This document provides background information and summarizes the debate over the requirment of longshorman insurance for small marinas. The links to the left will lead you to public documents that we have found.
The difference
between a "boat" and a "ship" may seem to be of little
importance except to language purists. It turns out, however, that there is
an important difference in law. If a vessel is no more than 65 feet in length,
it's a boat; more than 65 feet and it's a ship. More to the point, a ship
falls under the requirements of the Longshore and Harbors Worker Compensation
Act. Those who work in one way or another on ships, must have federal longshoreman
coverage and participate in state workers compensation programs. The law includes
companies that build vessels of more than 65 feet, as well as those who are
involved in manufacturing related products and servicing such craft. As a
result, a small business on a marina that services small and medium size craft
comes under the law if a single vessel it works on exceeds 65 feet.
The businesses
in the small pleasure craft industry believe that they should be exempt from
this law because which they feel does not technically apply to them. They
have to pay money to participate in an insurance program they believe was
not intended for them. There's no question that the primary target for the
law are longshoreman-the workers that unload cargo ships after they dock at
a port. Longshoremen work in environments full of heavy containers and equipment.
Today, with an array of safety standards in place, workers are surely better
protected from injury than when the Longshore and Harbors Act first became
law in the late 1920s. There wasn't workman's compensation in every state
then either so the federal law was intended to provide coverage to those who
would not otherwise receive it.
In the 107th
Congress trade groups representing small businesses began working on an amendment
to the law with the Recreational Marine Employment Act. A lobbyist for one
of the groups explained: "The length of a boat shouldn't indicate whether
it's a boat or a ship. We feel that a better definition needs to be put forth
in the law, because basically [our member businesses] need to have the federal
longshore coverage and state workers comp, and it is very expensive and we
don't believe it's applicable to the recreation and marine industry. [We shouldn't]
be paying these expenses and we don't really have the injuries." She
noted that there were many pleasure craft that were a bit longer than 65 feet
and that length seemed to be a wholly arbitrary demarcation between a boat
and a ship.
Those with an
interest in amending the law created the Recreation Marine Employment Coalition
and began working with a few legislators on the House Education and Workforce
Committee. The legislation proceeded slowly as few members saw the bill as
a major priority for the committee. The Coalition knew that it would be considerably
easier to get the bill through the House if there was bipartisan support.
Consequently, it reached out to Representatives of both parties serving on
the Education and Workforce Committee. No immediate opposition emerged and
organized Labor, which might seem to be a natural antagonist to legislation
designed to weaken worker protection, didn't mobilize against the bill at
this early stage. Possibly it was waiting to see any serious movement on the
legislation before it committed resources. Indeed, the legislation failed
to progress and no new law had emerged when the final gavel was brought down
on the 107th Congress.