Chaotic CTA Timeline to Date

On December 23, 2024, a panel of the U.S. Court of Appeals for the Fifth Circuit granted a stay of the district court’s preliminary injunction entered in the case of Texas Top Cop Shop, Inc. v. Garland, pending the outcome of the Department of the Treasury’s ongoing appeal of the district court’s order. FinCEN immediately issued an alert notifying the public of this ruling and, recognizing that reporting companies may have needed additional time to comply with beneficial ownership reporting requirements, FinCEN extended reporting deadlines. 

On December 26, 2024, however, a different panel of the U.S. Court of Appeals for the Fifth Circuit issued an order vacating the Court’s December 23, 2024, order granting a stay of the preliminary injunction. Accordingly, as of December 26, 2024, the injunction issued by the district court in Texas Top Cop Shop, Inc. v. Garland is in effect, and reporting companies are not currently required to file beneficial ownership information with FinCEN.

The Fifth Circuit has scheduled a hearing on the government’s appeal for March 25, 2025. 

NOTE:

Reporting companies may still voluntarily file their beneficial ownership reports with FinCEN and should continue to prepare for filing in the event the injunction is lifted.

FinCEN’s earlier guidance on reporting obligations (which have now been enjoined) is available in its entirety by accessing this link: https://www.fincen.gov/boi.

• Companies created on or after September 4, 2024, with an original filing deadline between December 3, 2024 and December 23, 2024 now have until January 13, 2025 to file.
• Companies created on or after December 3, 2024, and on or before December 23, 2024, now have an additional 21 days from their original filing deadline to file.
• Companies that qualify for extended deadlines because they qualified for disaster relief, and having extended deadlines that fall beyond January 13, 2025, may still take advantage of the extended deadlines.
• Companies created on or after January 1, 2025, will have 30 days to file after receiving actual or public notice that their creation is effective.

For more information on reporting requirements and disaster relief, see the Financial Crimes Enforcement Network webpage at https://fincen.gov/boi. 

Where do companies go from here? 

FinCEN has announced that victims of recent hurricanes will receive a 6-month extension to filing Beneficial Ownership Information per the Corporate Transparency Act

The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has announced that certain victims of Hurricane Milton, Hurricane Helene, Hurricane Debby, Hurricane Beryl, and Hurricane Francine will receive an additional six months to submit beneficial ownership information reports, including updates and corrections to prior reports.

FinCEN issued five notices extending the filing deadlines for reporting companies that:

1. Have an original reporting deadline beginning one day before the date the specified disaster began and ending 90 days after that date, and
2. Are located in an area that is designated both by the Federal Emergency Management Agency as qualifying for individual or public assistance and by the Internal Revenue Service as eligible for tax filing relief.

Please refer to the applicable Notice for specific information.

• Notice regarding Hurricane Milton
• Notice regarding Hurricane Helene
• Notice regarding Hurricane Debby
• Notice regarding Hurricane Beryl
• Notice regarding Hurricane Francine

DEMA continues to work with Members of the U.S. Congress and their staff to provide business operators with much-needed insurance premium relief, BUT WE NEED YOUR HELP in generating awareness and support for The DIVE BOAT Act.

We have created a series of social media campaign images and messages and ask that you share them with your social media followers, asking for their support of The DIVE BOAT Act.

Please download the materials and share start sharing them today!

ACCESS CAMPAIGN MATERIALS

Why Does It Matter?

This change in liability limitation is increasing business costs and will impact you – either directly or indirectly. Many of the stores and dive boats we’ve spoken to are concerned that they will have to limit operations, lay off staff, or (at the very least) limit staff hours.  

The SPVA is already disrupting insurance markets and having dramatic consequences for dive operations with passenger vessels and those that rely on them – especially dive centers, day-boat operators, dive training organizations, dive travel providers and more. If you’ve not yet had to renew your insurance, you’re in for a big surprise. Members report price spikes 2-5 times higher than last year, even stores without boats. Some vessel owners cannot find a policy to cover operations. 

Lawmakers in the last Congress had intended to create a fix for the families who lost loved ones in the tragic Conception Dive Boat fire of 2019. The language from the original bill changed several times before it was added to the NDAA. As a result, there are no safety requirements in the final bill, and no compensation for the families of the Conception was included. Unfortunately, the SPVA is diverting hard-earned and limited resources from necessary boat maintenance, safety equipment, and staff training to pay for exponential increases in insurance premiums in the event of a lawsuit. 

DEMA is Working for You

DEMA believes in accountability when wrongful actions take place, but not at the expense of thousands of small businesses and employees who operate safely and responsibly every day. We are now working with the sponsors of the SPVA to try and craft a fix that will hold bad actors accountable but not unfairly punish the entire industry. 

In consultation with outside insurance actuaries, DEMA has developed a solution that would help ensure vessels operating safely and lawfully are not unduly burdened with the threat of unlimited liability for an incident that may have occurred two years prior. The DIVE BOAT Act would: 

• Reduce the lookback period for claims from two years to one for overnight vessels, which is in line with how insurance premiums are assessed. (Up from the historic period of six months)
• Remove “day-boats” from the types of vessels subject to heightened liability standards – reverting them back to the same standards as all other vessel operators, e.g., sport fishing, cruise lines, tow boats, etc.  
  

WE NEED YOUR HELP!

The U.S. House Committee on Transportation & Infrastructure is “marking up” a bill to keep US Coast Guard operating, which must be done this year. There is an opportunity to add the DIVE BOAT Act to this bill, but we will be much more successful if Congress hears from YOU!

You can show your support for the DIVE BOAT Act and encourage your representatives to do the same in one of these ways:

1. Click here to use our advocacy software to connect with your representatives and quickly send an email (with an option to use a prewritten message).
2. Use one of the following scripts (one for operators and one for employees) to help guide you and your employees in conversations with lawmakers. \

If we come together as an industry, we CAN minimize business losses and prevent layoffs.

Dive Operator Script

Please Contact your US House Representative by calling the Capitol Switchboard at (202) 224-3121

The outline below provides the simple steps to follow:

1. Call the US Capitol Switchboard at (202) 224-3121. Give the operator your state or zip code. They can help you identify your US Representative.
2. If you can speak with someone on the phone, suggested talking points are below. If needed, you may leave a voicemail.
   
   
   • Hello, my name is __________ from __________ (city/state). May I speak to the staffer who handles Coast Guard issues?
     
     
   • I’m calling to ask your boss to support the inclusion of THE DIVE BOAT ACT in the 2024 US COAST GUARD REAUTHORIZATION, which is being marked up on Wednesday in the Transportation & Infrastructure Committee (T&I).
     • NOTE: If your Representative does not serve on T&I, ask him/her to speak to Reps. Carbajal & Brownley or Chairman Sam Graves in support of the DIVE BOAT Act on the House Floor.
       
       
   • The DIVE BOAT Act will fix a mistake Congress made last year.
     • Last year, Congress tried to pass a law to help the families who tragically lost family in the Conception Dive Boat fire of 2019 called The Small Vessel Passenger Act (or SPVA).
     • The language from the original bill changed several times before it was included in the NDAA.
     • There were no safety requirements or compensation for Conception victim families in the final version.
     • Instead, the new liability requirements are so broad that I face exponential increases in my insurance premiums in case of a lawsuit.
     • We can’t recoup these costs from price increases alone. Higher prices mean fewer divers, and that is real threat to my business, my employees, and our families.
     • The dive industry operates on slim margins. The SPVA is diverting hard-earned and limited resources from necessary boat maintenance, safety equipment, and staff training.
       • Note: If you have a personal story about costs you face, please share it.
         
         
     • Please ask your boss to amend the SPVA with the DIVE BOAT Act.
       
       
3. You can also click here and enter your zip code if you would like to email your US Representative.

Additional information and background on the new law can be found here.

Dive Industry Employee Script

Business Members: Please Ask your Employees to Contact Their  US House Representative by calling the Capitol Switchboard at (202) 224-3121

The outline below provides the simple steps to follow:

1. Call the US Capitol Switchboard at (202) 224-3121. Give the operator your state or zip code. They can help you identify your US Representative.
2. If you can speak with a Representative's staff member on the phone, suggested talking points are below. If needed, you may leave a voicemail.

• Hello, my name is __________ from __________ (city / state). May I speak to the staffer who handles Coast Guard issues?
  
  
• I’m calling to ask your boss to support the inclusion of THE DIVE BOAT ACT in the 2024 US COAST GUARD REAUTHORIZATION, which is being marked up on Wednesday in the Transportation & Infrastructure Committee (T&I).
  • NOTE: If your Representative does not serve on T&I, ask him/her to speak to Reps. Carbajal & Brownley or Chairman Sam Graves in support of the DIVE BOAT Act on the House Floor.
    
    
• The DIVE BOAT Act will fix a mistake Congress made last year.
  • Last year, Congress tried to pass a law to help those who tragically lost family in the Conception Dive Boat fire of 2019 called The Small Vessel Passenger Act or SPVA.
  • The language from the original bill changed several times before it was included in the NDAA.
  • There were no safety requirements or compensation for Conception victim families in the final bill.
  • Instead, the new liability requirements are so broad that my employer is seeing exponential increases in insurance premiums in case of a lawsuit.
  • We can’t recoup these costs from price increases alone. Higher prices mean fewer divers, and that is a real threat to my job.
  • The dive industry operates on slim margins. The SPVA is diverting hard-earned and limited resources from necessary boat maintenance, safety equipment, and staff training.
    
    
• Please ask your boss to amend the SPVA with the DIVE BOAT Act.
  

You can also click here and enter your zip code if you would like to email your US Representative.

Additional information and background on the new law can be found here.

The liability requirement was included in the recently passed National Defense Authorization Act (NDAA). Lawmakers had been led to believe that Section 11503 of the NDAA was simply a “fix for the families who lost loved ones” in the tragic Conception Dive Boat fire of 2019.  But the new law goes far beyond one tragedy – it lines the pockets of trial lawyers and does nothing to make sure dive boats are operating safely.  Already, the cost of passenger vessel liability insurance has started increasing substantially, threatening the business of many dive operators.

There is still hope for a repeal. A brand-new Congress has been seated. We need your help to educate them about the ramifications of this new law and persuade them to repeal it.  If we come together as an industry, we CAN minimize businesses losses and prevent layoffs.

Why Does It Matter?

The liability requirement will have a cost impact on YOUR business.  Either directly (because you operate a small passenger vessel for diving) or indirectly (because you contract with a dive vessel for travel or instruction)—YOUR BUSINESS COSTS WILL INCREASE.

Dive vessel operators:
Dive vessel operators around the country started reporting exponential increases in their premiums in December 2022 as insurers cited this new law.

Businesses that contract with dive vessel operators:
With unfathomable increases in insurance premiums, dive vessel operators will have no choice but to increase their rates with YOU.

What Can You Do?

We ask that you reach out to your two US Senators and US House Representative and educate them about the true impact of the law on both your business and the industry as whole.  Below is a sample script to help guide you in your conversation with lawmakers. DEMA has also attached background information to help you better understand what is happening and why. 

Please Contact your US House Representative and Senators by calling the Capitol Switchboard at (202) 224-3121

The outline below provides the simple steps to follow:

1. Call the US Capitol Switchboard at (202) 224-3121, give the operator your state or zip code, and ask them to connect you. They can help you identify your Senators & US Representative.
   
   
2. If you are able to connect with someone on the phone, suggested talking points are below. If needed, you may also leave a voicemail.
   
   
   • Hello, my name is __________ from __________ (city / state). May I speak to the staffer who handles Coast Guard issues?
     
     
   • I’m calling today because buried in the 2023 National Defense Authorization Act that passed in December is a new liability requirement that is devastating MY small business.
     
     
   • Section 11503 was touted as a “fix for the families who lost loved ones” in the tragic Conception Dive Boat fire of 2019. But the provision goes far beyond this one tragedy.
     
     
   • Section 11503 IMPACTS ALL SMALL VESSEL operators. It DOES NOTHING to improve safety standards. It just requires me to increase liability insurance in case I get sued AFTER an accident.  

     Note: If you have a personal story about the costs you are facing, please share it – e.g., we know of a dive boat operator facing $160K insurance increase for a $2.2M operation .

   • This is just a payday for the plaintiffs’ lawyers at the expense of my small operation and our employees. I am asking you and your boss to Please REPEAL Section 11503 of the 2023 NDAA IMMEDIATELY.
     
     
   • At a time when I’m already facing increased costs because of inflation – my employees and I need Congress to repeal this ill-conceived requirement. Without a repeal, we may not be able to operate – or forced to lay off employees, which makes no one safer!
     
     
3. You can also click here and enter your zip code if you would like to email your US Representative. US Senators are listed here by state.

Additional information and background on the new law can be found here.

Protections of the Current Law
Under current U.S. Maritime Liability laws (46 USC Ch 305 Subtitle III, §30511), after an accident the owner of any seagoing vessel of any size can bring a civil action in a district court of the United States to limit their liability from damage claims to the value of the owner’s interest in the vessel. When the owner files for this limitation to liability, all actions and damage claims arising from the accident may be rolled into one action in state court, and if awarded, damages may be equally distributed to all successful claimants.

This limitation is typically acted upon after the owner receives written notice of a claim, and currently, the owner must act on the claim within six months of that notice.

Proposed Regulatory Changes
Language was recently added to the 3600+ page National Defense Authorization Act for Fiscal Year 2023 that will remove these liability protections, BUT ONLY FOR SMALL VESSELS.

The added language removes the liability limitation for vessels carrying not more than 49 passengers on an overnight domestic voyage; and not more than 150 passengers on any voyage that is not an overnight domestic voyage. Under this inserted language, owners of small vessels (including dive vessels), could be held legally responsible for compensating accident victims and their families regardless of the value of the boat after the incident. If the language is altered in the way proposed, it is likely that only the first accident claimant will recover damages from the owner, leaving any additional claimants without access to any compensation.

The inserted language also includes an extension to the notice time for bringing action. Under this new language the owner (or master, manager, or agent) of a vessel transporting passengers or property may not use a contract or other instrument to limit the period for giving notice of (or filing a claim for), personal injury or death, to less than two years (currently, 6 months) after the date of the injury or death. The owner may not limit the time for bringing a civil action for personal injury or death to less than two years (currently, one year) after the date of the injury or death.

This Regulation is Likely to Substantially Increase Liability Insurance Cost
Currently, owners of small passenger-carrying vessels, including owners of dive vessel, pay large fees for liability insurance. The current limitation to liability is factored into these insurance rates.  A change in this liability limit – targeted only at owners of small passenger-carrying vessels - will necessarily cause a substantial increase in liability insurance rates for these small businesses.

 With millions of small passenger-carrying vessels registered in the U.S., DEMA is concerned that any change to this 170+ year-old law, particularly without any comprehensive study on the financial impact to the boating, fishing, and diving industries, would result in an additional cost to all boating-related operations and have a detrimental impact on the national economy. The law will most certainly cause vessel liability insurance premiums to rise substantially, as premiums now factor in the liability limitations provided by current maritime statutes.

The increase in vessel owner liability comes at a time when Congress continues to limit the liability of other businesses. For example, current federal regulations allow motor carriers (trucking companies) to carry liability insurance policies valued as low as $750,000 to protect trucking accident victims (even if there are multiple victims), while trucking accident damages can often be in the multi-millions of dollars. There are over 15 million trucks operating on U.S. roadways each day, a number much larger than the number of passenger-vessels carrying divers.  These very low trucking insurance coverage requirements have been in effect (and unchanged) since 1980. If such liability policy is appropriate for motor carriers, even after 42 years, the U.S. Maritime Liability Laws should still be good policy as well.

Through the efforts of associations like DEMA, various boating, fishing, and other recreation trade organizations, as well as the U.S. Coast Guard, boating safety in the U.S. is better than it has ever been. Higher insurance premiums stemming from this new regulation will be damaging to these industries. Changing this liability limitation would likely benefit plaintiff’s personal injury attorneys and insurance companies but is unlikely to further improve small passenger vessel safety.

 What Can You Do?
DEMA strongly urges all interested parties to contact their U.S. Senator and their Members of the U.S. House of Representatives and ask that this provision be held out or removed from all versions of the National Defense Authorization Act before the Act is approved and signed into law. 

 You can find contact information for your congressional lawmakers here:

• Contact U.S. Senators by State
• Contact Members of the House of Representatives (utilize zip code/address)

DEMA has submitted comments to lawmakers, and these can be used to assist in writing to your member of the Senate and House. An example of DEMA’s comments can be found here.

On December 7, 2021, HR 6161, the Employee Retention Tax Credit Reinstatement Act was introduced in the U.S. House of Representatives by Representative Carol Miller [R-WV-3] If passed and signed into law, this bill would reinstate this important ERTC Covid Relief Program, starting after September 30, 2021, the date after which the Infrastructure Bill removed the ERTC.

This is a bipartisan bill designed to assist small businesses, including dive businesses, that are impacted by the government COVID business shutdowns.

YOUR URGENT ACTION IS NEEDED

DEMA urges all interested U.S. diving business operators to contact their Representatives to express their support of this bill. It is critical to let these elected officials know how the provisions of this bill will impact your business!

DEMA has submitted a letter to members of the House of Representatives asking for their support. Members can use DEMA’s letter as a model for their own comments. DEMA’s letter can be found online here. 

Although there is not a Senate companion to this bill as of this writing, it is also important to contact your Senator and ask for support (including sponsoring similar legislation).

You can find your Representatives and contact information here: https://www.house.gov/representatives/find-your-representative
Email for Representatives: http://qrd.org/qrd/www/usa/congress.html

You can find your Senators and contact information here: https://contactsenators.com/
Email for Senators:http://hrlibrary.umn.edu/peace/senate.html

When you contact your lawmakers and receive a reply, please it share with DEMA at publicpolicy@dema.org  .

See DEMA.org for more information on DEMA’s Public Policy positions  and advocacy efforts. 

On December 7, 2021, HR 6161, the Employee Retention Tax Credit Reinstatement Act was introduced in the U.S. House of Representatives by Representative Carol Miller [R-WV-3] If passed and signed into law, this bill would reinstate this important ERTC Covid Relief Program, starting after September 30, 2021, the date after which the Infrastructure Bill removed the ERTC.

This is a bipartisan bill designed to assist small businesses, including dive businesses, that are impacted by the government COVID business shutdowns. A list of cosponsors as of this writing are below:

Rep. Murphy, Stephanie N. [D-FL-7], Cosponsored on 12/07/2021

Rep. Hern, Kevin [R-OK-1] , Cosponsored on 12/07/2021

Rep. Sewell, Terri A. [D-AL-7] , Cosponsored on 12/07/2021

Rep. Foxx, Virginia [R-NC-5] , Cosponsored on 12/08/2021

Rep. Rouzer, David [R-NC-7] , Cosponsored on 12/08/2021

Rep. Bishop, Dan [R-NC-9] , Cosponsored on 12/08/2021

Rep. Suozzi, Thomas R. [D-NY-3] , Cosponsored on 12/08/2021

Rep. Keller, Fred [R-PA-12] , Cosponsored on 12/08/2021

Rep. Hudson, Richard [R-NC-8] , Cosponsored on 12/08/2021

Rep. McBath, Lucy [D-GA-6] , Cosponsored on 12/09/2021

Rep. Budd, Ted [R-NC-13] , Cosponsored on 12/09/2021

Rep. Meuser, Daniel [R-PA-9] , Cosponsored on 12/14/2021

Del. Norton, Eleanor Holmes [D-DC-At Large] , Cosponsored on 12/14/2021

Rep. Manning, Kathy E. [D-NC-6] , Cosponsored on 12/14/2021

Rep. Phillips, Dean [D-MN-3] , Cosponsored on 12/14/2021

Rep. Wilson, Joe [R-SC-2] , Cosponsored on 12/14/2021

Rep. Delgado, Antonio [D-NY-19] , Cosponsored on 12/14/2021

YOUR URGENT ACTION IS NEEDED

DEMA urges all interested U.S. diving business operators to contact their Representatives to express their support of this bill. It is critical to let these elected officials know how the provisions of this bill will impact your business! Although there is not a Senate companion to this bill as of this writing, it is also important to contact your Senator and ask for support (including sponsoring similar legislation).

You can find your Representatives and contact information here: https://www.house.gov/representatives/find-your-representative
Email for Representatives: http://qrd.org/qrd/www/usa/congress.html

You can find your Senators and contact information here: https://contactsenators.com/
Email for Senators:http://hrlibrary.umn.edu/peace/senate.html

When you contact your lawmakers and receive a reply, please it share with DEMA at publicpolicy@dema.org  .

See DEMA.org for more information on DEMA’s Public Policy positions  and advocacy efforts. 

While this limitation is typically acted upon after a claimant gives the owner written notice of a claim (and must be acted upon by the owner within six months of that notice), the owner can bring a civil action in a district court of the United States after the accident to limit their liability. This 1851 Maritime Liability law is a time-tested legal action that has been successfully employed by owners of vessels of all sizes - from the Titanic to vessels as small as Jet Skis. The liability law has its origins in 18th century England and was originally meant to promote the shipping business. Currently, vessel owners, including dive vessel owners, pay large fees for liability insurance and this limitation to liability is factored into these insurance rates.

A recent bill, sponsored by California Democrats, Representative Salud Carbajal and Senator Dianne Feinstein, would change the current law. Under this bill, owners of small passenger vessels, including dive vessels, could be held legally responsible for maritime accidents. The owners would be mandated to compensate victims and their families regardless of the value of the boat after the incident. The bill, if enacted, would apply retroactively to September 2, 2019, and was written in response to the fire on the dive vessel Conception. 

As dive vessels are specifically targeted by this bill, DEMA strongly suggests dive vessel owners follow the progress of this legislation to determine their next steps. The text of these bills can be found here:

• Senate Bill 2805
• House Bill 5329

See DEMA.org for more information on DEMA’s Public Policy positions and advocacy efforts.