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

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

3. 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

4. Vessel Types

5. 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

6. 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

7. 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)

8. 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

9. 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)

10. 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 )
Uninspected passenger vessel (all recreational requirements + 46 CFR Sub C )
Small passenger vessel (46 CFR Sub T or K)
Passenger vessel (46 CFR Sub H)
OCMI Excursion Permit

11. State Registered Vessels Overseas

12. 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

13. Questions?
Thank you!