor at Dealer Week, and Bill and Kristin Fenech have made significant donations to the MRAA through their foundation each year, as well. In 2020, when MRAA was forced to cancel Dealer Week due to the pandemic, Fenech proactively led a fundraising effort to support MRAA in its greatest time of need.

The association is looking forward to continuing this strong relationship with Barletta and its new president, Jeff Haradine. Jeff has already shown significant support to the MRAA, Dealer Week and the marine industry.

“I and our entire team here at Barletta Boats believe in the importance of a high-quality dealer network, and you can witness our commitment to that through the strong dealer network we have built for our brand,” Haradine, President says. “We are strong supporters of MRAA’s mission to fuel the success of our industry’s dealers, and becoming an MRAA Strategic Partner is a natural progression for us. We’re proud to step up, not only to help our dealers improve but also to support MRAA in its efforts to advance our industry.”

“The support of our Strategic Partners in tactical planning and helping us to identify primary objectives has played a pivotal role in the MRAA’s success,” said Allison Gruhn, Vice President of Business Development. “Bill Fenech and Barletta have supported our mission from the day they opened their doors, and it’s an honor to have them increase their commitment to our industry’s success. Adding Barletta to this elite group of Strategic Partners — comprised of industry advocates, visionaries and inspirational leaders — will continue to aid us in our mission to help boat and engine dealers, and the marine industry as whole, flourish.”

Founded in 2017 with a focus on innovative products, strong customer experience and authentic dealer relationships, Barletta continues to grow. Barletta has recently announced plans to expand its facilities to over 250,000 square feet, helping accommodate for their growing production needs. This expansion will be available for use in spring of 2023 and is expected to create more than 200 new jobs.

MRAA Strategic Partners are organizations that have committed to supporting the MRAA at the highest level of membership through a three-year partnership program.

Here’s the current 2022 list:

About the MRAA Strategic Partner Program

Strategic Partners serve as the strategic and financial backbone of the MRAA. As MRAA’s highest-level members, Strategic Partners participate in regular dialogue with the MRAA Board of Directors and staff, helping to set the initiatives and priorities of the association in its mission to fuel the growth and success of today’s boat and engine dealers. The Strategic Partners also provide the highest level of sponsorship support for Dealer Week, The MRAA Conference and Expo. Learn more at https://mraa.com/page/strategicpartners. 

About Barletta Pontoon Boats
Barletta Pontoon Boats is a premium marine manufacturer founded in 2017 with a focus on high-quality, innovative products, unrivaled customer experience and strong dealer relationships. Headquartered in Bristol, IN, Barletta is the fastest-growing company in the pontoon segment with an expansive network of dealer partners across the United States and Canada. The Barletta lineup includes the Lusso, Corsa, and Cabrio series. Visit www.barlettapontoonboats.com for more information. Barletta Pontoon Boats is a wholly owned subsidiary of Winnebago Industries (NYSE: WGO), a manufacturer of premium outdoor lifestyle products. For more information visit www.winnebagoind.com.

About the Marine Retailers Association of the Americas
At the Marine Retailers Association of the Americas, we believe that for the marine industry to thrive, the retail organizations that interact with the boaters in their community must thrive. With that in mind, MRAA works to create a strong and healthy boating industry by uniting those retailers, providing them with opportunities for improvement and growth, and representing them with a powerful voice. For more information, visit MRAA.com or contact us at 763-315-8043.

Bolster Your Finance Department to Withstand Disruption & Uncertainty

5 Key Areas to Tighten Up to Help Your F&I Department Find Future Success

By Jared Zimlin, Director of Business Development, Elite Recreational Finance

We are in a time of big changes. Some are positive. Some are negative. Some, well, we just don’t know.  Customer expectations of how they purchase big ticket items are changing. Inventories are not quite stabilized. Pricing of new boats is still being affected by surcharges. Rates are increasing. Add to all this, there are new finance rules either about to go in effect or being proposed. One thing is for certain, these changes have a major impact on your finance department.

So, with all this uncertainty, what are five key areas you can focus on this off season to tighten up your finance department and set it up for future success?

5 Areas to Focus on & Shore Up This Off Season

Improve Your Digital Credit Application – Consumers are used to applying for credit for all things now online. From cars to tennis shoes, your customer can go online, find what they want then apply to pay over terms. Yet, many dealer’s online credit application is still a printable PDF or worse, non-existent. Think about it. A customer can spread the payment over terms for a pair of joggers via a company like Affirm or Klarna from their phone, yet dealers expect customers to print a document, fill it out, email or fax it in for a big-ticket purchase? So Tip No.1, meet with your web provider to create a digital credit application that you can place on each listing. By doing this, you will make it easier for the customer, capture valuable data for your CRM and keep them moving towards the sale vs. creating a friction point where they decide to “wait until spring.”

Take Advantage of Soft Credit Pulls – Just because the customer pulled up in a nice truck, has a slick watch and a cool pair of shoes does not mean they will qualify for your boat. Even if the customer tells you they have “excellent credit” because their score is in fact over 740, does not mean they will get approved. Most credit bureau providers now offer Soft Pulls. This allows you to see the customer’s credit without adding an inquiry which could hinder their credit score. By doing the Soft Pull, you can now get a glimpse into the customer’s ability to afford the boat and likelihood of being approved regardless of their vehicle or how much bling they are showcasing.

Learn to Read Credit – Have you ever been to a restaurant with unfamiliar cuisine so you ordered by number? Then, when the dish arrives it’s not what you thought it was. Well, this experience is similar to how many people view credit. There are customers and dealer that think because the score is a 700 or 750 (or insert number here), that they have good credit. If you don’t know what the lenders look at to approve a boat loan, you may think that as well.

Here are the main ingredients you need to look at aside from the credit score:

  • Debt to income – What do they earn each month and what are their bills each month?
  • Time in bureau – How long have they been paying their bills?
  • Number of installment trade lines – Most lenders look for five or more installment loans
  • Highest installment credit line – Have you paid on a similar or higher installment loan?
  • Any negatives like late payments, bankruptcies, charge-offs?

Once you understand this information, you can then compare it to my next tip.

Understand Your Lenders – There is no “one lender” for every customer. Each lender has a different appetite for loans. Some like smaller loans. A few only want bigger transactions. Some lenders like to buy 800 credit up. Others like the mid-tier and sub-prime deals. Since you cannot control the credit of who walks through the door, it’s best to have a portfolio of lenders that will meet the needs of as many customer’s profiles as you will encounter. So how do you know who to add?

You can visit the National Marine Lenders Association website for a list of lenders who cater to the marine industry. Then, make a few calls and see if you can get a copy of the rate sheets and program details. By looking at this, you will see:

  • The preferred credit scores for each
  • The Debt-to-Income limits they have in place
  • How far back will they finance on a pre-owned unit
  • A company’s Loan-to-Value guidelines
  • More information that can help you build a proper portfolio

Note, most indirect lenders will not finance a consignment unit unless you transfer the title through the dealership. So be sure to research partners that can help with consignments you want to help sell but do not want to take on trade.

Keep Up With Compliance – In December 2022, a new Safeguards Rule is going into effect regarding how you protect and store customers’ sensitive information. Your dealership is also required to have a written Red Flags policy on hand with set officers to administer, and a training plan. You also need to consider how your actual operation is set up. Are files left on desks? Is the finance office separate with a limited set of separate keys to restrict who has access to files?

There is proposed legislation regarding fees, aftermarket products and disclosures that could have a major impact on when you review terms with a customer, how you advertise your fees and the cost of aftermarket products and what you will need to document a customer’s acceptance or declination of proposed terms — prior to the delivery date! All of these areas are of major concern with large fines for violating any of the federal or state laws.

You’ll notice there’s nothing in here about backend profits; reserve, service contracts, GAP and other profit centers. That is for a reason. These are extremely important, especially with rates rising, however, this can be a subject all to itself.

So, before you tackle that, remember, there is no service contract to be sold on a boat that does not deliver because the customer could get you an application, you couldn’t get them qualified, you did not know how to get them qualified; you didn’t have the lenders or you get them qualified; or you get them delivered, then have to pay it all back and more because you violated one of the many finance laws.

Here is the Great News!

MRAA has most of these tools from “How to Read Credit,” to a full Compliance Guide on its website. They even have a link to the Safeguards Rule and proposed rules on Junk Fees. You can also visit NMLA to find lenders. https://www.marinelenders.org/resources-for-boat-buyers/find-boat-loans

Even better, you can visit the lenders in person this December at Dealer Week in Austin, Texas!

New FTC Auto Rule: What Does It Mean for My Business?
https://mraa.com/fi/
Jared Zimlin Elite Recreational Finance

About the Author
Jared Zimlin is the Director of Business Development, Elite Recreational Finance, Education Champions with MRAA. Zimlin draws upon his two decades of business development experience solving problems for manufacturers, distributors and dealers across multiple industries with comprehensive retail finance, equipment finance and inventory finance solutions. A University of Florida alum, Zimlin is an avid cyclist and Club President of Gearlink Racing Inc.

Shore Premier Finance Becomes Platinum Partner Member

MINNEAPOLIS — The Marine Retailers Association of the Americas announced today Shore Premier Finance commits to the Association as a Platinum Partner Member.

Through Platinum Partner Membership, Shore Premier Finance aligns its brand with the programs and opportunities that MRAA works to provide the dealer body in an effort to fuel the success of the industry. The support the MRAA receives from Platinum Partners like Shore Premier Finance allows for the expansion of MRAA’s offerings and creates a positive, long-term impact for its members.

Shore Premier Finance commits to MRAA Platinum Partner Membership.

Shore Premier Finance provides marine dealers with inventory floor plan lines of credit, as well as offering its dealers customized floor-planning options that support a variety of manufacturers. Shore also offers financing for new and used boats for pleasure use, limited and full-time charter programs, USCG and BVI registries, powerboats, sailboats, catamarans, and certain specialty products.

“Our Platinum membership in the MRAA allows us to enjoy the expertise of the Association and its members” says Scott Walter, COO of Shore Premier Finance. “While simultaneously providing our experience and network to together push the industry forward”
 

Shore Premier Finance secured a space exhibiting at Dealer Week 2022 where dealers will connect with the staff and learn more about how its integrations can provide benefit to their business. MRAA and Dealer Week have been amplified because of their support and trust in the event.

“Shore Premier Finance is already making incredible efforts with their Platinum Partner Membership,” says Allison Gruhn, Vice President of Business Development. “By exhibiting at Dealer Week for the very first time and staying involved with the MRAA to best support the marine industry.”

About Shore Premier Finance

Shore Premier Finance is a marine finance specialist offering commercial floor plan lines for dealers and permanent consumer finance for purchase of new or used boats for pleasure use, charter programs, powerboats, sailboats, catamarans, and superyachts, including USCG and foreign registries. For more information, please visit www.shorepremierfinance.com.

About the Marine Retailers Association of the Americas
At the Marine Retailers Association of the Americas, we believe that for the marine industry to thrive, the retail organizations that interact with the boaters in their community must thrive. With that in mind, MRAA works to create a strong and healthy boating industry by uniting those retailers, providing them with opportunities for improvement and growth, and representing them with a powerful voice. For more information, visit MRAA.com or contact us at 763-315-8043.

MRAA Certification News – September 2022

The MRAA Marine Industry Certified Dealership (MICD) program continues to make new strides within the boating industry. Recently, the Dealership Certification process was enhanced to include a new seven-week Certification Webinar Series with MRAA Consultants. The MICD Program and Certification Manager Liz Keener were also highlighted recently by “Marina Dock Age,” addressing how dealers can seek continuous improvement and greatly improve their customers’ experience.

new MRAA Certified Dealership logo

Save Your Spot in MRAA’s Certification Webinar Series

MRAA only has a couple Certification webinar series available through the end of the year, so if you’re hoping to get Certified in 2022, get signed up ASAP! The first series runs Tuesdays Sept. 20 to Nov. 8. The second runs Wednesdays Oct. 5 to Nov. 30 (skipping Nov. 23 for the U.S. Thanksgiving week). Limited spots remain in both sessions. Enroll in Certification now to secure your slot.

Liz Keener MRAA and the Dealership Certification Program
Liz Keener, MRAA Certification Manager

Certification Featured in Marina Dock Age

“Marina Dock Age” magazine recently featured the Marine Industry Certified Dealership program and its focus on the customer experience. MRAA Certification Manager Liz Keener was quoted throughout the article, in which she told Wendy Larimer about the Certification program and how Certified Dealers commit to excellence. Read the article here.

MRAA, RVDA Push Back Against Proposed FTC ‘Auto Rule’

WASHINGTON, D.C., September 14, 2022 — The Marine Retailers Association of the Americas collaborated with the RV Dealers Association, the National Powersports Dealer Association, a number of state-based marine trades associations, the U.S. Small Business Administration’s Office of Advocacy and more, to voice its opposition to the Federal Trade Commission’s recently proposed Auto Rule.

As the leading trade associations and organizations representing dealers and other businesses targeted by the proposed regulation, MRAA and its colleagues worked to educate members on the need to fight these proposed rules, while also highlighting the many reasons that marine dealerships should be exempted from the onerous regulations they present. The MRAA submitted comments to the FTC, which can be found here, Monday, Sept. 12, 2022.

By a 4-1 vote on June 23, the FTC issued a notice of proposed rulemaking, which suggested regulations that would change the way dealers interact with their customers. The regulation, dubbed the “Motor Vehicle Dealers Trade Regulation Rule,” would apply to cars, boats, motorcycles and RVs, and is primarily aimed at removing deception and other unfair business practices from the motor vehicle market.

Among many other new rules, the proposed regulations would seek to prohibit unfair business practices, of which there have been little to no evidence of such issues existing in the marine industry. Dealers of all motor vehicles would be prohibited from selling any add-on goods or services that do not provide any consumer benefit — as defined by the FTC. Dealers would be required to keep for at least two years, both digital and physical copies, of all aspects of their dealership marketing and sales records and practices. Combined, these proposed regulations would present an extreme burden to the oftentimes small businesses that comprise the marine industry.

Chad Tokowicz
Chad Tokowicz, MRAA Government Relations Manager

“Although the MRAA greatly appreciates the FTC’s focus on safeguarding consumer transactions, we feel that this rule was not drafted with our members in mind and fear that the cost of compliance will greatly overburden our members,” says Chad Tokowicz, MRAA Government Relations Manager. “There is no documented history of fraud or deceptive practices among marine dealers, and that, combined with MRAA’s focus on sales and compliance training, it is our hope that we have provided sufficient rationale to exempt our dealers from this regulation.”

The FTC says that it put forth this regulation because it has taken more than 50 enforcement actions related to automobile transactions in the last 10 years while also receiving more than 100,000 consumer complaints, annually, related to the car buying experience. Although the MRAA supports fairness and transparency throughout the purchasing process, the proposed regulation was crafted only with automobile dealers in mind, and therefore, the proposal does not adequately take into consideration the many nuances of the boating consumer or how boat, RV and powersports dealers conduct business.

“RVDA and MRAA strongly agree that the proposed FTC rule will have a negative impact on consumers,” said RVDA President Phil Ingrassia. “The new requirements, if adopted as written, will complicate the buying process for RVs and boats through unnecessary paperwork for dealers that will confuse buyers and will drive up costs.”

Aside from working with other trade associations in the outdoor recreation industry, the MRAA also worked closely with the Small Business Administration’s Office of Advocacy. The Office of Advocacy is the independent voice for small business within the federal government and is the watchdog of the Regulatory Flexibility Act. MRAA worked closely with the Office of Advocacy and provided information to the SBA, which was included in their comment letter that can be found here.

“Particularly in a small-business dominated industry like the boat business, this is a gross overregulation with no merit or proven need for such rules,” says Matt Gruhn, MRAA President. “It’s our belief that boat dealers should be exempted from any such regulations, particularly in light of the difficulty these rules would impose on boat buyers, who want the flexibility to buy the right product with the right parts and services that will help them make the most of their passion for on-water recreation.”

The FTC closed public comment period September 12, and after going through the public comments the FTC will determine how to move forward. The MRAA wrote a blog outlining the proposed regulation and the impact it could have on your dealership.

About the Marine Retailers Association of the Americas
At the Marine Retailers Association of the Americas, we believe that for the marine industry to thrive, the retail organizations that interact with the boaters in their community must thrive. With that in mind, MRAA works to create a strong and healthy boating industry by uniting those retailers, providing them with opportunities for improvement and growth, and representing them with a powerful voice. For more information, visit MRAA.com or contact us at 763-315-8043.

Wells Fargo Extends Benefits to all MRAA Members

MINNEAPOLIS — The Marine Retailers Association of the Americas announced today Wells Fargo will offer special rates for merchant services and credit card processing to all MRAA Members.   

Wells Fargo MRAA Member Benefit announced

Wells Fargo Merchant Services is the newest addition to the line-up of MRAA Benefit Providers. Exclusively offered to MRAA dealer members, Wells Fargo’s benefit will provide MRAA members the opportunity to use its payment processing integrations in their businesses. The MRAA carefully selects organizations to partner with in becoming benefit providers and only chooses organizations that will positively impact its dealer members.

“Adding Wells Fargo to our elite group of MRAA Benefit Providers was a natural progression in our partnership, as they already support the MRAA through a Strategic Partner membership,” says Jason Walz, MRAA Director of Programs. “Wells Fargo has really stepped up to help support the industry and MRAA Members through their credit card processing MRAA member exclusive rates.”
 

Wells Fargo offers all MRAA Members exclusive, discounted rates and solutions for accepting credit card payments from their customers. This brand new benefit includes MRAA Members who already use Wells Fargo.

“We have valuable solutions for marine dealers that cover their payment needs.” says Curt Raffle, VP of Franchise and Associations. “Having a long-standing Strategic Partner Membership with the MRAA has propelled us forward to making an even bigger impact for our marine dealers as well as theirs.”

As one of the MRAA’s Strategic Partner Members, Wells Fargo provides financial support to align itself with MRAA’s mission to help dealers run stronger businesses and create a better environment for marine dealers to thrive.

Wells Fargo is proud to offer a best-in-class merchant services product, an industry best price point, and a dedicated account management service model for MRAA members. Please reach out to your MRAA contact or FranchiseandAssociations@WellsFargo.com to learn more and get a quote.

About the Marine Retailers Association of the Americas
At the Marine Retailers Association of the Americas, we believe that for the marine industry to thrive, the retail organizations that interact with the boaters in their community must thrive. With that in mind, MRAA works to create a strong and healthy boating industry by uniting those retailers, providing them with opportunities for improvement and growth, and representing them with a powerful voice. For more information, visit MRAA.com or contact us at 763-315-8043.