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Editor's Comments It
may seem strange to start our North Carolina
newsletter with an article on the Florida
Summit, but our industry's issues, concerns,
markets, training needs, and responses to
this industry-wide recession suggests nationwide
efforts are needed. I learned much that can
hopefully be translated back to North Carolina
and plan to do so again through IBEX and COMITT
workshops. Our SBTDC business assistance is
available to all NC companies regardless of size
or solvency. We have over 50 business counselors
across the state. Find the Center nearest your
location at www.SBTDC.org and/or contact me at MBradley@SBTDC.org. |
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Florida Summit: NC Shares Common Issues
The NC Boating
Industries Services director, Mike Bradley, was
invited as a speaker for Florida's 10th Annual
Marine Summit held September 24th at the
Palm Beach County Convention Center. He provided
a "harmonizing" talk on NC boating industry
recruitment following a like presentation by Bob
Rohrlack, Senior Vice President of Recruitment &
Retention, Enterprise Florida entitled "Economic
Development & Business Retention". In the
process of attending the event, Bradley picked
up considerable information on industry issues
of importance to both Florida and North
Carolina. One of the key topics of the
Summit related to Florida's Save Our Waterfronts
(SOW) effort in support of Amendment Six - a
voter's option amendment that "if passed, it
would rewrite the state's constitution so that
marinas and other waterfront businesses would be
taxed according to a current use standards
rather than their "highest and best" use.
According to current Florida standards, a bait
shop pays the same taxes as a waterfront condo.
If the amendment is approved, the marine
industry says that marinas, boat and tackle
shops and other working waterfront properties
would save about $70 million next year in taxes,
and $306 million by 2016". See
saveourwaterfronts.org/. In other
Summit topics of common NC interest were
sessions on Education & Workforce and on
Regulatory & Environmental
Compliance/Collaboration - both topics of
strong, ongoing interest here in North Carolina.
Additional information will be provided on both
topics in the next NC Marine TradeWinds
newsletter as Bradley will be attending the
Sunday October 5th COMITT: Conference on Marine
Industry Technical Training workshop and
meeting with NMMA staff on several regulatory
issues including the EPA Boat MACT issues and
EPA standards for boat engines and motors (see
following articles).
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NC Legislature Overrides Veto on Boat
Towing
From the NMMA September 16,
2008 On August 27, a special session of
the North Carolina assembly overturned Governor
Mike Easley's veto on House Bill 2167/S.L.
2008-229. The veto override eliminates a
decades-old state law that bans boats from 8'5"
wide to 9'6" from being transported by trailer
at night, on Saturdays and Sundays and from the
day before until the day after national
holidays. Most boaters were unaware of this law
until last year when the North Carolina State
Highway Patrol began issuing fines of $500 to
more than $1,000 per infraction. The
override of the governor's veto, the first in
the state's history, was the result of a number
of local groups joining forces to make local
boaters aware of the issue. Parker Marine and
Grady-White Boats spearheaded the effort to not
only initially enact the bill, but to later
marshal support for the veto override. NMMA
provided lobbying support as the veto override
neared and leveraged widespread media coverage
and outreach to local boating and fishing groups
to encourage local boaters to contact House and
Senate leaders. Recreational boaters throughout
the region acted quickly, sending hundreds of
emails and phone calls to legislators voicing
their concern with the Governor's veto.
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NC Air Quality Letters and/or Inspections
Are Coming Soon!
The North Carolina Division of Air
Quality (DAQ) has recently undertaken a review
of the boat industry in the State. The
purpose of the review is to ensure that boat
manufacturing facilities are properly permitted
in accordance with the North Carolina air
regulations and are in compliance with the Boat
MACT, if applicable. In the near future,
your facility may receive a letter from the DAQ
regarding the Boat MACT and air permitting.
DAQ staff may also visit your facility for
additional information about your operations. It
is important that you take steps to ensure you
are meeting all air quality requirements. Background: The
final National Emission Standards for Hazardous
Air Pollutants (also known as the Maximum
Achievable Control Technology or MACT Standards)
for Boat Manufacturing regulates Hazardous Air
Pollutants (HAP) from major sources that
manufacture aluminum recreational boats and
fiberglass boats. (Please see links below
for information about the Boat MACT.)
Applicability: To determine if you
are subject to this regulation, you need to
consider the potential emissions of HAPs from
your facility. If your recreational boat
manufacturing facility has the potential to emit
more than 10 tons per year (TPY) of any
individual HAP, e.g. Styrene, or 25 TPY total
HAPs - then your facility might be subject to
this regulation. Potential
Emissions: Keep in mind that
potential emissions are not the same as actual
emissions. Even if your actual styrene
emissions are less than 10 TPY, you might still
be subject to the Boat MACT because of your
potential emissions. For example, if you
actually operate one 8-hour shift for five days
per week and your actual styrene emissions were
2.5 TPY, your potential emissions calculated as
operating three 8-hour shifts for seven days per
week and no vacations could be over 10 TPY.
Resources: It is
imperative that you properly calculate your
emissions to determine if you need a permit and
are complying with the federal requirement. Call
our office so we can help you determine how
these rules impact you. Additional help
on determining and/or reducing your emissions
may be available from: NC Small Business Environmental
Assistance Program Call
877-623-6748, ask for Tony Pendola.
Sources
of Information about the Boat MACT:
The University of Tennessee Institute for Public
Service
http://www.epamact.tennessee.edu/boat/
The US Environmental Protection
Agency
http://www.epa.gov/ttn/atw/boat/boatpg.html
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Hurricane Prep Resources (Revisited)
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IMI announces National Drystack Conference
Agenda
The International Marina Institute (IMI), a
subsidiary of the Association of Marina
Industries (AMI), announced its agenda for its
eighth National Drystack Conference being held
on October 26-28, 2008, in West Palm Beach,
Florida. The conference agenda is a
blend of dynamic topics and leading industry
presenters speaking on both domestic and
international operations. Topics will range from
"What's New in Forklifts?" to the "Financial
Feasibility of Drystack Storage." Conference
host Tim Timspon, CMM, Marina Resource, LLC,
will open the conference with a presentation on
"New Drystack Developments" which will cover
Southeast Florida and beyond. The conference
will also offer attendees a look into emerging
drystack technologies and designs presented by
Vertical Yacht Storage Systems, Automated Marine
Technologies, GCM Contracting, and Boat Storage
Solutions to name a few. Attendees will also be
offered a glimpse into the actual operations of
new drystack facilities through the eyes of some
of IMI's elite Certified Marina Managers (CMMs),
who will present their firsthand experiences
with drystack from the design / production stage
to current operations. For more
information, a complete agenda, and to register
for the National Drystack Conference and/or the
Southeast Florida Marina and Boatyard Study
Tour, please call 401-247-0314, or visit the
Drystack Conference page at the Association of
Marina Industries web site: www.marinaassociation.org.
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NC Workers' Compensation Rates Expected To
Drop In 2009
Workers' compensation insurance rates will be
dropping in North Carolina next year, for the
first time in five years according to a
September 2nd, 2008 NCRB Circular Letter. The
North Carolina Rate Bureau has requested an
average drop of 3.8% in overall rates (4.4
percent decrease in lost cost and a 0.6%
increase in lost cost multiplier).
Also noted in that Circular was a change
in the Longshore and Harbor rate: "For residual
market rates for classifications which
contemplate exposure under the United States
Longshore and Harbor Workers' Compensation Act
("F" classifications), the percent proposed is
95% compared to the currently approved 100%".
(See the NMMA article below about Expansion of
Longshore Workers' Compensation Exemption).
See NC
Workers Compensation.
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NMMA Advocates Expansion of Longshore
Workers' Compensation Exemption
This issue is of critical importance to NC
boat builders and boat and yacht yards, as well
as all companies that service these facilities.
"NMMA is working on an effort to broaden the
category of boat manufacturers that are exempt
from longshore workers' compensation
requirements. Currently, U.S. manufacturers of
vessels less than 65 feet are exempted from
providing employees with longshore workers'
compensation. NMMA supports measures to increase
this ceiling to include manufacturers of vessels
less than 165 feet.
As language for this expansion has been
refined, an unrelated and damaging issue has
arisen. One version of the legislation proposes
officially classifying all vessels less than 165
feet as "recreational boats" with the U.S. Coast
Guard, which would ultimately require most
recreational boat manufacturers to purchase
onerous longshore coverage, creating a
significant financial hurdle. NMMA is working
closely with the Marine Industries Association
of South Florida (MIASF), Senator Bill Nelson
(D-Fla.), Representative Debbie Wasserman
Schultz (D-Fla.) and Representative Ron Klein
(D-Fla.) to protect boat manufacturers against
this potentially devastating legislation."
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USCG to Consider Hefty Boaters into Boat
Calculations
SUMMARY: The Coast Guard proposes to amend
its regulations governing the stability of
passenger vessels and the maximum number of
passengers that may safely be permitted on board
a vessel. The average American weighs
significantly more than the assumed average
weight per person utilized in current
regulations, and the maximum number of persons
permitted on a vessel is determined by several
factors, including an assumed average weight for
each passenger. Updating regulations to more
accurately reflect today's average weight per
person will maintain intended safety levels by
taking this weight increase into account.
The Coast Guard is also taking this
opportunity to clarify and update intact
stability and subdivision and damage stability
regulations.
[Federal Register: August 20, 2008 (Volume
73, Number 162)] The proposed changes
would affect calculations that determine the
maximum number of passengers a vessel may safely
carry. Average weight per person is one of
several factors used. Until now, calculations
have assumed an average weight of 160 pounds.
The USCG Marine Safety Center conducted studies
assuming a new average weight of 185 pounds.
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New Fed Rule Would Exempt Boat &Trailer
Salespersons from Overtime
Federal Department of Labor issued a proposed
rule written to revise out-of-date rules under
the Fair Labor Standards Act of 1938 (FLSA).
These rules had become out-of-date because of
subsequent legislation and court decisions. The
FLSA requires employers to pay non-exempt
employees, at least, a federal minimum wage and
overtime premium pay of time and a half for
hours worked over 40 hours per week.
The FLSA also contains a number of
exemptions from the minimum wage and overtime
requirements. Over the years, Congress has
amended the FLSA to refine or to add exemptions
to clarify the minimum wage and overtime pay
requirements. A 1974 amendment extended an
overtime exemption to include any salesman
primarily engaged in selling boats and trailers.
The proposed DOL rule is written to
update federal regulations to reflect the
amendment's addition of boat salespersons to the
exemption from overtime if the boat and trailer
salespersons are employed by non-manufacturing
employees and to conform with existing laws. The
proposed rule clarifies who is covered by the
FLSA. The full text of the rule written in
government language can be viewed at:
http://hr.cch.com/news/employment/080108a.asp
[ MRAA Dealer Alert letter dated 8/12/08]
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Creating/Requesting a no-wake zone
The basic steps are as
follows:
1. The Wildlife Resources Commission
(WRC) must receive
a. A written request from the local
governmental unit with territorial jurisdiction
of the area in question requesting a local water
safety regulation.
b. A certified copy of a resolution for the
zone adopted by the local governmental unit.
Public Notice of the local government's
intention to adopt such a resolution is
required.
c. A completed Form D-1 (Form D-1 designates
the local governmental unit responsible for
markers).
d. Two copies of a map of the waters in
question showing the exact location and type of
markers that are necessary for enforcement of
the proposed rule. * The application should
state whether the funds for the No Wake Zone
buoys will be provided privately or whether the
local government in question is purchasing the
markers. **No Wake Zone buoys, which may be
purchased at marine supply stores, must conform
to the standards of the Uniform State Waterway
Marking system. (Signs on land are not
sufficient indicia for a no wake zone)
2. An investigation will be conducted by the
Wildlife Commission's Enforcement Division to
determine the basis of need for and advisability
of the proposed rule. 3. If the
Enforcement Officer's investigation indicates
that the proposed rule is necessary to address a
water safety hazard, the proposal is presented
to the Wildlife Commission. 4. If the
WRC approves the proposal, a public hearing will
be scheduled and notice published, along with
the proposed text of the Rule in the NCR. The
WRC will receive public comment. When public
comment has been duly considered and the
determination is made to proceed, the text of
the proposed rule is presented to the WRC for
final adoption. 5. Following adoption,
the permanent rule is submitted to the Rules
Review Commission (RRC) for approval. If the RRC
approves the rule, it usually becomes effective
within a month of that approval. Please note: Applicants from
the coastal counties must obtain a Coastal Area
Management Act [CAMA] permit from the Division
of Coastal Management [DCM] in order to place a
buoy in navigable waters there. (A no wake zone
will not be enforced in the absence of a proper
buoy marker. ) If, after investigation, the
North Carolina Wildlife Resources Commission
authorizes a no wake zone for a coastal county,
the applicant [county] must contact the DCM
district manager to apply for such a "CAMA Major
Permit. Please see
http://dcm2.enr.state.nc.us/contact_dcm.htm
for a list of the district offices and contact
information for their district managers.
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NC Trade Booths at IBEX 2008
Come and
visit us at our IBEX Booth # 1020. We will help
you and your company reps locate products and
boating services and assist as we can while you
are there. The North Carolina companies and
booth numbers are: Accu-Form Polymers -
367; Ameritex Technologies - 846; C. E. Smith
Company - 2587; Camco Manufacturing - 1059; CVG
- Commercial Vehicle Group - 1001; Dixie Plywood
& Lumber Co. - 405; DNA Group(Digital Switching)
- 500; Florida Marine Tanks - 1282; Forest City
Tool - 1734; Glen Raven Mills (Sunbrella®) -
2462; Hickory Springs Manufacturing - 1211; HK
Research Corporation - 1821; IPS Corporation
(Weld-On) - 2327; King Marine - 672; Lawrence
Industries (Novaflex) - 2575; Morbern - 2567;
Morse Industries - 448; NCwaterways - 1020;
Outdura (Shuford Mills, Inc.) - 290; Pacer
Marine - 2564; Piedmont Plastics - 2551;
Reichhold - 2030; Saertex USA - 2245; Sea Tech -
473; Southtech Plastics - 291; Technicon
Industries - 741; tesa tape - 2207; The Gartner
Group - 631; Victory Bolt & Specialty - 477.
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Engine Manufacturers to Meet New EPA
Standards
In short, the new regs will meet the
California emission standards and the following
is summary from the NMMA article in the
Currents Newsletter

The new regulations are a result of a
decade of negotiation and collaboration by the
National Marine Manufacturers Association and
the EPA, and will result in substantial benefits
to the recreational marine industry, public
health, welfare and the environment as well as
long-term fuel savings, the National Marine
Manufacturers Association reported in a recent
statement.
The new regulations mean gasoline
outboard, personal watercraft and stern drive
inboard engine manufacturers will basically be
required to meet California emission standards.
This will also be the first time gasoline marine
engines will be required to meet a carbon
monoxide standard. For boat builders, these new
emission regulations will require the fuel
system to meet both permeation and diurnal
emission reductions, the association explained.
The new standards require that fuel systems:
accommodate low permeation fuel lines and low
permeation plastic fuel tanks; include carbon
canisters used to capture fumes from open fuel
vents; and prevent fuel from spitting back
during fueling, NMMA reported.
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