Shaheen, Crapo, Risch Send Bipartisan Letter Urging Coast Guard to Allow States to Collect Fees When Vessels are Registered to Help Fund Boating and Water Safety Efforts
(Washington, DC) – U.S. Senators Jeanne Shaheen (D-NH), Mike Crapo (R-ID) and Jim Risch (R-ID) sent a bipartisan letter urging the U.S. Coast Guard to revert to its longstanding statutory interpretation that allowed states to collect fees for boating-related programs during the boat registration and Certificate of Numbering (CON) process. Recently, the Coast Guard blocked a number of states from coupling CON fees with state fees, which, the Senators note, help fund programs to address aquatic invasive species, boating safety, search and rescue and others. Earlier this year, the Senators introduced the bipartisan State Boating Act that would make clear the ability of states to collect state boating fees alongside CON fees and registration.
In part, the Senators wrote: “We write to seek your help with a recent Coast Guard statutory reinterpretation that will cause states difficulty in funding and managing boating safety and related programs and increase costs for recreational boaters. As you may know, the agency decided to reverse its previous interpretation of 46 U.S.C. 12307 that had allowed states to bundle payment for the issuance of the Certificate of Number (CON) for recreational vessels with related state boating fees for search and rescue, aquatic invasive species (AIS) and other boating safety programs. Despite the fact that the prior statutory interpretation was the status quo for over 50 years, the Coast Guard informed a number of states, including ours, that this prior practice violated federal law and needed to end if states did not want to risk losing their share of the Recreational Boating Safety grant program.”
They concluded: “The Coast Guard’s drastic decision to overturn its decades long policy when the prior interpretation was not only authorized, but also working, is truly puzzling, especially when the Coast Guard’s new policy is likely to increase costs and lower revenues for critical state programs with no discernable improvements. For these reasons, we ask that the Coast Guard immediately use all available tools and authorities, including a rulemaking, to revert back to its prior interpretation to permit our states to again couple federal and state fees.”
The text of the letter can be found here.
Most boats owned and operated on the waters of the United States must have either a Certificate of Documentation (COD) or a CON on board when operating. Additionally, boats with propulsion machinery must have on board a valid CON or temporary certificate, unless the vessel qualifies for an exception under the law. Most vessel owners obtain a CON from the state in which they spend the most time operating. States can administer their own numbering programs if those programs comply with Standard Numbering System (SNS) requirements and receive Coast Guard approval. However, according to the Coast Guard’s reading of its enabling statute, states are authorized to condition the issuance of vessel numbers only for proof of ownership, proof of payment of state or local taxes, and/or proof of liability insurance. A number of states have been collecting additional state fees with the CON fees to fund and support boating and environmental programs, like aquatic invasive species, boating safety, search and rescue and other purposes. After multiple audits in states like New Hampshire and Idaho, the Coast Guard has directed states not to collect state boating fees alongside CON fees.
###
