(5) Section 15 is amended, in subsection (e), by striking, at the beginning of the third sentence thereof the word "Upon", and by inserting in lieu thereof "If the manufacturer receives notice from the Secretary within the time in which he would be required to make notification under subsection (a), upon”.

(6) Section 15 is amended, in subsection (g), by striking "this section.", and by inserting in lieu thereof "this section, including, but not limited to, procedures to be followed by dealers and distributors to assist manufacturers in obtaining the information required by this section: Provided, That a regulation promulgated hereunder may not relive a manufacturer of any obligation imposed on him by this section.".

(7) Section 18 is amended, in subsection (a), by inserting, following the second sentence thereof, a new sentence to read as follows: "In implementing and administering its numbering system, a State shall adopt any definitions of relevant terms, including, but not limited to, 'model year' and 'date of manufacture' established by the Secretary by regulation.".

(8) Section 20 is amended, in subsection (a), by striking, in the second sentence the words "twenty-four hours", and by inserting in lieu thereof the words "seven days".

(9) Section 23 is amended by inserting at the end of the first sentence a new sentence to read as follows: "The fees established pursuant to authority granted by this section shall apply equally to residents and nonresidents of the State.". (10) Section 27 is amended, in subsection (a), by striking "July 1", and by inserting in lieu thereof "October 1".

(11) Section 27 is amended by adding a new subsection (f) to read as follows: "(f) In addition to the allocation provided for in subsection (d), the Secretary may allocate not more than one per centum of funds appropriated in any fiscal year for the support of activities of a national association of State boating law administrators: Provided, That, regardless of the percentage calculation under this subsection, the allocation shall not be less than $70,000 in any fiscal year.". (12) Section 28 is amended, in subsection (a), by striking the first sentence thereof and by inserting, in lieu thereof, the following: "Notwithstanding the allocation ratios prescribed in section 27, the Federal funds allocated to any State in any fiscal year may not exceed fifty per centum of the total cost of that State's boating safety program in that year.".

(13) Section 28 is further amended by adding a new subsection to read as follows:

"(d) For the purposes of this section, the transition period of July 1, 1976, to September 30, 1976, shall be treated as a fiscal year.".

PURPOSE OF THE LEGISLATION

The purpose of the bill is to amend the Federal Boat Safety Act of 1971 in several particulars, in order to clarify certain provisions of the basic Act and to correct deficiencies, generally minor in nature, which have created some problems in the implementation of the Act.

BACKGROUND

The Federal Boat Safety Act of 1971, which has now been in effect for approximately five years, was originally enacted to improve boating safety, and to create a generally uniform safety program to foster expanded participation and enjoyment in recreational boating activities, and at the same time, to protect the increasing number of people attracted to such activities. The Act was also designed to encourage and assist participation in boating safety by the several States, the boating industry, and the boating public. While a coordinated program was determined to be necessary, in order best to utilize available resources and to avoid a bewildering array of conflicting local requirements, the Act also recognized that maximum boating safety can be insured by the active involvement and close cooperation of the various States in boating safety matters.

During the period in which the Act has been in effect, it has amply demonstrated its value. From a level of about 20 States that had some form of boating safety supervision in 1971, 51 of the 55 jurisdictions covered by the Act (Puerto Rico, the Virgin Islands, Guam, American Samoa, and the District of Columbia, in addition to the 50 States) now have numbering and casualty reporting systems approved under the provisions of section 18 of the Act. Two of the other four jurisdictions have not yet developed approved numbering systems, and the other two jurisdictions have not actively participated because of lack of necessary State funding.

In connection with boating casualty statistics, the results have not been completely satisfactory; however, fatalities in boating accidents while rising in numbers, have risen proportionately less than the increase in numbers of boats in use. It is probable that the failure to decrease the number of accidents and fatalities has been due in some degree, at least, to the fact that the advancement of safety programs in some States has not moved as rapidly as desired because of constraints flowing from the fact that appropriations under the Act have never reached the level which the Act envisioned. Of a total authorization of $37,500,000 for the past five fiscal years, only some $22,500,000 has actually been appropriated. This level of appropriations has not indicated any lack of support of the program by the Congress, as much as it reflects Administration priorities in the annual submission of budget requests. Hopefully, that condition will improve in future years and will reflect the views of this Committee as expressed in its recent action increasing the annual authorization to $10,000,000 for fiscal year 1978, as contained in Public Law 94-340, approved July 6,

1976.

COMMITTEE ACTION

H.R. 13585 was introduced by the Honorable Mario Biaggi, as a result of hearings on H.R. 5630 and H.R. 9375, both of which proposed certain amendments to the basic Act. The Subcommittee on Coast Guard and Navigation held initial hearings on those two bills on September 12, 1975, and decided to report H.R. 5630 to the extent that it provided for an authorization for funding for assistance to States for the transition period, and fiscal years 1977 and 1978. That bill was ultimately enacted as Public Law 94-340. At the same time, the Subcommittee postponed action on H.R. 9375 until more testimony could be received on an overall review of the operations of the Federal Boat Safety Act. That additional information was developed during hearings held on April 1, 1976 and May 13, 1976. During the May hearings, proposed amendments in addition to those contained in H.R. 9375 were suggested by various witnesses, and the various amendments with general support from the Federal Government, State representatives, the boating industry, and the boating public were incorporated into H.R. 13585, which was introduced on May 6, 1976, and which was considered in the hearings on May 13, 1976.

The Subcommittee considered H.R. 13585 in mark-up session on September 1, 1976, and, based upon the testimony received, made several changes in the language of the bill, incorporating those changes in one single amendment. As amended, the bill was approved by uananimous voice vote and ordered reported to the Full Committee with a favorable recommendation.

The Committee on Merchant Marine and Fsheries considered the bill in mark-up session on September 14, 1976, and endorsed the action of the Subcommittee, with one amendment to the Subcommittee amendment, restoring to the language of the bill a provision which the Subcommittee had originally deleted because it did not have uniform support. The action taken by the Full Committee relates to clause 7 of the bill, as reported by the Committee. The language was restored after an explanation was received as to its demonstrated desirability and a withdrawal of some of the original reservations which had been expressed by State representatives at the Subcommittee hearings. As amended, the Committee, by unanimous voice vote, ordered the bill reported to the House.

SECTION-BY-SECTION ANALYSIS

1. This clause amends section 4 of the Act, by providing that, until there is a final judicial determination that certain waters in the State of New Hampshire are "navigable waters of the United States", they are declared not to be waters subject to the jurisdiction of the United States with respect to section 4 of the basic Act. Section 4 of the Federal Boat Safety Act makes the Act applicable to vessels and associated equipment used or to be used or carried in vessels to be used on the "waters subject to the jurisdiction of the United States" and on the high seas for vessels owned in the United States. The basic Act is also applicable to boats moving or intended to be moved in interstate commerce. This amendment preserves, for the time being, the status quo on the waters in question. It does not have any effect on the "high seas" or "interstate commerce" aspects of the Federal Boat Safety Act.

This amendment resulted from a disagreement between the State of New Hampshire and the Coast Guard, a disagreement which has not yet been resolved. As a result of a consideration by the Coast Guard of a collateral matter, the Coast Guard made an administrative determination that the waters in question are navigable waters of the United States, based upon all facts available to the Coast Guard of the historical status of those waters. Upon receipt of a protest by the State of New Hampshire that all the facts had not been considered, the administrative determination of the Coast Guard was withdrawn and no new determination has yet been issued. The Committee believes that, in view of this continuing difference of opinion between the Federal Government and the State, the Coast Guard should not, by administrative determination, now begin the enforcement of the Federal Boat Safety Act as if the waters in question are in actuality "waters subject to the jurisdiction of the United States", as that phrase is used in section 4 of the basic Act. It rather believes, and so provides in this amendment, that those waters should be considered as "nonnavigable", as they have been as long as the Act has been in force, until a final judicial determination is made to the contrary.

2. This clause amends section 5 of the Act, to increase the time authorized in the Act for delay in establishing the effective date of standards requiring major redesign on the part of manufacturers.

The Act directs the Secretary, in issuing a regulation with respect to safety standards for boats or associated equipment, to specify an

effective date for such standard no earlier than 180 days from the date of issuance, with a provision that the delay could be increased to 18 months in a case involving major product design, retooling, or major change in manufacturing process, in the absence of a finding that a critical hazard exists requiring an earlier effective date. The Coast Guard and the industry agreed that the 18 months maximum time is not always sufficient, and this amendment extends that possible maximum from 18 months to 24 months, because of a conclusion that better safety standards can be developed and implemented if the effective date of major changes coincides with industry retooling cycles. The amendment should also result in a reduction of product costs flowing from modifications coincidental with existing cycles.

3. This clause amends section 8 of the Act, by adding a new subsection to specifically authorize research, testing, and development necessary to carry out the purposes of the Act. It also authorizes the Secretary to sell the research boats and equipment, once the research purposes have been served. This amendment places in specific statutory language a research and testing program which is, at present, implicit in the Act, but not explicitly stated.

4. This clause amends section 15 of the Act, by limiting the manufacturers' notification obligations under the Act. It makes the notification duty to purchasers applicable only to defects or failures of compliance discovered within five years from the date of certification or, in the absence of a certification date, within five years of the date of manufacture. This amendment will remove an onerous requirement under the present language of the Act, with respect to a requirement that manufacturers maintain a list of purchasers of their boats and equipment, without time limitation. The new five year time limit is consistent with testimony received that most defects become manifest within the first three years from date of manufacture and that practically all should become manifest within a five year period. Maintenance of purchaser identification information in manufacturers' records beyond five years is considered to be an unnecessary burden without a demonstrable benefit.

The amendment makes no change in the manufacturers' notification duty to dealers or distributors to whom the boat or associated equipment was delivered. This duty will continue without any limiting date. 5. This clause amends section 15 of the Act, relating to defects or failures of compliance discovered by the Secretary and relayed to the manufacturer for notification. It conditions the manufacturer's duty of notification upon receipt of the notice from the Secretary within the time in which he would have been required to make notification, had he himself discovered the defect or failure of compliance.

6. This clause amends section 15 of the Act, relating to the manufacturers' duty of notification by authorizing the Secretary to establish procedures to be followed by dealers and distributors in assisting manufacturers in obtaining information as to defects or failures of compliance by boats or associated equipment. The Committee recognizes that manufacturers, in many instances, rely on dealers and distributors for purchaser information and can be materially assisted in carrying out their own obligations if dealers and distributors are. required to cooperate with them. It should be clear, however, that any

additional duty imposed upon dealers and distributors will not serve to relieve manufacturers of their duties, as imposed by the basic section.

7. This clause amends section 18 of the Act, by requiring States, in the implementation of their numbering systems, to follow consistent practices relating to relevant terms, as those terms are defined in the regulations of the Secretary. Under the basic section, for instance, the Coast Guard has established a hull identification number and specifies that one method of indicating a date of certification of compliance with applicable standards involves the model year of a boat hull. By definition, the model year for hull identification purposes, commences August 1 and continues through July of the succeeding year. To the extent that a State adopts a different definition for "model year", unnecessary confusion is created for the boat purchaser. The Committee believes that it is desirable, for purposes of uniformity and general understanding that relevant terms should be uniformly defined.

8. This clause amends section 20 of the Act, by changing from one day to seven days the period of time during which vessels of less than 26 feet may be rented to another for noncommercial use and the certificate of number may be retained onshore by the lessor, contrary to the usual requirement that a certificate of number shall at all times be available for inspection on the vessel when the vessel is in use. This amendment does not change the present provision of law that a vessel which does not have a certificate of number on board shall be identified while in use and comply with other proper regulatory requirements. Present regulations accomplish this purpose by requiring such a vessel to have on board a copy of the lease or rental agreement, signed by the owner or his authorized representative, and containing information as to the vessel number and the time period for which the vessel is leased or rented.

9. This clause amends section 23 of the Act, by requiring that fees established in connection with vessel numbering shall apply equally to residents and nonresidents of a State in which the vessel is numbered. This amendement will prohibit State discriminatory measures, which have been proposed, but thus far not enacted, in several States.

10. This clause amends section 27 of the Act, by requiring that allocations to the several States shall be made as soon as possible after October 1, consistent with the change of fiscal year, instead of the July 1 now required in the Act.

11. This clause amends section 27 of the Act, by authorizing the Secretary to allocate one per centum of funds appropriated in any fiscal year for the support of the activities of a national association of State boating law administrators, with such allocation in any fiscal year to be not less than $70,000. In providing for such an allocation, the Committee does not intend that this support will be an open-ended grant, without regard to the purposes for which the funding is used. The activities to be supported must be activities which serve to carry out the basic purposes of the Federal Boat Safety Act.

It is intended that, within this allocation, the Secretary based upon his evaluation, shall furnish direct support for all the activities conducted on behalf of boating safety and State coordination through