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Boating Fees Could Double to Pay for Waterway Maintenance

Posted on July 19, 2016

By Laura Walter, Coastal Point

Delaware legislators are trying to keep Delaware waterways open by doubling boater registration fees.

The State could raise more than $1 million for a new waterway management fund, according to Senate Bill 261, sponsored by state Sen. Gerald Hocker Sr. (R-20th) of Ocean View.

The new, additional funds would go straight into a new waterway management fund, which the Delaware Department of Natural Resources & Environmental Control (DNREC) would use specifically to maintain Delaware’s public waterways. The goal is to “preserve, maintain and enhance recreational and commercial use of the State’s waters.”

Boaters should accept the new fee, Hocker said, because in some places, watercraft can’t get out during low tide.

“The boaters have all agreed because they want dredging so bad,” Hocker said.

They’d be willing to pay if they felt the money was being used properly, said state Rep. Ron Gray (R-38th), who also sponsored the bill with state Rep. Ruth Briggs King (R-37th).

Introduced in May, the bill passed the Delaware State Legislature in June, with the required three-fifths majority. It would only need the governor’s approval to become law.

As is the case with many of the bills passed in the recently concluded legislative session, Gov. Jack Markell is reviewing SB 261 with his staff but has not announced his plan of action yet, stated his Deputy Communications Director Jason Miller.

When asked about the bill, several watercraft sales businesses said they hadn’t even heard about the proposed legislation.

It’s been at least a decade since the last fee increase, Gray noted.

“We’re still the cheapest around,” Hocker said.

Many out-of-state owners register their boats in Delaware because it’s so inexpensive, they added. Some surrounding states charge an additional tax based on the boat’s purchase price.

Hocker said he believes this is the only fee bill he’s ever sponsored.

With support from DNREC, Hocker said, the bill has been considered a “department bill, but we instigated it.”

It’s based on recommendations made by the Delaware Waterways Management & Financing Advisory Committee, which the legislature created in 2014.

DNREC estimated additional revenue in the amount of $1,328,340 per year if the bill is signed into law. The effective date for the increases would be Jan. 1, 2017.

The money would go into a “locked box” fund, which should prevent the State from borrowing or redirecting money to other purposes, Gray said.

Waterway management would include “activities necessary to provide for the planning, surveying, design, engineering and construction, or other activities directly related to the maintenance of public waterways,” such as dredging, channel marking, survey work, beneficial use of sediment and removal of debris or derelict structures.

Part of the goal is just to maintain the status quo. Due to federal funding shortages, the U.S. Army Corps of Engineers has planned to stop maintaining navigational aids on smaller waterways. Delaware is taking more responsibility for the smaller waterways that are critical to Delaware boaters but are considered small potatoes compared to larger channels that also need federal funding.

According to the State’s fiscal report, the fee increase would affect 59,467 boaters registered in Delaware.

The annual vessel registration fees are based on boat length and would increase as follows:

Class A (less than 16 feet) from $10 to $20

Class 1 (16 feet to less than 26 feet) from $20 to $40

Class 2 (26 feet to less than 40 feet) from $30 to $60

Class 3 (40 feet to less than 65 feet) from $50 to $100

Class 4 (65 feet or longer and not required to be documented) from $60 to $120.

The measure got almost unanimous support from both parties and both chambers of the legislature. Cosponsors included six senators and nine representatives, evenly split between Democrats and Republicans.

The Senate vote was 19-1-1, with Colin Bonini (R-16th) against and Bryant Richardson (R-21st) not voting.

The 35-2-2 House vote came with opposition from Millsboro’s Rich Collins (R-41st) and House Minority Leader Daniel Short (R-39th). Abstentions came from Charles Potter (D-1st) and Stephanie Bolden (D-2nd). Absent were David Bentz (D-18th) and Harold Peterman (R-33rd).

Hocker and Gray both serve on their individual chambers’ natural resources committees, which had to release the bill for a vote.

“Supporters of the legislation say the challenge of maintaining waterways is about much more than convenience,” stated the House Republicans in an email newsletter. “They say boaters that run aground, stranding or damaging their crafts due to shallow water, will take their vessels and money elsewhere — significantly impacting the state’s billion-dollar tourism industry.”

The bill also allows private licensing agents to collect a higher service charge for processing boat registrations (up to $5, formerly $1.50) and boat ramp certificates (up to $1.50, formerly $0.75).

Officially, the bill affects Delaware Code Title 23, “Navigation and Waters,” subsections 2112 and 2113.

Source: Coastal Point

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