Passenger Vessel Operations Vs. Recreational Use Shannon Gilreath, CAPT, USCG Chief, Office of Maritime and International Law

Problem Overview Hazard to life, property, environment Increased availability via app/online Uneven playing field for legitimate operators Bareboat charters

Key Terms Passenger (46 USC 2101 (21)) Everyone except owner or rep, master, crew Passenger for hire (46 USC 2101 (21a)) Passenger who provides consideration Consideration (46 USC 2101 (5a)) Economic benefit, inducement, right or profit accruing to an individual or entity But not voluntary sharing of actual expenses of trip

Vessel Types

Bareboat Charter More likely Less likely No crew provided / charterer hires and pays Charter pays for fuel/food/ stores Owner not on board in any capacity Charter must obtain liability insurance Vessel surveyed before/after Charterer picks crew but owner can veto Owner provides fuel/food /stores as part of charter cost Owner hired as master No separate insurance required

Bareboat Charters and Apps PVSA references two different types of charters – one with crew provided or specified by owner/rep and one with no crew provided/specified. Fact dependent – consider amount of control retained by owner, providing of crew, how is crew selected, pax #, tonnage Bareboat charter carrying more than 12 passengers are subject to inspections

What’s Needed to Legally Operate? U.S. LAW BY WAY OF THE PVSA Recreational Vessel Certificate of Documentation or State Registration Small Passenger Vessel USCG Credentialed Mariner Certificate of Inspection Uninspected Passenger Vessel Credentialed Mariner (OUPV) OUPV Exam (recommended) Bareboat Charter Bareboat Agreement Credentialed Mariner or OUPV (if required)

Hypotheticals Definition of Passenger for Hire – defined at 46 USC 2101(21a) If passengers are allowed onboard for monetary contribution, economic benefit, or a donation as a condition of carriage to any person having an interest in the vessel it is considered a commercial operation with passengers for hire. Examples include: - passengers buying tix to ride powerboats - renting moored vessel as bed & breakfast - renting vessel for party while its u/w - requiring food, fuel, or beverage as mandatory contribution for trip

Enforcement CG ops conducted to target illegal passenger ops. Enforcement comes in many forms. CG has issued COTP orders, civil penalties, and referred to DOJ for criminal violations. Operations have also involved state police resulting in State issued misdemeanor charges, including obstruction of justice. Failure to comply with COTP order $90,000 per day of continued operations, total fine of up to $250,000, continued violation is Class D felony and up to 10 years in jail $14,000 civil penalty against imposed on operator for conducting 4 hr tour on Lake Michigan with 9 passengers onboard – MSU Chicago , Maximum penalties allowed are $40,000+ when combined CG has referred cases to DOJ for referral when illegal passenger vessel operations result in death - MIAMI VICE - illegal pax vessel involved in casualty – 7 passengers – individual swimming in water struck by boat prop, Captain of vessel didn’t have credential – guilty of Seamans Manslaughter - scheduled for sentencing in Nov. No formal training and CAPT didn’t think to check if everyone was onboard before engaging prop (Jaguar – Tampa)

Issue Spotting for an Owner U.S. or foreign built (coastwise trade eligibility) Gross tonnage (100 GT is the key tonnage) Recreational (33 CFR Sub S 173-187) Uninspected passenger vessel (all recreational requirements + 46 CFR Sub C 24-26) Small passenger vessel (46 CFR Sub T or K) Passenger vessel (46 CFR Sub H) OCMI Excursion Permit

State Registered Vessels Overseas

National Defense Authorization Act FY2019: “Super Yacht” Section 3529 “large recreational vessels” that are over 300 gross tons (or measured under alternative tonnage standards under Title 46); These “large recreational vessels” will be statutorily exempted from inspection

Questions? Thank you!