# Natural Resources (GNR)

## Title 8. Waters

### Subtitle 7. State Boat Act

#### Section 8-701

(a) In this subtitle the following words have the meanings indicated.

(a-1) "Beneficial use of dredged material" has the meaning stated in Sec. 5-1101 of the Environment Article.

(b) "Certificate" means any certificate of number or title issued.

(c)

  (1) "Dealer" means any person who:

    (i) Engages in whole or in part in the business of buying, selling, or exchanging new and unused vessels or used vessels, or both, either outright or on conditional sale, bailment, lease, chattel mortgage, or otherwise; and

    (ii) Has an established place of business for sale, trade, and display of vessels.

  (2) "Dealer" includes:

    (i) A yacht broker; and

    (ii) A holder of a lien created under Title 16, Subtitle 2 of the Commercial Law Article who sells the vessel pursuant to that title, including a company commonly known as a lien and recovery company.

  (3) "Dealer" does not include a licensed auctioneer acting on behalf of a seller, secured party, or owner and where title does not pass to the auctioneer and the auction is not for the purpose of avoiding the provisions of this title.

(d) "Governing body" means the county commissioners, county executive and county council of any county, the Mayor and City Council of Baltimore, and the elected officials of any municipal corporation in the State, subject to Article XI-E of the Maryland Constitution.

(e) "Lienholder" means a person holding a security interest.

(f) "Manufacturer" means any person engaged in the business of manufacturing or importing new and unused vessels, or new and unused outboard motors, for the purpose of sale or trade.

(g) "Marine repair contractor" means a person or entity engaged full time in the business of providing maintenance, repair, or similar services to vessels.

(h) "Motorboat" means any vessel equipped with propelling machinery, whether or not the machinery is the principal source of propulsion.

(i) "Operate" means to navigate or otherwise use a vessel.

(j) "Operator" means the person who operates or has charge of the navigation or use of a vessel.

(k)

  (1) "Owner" means a person, other than a lienholder, having property in or title to a vessel.

  (2) "Owner" includes a person entitled to use or possess a vessel subject to an interest in another person, reserved, or created by agreement and securing payment of performance of an obligation.

  (3) "Owner" does not include a lessee under a lease not intended as security.

(l) "Parasailing" means a parachute or other device which causes a person to become airborne when towed by a vessel.

(m)

  (1) "Personal watercraft" means a vessel that is:

    (i) Propelled by a water-jet pump or other machinery as its primary source of motive power; and

    (ii) Designed to be operated by a person sitting, standing, or kneeling on the vessel.

  (2) "Personal watercraft" does not include a vessel that is designed to be operated by a person sitting, standing, or kneeling in the vessel's hull.

(n) "Security interest" means an interest which:

  (1) Is reserved or created by an agreement which secures payment or performance of an obligation; and

  (2) Is valid against third parties generally.

(o)

  (1) "Ship lifeboat" means a lifeboat used solely for lifesaving purposes.

  (2) "Ship lifeboat" does not include dinghies, tenders, speedboats, or other types of craft carried aboard a vessel and used for other than lifesaving purposes.

(p) "State of principal use" means the jurisdiction on whose waters a vessel is used or to be used most during a calendar year which is the period from January 1 through December 31.

(q) "Title tax" means the tax imposed under Sec. 8-716 of this subtitle.

(r) "Use" means to operate, navigate, or employ a vessel. A vessel is in use whenever it is upon the water, whether it is moving, anchored, or tied up to any manner of dock or buoy. A vessel is also in use if it is kept in any structure in readiness for use.

(s)

  (1) "Vessel" means every description of watercraft, including an ice boat but not including a seaplane, that is used or capable of being used as a means of transportation on water or ice.

  (2) "Vessel" includes the motor, spars, sails, and accessories of a vessel.

(t) "Waters of the State" means any water within the jurisdiction of the State, the marginal sea adjacent to the State, and the high seas when navigated as part of a ride or journey to or from the shore of the State.

#### Section 8-702

It is the intent of this subtitle to foster the development, use, and enjoyment of all the waters of Maryland. The State shall cooperate to the fullest possible extent with neighboring states and the federal government in connection with assistance and rescue operations and in enforcement of laws and regulations relating to recreational boating safety.

#### Section 8-703

(a) The Department shall administer the provisions of this subtitle. In addition, the Department shall:

  (1) Develop plans, within the limits of available income, for the improvement and promotion of the waters of the State for recreational purposes;

  (2) Promote safety of life and property through an educational program directed to boat owners, boat operators, and others concerning the inherent hazards to vessels and people on the waters, including precautions to be observed, and emergency action;

  (3) Plan a regulatory program and its related cooperation with officials of other states, the federal government, and local governments;

  (4) Improve the State's waterways by deepening channels, acquiring and developing access areas, clearing waterways by removing logs, debris, and other material obstructing or detrimental to navigation, building docks, and clearing waters of aquatic vegetation;

  (5) Cooperate with federal, State, or local agencies which make funds available for the purposes of this subtitle;

  (6) In order to protect life and property, tow disabled vessels on any waters of the State to the nearest safe harbor or to a location where commercial towing facilities are available. The Department may not engage in towing in competition with commercial towing services;

  (7) Designate and mark channels in the waters of the State; and

  (8) By April 1, 1990, for any attended boat launching facility or marina that is owned or operated by the Department on July 1, 1989, or that is purchased, built, or otherwise acquired by the Department on or after July 1, 1989, install a pump-out station on-site at any attended boat launching facility or marina that is adequate to handle the sewage capacity from vessels expected to use the boat launching facility or marina.

(b) The Department may take possession of any document the Department issues pursuant to this subtitle:

  (1) After the document's expiration, revocation, cancellation, or suspension; or

  (2) If the document is issued unlawfully or erroneously.

#### Section 8-703.1

(a) The Department shall develop and implement by August 1, 1987, an educational program to advise boaters, boatyards, marine suppliers, and other users of antifouling paints on:

  (1) The provisions of Title 5, Subtitle 9 of the Agriculture Article, Sec. 9-321.1 of the Environment Article, and this section;

  (2) The toxic propensities to marine life of antifouling paints containing tributyltin compounds; and

  (3) The availability of substitute paints.

(b) The Department shall:

  (1) Publish for use by the public a detailed listing of antifouling paints in use in the State that contain tributyltin and those that do not; and

  (2) Publish, to the extent possible, which antifouling paints containing tributyltin have acceptable release rates, as defined in Sec. 5-901 of the Agriculture Article.

(c) The Department shall develop the educational program under subsection (a) of this section and the materials used in the program in coordination with the State Department of Agriculture and in consultation with the marine trades and with representatives of the boating public.

#### Section 8-703.2

(a) Notwithstanding any other provision of this subtitle, the Department may adopt boating regulations exclusively applicable to Jennings Randolph Lake.

(b) Regulations adopted under this section:

  (1) Shall be developed in coordination with the State of West Virginia;

  (2) Shall allow for joint enforcement of boating activities by Maryland and West Virginia authorities in accordance with the Jennings Randolph Lake Project Compact; and

  (3) May differ from Maryland boating laws that would otherwise apply.

(c) Regulations adopted under this section may:

  (1) Provide age limits for the operation of a vessel;

  (2) Establish vessel noise limits;

  (3) Impose safety requirements regarding vessels;

  (4) Impose other standards and requirements for the operation of a vessel;

  (5) Provide for rules of the road for vessels;

  (6) Provide requirements regarding the operation of personal watercraft;

  (7) Impose restrictions on the operation of vessels while towing an individual on water skis or similar devices; and

  (8) Address other areas pertaining to activities at the Jennings Randolph Lake Project that the Department considers appropriate.

#### Section 8-703.3

(a) This section applies to a vessel that is operated in a lake that is owned or managed by the State.

(b) After April 1, 2017, an owner of a vessel may not place the vessel or have the vessel placed in a lake at a public launch ramp or public dock unless the owner has cleaned the vessel and removed all visible organic material.

(c) An owner of a vessel who violates this section is subject to a civil penalty not exceeding:

  (1) $100 for a first violation;

  (2) $250 for a second violation; and

  (3) $500 for a third or subsequent violation.

#### Section 8-704

(a) The Department may adopt regulations necessary to carry out the provisions of this subtitle, including the determination of the state of principal use for the purpose of assessing the vessel excise tax.

(b) In order to protect the public safety, welfare, and recreational interests in waters of the State, the Department may adopt a program relating to the placement of buoys, mooring buoys, and other apparatus used to secure, berth, or moor vessels in the waters of the State. The Department shall consult with any county affected by the program.

(c) The Department shall adopt regulations governing the following:

  (1) The numbering of vessels for identification, safety equipment on vessels, and operations of any vessels subject to this subtitle so that each vessel of a type or size complying with the regulations may be operated with equal freedom or under similar requirements as other vessels of that type or size on all waters of the State. The numbering system used shall conform to the one adopted by the federal government. These regulations may not conflict with any federal law or regulation applicable to vessels on the waters in the State;

  (2) The issuance of certificates of title and certificates of boat number;

  (3) Instructions for making reports and handling personnel and boats in case of accidents;

  (4) Abandonment, destruction, theft, recovery, sale, or transfer of ownership;

  (5) Change of address of owner;

  (6) Use of boats from other jurisdictions on the waters of the State;

  (7) Issuance of certificates of number for boats changing their state of principal use to Maryland;

  (8) Cooperation with local governments and the federal authority for special events or to meet emergency situations; and

  (9) Issuance of certificates of number to owners of fleets or boats for hire or rent.

(d)

  (1) The Department shall adopt regulations prohibiting the operation of personal watercraft above idle speed in any area of water with a depth of less than 18 inches.

  (2) Except as provided in paragraph (1) of this subsection, the Department may adopt regulations limiting the use of personal watercraft in any area of water with a depth of less than 1 meter.

(e) A municipality or other local authority may not establish any regulation of a local nature which does not conform with the Department's regulations.

(f) On any proposed regulation affecting the equipment or operation of any vessel subject to this subtitle, the Secretary shall solicit the advice and opinions of officials of representative boating associations, yacht clubs, and local, State, or federal governments or officials, having knowledge or experience with the subject matter of the proposed regulations. These representatives and officials serve as an advisory committee appointed by the Secretary to review the proposed regulations.

(g) The Department, with the endorsement of the Secretary of Natural Resources and the Secretary of the Environment, after a public hearing following 60 days' notice, shall adopt and publish sound level limits governing the noise generated by the operation of pleasure craft on the waters of the State. The sound level limits shall be established at the most restrictive level consistent with the environmental noise standards adopted by the Department of the Environment which is achievable through the application of the best available technology and at a reasonable cost. The Department shall adopt regulations for the administration and enforcement of the sound level limits, taking into account accepted scientific and professional methods for measurement of sound levels.

(h) The Department shall adopt regulations to prohibit a person from:

  (1) Operating an unauthorized vessel over a power boat race course; or

  (2) Swimming across a boundary of a power boat race course.

#### Section 8-704.1

(a) Except as provided in subsection (b) of this section, the Department may not furnish to any person the name, address, or other identifying information about the owner of the registered vessel.

(b) This section does not prevent the Department from furnishing information under this section:

  (1) To another governmental agency;

  (2) If not requested for the purpose of preparing a mailing list, to a person requesting the information in connection with the compilation of statistical data;

  (3) As to the owners of vessels registered under this subtitle, to a person whose request for the information is determined by the Department to be limited to, and necessary for, the protection of the ownership, safe operation, proper maintenance, or repair of the vessel; or

  (4) To a financial institution, as defined in Sec. 1-101(j) of the Financial Institutions Article, or its agents, employees, or contractors, requesting information under Sec. 4-317 of the General Provisions Article.

#### Section 8-705

(a) A governing body may establish and designate areas of land or water within its jurisdiction as waterways improvement districts, subject to the provisions of subsection (c) of this section.

(b) A governing body:

  (1) Shall act as the district council for the district; and

  (2) May carry out the duties vested by law or which are reasonably necessary.

(c) A governing body shall refer every proposed district to the section of waterways improvement of the Department for a report and evaluation of benefits to be achieved by creating the proposed district. The Department shall review the proposed district and submit a report to the governing body containing recommendations on feasibility and need for the proposed district. The report shall include the area within the district, the work or project to be carried out within the district pursuant to Sec. 8-707 of this subtitle, and the estimated cost for the work or project recommended.

#### Section 8-706

The Department shall carry out the administrative duties concerning the waterways improvement districts. In addition, the Department shall:

(1) Review proposals and petitions to establish waterways improvement districts and report to the governing body on each proposed district as provided in Sec. 8-705 of this subtitle;

(2) Provide engineering design for waterways projects and supervise or provide supervision for these projects;

(3) Clear debris, aquatic vegetation, and obstructions from waters of the State;

(4) Provide liaison with the United States Army Corps of Engineers on projects under Sec. 107 of the Rivers and Harbors Act;

(5) Prepare requests for appropriation of funds necessary to pay the State's share of the cost of projects;

(6) Administer the Waterway Improvement Fund to provide interest-free loans to any governing body for a waterway improvement project as provided in Sec. 8-708(d) of this subtitle; and

(7) Administer the Waterway Improvement Fund to provide interest-free loans to a governing body for the benefit of a residential property owner, or group of residential property owners, with land abutting a channel adjacent to a main channel or harbor for dredging the adjacent channel as provided in Sec. 8-708.1 of this subtitle.

#### Section 8-707

(a)

  (1) There is a Waterway Improvement Fund for the purposes specified in this subtitle, including the accelerated restoration of the Chesapeake and Atlantic Coastal Bays and their watersheds.

  (2) Except as provided in Sec. 8-709 of this subtitle, any money received into the Waterway Improvement Fund shall be used solely for the following projects:

    (i) Marking channels and harbors and establishing aids to navigation in cooperation with and as an extension of operations of the United States Coast Guard;

    (ii) Clearing debris, aquatic vegetation, and obstruction from waters of the State;

    (iii) Dredging channels and harbors and construction of jetties and breakwaters in cooperation with and as an extension of operations of the United States Army Corps of Engineers;

    (iv) Dredging ponds, lakes, and reservoirs owned by the State;

    (v) Constructing and maintaining marine facilities beneficial to the boating public, including constructing pump-out stations for use by the general boating public at public and private marinas. The Secretary may use the funds to install pump-out stations for use by the general boating public and to supplement maintenance costs at the discretion of the Secretary. Before approving the construction of any pump-out station at a public or private marina, the Secretary shall consult with the Department of the Environment to assure that the wastewater collection and treatment system of the marina is adequate to handle any increased flow. The Department may adopt regulations to govern the use and operation of pump-out stations for use by the general boating public constructed or supported by State funds under this section;

    (vi) Improvement, reconstruction, or removal of bridges, drawbridges, or similar structures over or across waters, if those structures delay, impede, or obstruct the boating public. With the approval of the Board of Public Works, funds from another public or any private source may be received and used to supplement and increase the funds in the Waterway Improvement Fund for the purpose of this subsection. Also, the Board of Public Works may enter into an agreement with a private company or person which owns such a structure, for the improvement, reconstruction, or removal of the structure, in order to provide a sharing of the cost of the improvement, reconstruction, or removal;

    (vii) Evaluation of water-oriented recreation needs and recreational capacities of Maryland waterways and development of comprehensive plans for waterway improvements;

    (viii) To provide matching grants to local governments for the construction of marine facilities for marine firefighting, marine police, or medical services and for the acquisition of vessels and equipment for vessels for marine firefighting, police, medical, and communication equipment for promoting safety of life and property and general service to the boating public utilizing the waters of the State. The ownership, operation, and maintenance of any equipment acquired under this subtitle shall be the responsibility of the local governing body;

    (ix) Structural and nonstructural shore erosion control under subsection (b) of this section;

    (x) Acquisition of equipment and State vessels for firefighting, policing, first aid and medical assistance, and communications, in order to promote safety of life and property and general service to the boating public utilizing waters of the State;

    (xi) Boating information and education;

    (xii) To provide interest-free loans to a governing body for the benefit of a residential property owner, or group of residential property owners, with land abutting a channel adjacent to a federal, State, county, or municipal main channel or harbor for dredging the adjacent channel; and

    (xiii) Consistent with other uses in items (i) through (xii) of this paragraph, to fund the Whole Watershed Fund established under Sec. 8-2B-03 of this title.

(b) Money from the Waterway Improvement Fund may be appropriated for structural and nonstructural shore erosion control projects under Subtitle 10 of this title, provided that the funds appropriated:

  (1) In any fiscal year do not exceed 15% of the total excise tax revenues, exclusive of loan repayments, attained by the Waterway Improvement Fund in the preceding fiscal year; and

  (2) May only be expended for projects that address shoreline areas where:

    (i) Significant erosion is being caused by a combination of boat traffic and other factors, including:

      (1) An exposed point of land or shore in a narrow creek or cove;

      (2) Shore composition of easily erodible soils;

      (3) A steep, seaward, near-shore slope; or

      (4) A high rate of boating traffic passing close to the shore;

    (ii) The shoreline has the following characteristics:

      (1) Evidence of erosion is clearly visible; and

      (2) Proximity to navigable waters where dredging responsibility is not clearly accepted by the federal government; or

    (iii) Erosion has been significantly increased due to the construction or replacement of public waterway improvement structures.

(c)

  (1) Funds specified under subsection (b) of this section may be appropriated in a lump sum for the general purpose of shore erosion control, without specifying individual projects pursuant to Sec. 8-709(a) of this subtitle.

  (2) By January 1 of each year, the Department shall issue a written report to the Senate Budget and Taxation Committee and the House Appropriations Committee that shall contain for each grant or loan made under subsection (b) of this section:

    (i) The amount of each grant or loan;

    (ii) The name and address of each recipient;

    (iii) The location of the property for which the grant or loan was made; and

    (iv) If the recipient is a corporation, the name of each officer of the corporation.

#### Section 8-708

(a)

  (1) Except as provided in Sec. 8-708.1 of this subtitle, projects for dredging and marking channels and harbors, construction of jetties and breakwaters, and clearing debris, aquatic vegetation, and obstructions in navigable waters, as well as construction of marine facilities located within lands owned by the Department and construction of pump-out stations for use by the general boating public at public and private marinas, shall be financed solely by the Waterway Improvement Fund.

  (2) Any funds available from the federal government, any governing body, or any gift also may be used for the purposes included in paragraph (1) of this subsection.

(b)

  (1) Except for the construction of pump-out stations for use by the general boating public at public and private marinas, the governing body and the Waterway Improvement Fund jointly shall finance projects to construct marine facilities beneficial to the boating public.

  (2) Except as provided in paragraphs (3) and (4) of this subsection, the contribution of the Waterway Improvement Fund shall be limited to not more than 50% of the cost of each project.

  (3) The Waterway Improvement Fund may finance completely:

    (i)

      (1) Subject to item 2 of this item, any construction project beneficial to the boating public that costs $500,000 or less, regardless of its location; and

      (2) Any marina construction project beneficial to the general boating public that costs $1,000,000 or less, regardless of its location;

    (ii) A project that involves the beneficial use of dredged material; and

    (iii) Any water quality monitoring by the Department.

  (4) The Waterway Improvement Fund may finance not more than 50% of the costs exceeding:

    (i) $500,000 for construction projects beneficial to the boating public; and

    (ii) $1,000,000 for marina construction projects beneficial to the general boating public.

(c)

  (1) The governing body shall pay its share of matching projects under subsection (b) of this section or shall repay the Waterway Improvement Fund for any loan authorized under subsection (d) of this section either by:

    (i) Means of appropriations from general funds; or

    (ii) Levying a special assessment or tax against each property owner whose property lies within the district.

  (2) The governing body may accept and use any gift for the cost of any project as part of the governing body's share of any matching fund project.

  (3) Any special assessment or tax levied by Anne Arundel County under paragraph (1)(ii) of this subsection may not apply to property that is exempt from taxation under Title 7, Subtitle 2 of the Tax - Property Article.

(d) In addition to the methods of financing provided in subsections (a) and (b) of this section, a governing body may borrow interest-free funds from the Waterway Improvement Fund for a waterway improvement project within a waterway improvement district. However, the amount borrowed from the Waterway Improvement Fund for these districts may not exceed 21% of the total attained revenue of the Waterway Improvement Fund from the previous fiscal year. A single project may not exceed 7% of the total attainment. The governing body shall repay the funds at a uniform rate over a period not to exceed 25 years as provided by agreement between the State and the governing body.

(e) The contribution of the Waterway Improvement Fund shall be limited to not more than 50% of the cost of each acquisition, and the total amount of funds expended in any fiscal year for acquisitions and projects specified in Sec. 8-707(a)(8) and (10) of this subtitle may not exceed the amount of the motor fuel tax revenue paid to the Waterway Improvement Fund in the preceding fiscal year, as provided for in Sec. 2-1104 of the Tax - General Article.

(f) Notwithstanding any other provision of this subtitle, funds deposited in the Waterway Improvement Fund may be used for amortization and payment of interest on bonds issued for financing projects authorized under this subtitle.

#### Section 8-708.1

(a) Projects for dredging channels adjacent to federal, State, county or municipal main channels or harbors may be financed by interest-free loans to a governing body for the benefit of a residential property owner or a group of residential property owners with land abutting the adjacent channel.

(b)

  (1) Except as provided in paragraph (2) of this subsection, unless every residential property owner with land abutting the adjacent channel agrees to participate in the financing of the dredging project, the dredging project may not be approved.

  (2) If all residential property owners abutting a channel adjacent to a main channel or harbor agree to exempt a residential property owner or group of residential property owners from participating in the financing of the dredging project, the residential property owner or group of residential property owners shall be exempt.

(c) Repayments of the principal on loans made under this section shall be made by the governing body in accordance with Sec. 8-708(c) of this subtitle.

#### Section 8-709

(a) The Department shall include in its annual budget request an itemized list of requests for the use of any available money from the Waterway Improvement Fund for the projects under Sec. 8-707 of this subtitle. The Department's list shall include a brief description of each project, an estimate of its cost, and the benefits to be derived from it. The list shall designate which projects are financed solely by the Waterway Improvement Fund, which are matching fund projects, and which are interest-free loan projects.

(b) Notwithstanding the provisions of subsection (a) of this section, in any fiscal year the Department may expend from the Waterway Improvement Fund without legislative approval a total sum of not more than $350,000 in operating funds for small projects, subject to the limitation that a single project of this kind may not exceed $25,000 in cost to the Waterway Improvement Fund, and a sum of not more than $100,000 may be expended for boating safety and education.

(c) Notwithstanding the provisions of subsection (a) of this section, the Department may propose an appropriation from the Waterway Improvement Fund to support marine operations of the Natural Resources Police not exceeding:

  (1) $1,700,000 in the Department's fiscal year 2006 budget;

  (2) $2,000,000 in the Department's fiscal year 2007 through fiscal year 2025 budgets; and

  (3) $2,100,000 in the Department's fiscal year 2026 budget, and every year thereafter.

(d) Notwithstanding the provisions of subsection (a) of this section:

  (1) For fiscal year 2006 through fiscal year 2009, as provided in the State budget, the Department may use up to the following percentage of the money in the Waterway Improvement Fund for administrative expenses directly relating to implementing the purposes of the Waterway Improvement Fund:

    (i) In fiscal year 2006, 8%;

    (ii) In fiscal year 2007, 6%;

    (iii) In fiscal year 2008, 4%; and

    (iv) In fiscal year 2009, 2%.

  (2) Except as provided in paragraph (3) of this subsection, for each of the fiscal years after fiscal year 2009, the Department may use up to $750,000 in the Waterway Improvement Fund for administrative expenses directly relating to implementing the purposes of the Waterway Improvement Fund.

  (3) For fiscal year 2016 only, the Department may use up to $1,625,000 in the Waterway Improvement Fund for administrative expenses directly relating to implementing the purposes of the Waterway Improvement Fund.

(e)

  (1) Notwithstanding any other provision of law, for fiscal year 2026 and each fiscal year thereafter, the Department shall distribute at least $250,000 from the Waterway Improvement Fund to a statewide Maryland-based historic preservation nonprofit organization with demonstrated experience in grantmaking.

  (2) A nonprofit organization shall use any funds received under this subsection to establish, operate, and administer a maritime heritage competitive grant program to provide grants to nonprofit organizations in the State and instrumentalities of the State, counties, or municipalities engaged in maritime heritage preservation, interpretation, or conservation.

  (3) On or before November 30 each year, a nonprofit organization that receives funds under this subsection shall submit a report to the Department on the guidelines, promotion, selection, recipients, and impact of the organization's competitive grant program.

#### Section 8-709.1

(a) This section applies to any public or private marina that is located on the navigable waters of the State.

(b) Except as provided under Sec. 9-333 of the Environment Article, on or after July 1, 1989, a person may not construct:

  (1) Any additional slips at an existing marina that would result in a total slip capacity of more than 10 slips; or

  (2) A new marina with more than 10 slips on the navigable waters of the State.

#### Section 8-710

(a) A manufacturer or dealer may not conduct business in the State unless licensed as a manufacturer or dealer in accordance with regulations adopted by the Department.

(b) An out-of-state or foreign manufacturer or dealer shall be exempted from licensing solely for purposes of displaying and selling vessels at a boat show, boat exposition, or outdoor recreation show if the show or exposition is 14 consecutive days or less duration, admission taxes are paid on charges for admission to the show or exposition, and the manufacturer or dealer does not principally own, control, or manage the show or exposition.

(c)

  (1) Application for a manufacturer's or dealer's license is made on the form the Department prescribes and contains the name and address of the applicant.

  (2) If the applicant is a partnership, the application shall include the name and address of each partner.

  (3) If the applicant is a corporation, the application shall contain the names of the principal officers of the corporation, the state of incorporation, the addresses of every place where the business is conducted, the nature of the business, and any other information the Department requires.

  (4) Every application shall be verified by oath or affirmation of the applicant if an individual, or by the partner or officer if the applicant is a partnership or corporation.

  (5)

    (i) A license fee shall accompany every application.

    (ii) The Department shall set the license fee at an amount not to exceed $50.

(d) After receiving the required application and fee, the Department issues a license certificate to the applicant which entitles him to conduct business as a manufacturer or dealer during the calendar year in which the license is issued. Every license expires on December 31 of each year in which issued. The license may be renewed upon annual application and payment of the required fee.

(e)

  (1) The Department may refuse to issue a license or, after written notice to the licensee and a hearing, may cancel a license when the Department determines that the applicant or licensee has failed to comply with the provisions of this subtitle.

  (2) On petition of the Consumer Protection Division of the Office of the Attorney General, and after written notice to a licensee and a hearing, the Department may revoke or suspend the license of a dealer if the Department determines that the licensee has violated Sec. 13-301 or Sec. 13-303 of the Commercial Law Article.

(f) If, during the period for which a dealer's or manufacturer's license is issued, there is any change in the factual information furnished to the Department by the licensee in connection with obtaining or retaining the license or a renewal of the license, the change shall be truly, fully, and promptly communicated to the Department in writing on forms provided by the Department. The applicant shall sign the form and certify that the information given is true and correct.

#### Section 8-710.1

(a) Prior to the issuance of a boat dealer's or manufacturer's license, each applicant shall file with the Department acceptable evidence of a bond or other security deemed sufficient and adequate by the Department for the payment of fees and taxes the applicant receives based upon the applicant's volume of sales and the class of boat dealer's or manufacturer's license which the applicant has requested. The bond shall be for the use and benefit of the Department and any member of the public who suffers or sustains any loss by reason of any violation of this subtitle by the licensee, the licensee's agent, or the licensee's employee. The Department may also use the bond to recover any penalty and interest charged to the licensee based on a failure to pay the fees or taxes received by the applicant.

(b) If any licensee fails to file acceptable evidence that the bond required by this section has been extended prior to the expiration of the bond, the licensee's dealer's or manufacturer's license automatically is suspended upon expiration of the bond. The suspension shall terminate when the licensee files with the Department acceptable evidence of a bond or other security deemed sufficient and adequate by the Department for the payment of fees and taxes the licensee receives based upon the licensee's volume of sales and the class of boat dealer's and manufacturer's license which the licensee has been issued.

(c) An applicant for a boat dealer's or manufacturer's license who also is applying for a title service agent's license or a trailer dealer's license with the Motor Vehicle Administration may file evidence of a bond or other security deemed adequate and sufficient by both the Motor Vehicle Administration and the Department with respect to the applicant's obligations and liabilities under this section and Sec. 15-308 or Sec. 15-604 of the Transportation Article.

#### Section 8-710.2

(a) The Department may design temporary certificates of boat number and furnish them to any licensed boat dealer.

(b)

  (1) For any vessel that is to be used principally in Maryland, a licensed dealer may issue 1 temporary certificate of boat number to the person who buys the vessel from the dealer.

  (2) A dealer may not issue a temporary certificate of boat number unless:

    (i) The taxes and other fees as required by this subtitle are paid to the dealer; and

    (ii) An application for Maryland certificate of boat title and number or a purchaser's application for transfer of a Maryland certificate of boat title is completed and signed by the purchaser of the vessel.

  (3)

    (i) Before issuing a temporary certificate of boat number, the dealer shall complete the certificate by writing in the information required by the Department.

    (ii) A temporary certificate of boat number is not valid unless the dealer completes the certificate as required by this subsection.

  (4) The dealer may not issue more than 1 temporary certificate for any vessel. If the temporary certificate is lost, stolen, or destroyed, the owner must apply to the Department for a certificate of boat number.

  (5) Within 30 days after a dealer issues a temporary certificate of boat number, the dealer shall mail a copy of the temporary certificate to the Department.

(c) A temporary certificate of boat number expires when the first of either of the following occurs:

  (1) A certificate of boat number for the vessel is issued by the Department; or

  (2) 60 days expire from the date the temporary certificate was issued by the dealer.

(d) In addition to any other sanction under this subtitle, on failure of a dealer to forward to the Department taxes and fees within 30 days of collection, the Department may declare forfeited the bond or other security filed by the dealer under this subtitle.

(e) The Department may require the return of all temporary certificates from any dealer who has not complied with any provision of this subtitle.

#### Section 8-710.3

(a) A licensed boat dealer shall collect the excise tax on all sales of vessels to be titled and numbered and on all sales of vessels to be federally documented to be used in the State as required under Sec.Sec. 8-712 and 8-716 of this subtitle.

(b) A licensed boat dealer who operates a bare-boat charter shall insure that any owner of a vessel in the fleet of the dealer to be used in the State has:

  (1) Complied with Sec.Sec. 8-712 and 8-716 of this subtitle; and

  (2) Numbered the vessel to be chartered in the State as the state of principal use.

#### Section 8-711

(a) Every vessel whose construction is begun after October 31, 1972, shall have a hull identification number assigned and affixed as required by the Federal Boat Safety Act of 1971. The Department shall determine the procedures for application and for issuance of the hull identification number.

(b) A person may not destroy, remove, alter, cover, or deface the manufacturer's hull identification number, the plate bearing it, or any hull identification number the Department assigns to any vessel without the Department's permission.

#### Section 8-712

(a)

  (1) Any vessel equipped with propulsion machinery of any type on the waters of the State shall be numbered for identification in accordance with this subtitle and any regulation pursuant to it. This provision does not apply to the following vessels:

    (i) A vessel which has a valid document issued by the United States Coast Guard or its successor;

    (ii) A vessel with a valid number awarded pursuant to federal law or a federally approved numbering system of another state, if the number awarded is displayed in accordance with the requirements of that system, and the certificate of number is available for inspection whenever the vessel is in use;

    (iii) A vessel from a country other than the United States temporarily using the waters of the State for less than 90 days;

    (iv) A vessel used for public service and owned by the United States government, another state, or any political subdivision;

    (v) A ship's lifeboat;

    (vi) A vessel propelled only by sail;

    (vii) A vessel numbered according to the Federal Boat Safety Act of 1971; or

    (viii) A vessel manually propelled.

  (2) The Department, by regulation, for the period the Department prescribes may exempt any vessel or class of vessels from the numbering provisions of this subtitle, if the vessel or class of vessels is exempted from the federal numbering requirements by statute, or rule or regulation.

(b)

  (1) The owner of any vessel to be numbered by this subtitle shall file an application for a certificate of number with the Department.

  (2) The application is on forms the Department approves, accompanied by the requisite fee, and signed by every vessel owner.

  (3)

    (i) The owner of the vessel shall include with the application contact information to be used:

      (1) In the event of an emergency; or

      (2) If the vessel is at risk of becoming an abandoned or sunken vessel as defined in Sec. 8-721 of this subtitle.

    (ii) The contact information required under this paragraph shall include the mailing address, telephone number, and e-mail address for each owner of the vessel.

    (iii) The Department may require the owner of the vessel to provide alternate emergency contact information.

(c)

  (1)

    (i) Certificates of number issued under this section shall be valid for a period not to exceed 2 years.

    (ii) The owner of the vessel may apply every other year for renewal of the certificate.

    (iii) The renewed certificate shall expire on December 31 of the calendar year following the year the certificate is issued.

    (iv) The Department shall record any transaction or transfer of numbered boats.

    (v) The Department may record any amount of money owing on a vessel required to be numbered at the time of sale.

    (vi) The Department may not effect a transfer of ownership until the amount of money owed as shown on the records of the Department is fully paid or recorded on the new title.

    (vii) Any vessel that is required to be numbered under this section that is exempt before January 1, 1974, shall be exempt from payment of the excise tax imposed under Sec. 8-716 of this subtitle.

  (2) Except as provided in paragraph (3) of this subsection, the fee for:

    (i) An application for a certificate of number is $70; and

    (ii) A replacement or corrected certificate of number is $20.

  (3) Emergency rescue boats and fire boats that belong to fire departments or rescue squads in Maryland:

    (i) Shall be exempt from all registration fees, including a fee for a certificate of number; but

    (ii) Shall apply for a registration renewal every 2 years.

(d) Upon receipt of the application in approved form, the Department shall issue to the applicant a certificate of boat number which shall contain the boat number issued to the vessel and additional information the Department prescribes by regulation. The certificate of boat number shall be available for inspection when the vessel is in use. The owner shall paint on or attach the boat number to each side of the forward half of the vessel's hull or superstructure for which the boat number is issued, displaying the boat number in the manner required by Department regulations and maintaining the boat number in legible condition.

(e) If a vessel required to be numbered under this subtitle is sold, transferred, abandoned, lost, stolen, or destroyed, the vessel's certificate expires at the time of the sale, transfer, abandonment, loss, theft, or destruction and then is invalid.

(f) There is a $5 service charge for every check returned unpaid.

(g) The Department shall inform each holder of a certificate of boat number of the manner in which the boat owner may obtain a current copy of the U. S. Coast Guard rules and regulations applicable to the type of boat registered under the owner's boat number.

(h) If a person who applies for the issuance or renewal of a certificate of boat number for a vessel has an outstanding warrant for failing to appear in court to answer a charging document alleging a violation under this subtitle, the Department shall refuse to issue or renew the certificate of boat number for the vessel until the person charged has complied with the provisions of Sec. 1-205 of this article.

#### Section 8-712.1

(a)

  (1) An owner of a vessel that has a valid document issued by the U.S. Coast Guard and that is used principally on the waters of the State for pleasure shall apply to the Department for a Maryland use sticker.

  (2) The Department shall issue a Maryland use sticker to any person who submits an application and pays a fee as required by subsection (b) of this section.

  (3) The Maryland use sticker issued under this section shall be valid for a period not to exceed 2 years expiring on December 31 of the calendar year following the year the sticker is issued.

(b) The owner of the vessel shall:

  (1) Submit an application to the Department on the form that the Department requires and that is signed by every owner of the vessel; and

  (2) Pay to the Department the following fees:

    (i) An application fee of $70 for the 2-year sticker; and

    (ii) A fee of $20 for a replacement sticker.

(c) Within 30 days after the sale or other transfer of a vessel that is displaying or should display a sticker under this section:

  (1) The transferor shall give notice of the transfer to the Department on a form that the Department requires; and

  (2) If the transferee intends to continue to use the vessel principally on the waters of the State, the transferee shall submit an application for a Maryland use sticker and pay the fee as required by subsection (b) of this section.

(d) The Maryland use sticker shall be displayed on or about the forward half of the vessel.

(e) Unless the vessel that is subject to the requirement of this section displays a current sticker:

  (1) A person may not operate the vessel on the waters of the State; and

  (2) The owner may not knowingly permit the vessel to be operated on the waters of the State.

#### Section 8-712.2

(a)

  (1) Except as otherwise provided in paragraphs (3), (4), and (5) of this subsection, a person born on or after July 1, 1972, may not operate on the waters of the State a vessel for pleasure that is required to be numbered in accordance with this subtitle or a vessel for pleasure that is required to be numbered in accordance with the Federal Boat Safety Act of 1971 without first obtaining a certificate of boating safety education.

  (2) A person who is subject to the provisions of paragraph (1) of this subsection shall:

    (i) Possess the certificate of boating safety education when operating a vessel on waters of the State; and

    (ii) Show the certificate on the demand of a Natural Resources police officer or other law enforcement officer.

  (3) The following persons are exempt from the requirements of this section:

    (i) A person who is operating a vessel in connection with commercial purposes;

    (ii) A person who is a resident of another state and who is visiting the State for 60 days or less in a vessel that is numbered in another state if:

      (1) The person is 16 years old or older; or

      (2) The person has been issued a boating safety certificate in accordance with the provisions of subsection (c)(6) of this section;

    (iii) A person who is visiting the State for 90 days or less in a vessel from a country other than the United States;

    (iv) A person operating a vessel on a body of water located on private property; and

    (v) Any other person exempted by regulation of the Department.

  (4) When a vessel numbered in accordance with this subtitle or in accordance with the Federal Boat Safety Act of 1971 is operated for pleasure on waters of the State, at least 1 person on the vessel must:

    (i) Possess the certificate of boating safety education; or

    (ii) Be exempt from the certification requirements of paragraph (1) of this subsection.

  (5) A person who is under the age of 16 and who operates a vessel numbered in accordance with this subtitle or in accordance with the Federal Boat Safety Act of 1971 must:

    (i) Possess a certificate of boating safety education;

    (ii)

      (1) If operating a vessel under 11 feet in length, be under the supervision of a person who has obtained a certificate of boating safety education and is aboard the vessel; or

      (2) If operating a vessel 11 feet in length or greater, be under the supervision of a person who is 18 years or older and has obtained a certificate of boating safety education and is aboard the vessel; or

    (iii) Be under the supervision of a person who was born before July 1, 1972, and is aboard the vessel.

(b)

  (1) The Department shall:

    (i) Adopt regulations that establish criteria for a course of instruction in boating safety education;

    (ii) Administer a verbal test when appropriate;

    (iii) Coordinate a statewide program of boating safety instruction and certification and ensure that a course of boating safety education is available within each county; and

    (iv) Ensure that a course of boating safety education is available at the earliest practicable age for children in boating communities.

  (2) Any course of boating safety education that is offered through a public school is not required to be more than 6 classes, or exceed a total of 8 hours.

  (3) The following persons may offer the course of instruction in boating safety education if approved by the Department:

    (i) The Department;

    (ii) The U.S. Coast Guard Auxiliary;

    (iii) The U.S. Power Squadron;

    (iv) A political subdivision;

    (v) A municipal corporation;

    (vi) An agency;

    (vii) A public or nonpublic school;

    (viii) A group;

    (ix) A firm;

    (x) An association; or

    (xi) Any other person.

(c)

  (1) The Department or the Department's designee shall issue a certificate of boating safety education to a person who:

    (i) Passes the course prescribed by the Department in boating safety education; or

    (ii) Passes a boating safety equivalency examination administered by persons authorized to offer the course on boating safety education.

  (2) Upon request, the Department shall provide, without charge, boating safety education materials to persons who plan to take the boating safety equivalency examination.

  (3)

    (i) Once issued, the certificate of boating safety education:

      (1) Is valid for the lifetime of the person to whom the certificate was issued; and

      (2) May not be revoked by the Department or a court of law.

    (ii) The Department shall replace, without charge, a lost or destroyed certificate if the Department issued the certificate or has a record that the certificate was issued by the U.S. Coast Guard or the U.S. Power Squadron.

  (4)

    (i) The Department or the Department's designee may issue a 30-day temporary certificate of boating safety education to a person who signs an affidavit stating that the person has read and understood the boating safety education materials provided by the Department.

    (ii) The 30-day temporary certificate of boating safety education issued in accordance with subparagraph (i) of this paragraph may be renewed for 1 additional 30-day period.

  (5) In lieu of a certificate of boating safety education issued by the Department, a license issued by the U.S. Coast Guard, or a boating safety certificate issued by a unit of the U.S. Coast Guard Auxiliary, the U.S. Power Squadron, or a local board of education, is sufficient to comply with the requirements of this section.

  (6) In lieu of a certificate of boating safety education issued by the Department, a boating safety certificate issued in another state in accordance with criteria of the National Association of State Boating Law Administrators is sufficient to comply with the requirements of this section.

(d) On or after July 1, 1988, a person who is subject to the provisions of subsection (a)(1) of this section and who operates on waters of the State a vessel for pleasure that is required to be numbered in accordance with this subtitle or a vessel for pleasure that is required to be numbered in accordance with the Federal Boat Safety Act of 1971, in violation of any requirement of this section, is guilty of a misdemeanor and on conviction is subject to:

  (1) For a first offense, a fine not exceeding $25; and

  (2) For any subsequent offense that occurs within 2 years of a prior conviction under this section, a fine not exceeding $500.

(e) A juvenile charged with any violation under this section shall be charged as provided in Title 3, Subtitle 8A of the Courts Article.

(f)

  (1) A Natural Resources police officer or other law enforcement officer may enforce the provisions of this section only as a secondary action when the officer detains an operator of a vessel for a suspected violation of another provision of the Code or regulations adopted in accordance with another provision of the Code.

  (2) A person may be cited but not apprehended solely for a violation of this section.

#### Section 8-712.3

(a)

  (1) In this section the following words have the meanings indicated.

  (2) "Livery vessel owner" means a person who engages in whole or in part in the business of renting, leasing, or chartering a vessel that is less than 16 feet in length for a period of less than 24 hours.

  (3) "Seaworthy condition" means the ability to withstand ordinary stress of wind, waves, and other weather that the vessel might normally be expected to encounter.

(b) A livery vessel owner or an agent or employee of the livery vessel owner may not rent or offer for rent a vessel that is less than 16 feet in length to be operated on the waters of the State unless:

  (1) Each vessel is in seaworthy condition and equipped for the waters where the vessel is intended to be used; and

  (2) The livery vessel owner or agent or employee of the livery vessel owner possesses a boating safety certificate approved by the Department.

(c) A violation of subsection (b) of this section shall be considered a boating safety violation for purposes of Sec. 8-740(a) of this subtitle.

#### Section 8-712.4

(a)

  (1) An owner of a vessel may apply to the Department for a nonmotorized vessel decal if the vessel is:

    (i) Not equipped with propulsion machinery;

    (ii) Used principally on the waters of the State; and

    (iii) Not subject to the requirements of Sec. 8-712 or Sec. 8-712.1 of this subtitle.

  (2) The owner shall apply for a nonmotorized vessel decal on a form approved by the Department.

(b) A nonmotorized vessel decal:

  (1) Is valid for a period not to exceed 2 years; and

  (2) Expires on December 31 of the calendar year following the year the decal was issued.

(c) The fee for a nonmotorized vessel decal is $12.

(d) The nonmotorized vessel decal shall be displayed on the exterior of the vessel.

(e) Within 30 days after the sale or other transfer of a vessel displaying a nonmotorized vessel decal under this section:

  (1) The transferor shall give notice of the transfer to the Department on a form that the Department requires; and

  (2) If the transferee intends to continue to use the vessel principally on the waters of the State, the transferee may submit an application for a nonmotorized vessel decal and pay the fee required under subsection (c) of this section.

#### Section 8-713

A person may not operate or give permission to operate any vessel on the waters of the State unless the vessel is numbered as required by this subtitle.

#### Section 8-713.1

(a) This section does not supersede Sec. 4-1013(a) and (b) of this article, which provides for the display of an oyster dredge boat identification number.

(b) A person may not operate knowingly a vessel on the navigable waters of the State while the number, name, or home port designation of the vessel, as assigned or documented by the United States Coast Guard or cleared by the United States Customs Service, is concealed, covered, or defaced.

(c) A person who violates this section is guilty of a misdemeanor and on conviction is subject to imprisonment not less than 1 month and not exceeding 6 months or a fine of not less than $150 and not exceeding $500 or both.

(d) In addition to the penalties under subsection (c) of this section, the court may order that the vessel be:

  (1) Forfeited to the State; and

  (2) Delivered to the Department for the disposition that is most advantageous to the State in the discretion of the Department.

#### Section 8-714

(a) If a licensed dealer or manufacturer owns a vessel mainly used in the dealer's or manufacturer's business and held for sale and that otherwise is required to be numbered under this title, the dealer or manufacturer may apply to the Department for the issuance of as many dealer's or manufacturer's certificates of number as are required for the normal operation of business and as the Department authorizes. A broker licensed as a dealer may not obtain manufacturer's or dealer's certificates.

(b) Numbers displayed by authority of manufacturer's or dealer's certificates of number may be transferred from 1 vessel to another vessel owned by the manufacturer or dealer and may be affixed in a temporary manner. These numbers shall be used only on vessels demonstrated, tested, or owned by the manufacturer or dealer, and these numbers are not valid for use on the vessels when chartered, rented, or leased by the manufacturer or dealer.

(c)

  (1) Each application for the manufacturer's or dealer's certificates of number shall be on forms the Department approves and be accompanied by a fee of $70.

  (2) The certificate of number issued under this section is valid for a period not to exceed 2 years and shall expire on December 31 of the calendar year following the year the certificate is issued.

#### Section 8-715

(a) Except as provided in subsection (d) of this section, any owner of a vessel principally used on the waters of the State and to be numbered shall apply to the Department for a certificate of title for the vessel.

(b) Each certificate of title shall contain the information and shall be issued in a form the Department prescribes.

(c) The Department may not issue or renew a certificate of number to any vessel required to be registered and numbered in the State unless the Department has issued a certificate of title to the owner.

(d) A person who on July 1, 1965, is the owner of a vessel with a valid certificate of number issued by the State is not required to file an application for a certificate of title for the vessel unless the person:

  (1) Transfers any part of the person's interest in the vessel; or

  (2) Renews the certificate of number for the vessel.

(e) Every owner of a vessel subject to titling under the provisions of this subtitle shall apply to the Department for issuance of a certificate of title for the vessel within 30 days after acquisition. The application shall be on forms the Department prescribes, and accompanied by the required fee and tax. The application shall be signed and sworn to before a notary public or other person who administers oaths, or a certification signed in writing containing substantially the representation that statements made are true and correct to the best of the applicant's knowledge, information, and belief, under penalty of perjury. The application shall contain the date of sale and gross price of the vessel or the fair market value if no sale immediately preceded the transfer, and any additional information the Department requires. If the application is made for a vessel last previously registered or titled in another state or foreign country, the application shall contain this information and any other the Department requires.

(f) If a dealer buys or acquires a used vessel for resale, the dealer shall report the acquisition to the Department on forms the Department provides, or the dealer may apply for and obtain a certificate of title as provided in this subtitle. If a dealer buys or acquires a used non-Maryland numbered vessel, the dealer shall apply for a certificate of title in the dealer's name within 15 days. If a dealer buys or acquires a new vessel for resale, the dealer may apply for a certificate of title in the dealer's name. These transactions are exempt from title tax.

(g) Every dealer transferring a vessel requiring titling under this subtitle shall assign the title to the new owner or, in the case of a new vessel, assign the certificate of origin. Within 30 days, the dealer shall forward all title taxes, fees, and applications to the Department.

(h) The Department shall maintain a record of any certificate of title the Department issues.

(i) A person may not sell, assign, or transfer a vessel titled by the State without delivering to the purchaser or transferee a certificate of title with an assignment on the certificate of title showing title in the purchaser or transferee. A person may not purchase or otherwise acquire a vessel required to be titled by the State without obtaining a certificate of title for the vessel in the person's name.

#### Section 8-716

(a)

  (1) In this section the following words have the meanings indicated.

  (2) "Commissioning procedures" means the initial outfitting of a vessel immediately after the purchase of the vessel, including the installation of rigging, electronic gear, propulsion machinery, generators, or other related gear.

  (3) "Fair market value" means:

    (i) As to the sale of any vessel by a licensed dealer or a dealer licensed by another state or a foreign country, the total purchase price, as certified by the dealer on a form acceptable to the Department, less the value of any vessel that is traded in as part of the consideration for the sale, which trade-in value may not exceed the value for the trade-in vessel as shown in a national publication of used vessel values adopted by the Department;

    (ii) As to any other vessel that is sold by any person other than a licensed dealer, the greater of:

      (1) The total purchase price; or

      (2) $100; or

    (iii) As to any other vessel that is sold by any person other than a licensed dealer, either:

      (1) The total purchase price, if verified by means of a certified bill of sale approved by the Department, in which the actual price paid for the vessel is stated; or

      (2) The valuation shown in a national publication of used vessel values adopted by the Department if a certified bill of sale does not accompany the application.

  (4) "Sea trial" means a period of on-the-water operations, not to exceed 1 day, that is conducted:

    (i) For the purpose of testing the effectiveness of specific maintenance, repairs, or commissioning procedures; or

    (ii) For a vessel held for resale by a licensed dealer under this section.

  (5) "Total purchase price" means the price of a vessel, including simultaneously purchased motors, spars, sails, and accessories exclusive of trailer, agreed on by the buyer and seller, with no deduction for trade-in or other nonmonetary consideration.

  (6) "Used principally in this State" means that this State is the state of principal use as defined in Sec. 8-701(p) of this subtitle, except that in calculating where the vessel is used or used most, a vessel is not considered to be in use for any period of time that it is held for maintenance, repair, or commissioning for 30 consecutive days or more.

  (7)

    (i) "Vessel" has the meaning indicated in Sec. 8-701(s) of this subtitle.

    (ii) "Vessel" does not include a ship's lifeboat, a vessel propelled only by sail, or vessel manually propelled.

(b) The Department shall charge a $20 fee to issue a certificate of title, a transfer of title, or a duplicate or corrected certificate of title.

(c)

  (1) Subject to the limitation under paragraph (3) of this subsection and except as provided in Sec. 8-715(d) of this subtitle and in subsections (e) and (f) of this section, and in addition to the fees prescribed in subsection (b) of this section, an excise tax is levied at the rate of 5% of the fair market value of the vessel on:

    (i) The issuance of every original certificate of title required for a vessel under this subtitle;

    (ii) The issuance of every subsequent certificate of title for the sale, resale, or transfer of the vessel;

    (iii) The sale within the State of every other vessel; and

    (iv) The possession within the State of a vessel used or to be used principally in the State.

  (2)

    (i) Notwithstanding the provisions of this subsection, no tax is paid on issuance of any certificate of title if the owner of the vessel for which a certificate of title is sought was the owner of the vessel before June 1, 1965, or paid Maryland sales and use tax on the vessel as required by law at the time of acquisition.

    (ii) The Department may require the applicant for titling to submit satisfactory proof that the applicant owned the vessel before June 1, 1965.

  (3)

    (i) Subject to subparagraph (ii) of this paragraph, the excise tax imposed under this subsection may not exceed $15,000 for any vessel.

    (ii) The maximum amount of the excise tax imposed for any vessel as specified in subparagraph (i) of this paragraph shall be increased by $100 on:

      (1) July 1, 2016; and

      (2) July 1 of each subsequent year.

(d) If the tax is not collected by a licensed dealer pursuant to Sec. 8-716.1 of this subtitle, the owner, whether or not applying for the issuance of a title, shall remit the tax directly to the Department within 30 days of the date of sale or, in the case of a vessel purchased outside the State, within 30 days of the date upon which the possession within the State became subject to the tax.

(e) A person is not required to pay the tax provided for in subsection (c) of this section resulting from:

  (1) A transfer between members of the immediate family as determined by Department regulations;

  (2) A transfer between members of the immediate family as determined by Department regulations of a documented vessel for which the transferor applied for and was issued a valid use sticker under Sec. 8-712.1 of this subtitle;

  (3) A transfer to a licensed dealer of a vessel for resale, rental, or leasing purposes;

  (4) The holding of a vessel that is titled or numbered in another state or is federally documented, provided:

    (i) The vessel is held for resale or listed for resale by a licensed dealer; and

    (ii) The vessel owner signs an affidavit that there will be no use of the vessel on the waters of the State other than for a sea trial;

  (5) Purchase of a vessel by the State or any political subdivision;

  (6) Purchase of a vessel by an eleemosynary organization which the Secretary has approved;

  (7) The purchase within the State of a vessel if the owner paid or incurred a liability for the Maryland sales and use tax on the vessel prior to July 1, 1986;

  (8) The possession within the State of a vessel which was purchased outside the State if the owner paid or incurred a liability for the Maryland use tax on the vessel prior to July 1, 1986;

  (9) The possession of a vessel in the State that is not used or to be used principally on the waters of the State and for which the issuance of a title is not sought or required under this subtitle, except that:

    (i) A vessel is not deemed used on the waters of the State if the vessel is used for 90 days or less of a calendar year; and

    (ii) If a vessel is used for more days than 90 days in a calendar year, the period of 90 days shall be counted in the determination of principal use under this subtitle;

  (10) The possession within the State of a vessel if the current owner, before July 1, 1986:

    (i)

      (1) Was licensed by the Department to catch, for commercial purposes, finfish, eels, crabs, conch, soft-shell clams, hard-shell clams, oysters, or any other fish; and

      (2) Used the vessel for any of the commercial fishing purposes described in item 1 of this item; or

    (ii)

      (1) Was licensed as a commercial fishing guide under the provisions of Sec. 4-210 of this article; and

      (2) Used the vessel as a charter boat with a license as provided in Sec. 4-745(d)(2) of this article;

  (11) The possession within the State of a vessel that:

    (i) Is owned by a nonprofit organization that:

      (1) Is qualified as tax exempt under Sec. 501(c)(4) of the Internal Revenue Code; and

      (2) Is engaged in providing a program to render its best efforts to contain, clean up, and otherwise mitigate spills of oil or other substances occurring in United States coastal and tidal waters; and

    (ii) Is used for the purposes of the organization;

  (12) The possession within the State of a vessel for a period of not more than one year if the current owner is a member of the armed services and is serving on active duty in this State; or

  (13) The sale of a vessel within the State if:

    (i) The vessel is purchased from a licensed dealer;

    (ii) The issuance of a title is not sought or required;

    (iii) The vessel is not used or to be used principally on the waters of this State;

    (iv) The vessel is duly registered in another jurisdiction within 30 days of the date of purchase; and

    (v) The dealer and the purchaser execute an agreement certifying the state of principal use for the vessel which is filed with the Department within 30 days of the date of purchase.

(f)

  (1) This subsection applies to possession within the State of a vessel if:

    (i) The vessel was formerly:

      (1) Titled or numbered in another jurisdiction; or

      (2) Federally documented and principally used in another jurisdiction;

    (ii) The present owner has paid a sales or excise tax on the vessel to the other jurisdiction; and

    (iii) The jurisdiction to which the tax was paid would allow an exemption or credit under its sales or excise tax for excise tax on a vessel formerly paid to the State.

  (2) For a vessel described in paragraph (1) of this subsection:

    (i) If the rate of the tax paid to the other jurisdiction is not less than the rate under subsection (c) of this section, the tax imposed under subsection (c) of this section does not apply to possession of the vessel within the State;

    (ii) If the rate of the tax paid to the other jurisdiction is less than the rate under subsection (c) of this section, the rate of the tax imposed under subsection (c) of this section on possession of the vessel within the State is the difference between the tax rate paid to the other jurisdiction and the rate under subsection (c) of this section; and

    (iii) The Department may require the taxpayer to submit satisfactory proof of the payment of a tax to another jurisdiction and the rate of tax paid and, where applicable, evidence of principal use of a federally documented vessel in another jurisdiction.

  (3) This subsection is applicable to any vessel incurring a liability for Maryland boat excise tax on or after July 1, 1986.

(g)

  (1) A person may claim a credit against any tax imposed under subsection (c) of this section on a vessel for sales tax the person has paid to the State, to another state, or to the District of Columbia on materials and equipment that are incorporated into the vessel, if:

    (i)

      (1) The person is licensed by the Department to catch, for commercial purposes, finfish, eels, crabs, conch, soft-shell clams, hard-shell clams, oysters, or any other fish; and

      (2) The vessel is to be used for any of the commercial fishing purposes described in item 1 of this item; or

    (ii)

      (1) Was licensed as a commercial fishing guide under the provisions of Sec. 4-210 of this article; and

      (2) Used the vessel as a charter boat with a license as provided in Sec. 4-745(d)(2) of this article.

  (2) The Department may require a person claiming the credit allowed under this subsection to submit satisfactory proof of payment of the sales tax and that the materials or equipment have been incorporated into the vessel.

(h) If the Department determines there has been an overpayment of the tax on a vessel, or an overpayment has resulted for any other reason, the Department may submit the overpayment and supporting data whether accompanied by a written claim or not to the State Comptroller for refund to the appropriate person.

(i)

  (1) For purposes of subsection (a)(6) of this section, a vessel is deemed to be held for maintenance, repair, or commissioning if:

    (i) The maintenance, repair, or commissioning work is provided in exchange for compensation;

    (ii) The maintenance, repair, or commissioning work is performed pursuant to a schedule preestablished with one or more marine contractors; and

    (iii) The total cost of the maintenance, repair, or commissioning work is at least two times the reasonable current market cost of docking or storing the vessel.

  (2) Time spent conducting sea trials shall be included when calculating the period of time a vessel is held for maintenance, repair, or commissioning under subsection (a)(6) of this section.

#### Section 8-716.1

(a) The dealer shall collect the excise tax for the Department. For collecting and remitting the tax, a dealer may keep 1.2% of the gross tax the dealer collects. A dealer may not keep 1.2% of any gross tax amounts which were not forwarded to the Department within 30 days of collection, unless a waiver has been approved by the Secretary.

(b) If the Department finds that a dealer has forwarded less than the amount of tax due and does not have adequate records or has incorrect records of sales or resales of new or used vessels and that the amount of excise tax collected for the Department on these sales cannot be determined accurately, the Department shall determine the taxable sales of the dealer for any period involved and compute the tax from the best information available. The computation shall be prima facie correct. However, if any dealer fails to keep any record of sales of vessels, the Department may determine the tax due to the Department by using a factor developed by surveying the business of the dealer, including any records available, or by surveying other taxpayers of the same type or otherwise compute the amount of tax due. This computation shall be prima facie correct.

(c) As provided in subsection (b) of this section, if the Department determines the taxable sales and computes the tax due, the Department shall levy against the dealer a deficiency assessment consisting of a penalty of 10%, plus interest at a rate of 1.5% per month, or fraction of a month, from the time the tax was due until paid. All amounts received from any dealer under this subsection shall be credited first to penalty and interest accrued and then to tax due.

(d)

  (1) If a person obligated to pay the tax fails to pay the tax when due, there shall be assessed against the person, in addition to the tax due, a penalty of 10% plus interest at the rate of 1.5% per month or fraction of a month from the time the tax was due until paid. This penalty and interest may be waived by the Secretary if, within 30 days from the date of mailing of the notice of assessment, the taxpayer files an appeal showing cause why the tax is not paid when due. Any amounts received from any dealer or owner under this subsection shall be credited first to penalty and interest accrued and then to tax due.

  (2) If the failure to pay the tax is due to an attempt to defraud, then the penalty shall be, in lieu of the penalty more specifically provided for under paragraph (1) of this subsection, 100% of the tax due plus interest at the rate of 1.5% per month or fraction of a month from the time due until paid.

(e)

  (1) If the Department finds that any dealer or other person liable for the tax imposed by this subtitle intends to depart from the State, remove the dealer's or other person's property from the State, conceal the dealer or other person or their property in the State, or do any other act tending to prejudice or render wholly or partly ineffectual proceedings to collect the tax, the Department shall notify the dealer or other person of its findings and demand an immediate payment of the tax, interest, and penalty.

  (2) If the amount of tax, interest, and penalty specified in the notice of jeopardy assessment is not paid within 10 days of the service of the notice, the Department may bring any action that the Department considers advisable for the prompt collection of the tax.

  (3) If, within 10 days of the service of the notice, the person liable for the tax files with the Department satisfactory evidence that the person is not in default in paying the tax or that the person will duly return and pay the tax, then the tax is not payable before the time otherwise required by this section. However, in each case, the findings of the Department as to the responsibility of the person liable for the tax are final and conclusive.

(f)

  (1) The tax imposed by this subtitle and all increases, interests, and penalties on the tax shall become, from the time due and payable, a personal debt of the person liable to pay the tax to the State of Maryland. An action may be brought at any time within 3 years from the time the tax shall be due and payable by the Department in the name of the State to recover the amount of any taxes, penalties, and interest due under the provisions of this subtitle, but if there is proof of fraud or gross negligence, there shall be no limitation of the period in which the action may be brought. Proof of negligence amounting to 25% or more of the tax due shall be prima facie evidence of gross negligence.

  (2) The tax and all increases, interests, and penalties on the tax shall be a lien upon all the property, real or personal, of any person liable to pay the tax to the State from and after the time when notice has been given that the tax has become due and payable as provided in this section. Notice of the lien shall be filed promptly by the Department with the clerk of the circuit court of the county in which the property is located or Baltimore City. Each clerk of court accurately and promptly shall record and index all the notices of lien filed with the clerk by the Department and shall enter the lien in the judgment docket of the court, stating the name of the delinquent taxpayer, the amount of the lien and the date of the lien. The lien provided for in this section shall have the full force and effect of a lien of judgment. Unless another date is specified by law, the lien arising at the date of nonpayment, as in this section specified and provided for, shall continue with the same force and effect as a judgment lien. Any judgment lien on personal property is not effective as against an innocent purchaser for value, unless the personal property has been levied upon by an officer of a court.

(g) If a person or entity liable for the excise tax and for the interest and penalties of the tax under this subtitle is a corporation or limited liability company or limited liability partnership, including a limited partnership registered as a limited liability limited partnership, personal liability for the excise tax and for the interest and penalties of the tax extends to:

  (1) In the case of a corporation:

    (i) The president, vice president, or treasurer of the corporation; and

    (ii) Any officer of the corporation who directly or indirectly owns more than 20% of the stock of the corporation;

  (2) In the case of a limited liability company:

    (i) If the limited liability company does not have an operating agreement, all members; or

    (ii) If the limited liability company has an operating agreement, those individuals who manage the business and affairs of the limited liability company; and

  (3) In the case of a limited liability partnership:

    (i) If the limited liability partnership does not have a written partnership agreement, all general partners; or

    (ii) If the limited liability partnership has a written partnership agreement, those individuals who manage the business and affairs of the limited liability partnership.

(h) A member of a limited liability company does not manage the business and affairs of the limited liability company under subsection (g) of this section solely by doing one or more of the following:

  (1) Consulting with or advising the individuals who manage the business and affairs of the limited liability company;

  (2) Directing the management of the limited liability company in the same manner as a director of a corporation directs the management of a corporation; or

  (3) Voting on any matter required to be voted on by the members of the limited liability company, including but not limited to:

    (i) The approval or disapproval of amendments to the operating agreement;

    (ii) The termination and winding up of the limited liability company;

    (iii) The sale, exchange, lease, mortgage, pledge, or other transfer of a material portion of the assets of the limited liability company;

    (iv) The incurring of indebtedness by the limited liability company other than in the ordinary course of its business;

    (v) A change in the nature of the business of the limited liability company;

    (vi) The expulsion or admission of a member;

    (vii) The appointment or discharge of a manager;

    (viii) The merger of the limited liability company with or into any other entity; or

    (ix) Any matter related to the business of the limited liability company not otherwise enumerated in this subsection that the operating agreement states may be subject to the approval or disapproval of the members.

(i) The possession or exercise of powers other than those contained in subsection (h) of this section by a member does not necessarily constitute management by the member of the business or affairs of the limited liability company.

(j) The same rules and exceptions applicable to a member of a limited liability company set forth in subsections (h) and (i) of this section shall be applicable to individuals and members of limited liability partnerships.

(k) Notwithstanding any other provision of law, the Department may not collect or enforce any liability for the Maryland use tax that was incurred before July 1, 1986, on a vessel owned by a person who at the time the liability was incurred:

  (1)

    (i) Was licensed by the Department to catch, for commercial purposes, finfish, eels, crabs, conch, soft-shell clams, hard-shell clams, oysters, or any other fish; and

    (ii) Used the vessel for any of the commercial fishing purposes described in item (i) of this item; or

  (2)

    (i) Was licensed as a commercial fishing guide under the provisions of Sec. 4-210 of this article; and

    (ii) Used the vessel as a charter boat with a license as provided in Sec. 4-745(d)(2) of this article.

(l) An assessment of tax under this subtitle is prima facie correct.

(m)

  (1) A dealer or other person liable for the tax imposed by this subtitle may not:

    (i) Willfully fail to collect the tax;

    (ii) Willfully fail to remit the tax;

    (iii) Willfully make any false statement or misleading omission with regard to the tax;

    (iv) Willfully fail to keep records in accordance with this subtitle and any regulations pursuant to this subtitle; or

    (v) Willfully evade payment of the tax by any means.

  (2) Any person violating this subsection is guilty of a misdemeanor and upon conviction is subject to the penalties set forth in Sec. 8-739 of this subtitle.

#### Section 8-716.2

(a) For the purpose of enforcing the provisions of this subtitle, the Department or any duly authorized agent or representative:

  (1) May conduct investigations and hold hearings concerning any matter covered by this subtitle at any time or place within the State of Maryland;

  (2) In the conduct of any investigation or hearing, may require by subpoena or summons the attendance and testimony of witnesses and the production of any books, accounts, records, papers, and correspondence, relating to any matter which the Department is authorized by this subtitle to determine; and

  (3) May sign subpoenas, administer oaths and affirmations, examine witnesses, and receive evidence.

(b) In case of disobedience of any subpoena or the contumacy of any witness appearing before the Department or its duly authorized agent or representative, the Department may apply to the circuit court of any of the counties or Baltimore City for an order. The circuit court may issue an order requiring the person subpoenaed to obey the subpoena or to give evidence or produce books, accounts, records, papers, and correspondence touching the matter in question. Any failure to obey the order of court may be punished by the court as a contempt of court.

(c) A person may not be excused from testifying or producing any books, papers, records, or data in any investigation or upon any hearing when ordered to do so by the Department or its duly authorized agent or representative, upon the ground that the testimony or evidence, documentary or otherwise, may tend to incriminate the person or subject the person to criminal penalty, but the testimony or evidence, documentary or otherwise, may not be used in any subsequent prosecution against the individual supplying the testimony or evidence. An individual so testifying is not exempt from prosecution and punishment for perjury committed in so testifying.

(d) Any notice authorized or required under the provisions of this subtitle may be given by mailing the notice to the person for whom the notice is intended in a postpaid envelope addressed to the person at the address given in any application made by the person pursuant to the provisions of this subtitle. If no application has been made, notice may be given by mailing the notice to the address of the person for whom the notice is intended as may be obtainable. The mailing of the notice shall be presumptive evidence of the receipt of the notice by the person to whom the notice is addressed. Any period of time which is determined according to the provisions of this subtitle by the giving of notice shall commence to run from the date of mailing of the notice.

(e)

  (1) Any person held liable for the tax imposed by this subtitle may apply for a revision of the tax and any penalty and interest assessed against the person by the Department. An application shall be made in writing to the Department within 30 days of the date that the person was notified of the assessment by the Department. Within 30 days of the receipt of the application, the Department shall hold a hearing on the matter in accordance with the Administrative Procedure Act in Title 10 of the State Government Article. Within 30 days after the hearing, the Department shall render a decision on the application for revision of the assessment of tax, penalty, and interest and so notify the applicant in writing by mail.

  (2) Any person dissatisfied with the final decision of the Department upon application for revision of any assessment may obtain immediate judicial review of the decision under the provisions of the Administrative Procedure Act and the Maryland Rules.

#### Section 8-717

(a) If a certificate of title is lost, stolen, mutilated, destroyed, or becomes illegible, the first lienholder or, if there is none, the owner named in the certificate, as shown by the Department's records within 30 days shall obtain a duplicate by applying to the Department. The applicant shall furnish information concerning the original certificate and the circumstances of its loss, mutilation, or destruction as the Department requires. Mutilated or illegible certificates shall be returned to the Department with the application for a duplicate.

(b) The duplicate certificate of title shall be marked plainly "duplicate" across its face, and mailed or delivered to the applicant.

(c) If a lost or stolen original certificate of title for which a duplicate has been issued is recovered, the original shall be surrendered promptly to the Department for cancellation.

#### Section 8-718

(a) In this subtitle, "certificate of origin" means a certification by the manufacturer, on a form the Department approves, that:

  (1) Certifies that the vessel described in the certificate has been transferred to the dealer or other person named and that the transfer of the vessel is in ordinary trade and commerce; and

  (2) Describes the vessel by including:

    (i) Its make, model, length, year, hull identification number, type of vessel, horsepower rating of engine, if any, and the engine number; and

    (ii) Any other information that the Department requires.

(b) A manufacturer or dealer may not transfer ownership of a new vessel without supplying the transferee with the manufacturer's or importer's certificate of origin signed by the manufacturer's or importer's authorized agent. The certificate shall contain information the Department requires.

#### Section 8-719

Every dealer shall maintain for 3 years a record of any vessel the dealer bought, sold, exchanged, or received for sale or exchange. This record shall be open to inspection by Department representatives during reasonable business hours.

#### Section 8-720

(a) If ownership of a vessel is transferred by operation of law, such as by inheritance, order in bankruptcy, insolvency, replevin, or execution sale, the transferee, within 30 days after the transferee has acquired the right to possession of the vessel by operation of law, shall mail or deliver to the Department satisfactory proof of the transferee's ownership as the Department requires, together with his application for a new certificate of title, and the required fee. A title tax is not required on these transactions.

(b)

  (1) The Department may transfer on its records the ownership of a vessel that has been repossessed by a secured party, if the secured party pays the fee required for transfer of a title and submits to the Department a certification that states:

    (i) That the secured party has a security interest in the vessel;

    (ii) That, on the basis of the security agreement or other lawful basis, the secured party has a right to the possession of and title to the vessel;

    (iii) That the secured party has possession of the vessel; and

    (iv) Any other information that the Department requires.

  (2) A secured party that repossesses a vessel is not required to pay the title tax.

  (3) On submission of the certification to it, the Department may issue a new certificate of title if it is satisfied that the secured party is entitled to one.

#### Section 8-720.1

(a) An individual who is the sole owner of a vessel or multiple individuals who co-own a vessel as joint tenants with right of survivorship or tenants by the entirety may apply to the Department to designate a beneficiary to take ownership of the vessel on the death of the sole owner or the last surviving co-owner.

(b) The designation of a beneficiary may be shown by the words "transfer-on-death" or the abbreviation "TOD" after the name of the registered owner on a certificate of title.

(c)

  (1) The designation of a beneficiary for a vessel does not affect the ownership of the vessel until the death of the sole owner or the last surviving co-owner of the vessel.

  (2) The designation of a beneficiary may be revoked or changed at any time before the death of the sole owner or the last surviving co-owner without the consent of the beneficiary by applying to the Department.

(d) The designation of a beneficiary is not required to be supported by consideration and the certificate of title of the vessel for which the designation is made is not required to be delivered to the beneficiary in order for the designation to be effective.

(e) On the death of the sole owner or the last surviving co-owner of a vessel who has designated a beneficiary, ownership of the vessel shall pass to the beneficiary if the beneficiary survives the sole owner or the last surviving co-owner.

(f)

  (1) A designated beneficiary who survives the sole owner or the last surviving co-owner shall apply to the Department for a new certificate of title for the vessel.

  (2) An application for a certificate of title by a beneficiary following the death of the sole owner or last surviving co-owner shall include:

    (i) The original certificate of title designating the beneficiary;

    (ii) A death certificate for the deceased sole owner or each deceased co-owner;

    (iii) Proof of the identity of the beneficiary; and

    (iv) Any applicable taxes or fees.

(g) If a designated beneficiary does not survive the death of the sole owner or last surviving co-owner, the vessel is part of the estate of the deceased sole owner or last surviving co-owner.

(h) This section does not limit the rights of creditors of vessel owners against beneficiaries and other transferees under other laws of the State.

(i) The Department may charge a fee, not to exceed its costs, for issuing a certificate of title under this section.

(j) The Department may adopt regulations to carry out this section.

#### Section 8-721

(a) In this section, "abandoned or sunken vessel" means any vessel that:

  (1) Is left illegally or has remained without permission for more than 30 days on public property, including public marinas, docks, or boatyards;

  (2) Has remained at the following locations for more than 60 days without the consent of the owner or person in control of the property:

    (i) A private marina or property operated by a private marina; or

    (ii) A private boatyard or property operated by a private boatyard;

  (3) Has remained at the following locations for more than 30 days without the consent of the owner or person in control of the property:

    (i) A private dock; or

    (ii) At or near waters' edge on private property;

  (4) Has remained on private property other than the private property described in items (2) and (3) of this subsection for more than 180 days without the consent of the owner or person in control of the property; or

  (5)

    (i) Has been found adrift or unattended in or upon the waters of the State and:

      (1) Is found in a condition of disrepair;

      (2) Presents a hazard or obstruction to the use of the waters of the State; or

      (3) Presents a potential health or environmental hazard; and

    (ii) Is not:

      (1) Historic property as defined in Sec. 5A-301 of the State Finance and Procurement Article; or

      (2) Submerged archaeological historic property as defined in Sec. 5A-333 of the State Finance and Procurement Article.

(b)

  (1) The Department may seize, remove, and take into custody any abandoned or sunken vessel.

  (2) For this purpose, the Department may use its own personnel, equipment, and facilities or use other persons, equipment, and facilities for removing, preserving, or storing abandoned or sunken vessels.

  (3) The Department, or a person removing, preserving, or storing an abandoned or sunken vessel on behalf of the Department, may not be held liable for any damage to an abandoned or sunken vessel which may occur during removal, storage, or custody of the vessel.

(c)

  (1) Except as provided in subsection (g)(2) of this section, not later than 15 days before an abandoned or sunken vessel is seized, removed, or taken into custody under subsection (b) of this section, the Department shall:

    (i) Send a notice, by certified mail, return receipt requested, bearing a postmark from the United States Postal Service to the registered owner of the vessel, as shown on the records of the Department; and

    (ii) Attempt, by telephone or e-mail, to contact:

      (1) The registered owner of the vessel at the telephone number or e-mail address shown on the records of the Department; and

      (2) If the application for a certificate of number under Sec. 8-712(b) of this subtitle includes an alternate emergency contact, the alternate emergency contact.

  (2)

    (i) Except as provided in subparagraph (ii) of this paragraph, as soon as reasonably possible but not later than 15 days after the Department takes an abandoned or sunken vessel into custody, the Department shall:

      (1) Send a notice, by certified mail, return receipt requested, bearing a postmark from the United States Postal Service to the registered owner of the vessel and to each known secured party, as shown on the records of the Department; and

      (2) Attempt, by telephone or e-mail, to contact:

      (A) The registered owner of the vessel at the telephone number or e-mail address shown on the records of the Department; and

      (B) If the application for a certificate of number under Sec. 8-712(b) of this subtitle includes an alternate emergency contact, the alternate emergency contact.

    (ii) As soon as reasonably possible but not later than 15 days after the Department takes an abandoned or sunken vessel into custody in accordance with subsection (g)(2) of this section, the Department shall:

      (1) Send a notice, by certified mail, return receipt requested, bearing a postmark from the United States Postal Service to the last known registered owner of the vessel and to each known secured party, as shown on the records of the Department; and

      (2) Attempt, by telephone or e-mail, to contact:

      (A) The registered owner of the vessel at the telephone number or e-mail address shown on the records of the Department; and

      (B) If the application for a certificate of number under Sec. 8-712(b) of this subtitle includes an alternate emergency contact, the alternate emergency contact.

(d) The notices required by subsection (c) of this section shall:

  (1) Describe the vessel;

  (2) If the vessel was taken into custody in accordance with subsection (g)(2) of this section, describe the actual or potential hazard mitigated by removal of the vessel;

  (3) Give the location where the vessel is being held;

  (4) Inform the owner and secured party of a right to reclaim the vessel within 3 weeks of receipt of the notice required in subsection (c)(2) of this section upon payment to the Department of any expenses incurred during removal and custody of the vessel; and

  (5) State that failure to claim the vessel will constitute:

    (i) A waiver of all right, title, and interest in the vessel; and

    (ii) A consent to the Department's disposition of the vessel.

(e)

  (1) If the Department is unable to determine the last registered owner or the identity of any secured party of the abandoned or sunken vessel, or if the certified mail notice required under subsection (c) of this section is returned as undeliverable and telephone calls and e-mails are unanswered, unreturned, or undeliverable, the Department shall give the required notice:

    (i) By publication in at least 1 newspaper of general circulation in the area where the abandoned or sunken vessel was found;

    (ii) Through digital media, including posting on the Department's website and social media platforms; or

    (iii) By attaching to the vessel in a clearly visible place a distinctively colored notification sticker or tag that contains the following information:

      (1) The date and time the notification was affixed to the vessel;

      (2) A statement that, in accordance with this section, if the vessel is not removed within 60 days after the date the notification sticker or tag was affixed, the vessel may be seized, removed, taken into custody and sold at public auction, acquired by title under Sec. 8-722 of this subtitle, or otherwise disposed of; and

      (3) The location and telephone number where additional information may be obtained.

  (2) The notice by publication shall contain the information required under subsection (d) of this section and shall be published within 30 days of the seizure of the abandoned or sunken vessel, or within 15 days of:

    (i) The return of the certified mail notice as undeliverable; and

    (ii) The attempt, by telephone or e-mail, to contact the registered owner.

(f) If the owner or secured party fails to claim the abandoned or sunken vessel within 3 weeks after the notice required under subsection (c) of this section or after the notice by publication is given or within 60 days after the notice authorized under subsection (e)(1)(iii) of this section, the Department may sell the vessel at public auction, proceed to receive title to the vessel pursuant to Sec. 8-722 of this subtitle, or otherwise dispose of the vessel.

(g)

  (1) If the abandoned or sunken vessel is in such a condition of disrepair that the Department cannot remove the vessel intact, the Department may dispose of the vessel in whatever manner is reasonable without providing the notice required under subsections (c) through (e) of this section.

  (2)

    (i) If the Department determines that an abandoned or sunken vessel poses an immediate hazard or obstruction to navigation, a potential health hazard, or a potential environmental hazard, the Department shall take the vessel into custody without providing the notice required under subsection (c)(1) of this section.

    (ii) The Department shall keep a written record of a determination made under this paragraph, including the actual or potential hazards mitigated by removal of the vessel.

(h) The Department may delegate the Department's authority to remove and dispose of abandoned or sunken vessels under this section to any local jurisdiction that consents to the delegation.

(i) The Department, in consultation with the Director of the Maryland Historical Trust, may adopt regulations to implement this section.

(j) The Department may not use funds budgeted for the Natural Resources Police for the purpose of removing or storing abandoned or sunken vessels under this section.

#### Section 8-721.1

(a) The owner or operator of a marina or the owner's or operator's agent may have a vessel removed from the marina by a private person if the vessel has remained on the marina premises without permission for more than 48 hours and the owner, operator, or agent has placed in conspicuous locations signs that:

  (1) State that vessels left at the marina without permission for more than 48 hours are subject to removal at the vessel owner's expense;

  (2) State the location to which the vessel will be removed;

  (3) State that the vessel owner will be responsible for all costs associated with the removal and storage of the vessel; and

  (4) Provide the telephone number of a person who can be contacted to arrange for the reclaiming of the vessel by its owner or the owner's agent.

(b) A vessel may not be removed from a marina to a location that is more than 30 miles from the marina.

(c) The owner or operator of a marina, or the agent of the owner or operator, on finding a vessel left at the marina without permission, shall make a reasonable attempt to notify the vessel owner or the vessel owner's agent of the intended removal of the vessel before the vessel may be removed under this section.

(d) A person who removes the vessel from a marina:

  (1) Shall notify the vessel owner or the vessel owner's agent at the earliest possible time after removing the vessel from the marina, and shall provide the following information:

    (i) A description of the vessel including the vessel's certificate of boat number;

    (ii) The date and time the vessel was removed;

    (iii) The reason the vessel was removed; and

    (iv) The locations from which and to which the vessel was moved;

  (2) Before removing the vessel, shall have authorization of the marina owner; and

  (3) May not pay any remuneration to the owner of the marina.

(e)

  (1) The person who removes a vessel from a marina shall immediately deliver the vessel directly to a location customarily used by the person.

  (2) The person who exercises control over the vessel at the location to which the vessel is delivered after removal from a marina shall provide the vessel owner or the vessel owner's agent immediate and continuous opportunity to retake possession of the vessel.

(f) Any person who removes a vessel from a marina in violation of any provision of this section:

  (1) Shall be liable for actual damages sustained by the vessel owner or the vessel owner's agent as a result of the violation; and

  (2) Shall be liable to the vessel owner or the vessel owner's agent for up to triple the amount paid by the owner or the owner's agent to retake possession of the vessel, as the court may determine.

#### Section 8-721.2

(a) The Department may establish and administer a voluntary vessel turn-in program that allows the owner of a vessel to turn the vessel in to the Department to be destroyed.

(b) To apply to participate in a program authorized under this section, a vessel owner shall submit to the Department an application in the form that the Department requires.

(c) In order to participate in a program authorized under this section, the owner of a vessel shall demonstrate to the satisfaction of the Department that the applicant is the owner of the vessel and a resident of the State.

(d) In evaluating whether a vessel is eligible for the program, the Department shall prioritize, in order of priority, the following vessels:

  (1) A vessel that is abandoned or sunken as defined in Sec. 8-721 of this subtitle;

  (2) A vessel that is at risk of becoming abandoned or sunken if:

    (i) The vessel is taking on or has taken on water without an effective means to drain or empty the water;

    (ii) Spaces on the vessel that are designed to be enclosed are incapable of being sealed off or remain open to the elements for extended periods of time; or

    (iii) The vessel has broken from or is in danger of breaking loose from its anchor; and

  (3) Any other vessel the Department determines is eligible for participation in the program.

(e) The Department, in its sole discretion, may determine eligibility for participation in a program authorized under this section.

(f) The Department, or a person removing, towing, storing, or disposing of a vessel that is accepted into a program authorized under this section on behalf of the Department, may not be held liable for any damage to the vessel which may occur during removal, storage, or custody of the vessel.

(g) If the Department establishes a program authorized under this section, the Department shall adopt regulations to implement and carry out the provisions of this section.

#### Section 8-722

(a) This section applies only to abandoned vessels as defined in Sec. 8-721 of this subtitle.

(b) Subject to the provisions of this section, a landowner, a landowner's lessee, or a landowner's agent may acquire title to any abandoned vessel on the landowner's land or the water immediately adjacent to the landowner's land. Acquisition of title divests any other person of any interest in the vessel.

(c)

  (1) If a vessel has a boat number or other means of identifying the vessel's owner, the person desiring to acquire title, if possible, shall secure the owner's last known address, and the lienholder, if any, appearing on the Department's records. The person shall notify this owner and the lienholder by registered letter to the last known address that, if ownership is not claimed and the vessel removed within 30 days, the person will apply for title to the vessel in the person's name. If any vessel's owner or lienholder cannot be identified or address ascertained from the Department's records, it is not necessary to send the letter.

  (2) The person desiring to acquire title also shall place a notice in a newspaper of general circulation published in the county where the vessel is located, describing the vessel, the vessel's location, and any identifying number. The person shall state in the notice that, if the vessel is not claimed and removed within 30 days after the publication date of the paper, the person will apply for title to the vessel in the person's name.

  (3) At the end of the 30-day period the person shall apply to the Department for title to the vessel in the person's name on forms the Department approves accompanied by the following affidavits:

    (i) A statement that the vessel is an abandoned vessel as defined in Sec. 8-721 of this subtitle;

    (ii) Proof the registered letter was mailed at least 30 days before application or a detailed explanation of the unsuccessful steps taken to identify the owner or lienholder and secure the owner's or lienholder's address;

    (iii) Proof a notice was printed in a newspaper as required in paragraph (2) of this subsection;

    (iv) A clear and accurate photograph of the vessel; and

    (v) A tracing or certification of the hull identification number.

  (4) Upon receipt of the material required in paragraph (3) of this subsection and payment of any fees and taxes due, the Department shall issue title to the vessel to the applicant.

  (5) The applicant shall bear any cost incurred in receiving title to a vessel under this section.

  (6) After receiving title, if the applicant destroys or otherwise disposes of the vessel, the applicant shall report this information to the Department within 15 days giving every detail.

  (7) The Department may receive title to any abandoned vessel on the waters of the State or on any land owned by the State or any political subdivisions by proceeding in the same manner a property owner does as set forth in this section.

(d) A person may not obtain or attempt to obtain title to a vessel under the provisions of this section through any fraudulent means.

#### Section 8-723

(a) In this section, "Fund" means the State Boat Act Fund.

(b) There is a State Boat Act Fund in the Department.

(c) The Secretary shall administer the Fund.

(d)

  (1) The Treasurer shall hold the Fund separately and the Comptroller shall account for the Fund.

  (2) The Fund shall be invested and reinvested in the same manner as other State funds.

  (3) The Fund is a special, nonlapsing fund that is not subject to Sec. 7-302 of the State Finance and Procurement Article.

(e) Unless otherwise provided, the Fund consists of:

  (1) Money received from any fee and other revenue the Department collects under authority of this subtitle;

  (2) Money appropriated in the State budget to the Fund; and

  (3) Any money received and accepted as gifts, contributions, or grants.

(f) The Department shall use the Fund:

  (1) For the administration of this subtitle;

  (2) To cover the costs of fulfilling the duties and responsibilities of the Department under this title; and

  (3) For administrative costs calculated in accordance with Sec. 1-103(b)(2) of this article.

(g) Any investment earnings of the Fund shall be credited to the General Fund of the State.

(h) Within the limits of funds available, the Department may enter into any agreement with the federal government, any municipality or other political subdivision of the State, or any private agency to share the cost of any development, construction, or improvement of waterways or of facilities determined to have beneficial value to the boating public.

(i) Expenditures from the Fund may be made only in accordance with the State budget.

#### Section 8-724

(a)

  (1) The operator of a vessel involved in a collision, accident, or other casualty that results in bodily injury to another person immediately shall stop the vessel as close as possible to the scene of the collision, accident, or other casualty to comply with subsection (b) of this section.

  (2) The operator of a vessel involved in a collision, accident, or other casualty that results in the death of another person immediately shall stop the vessel as close as possible to the scene of the collision, accident, or other casualty to comply with subsection (b) of this section.

  (3)

    (i) In this paragraph, "serious bodily injury" means an injury that:

      (1) Creates a substantial risk of death;

      (2) Causes serious permanent or serious protracted disfigurement;

      (3) Causes serious permanent or serious protracted loss of the function of any body part, organ, or mental faculty; or

      (4) Causes serious permanent or serious protracted impairment of the function of any body part or organ.

    (ii)

      (1) Except as provided in subparagraph (iii) of this paragraph, a person convicted of a violation of paragraph (1) of this subsection is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 1 year or a fine not exceeding $3,000 or both.

      (2) Except as provided in subparagraph (iii) of this paragraph, a person convicted of a violation of paragraph (2) of this subsection is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 5 years or a fine not exceeding $5,000 or both.

    (iii)

      (1) A person who violates this subsection and who knew or reasonably should have known that the collision, accident, or other casualty might result in serious bodily injury to another person and serious bodily injury actually occurred to another person is guilty of a felony and on conviction is subject to imprisonment not exceeding 5 years or a fine not exceeding $5,000 or both.

      (2) A person who violates this subsection and who knew or reasonably should have known that the collision, accident, or other casualty might result in the death of another person and death actually occurred to another person is guilty of a felony and on conviction is subject to imprisonment not exceeding 10 years or a fine not exceeding $10,000 or both.

(b)

  (1) The operator of a vessel involved in a collision, accident, or other casualty shall:

    (i) Render all practical and necessary assistance to persons affected by the collision, accident, or casualty to save the persons from danger caused by the collision, accident, or casualty, to the extent the operator can do so without serious danger to the operator's own vessel, or persons aboard; and

    (ii) Give the operator's name, address, and the identification of the operator's vessel to any person injured and to the owner of any property damaged.

  (2) The duties imposed by this subsection are in addition to any duties otherwise imposed by law.

  (3) A person convicted of a violation of this subsection is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 2 months or a fine not exceeding $500 or both.

(c) If an accident involves any vessel subject to this subtitle while on the waters of the State and results in the death, disappearance, or injury of any person or in property damage of $2,000 or more, or there is complete loss of the vessel, the operator shall file with the Department a full description of the accident, including any information the Department requires by regulation. If the operator is unable to file the report, the vessel owner shall file the report. If the accident caused the death or disappearance of any person or a person receives medical treatment beyond first aid, the report shall be made within 48 hours. Any other accident resulting in personal injury or property damage, including damage to navigational aid markers, lights, or identifiers, shall be reported within 10 days. This subsection does not apply to a vessel required to have a certificate of inspection under Chapter 1, Title 46, Code of Federal Regulations.

(d) If any vessel numbered in the State is involved in an accident on waters outside of the State, and the accident results in the death, disappearance, or injury of any person or in property damage of $2,000 or more, the operator or owner, within 30 days, shall file a complete report with the Department including any information the Department requires by regulation. This subsection does not exempt or excuse any operator or owner from the requirements of any federal or other state law or rule or regulation having jurisdiction over the waters in which the accident occurs. Furthermore, any accident-reporting requirement in the federal or other state law or rule or regulation may not exonerate or excuse any failure of the operator or owner of a vessel numbered in the State to report the accident in the State.

(e) The required report of a boating accident may not be referred to during any judicial proceeding. It is not subject to subpoena or admissible as evidence in any proceeding. Subject to these restrictions, information contained in a boating accident report and any statistical information based on the report is available on request for official purposes to the U.S. Coast Guard and its successor agency.

(f) Any person who complies with subsection (b) of this section or who gratuitously and in good faith renders or attempts to render assistance to any vessel in distress on any waters of the State without objection from any person assisted, is not liable for any civil damage as the result of any act or omission by the person in rendering assistance, if the act or omission does not amount to gross negligence.

#### Section 8-724.1

A person may not:

(1) Interfere with the use of a public landing;

(2) Do anything to destroy the usefulness of the public landing; or

(3) Damage a wharf or structure erected on the wharf by the State, a county, or a person under a written agreement with a State unit or a county for public benefit.

#### Section 8-725

(a) This section does not apply to:

  (1) Any performer engaged in a professional exhibition; or

  (2) Any person taking part in:

    (i) An authorized regatta, motorboat race, or other boat race; or

    (ii) Any marine parade, tournament, or exhibition.

(b) A person may not operate any machinery-propelled vessel for the purpose of towing a person on or attached to water skis, an aquaplane, a parasail, or similar device unless the vessel operator is at least 12 years old and another person, at least 12 years old, is in the vessel to observe the progress of the person being towed. Towing may not occur between sunset and sunrise.

(c) A person who is in or over the waters of the State and is being towed behind a vessel must wear a personal flotation device, a barefoot wet suit, or a trick skiing wet suit.

#### Section 8-725.2

(a) A person may not abandon, as defined in Sec. 8-721 of this subtitle, any vessel upon any waters of the State.

(b) The last known registered owner shown on the certificate of title issued under Sec. 8-715 of this subtitle shall be considered:

  (1) The prima facie owner of a vessel at the time the vessel was abandoned; and

  (2) The person who abandoned the vessel.

(c)

  (1) Any person who violates any provision of this section is guilty of a misdemeanor. Upon conviction, the person is subject to a fine not exceeding $1,000 or imprisonment not exceeding 6 months, or both.

  (2) Any person found guilty of a second or subsequent violation of any provision of this section is subject to a fine not exceeding $2,000 or imprisonment not exceeding 1 year, or both.

  (3) Any person who violates any provision of this section is liable to the State for the cost of removal of the vessel.

  (4) The provisions of this section do not apply to a vessel wrecked through an act of God or negligence of a third party.

#### Section 8-725.3

(a) The Department shall:

  (1) Develop a comprehensive management plan for the use of vessels on the Severn River and its tributaries in accordance with the Administrative Procedure Act under Title 10 of the State Government Article; and

  (2) Implement the comprehensive management plan no later than April 15, 1990.

(b) The comprehensive management plan for the use of vessels on the Severn River and its tributaries shall include, but not necessarily be limited to:

  (1) Areas designated for specified uses;

  (2) Noise level limits of vessels;

  (3) Maximum speed limits of vessels;

  (4) Other limits that address water surface capacity and the safe operation of vessels so as to maximize the recreational and aesthetic values of the Severn River and its tributaries, consistent with sound environmental practices; and

  (5) A study of seaplane activity on the Severn River and its tributaries.

(c) This section may not be construed to change the authority previously granted to the Department to adopt regulations concerning the subject matter of this section.

#### Section 8-725.4

(a) A person may not operate any vessel on the Severn River from April 15, 1989, to October 15, 1989, in excess of 40 miles per hour during the following days and times:

  (1) A Saturday;

  (2) A Sunday;

  (3) A State holiday; and

  (4) Any other day from sundown to sunrise.

(b)

  (1) A person who violates any provision of this section is guilty of a misdemeanor and on conviction is subject to a fine not exceeding:

    (i) For the first offense, $500; and

    (ii) For the second offense, $1,000 or imprisonment not exceeding 30 days or both.

  (2) Paragraph (1) of this subsection does not limit or supersede any other penalty that may be imposed under this subtitle for a violation of any other law or regulation adopted under this subtitle.

(c) This section may not be construed to affect the Department's authority:

  (1) To adopt regulations concerning the subject matter of this section; or

  (2) To set speed limits on creeks, bays, coves, and tributaries of the Severn River.

(d) The Department shall develop an informational program to assist boaters in complying with the speed limits imposed by this section, including public education, a phase-in period for enforcement, and information to assist boaters in converting tachometer or knot meter readings to speedometer readings in miles per hour.

#### Section 8-725.5

(a) The provisions of this section do not apply to persons who regularly catch or harvest seafood for sale while actually engaged in the catching or harvesting of the seafood.

(b)

  (1) Except as provided in subsection (d) of this section, a person may not operate a vessel on the waters of the State so as to exceed a noise level of 90dB(a).

  (2) Noise level limits for waters of the State shall be measured using generally accepted testing procedures imposed by regulations adopted by the Department based on the Marine Environment Sound Level Measurement Procedure, SAE J 2005.

  (3) An owner or lessee of a vessel may not allow the vessel to be operated on waters of the State in violation of paragraph (1) of this subsection.

(c) A person may not own or operate on any waters of the State any vessel manufactured after January 1, 1990, that is not equipped with a muffler or device or system which muffles or suppresses engine noise in accordance with regulations adopted by the Department.

(d) The Department may adopt regulations to permit exceptions to this section, including exceptions for:

  (1) Economic hardship;

  (2) Vessels participating or preparing to participate in a U.S. Coast Guard or Department approved race or event;

  (3) The testing, repair, or development of vessel engines conducted by a bona fide engine or boat manufacturer or service person; and

  (4) Vessels belonging to a volunteer fire department, ambulance company, rescue squad company, or advance life support company or a political subdivision.

(e) In addition to the provisions of subsection (b) of this section, the Department may adopt regulations to enforce this section, including regulations establishing noise limitations.

(f)

  (1) A person who violates any provision of this section is guilty of a misdemeanor and on conviction is subject to a fine not exceeding:

    (i) For the first offense, $500; and

    (ii) For the second offense, $1,000 or imprisonment of 30 days or both.

  (2) Paragraph (1) of this subsection does not limit or supersede any other penalty that may be imposed under this subtitle for a violation of any other law or regulation adopted under this subtitle.

(g) All regulations adopted by the Department under this section shall be in accordance with the Administrative Procedure Act under Title 10 of the State Government Article.

#### Section 8-725.6

(a) A person may not operate a vessel on Seneca Creek in Montgomery County at a speed in excess of 6 knots.

(b) A person who violates this section is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 30 days or a fine of not less than $25 and not exceeding $200 or both.

#### Section 8-725.7

(a) A person may not operate a vessel on the Monocacy River between Starner's Dam and the upstream island in Carroll and Frederick counties at a speed in excess of 6 knots.

(b) A person who violates this section is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 30 days or a fine of not less than $25 and not exceeding $200 or both.

#### Section 8-725.8

(a)

  (1) In this section the following words have the meanings indicated.

  (2)

    (i) "Marine gathering" means an intentional congregation of at least 100 vessels in the waters of the State that, by its nature, circumstances, or location, creates extra or unusual hazards to life or property.

    (ii) "Marine gathering" does not include:

      (1) A race, a regatta, a parade, an exhibition, or other marine event for which a permit is required by the United States Coast Guard;

      (2) A docking competition; or

      (3) Vessels docked or moored at a marina.

  (3) "Permit" means a marine gathering permit issued in accordance with this section.

(b) A person may not sponsor or hold a marine gathering without obtaining a written permit from the Department.

(c)

  (1) The organizer or sponsor of the marine gathering shall submit a permit application to the Department and pay an application fee established by the Department.

  (2) The application fee may not exceed the cost of processing the permit.

  (3) The Department may not require the application to be submitted more than 45 days before the marine gathering.

(d)

  (1) The Department shall adopt regulations governing the application and issuance of the permit.

  (2) If a permit is needed to ensure public safety, the Department shall issue a permit in accordance with paragraphs (3) and (4) of this subsection.

  (3) The Department may require in the terms of a permit one or more of the following requirements:

    (i) The presence of security officers at the marine gathering;

    (ii) The presence of rescue personnel or lifeguards at the marine gathering;

    (iii) The placement of buoys at the marine gathering; and

    (iv) Limitations on the duration of the marine gathering.

  (4) The Department may:

    (i) Recommend additional actions to an applicant to further safeguard the participants of the marine gathering; but

    (ii) Not require any additional terms or conditions in a permit beyond what may be required under paragraph (3) of this subsection.

(e) Before issuing a marine gathering permit, the Department shall notify the local law enforcement unit of the county in which the marine gathering will occur and public safety organizations that the Department considers necessary.

(f) A police officer may terminate and disband a marine gathering:

  (1) Held without the necessary permit; or

  (2) In violation of the terms of a permit.

(g)

  (1) A person who violates this section or a regulation adopted under this section is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $1,000.

  (2) A person who commits a second or subsequent violation of this section or a regulation adopted under this section is:

    (i) Guilty of a misdemeanor and on conviction is subject to a fine not exceeding $5,000; and

    (ii) Liable to the State for the cost of disbanding the marine gathering.

#### Section 8-725.9

(a) Notwithstanding any other provision of this title, the Department may establish or alter by public notice:

  (1) If the Department determines public safety is at risk and it is contrary to the public interest to delay action, a speed zone near:

    (i) A construction project on or adjacent to State waters;

    (ii) A marine event; or

    (iii) An accident or other emergent situation; or

  (2) An area where vessel movement is controlled, limited, or restricted as designated by the U.S. Coast Guard or another federal agency.

(b) The Department may adopt regulations to implement this section.

#### Section 8-726

(a) A person may not throw, dump, deposit, or cause to be thrown, dumped, or deposited any trash, junk, or other refuse on any waters of the State.

(b) The operator or owner, if present, of any vessel on which occurs a violation of subsection (a) of this section is liable.

(c) The Department shall enforce the provisions of this section.

#### Section 8-726.1

(a) This section does not:

  (1) Apply to the improvement of harbors; or

  (2) Affect any act of the General Assembly relating to the construction of a wharf or to the rights of a riparian owner.

(b) Ballast, ashes, filth, earth, oysters, or oyster shells may not be deposited from a vessel to a site:

  (1) In the Chesapeake Bay above Sandy Point;

  (2) In Herring Bay; or

  (3) Below the high water mark in a river, creek, or harbor in the State.

(c) A person in command or having charge of a vessel that violates this section is guilty of a misdemeanor and on conviction is subject to a fine of not less than $20 and not exceeding $150.

(d) The Natural Resources Police Force shall enforce this section.

#### Section 8-727

(a)

  (1) In this section the following words have the meanings indicated.

  (2) "Elude" means to evade a police officer's visual or audible signal to stop by:

    (i) Willfully failing to stop the vessel;

    (ii) Fleeing on foot; or

    (iii) Any other means.

  (3) "Police officer" means an officer who is:

    (i) In uniform, prominently displaying the officer's badge or other insignia of office; or

    (ii) In a vessel that is appropriately marked as an official law enforcement vessel, whether or not the officer is in uniform.

  (4) "Visual or audible signal" means a warning or command by hand, voice, emergency light, signal device, or siren.

(b) A Natural Resources police officer or any law enforcement officer enforcing the provisions of this subtitle may stop, board, or inspect any vessel subject to this subtitle.

(c)

  (1) Except as provided in paragraph (2) of this subsection, an individual who is on a vessel may not display or operate a flashing blue light or signal device.

  (2) A police officer who is on a vessel of a county, municipal, State, or federal law enforcement agency may display and operate flashing blue lights or signal devices while responding to or at the scene of an emergency or pursuing a violator or suspected violator of the law.

(d) On the immediate approach of a law enforcement vessel lawfully using a flashing blue light or signal device, an operator of another vessel, unless otherwise directed by a police officer, shall:

  (1) Yield the right-of-way; and

  (2) Stop the vessel and stay in that position until the law enforcement vessel has passed.

(e) An operator of a vessel may not elude or attempt to elude a police officer who gives a visual or audible signal to the operator to stop.

(f)

  (1) A person who violates subsection (c) or (d) of this section is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $500.

  (2) A person who violates subsection (e) of this section is guilty of a misdemeanor and on conviction:

    (i) For a first offense, is subject to a fine not exceeding $1,000 or imprisonment not exceeding 1 year or both; and

    (ii) For a subsequent offense, is subject to a fine not exceeding $1,000 or imprisonment not exceeding 2 years or both.

#### Section 8-727.1

(a)

  (1) In this section, "public safety activity" includes:

    (i) Patrolling a marine parade, regatta, or special water celebration;

    (ii) Traffic control;

    (iii) Salvage;

    (iv) Fire fighting;

    (v) Medical assistance;

    (vi) Assisting a disabled vessel; and

    (vii) Search and rescue.

  (2) "Public safety activity" does not include routine towing.

(b) Except as provided in subsection (c) of this section, an individual who is on a vessel may not display or operate a flashing, alternating red and yellow light or signal device.

(c)

  (1) An individual who is on a vessel engaged in a government sanctioned public safety activity or a commercial vessel performing a public safety activity may display an alternately flashing red and yellow light signal.

  (2) The public safety identification light signal shall be located so that it does not interfere with the visibility of the vessel's navigation lights.

  (3) The public safety identification light signal may be used only as an identification light signal and does not convey any special privilege to the vessel displaying the light signal.

  (4) An individual on a vessel using the public safety identification light signal during public safety activities shall comply with the Inland Navigation Rules adopted by the United States Coast Guard and may not presume that the light or the activity gives the vessel precedence or right-of-way.

(d) A person who violates any provision of this section is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $500.

#### Section 8-728

Sections 8-729 through 8-736 of this subtitle do not apply to or affect:

(1) A lien given by statute or rule of law to a supplier of services or materials for the vessel;

(2) A lien given by statute to the United States, the State, or any political subdivision of the State;

(3) A security interest in a vessel during any period in which the vessel is inventory held for sale or lease by a person or leased by that person as lessor and that person is in the business of selling vessels;

(4) Any lien arising out of an attachment of a vessel;

(5) Any security interest claimed on proceeds, as defined in Sec. 9-102(a)(65) of the Commercial Law Article, if the original security interest did not have to be noted on the certificate of title in order to be perfected; or

(6) Any vessel for which a certificate of title is not required under this subtitle.

#### Section 8-729

(a) Unless excepted by Sec. 8-728 of this subtitle, a security interest in a vessel is not valid against creditors of the owner or subsequent transferees or secured parties of the vessel unless perfected as provided under this section and Sec.Sec. 8-730 through 8-732 of this subtitle.

(b) A security interest is perfected by the delivery to the Department of the existing certificate of title, if any, and an application for certificate of title on a form provided or approved by the Department containing information regarding the security interest, and upon payment of a filing fee of $15. Four dollars of this filing fee shall be treated as described in Sec. 8-723 of this subtitle. The security interest is perfected at the time of the delivery and payment.

(c) If a vessel is already subject to a security interest when the vessel is brought into the State, the validity of the security interest in the State is to be determined by the law (including the conflict of law rules) of the jurisdiction where the vessel was when the security interest attached, subject to the following:

  (1) If the parties to the transaction understood at the time the security interest attached that the vessel would be kept in the State, and the vessel was brought into the State within 30 days after the security interest attached for purposes other than transportation through the State, the validity of the security interest in the State is to be determined by the law of the State.

  (2) If the security interest was perfected already under the laws of the jurisdiction where the vessel was when the security interest attached and before being brought into the State:

    (i) If the name of the secured party is shown on an existing certificate of title issued by that jurisdiction, the security interest continues perfected in the State.

    (ii) If the name of the secured party is not shown on an existing certificate of title issued by that jurisdiction, and if the law of that jurisdiction does not provide for certificates of title disclosing security interests, the security interest continues perfected in the State for 4 months and, after that time, if within the 4-month period the security interest is perfected in the State. This security interest may also be perfected in the State after the expiration of the 4-month period, in which case perfection dates from the time of perfection in the State.

    (iii) If the security interest was not perfected under the law of the jurisdiction in which the vessel was when the security interest attached before being brought into the State, the security interest may be perfected in the State; in which case perfection dates from the time of perfection in the State.

(d)

  (1) Five dollars of this filing fee, which is in lieu of a recordation tax imposed under Title 12 of the Tax - Property Article, shall be deposited in a special fund which is created. These moneys shall be used for the benefit of the counties of the State, and Baltimore City, and distribution of this fund shall be made to the several counties and Baltimore City annually on the basis of the residence of the purchasers of the vessels.

  (2) Money in the special fund may be used for administrative costs calculated in accordance with Sec. 1-103(b)(2) of this article.

(e) Six dollars of every fee received under the provisions of Sec. 8-730 of this subtitle shall be deposited in the General Fund.

#### Section 8-730

(a) The provisions of this section apply if an owner creates a security interest in a vessel.

(b) The owner immediately shall execute the application in the space provided on the certificate of title or a separate form the Department prescribes, naming the secured party on the certificate of title, showing the name and address of the secured party, the amount of the security interest, and the date of the security agreement, and cause the certificate of title and application to be delivered to the Department.

(c) At the time of delivery of the documents described in subsection (b) of this section to the Department, the secured party shall pay to the Department a filing fee as required for perfection of the security interest under Sec. 8-729(b) of this subtitle. The security interest is perfected at the time of the delivery and payment.

(d) Upon receipt of the certificate of title, application, and the required filing fee, the Department shall endorse on the existing certificate of title or on a new certificate, which the Department then issues, the name and address of all secured parties and mail or deliver the certificate of title to the owner of the vessel.

#### Section 8-731

(a) A secured party may assign, absolutely or otherwise, all or part of the secured party's security interest in the vessel to a person other than the owner without affecting the interest of the owner or the validity of the security interest, but any person without notice of the assignment is protected in dealing with the secured party as the holder of the security interest and the secured party remains liable for any obligations as secured party until the assignee is named as secured party on the certificate of title.

(b) The assignee shall deliver to the Department the certificate of title if available and an assignment by the secured party named in the certificate of title in the form the Department may prescribe accompanied by a filing fee as required for perfection of the security interest under Sec. 8-729 (b) of this subtitle. The assignee's security interest is perfected as of the time of its creation if delivery and payment to the Department are completed within 10 days of the date of its creation; otherwise, the assignee's security interest is perfected as of the time the assignee delivers the certificate and payment to the Department.

#### Section 8-732

(a) Upon the satisfaction of a security interest in a vessel, the secured party shall release the security interest in whatever form as may be prescribed by or acceptable to the Department, and within 15 days mail or deliver the signed and dated release of security interest to the owner and a copy of the release to the Department. The Department shall correct its records and, upon request of the owner and the receipt by the Department of the certificate of title with the release of security interest, the Department may issue a new certificate of title to the owner.

(b) If the Department determines after a hearing and following due notice to all parties interested that an indebtedness does not constitute a security interest, the Department shall release the indebtedness upon the certificate of title or issue a new certificate of title, and mail or deliver the certificate of title to the owner. Any person aggrieved by the decision of the Department may appeal in accordance with the provisions of the Administrative Procedure Act.

#### Section 8-733

The Department shall adopt the necessary regulations to implement the provisions of Sec.Sec. 8-729 through 8-732 of this subtitle.

#### Section 8-734

A secured party named in a certificate of title, on written request of the owner, shall disclose any pertinent information as to the security agreement and the indebtedness secured by the security agreement in accordance with Sec. 9-208 of the Commercial Law Article.

#### Section 8-735

The method provided in Sec.Sec. 8-729 through 8-736 of this subtitle of perfecting and giving notice of security interests is exclusive.

#### Section 8-736

(a) The Department shall prescribe and provide suitable forms of applications, certificates of title, notices of security interests, and all other notices and forms necessary to carry out Sec.Sec. 8-729 through 8-736 of this subtitle.

(b) The Department may make necessary investigations to procure information required to carry out Sec.Sec. 8-729 through 8-736 of this subtitle.

#### Section 8-737

(a) A person may obtain a historical watercraft identification plaque from the Department for a boat that is:

  (1) 25 years old or older; and

  (2) Powered by the boat's original type of power plant.

(b) The fee for a historical watercraft identification plaque is $25. The identification plaque shall be valid for the life of the boat.

(c) The Department shall issue a historical watercraft identification plaque, of the Department's own design, to a person who applies to the Department on a form the Department supplies. When prominently displayed on the boat, a historical watercraft identification plaque shall entitle the boat owner to apply to participate in parades, shows, and special displays. The historical watercraft identification plaque may not qualify a boat for general recreational use.

#### Section 8-738

(a) Subject to subsection (g) of this section, a person may not operate or attempt to operate a vessel while the person:

  (1) Is under the influence of alcohol;

  (2) Is impaired by alcohol;

  (3) Is so far impaired by any drug, combination of drugs, or combination of one or more drugs and alcohol that the person cannot operate a vessel safely; or

  (4) Is impaired by any controlled dangerous substance, as defined in Sec. 5-101 of the Criminal Law Article, unless the person is entitled to use the controlled dangerous substance under the laws of the State.

(b)

  (1) Except as provided under paragraph (2) of this subsection, the evidentiary presumptions and procedures established under Sec.Sec. 10-302 through 10-309 of the Courts Article are applicable to any violation of this section.

  (2) If at the time of testing an individual has an alcohol concentration that meets the definition of "under the influence of alcohol per se" in Sec. 11-174.1 of the Transportation Article, as determined by an analysis of the individual's blood or breath, it shall be prima facie evidence that the individual was operating a vessel while under the influence of alcohol.

  (3) Any person who operates or attempts to operate a vessel on the waters of the State is deemed to have consented, subject to Sec.Sec. 10-302 through 10-309 of the Courts Article, to take a test, as defined in Sec. 16-205.1 of the Transportation Article, if the person is detained by a police officer who has reasonable grounds to believe that the person has been operating or attempting to operate a vessel while under the influence of alcohol, while impaired by alcohol, while so far impaired by any drug, any combination of drugs, or a combination of one or more drugs and alcohol that the person could not operate the vessel safely, or while impaired by a controlled dangerous substance.

(c)

  (1) Except as provided in Sec. 8-738.1 of this subtitle, a person may not be compelled to take a test, as defined in Sec. 16-205.1 of the Transportation Article.

  (2) The detaining police officer shall advise a person who is requested to take a test that, on receipt of a sworn statement from the officer that the person was requested to take a test and refused or was tested and the result indicated an alcohol concentration of 0.08 or more, the court may, on conviction and in addition to other penalties, prohibit the person from operating a vessel on the waters of the State for up to 1 year.

(d) It is not a defense to a charge of violating subsection (a)(3) of this section that the person charged is or was entitled under the laws of this State to use the drug, combination of drugs, or combination of one or more drugs and alcohol, unless the person was unaware that the drug or combination would make the person incapable of safely operating a vessel.

(e)

  (1)

    (i) Notwithstanding any other provision of this title, a person who violates subsection (a)(1) of this section is guilty of a misdemeanor and upon conviction:

      (1) For a first offense, shall be subject to a fine of not more than $1,000 or imprisonment for not more than 1 year or both;

      (2) For a second offense, shall be subject to a fine of not more than $2,000 or imprisonment for not more than 2 years or both; and

      (3) For a third or subsequent offense, shall be subject to a fine of not more than $3,000 or imprisonment for not more than 3 years or both.

    (ii) For the purpose of determining subsequent offender penalties for a violation of this section, a prior conviction under subsection (a) of this section or Sec. 21-902 of the Transportation Article shall be considered a prior conviction.

  (2)

    (i) Notwithstanding any other provision of this title, a person who violates subsection (a)(2), (3), or (4) of this section is guilty of a misdemeanor and upon conviction:

      (1) For a first offense, shall be subject to a fine of not more than $500 or imprisonment for not more than 2 months or both; and

      (2) For a second or subsequent offense, shall be subject to a fine of not more than $1,000 or imprisonment of not more than 1 year or both.

    (ii) For the purpose of determining subsequent offender penalties for a violation of this section, a prior conviction under subsection (a) of this section or Sec. 21-902 of the Transportation Article shall be considered a prior conviction.

  (3)

    (i) Notwithstanding any other provision of this title and subject to subparagraph (ii) of this paragraph, the court may prohibit a person convicted of a violation of subsection (a)(1) of this section from operating a vessel on the waters of the State if the person:

      (1) Refused to take a test, as defined in Sec. 16-205.1 of the Transportation Article, when requested by a police officer under subsection (b)(3) of this section; or

      (2) Was tested and the result indicated an alcohol concentration of 0.08 or more.

    (ii) The prohibition against operating a vessel on the waters of the State under subparagraph (i) of this paragraph may not exceed:

      (1) Except as provided in item 2 of this subparagraph, 2 years; or

      (2) If the violation results in the death of another person, 5 years.

    (iii)

      (1) The Department, in coordination with the Natural Resources Police Force, shall establish and maintain a database of persons prohibited under this paragraph from operating a vessel on the waters of the State.

      (2) The Department shall establish the database on or before October 1, 2025.

      (3) The database shall be accessible to a Natural Resources police officer in any patrol vehicle or vessel.

      (4)

        (A) A court shall electronically notify the Department if a person is prohibited under this paragraph from operating a vessel on the waters of the State.

      (B) Notice provided by a court to the Department shall include the person's name, address, and date of birth, and the time period within which the prohibition applies.

      (5) On receipt of notice from a court, the Department shall:

      (A) Enter the information provided into the database; and

      (B) Maintain the information provided in the database until the prohibition expires.

(f) If a person is charged with a violation of this section, the court may find the person guilty of any lesser included offense under any subsection of this section.

(g) This section applies to the following:

  (1) A vessel required to be registered with the Department under this subtitle;

  (2) A vessel required to have a valid number awarded in accordance with a federal law or a federally approved numbering system of another state; and

  (3) A vessel from a foreign country using the waters of this State.

#### Section 8-738.1

(a) If a person is involved in an accident while operating or attempting to operate a vessel that results in the death of, or a life-threatening injury to, another person and the person is detained by a police officer who has reasonable grounds to believe that the person has been operating a vessel or attempting to operate a vessel while under the influence of alcohol, while impaired by alcohol, while so far impaired by any drug, any combination of drugs, or a combination of one or more drugs and alcohol that the person could not operate a vessel safely, or while impaired by a controlled dangerous substance, the person shall be required to submit, as directed by the police officer, to a test of:

  (1) The person's breath to determine alcohol concentration;

  (2) One specimen of the person's blood to determine alcohol concentration or to determine the drug or controlled dangerous substance content of the person's blood; or

  (3) Both the person's breath under item (1) of this subsection and one specimen of the person's blood under item (2) of this subsection.

(b) If a police officer directs that a person be tested, then the provisions of Sec. 10-304 of the Courts Article apply.

(c) Any medical personnel who perform any test required by this section are not liable for any civil damages as a result of any act or omission related to the test, not amounting to gross negligence.

#### Section 8-738.2

(a) A person may not:

  (1) Operate a vessel recklessly or in a manner that may endanger another or the property of another on a bay, creek, lake, river, or stream in the State; or

  (2) Come into a wharf or bathing shore recklessly or in a manner that may endanger a person or property.

(b) A person who violates this section is guilty of a misdemeanor and on conviction is subject to:

  (1) For a first conviction, imprisonment not exceeding 30 days or a fine of not less than $25 and not exceeding $200 or both; and

  (2) For a second or subsequent conviction, imprisonment not exceeding 60 days or a fine not exceeding $500 or both.

#### Section 8-738.3

(a) This section applies to the following:

  (1) A vessel required to be registered with the Department under this subtitle;

  (2) A vessel required to have a valid number awarded in accordance with a federal law or a federally approved numbering system of another state; and

  (3) A vessel from a foreign country using the waters of the State.

(b) A person may not operate or attempt to operate a vessel on the waters of the State while the person is prohibited from operating a vessel on the waters of the State under Sec. 8-738(e)(3)(i) of this subtitle.

(c) Notwithstanding any other provision of this title, a person who violates this section is guilty of a misdemeanor and on conviction:

  (1) For a first offense, shall be subject to a fine of not more than $1,000 or imprisonment for not more than 1 year or both;

  (2) For a second offense, shall be subject to a fine of not more than $2,000 or imprisonment for not more than 2 years or both; and

  (3) For a third or subsequent offense, shall be subject to a fine of not more than $3,000 or imprisonment for not more than 3 years or both.

#### Section 8-739

(a) Any person who violates any provision of Sec. 8-712, Sec. 8-712.1, Sec. 8-712.3, Sec. 8-713, or Sec. 8-718 of this subtitle is guilty of a misdemeanor and on conviction is subject to:

  (1) For a first offense, a fine not exceeding $500; and

  (2) For any subsequent offense that occurs within 2 years of a prior violation, a fine not exceeding $1,000 or imprisonment not exceeding 1 year, or both.

(b) Any person who violates Sec. 8-716.1 of this subtitle is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $10,000 or imprisonment not exceeding 5 years, or both.

#### Section 8-740

(a) If a person is convicted of 2 boating violations concerning the operation of, or safety equipment on, a vessel within a 2-year period of time, the person is required, as a condition of probation or sentencing, to complete successfully a boating safety education course that is offered or approved by the Department.

(b) Notwithstanding the provisions of subsection (a) of this section, if a person is convicted of any of the following boating safety violations in the operation of a vessel, the person is required, as a condition of probation or sentencing, to successfully complete a boating safety education course that is offered or approved by the Department:

  (1) Negligent operation;

  (2) Reckless operation; or

  (3) Operating in violation of Sec. 8-738 of this subtitle.

(c) The requirement to take and successfully complete the boating safety education course under subsections (a) and (b) of this section is in addition to any other punishment that a judge imposes for violation of the boating laws or regulations of the State.

#### Section 8-740.1

(a) In this section, "ship-to-shore communication device" means a:

  (1) Ship-to-shore telephone; or

  (2) Another mechanical device that enables the crew and employees on a vessel to establish contact with a person on shore as may be necessary to seek assistance under all reasonable conditions and in an emergency.

(b) This section does not apply to a vessel in interstate or foreign commerce.

(c) A person in command or an owner of a vessel may not operate the vessel on the waters of the State while carrying 25 or more paying or guest passengers in addition to the crew and employees unless the vessel is equipped with a ship-to-shore communication device.

(d) A person who violates this section is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $100.

#### Section 8-740.2

(a) A person may not operate a gasoline-powered vessel manufactured after July 31, 2007, that has accommodation spaces, swim platforms, or aft lounging areas on the waters of the State unless the vessel has carbon monoxide warning labels affixed in conspicuous locations in the vicinity of both the transom and the helm of the vessel.

(b) The Department may not impose a penalty on a person that violates the provisions of this section.

#### Section 8-741

(a)

  (1) For the purposes of this section the following words have the meanings indicated.

  (2)

    (i) "Marine sanitation device" means any equipment on board a vessel which is designed to receive, retain, treat or discharge sewage and any process to treat sewage on board.

    (ii) "Marine sanitation device" includes:

      (1) Type I marine sanitation device, which produces an effluent having a fecal coliform bacteria count not greater than 1,000 per 100 milliliters and no visible floating solids;

      (2) Type II marine sanitation device, which produces an effluent having a fecal coliform bacteria count not greater than 200 per 100 milliliters and suspended solids not greater than 150 milligrams per liter; and

      (3) Type III marine sanitation device, which is certified to a no-discharge standard, including recirculating and incinerating marine sanitation devices and holding tanks.

  (3) "Sewage" means:

    (i) Human body wastes; and

    (ii) The wastes from toilets and other receptacles intended to retain body waste.

  (4) "Y valve" means a device capable of diverting the flow of marine sewage so that a vessel's marine sanitation device is bypassed and raw sewage is discharged directly into the water.

(b) The following vessels equipped with an installed toilet shall be equipped with an operable marine sanitation device:

  (1) A vessel 65 feet in length and under shall have a Type I, II, or III marine sanitation device; or

  (2) A vessel over 65 feet in length shall have a Type II or III marine sanitation device.

(c)

  (1) A Type I or Type II marine sanitation device shall have a certification label affixed that at a minimum shows:

    (i) The name of the manufacturer;

    (ii) The name and model number of the device;

    (iii) The month and year of manufacture;

    (iv) The marine sanitation device type;

    (v) A certification number; and

    (vi) A certification statement.

  (2) A Type III marine sanitation device is automatically certified, and requires no label, provided it stores sewage and flushwater only, at ambient air temperature and pressure.

(d)

  (1) While a vessel with an installed toilet is on Maryland waters, the operator shall insure that:

    (i) All pathways for overboard discharge of vessel sewage from any vessel with a Type III marine sanitation device are blocked or secured in such a way as to prevent any accidental or intentional vessel sewage discharge, by disconnecting or physically blocking those onboard sewage lines or hull fittings which would allow for overboard vessel sewage discharge; and

    (ii) Any installed in-line Y valve shall be secured to prevent the overboard discharge of sewage from any vessel utilizing a Type III marine sanitation device, by bypassing, locking, securing, or disabling the valve using a padlock or nonreusable wire tie wrap, or by removal of the valve handle, or by any other method in accordance with federal regulations and standards or as approved or required by the Department.

  (2) The chosen compliance method under paragraph (1)(ii) of this subsection shall totally eliminate the possibility of overboard vessel sewage discharge while in waters of the State. The method chosen shall present a physical barrier to the use of the Y valve, whether accidental or intentional, so that use of the valve cannot occur without the knowledge of the operator of the vessel.

(e) For any vessel offered as a noncaptained charter, the leasing entity shall:

  (1) Ensure that the vessel complies with this section when presented to the lessor; and

  (2) Include in the lease agreement, signed by the leasing party, a paragraph outlining the operator's responsibilities under this section.

(f) A person who violates a provision of this section is subject to a civil penalty not exceeding $2,000.

#### Section 8-742

(a) Based on criteria including the protection of natural resources, health, and the environment, on or before April 15, 2000, the Department shall:

  (1) Conduct and complete, in accordance with the Federal Water Pollution Control Amendments Act of 1972 (33 U.S.C. Sec. 1251 et seq.) and the Clean Vessel Act of 1992 (P.L. 102-587), a survey of:

    (i) The number, location, and utilization of operational pumpout stations and waste reception facilities at public and private marinas, mooring areas, docks, and other boating access facilities in the State; and

    (ii) The number of recreational vessels operating in the waters of the State including transient vessels equipped with Type I, Type II, or Type III marine sanitation devices or portable toilets, and the areas of the waters of the State in which those vessels congregate including areas of overnight anchoring and mooring; and

  (2) Identify waters of the State that support living resources that are sensitive to the discharge of sewage from boats, ships, and other vessels, using criteria established under the Federal Water Pollution Control Amendments Act of 1972 and 40 C.F.R. Sec. 140.4.

(b) On or before April 15, 2001, the Department shall take steps to ensure that adequate facilities for the safe and sanitary removal and treatment of sewage from all vessels, as determined under the Federal Water Pollution Control Amendments Act of 1972, are reasonably available for the sensitive areas identified under subsection (a)(2) of this section.

(c)

  (1) The Department shall consult with the Department of the Environment in complying with subsections (a)(2) and (b) of this section.

  (2) The Department shall make recommendations, if appropriate, to the Department of the Environment on any suggested changes to existing water quality standards.

#### Section 8-743

(a)

  (1) In this section the following words have the meanings indicated.

  (2) "Child" means an individual who is under the age of 13 years.

  (3) "Personal flotation device" means a flotation device that is approved by the U.S. Coast Guard.

  (4)

    (i) "Vessel" means:

      (1) A vessel used for recreational purposes; or

      (2) A vessel leased, rented, or chartered for noncommercial use.

    (ii) "Vessel" does not include a vessel carrying passengers for hire under the command of an individual licensed by the U.S. Coast Guard to carry passengers for hire, or a vessel displaying a valid seafood harvester's license number while engaged in the harvesting of seafood for sale.

(b)

  (1) A person may not operate or allow the operation of a vessel under 21 feet in length if there is a child present in the vessel unless the child is wearing a personal flotation device that is:

    (i) Properly sized for the child;

    (ii) In good and serviceable condition; and

    (iii) Securely and properly attached to the child.

  (2) If the child is under the age of 4 years, the personal flotation device shall feature additional safety precautions, as appropriate for an infant, toddler, or young child, so as to:

    (i) Hold the child securely within the personal flotation device, including a strap that is secured between the child's legs to fasten together the front and back of the personal flotation device;

    (ii) Maintain the buoyancy of the child, including an inflatable headrest or high collar; and

    (iii) Ensure the ready accessibility of the child from the vessel, including a web handle.

(c) Subsection (b) does not apply to:

  (1) A vessel that is moored or anchored; or

  (2) A child who is below deck or in an enclosed cabin.

#### Section 8-744

(a) In this section, "for-hire water carrier" means a vessel used to accept or solicit passengers for:

  (1) Transportation between points along State waters in exchange for remuneration; and

  (2) Sightseeing and touring in State waters in exchange for remuneration.

(b) Before the Department registers a for-hire water carrier, the Department shall require the for-hire water carrier to show, to the Department's satisfaction, that the water carrier holds an insurance policy or a bond in an amount that is required of a motor vehicle carrying the same number of passengers in accordance with COMAR 20.95.01.18.

(c) The Department may adopt regulations to implement this section.

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Md. Code Ann., Nat. Res. (as displayed at mgaleg.maryland.gov, October 16, 2026)