• California Advances Corporate Climate Disclosure Requirements
• Port Everglades Dredging Action
• How “No Taxes On Tips” Law Could Impact You
• Freedom to Invest in Tomorrow’s Workforce Act Included in Tax Package
• Important Dive-Related Bills Being Followed in Florida
• Ask Your Members of Congress to Support the DIVE BOAT Act
• DEMA’s Dive Consumer Research and Public Policy
  
   

California Advances Corporate Climate Disclosure Requirements

Source: Buchanan Ingersoll & Rooney, December 2025

Two landmark laws passed in 2023 are set to establish new requirements in 2026 for companies doing business in California. These laws require companies generating above the statutory annual revenue threshold to publicly disclose greenhouse gas emissions and climate-related financial risks, regardless of where the company is headquartered or conducts its primary operations. Together, SB 253, the Climate Corporate Data Accountability Act, and SB 261, the Greenhouse Gases: Climate-Related Financial Risk Act, establish comprehensive climate reporting procedures.

Requirements of SB 253

This law applies to companies “doing business in California” (defined as “entities engaging in any transaction for financial gain within the state”) with annual revenue exceeding $1 Billion. This law requires public disclosure and annual reporting of Scope 1 (direct emissions), Scope 2 (indirect emissions from purchased or acquired energy) and Scope 3 (indirect upstream and downstream emissions) greenhouse gas emissions.

• Scope 1 emissions: Means all direct greenhouse gas emissions that stem from sources that a reporting entity owns or directly controls, regardless of location, including, but not limited to, fuel combustion activities.
  
  
• Scope 2 emissions: Means indirect greenhouse gas emissions from consumed electricity, steam, heating, or cooling purchased or acquired by a reporting entity, regardless of location.
  
  
• Scope 3 emissions: Means indirect upstream and downstream greenhouse gas emissions, other than scope 2 emissions, from sources that the reporting entity does not own or directly control and may include, but are not limited to, purchased goods and services, business travel, employee commutes, and processing and use of sold products.

While the annual revenue threshold for this law is currently pegged at $1 billion of concern, is that built-in periodic reviews could easily change this threshold. Provisions contained in the legislation state that, “Starting in 2033 and every five years thereafter, the state board may survey and assess currently available greenhouse gas accounting and reporting standards. At the conclusion of this assessment the state board may adopt a globally recognized alternative accounting and reporting standard if it determines its use would more effectively further the goals of this section. This review process shall include consultation with all of the following stakeholders”:

• The Attorney General.
• Other government stakeholders, including, but not limited to, experts in climate science and corporate carbon emissions accounting and reporting.
• Investors.
• Stakeholders representing consumer and environmental justice interests.
• Reporting entities that have demonstrated leadership in full-scope greenhouse gas emissions accounting and public disclosure and greenhouse gas emissions reductions.

Further, SB 253 indicates that if the state board adopts an alternative accounting and reporting standard, the state board shall develop and adopt new regulations, pursuant to paragraph (1), to ensure full conformance with the new standard and reporting of scopes 1, 2, and 3 emissions and other requirements of this section. This means that these standards could change, and annual revenue thresholds could easily be changed, affecting more businesses.

Requirements of SB 261

SB 261 also applies to companies “doing business in California” (defined again as “entities engaging in any transaction for financial gain within the state”) but with annual revenue exceeding $500 Million. The law requires companies to produce a biennial climate-risk report on the company’s website detailing the company’s identified climate-related financial risks and mitigation efforts.

The California Air Resource Board (CARB) has yet to release specific regulatory guidance on compliance with SB 261 and SB 253, estimating initial rulemaking to occur in Q1 2026. CARB has announced that companies are still expected to comply with the following deadlines:

December 1, 2025 (Voluntary): SB 261 reporting has begun. A public docket was released on December 1, 2025, allowing all covered companies to voluntarily publish their first climate-related financial risk report on their websites and submit the published link to the public docket. 

January 1, 2026: Statutory deadline* for reporting according to date according to CA Health and Safety Code section 38533.

August 10, 2026: CARB’s current guidance proposes a SB 253 reporting deadline of August 10,2026 for Scope 1 and 2 emissions from fiscal year 2025. Starting in 2027, companies will be required to report Scope 3 emissions.

*IMPORTANT: On November 18, 2025, the Ninth Circuit Court of Appeals issued an order in Chamber of Commerce v. Sanchez, Case No. 25-5327 (9th Cir. 2025), granting an injunction against the enforcement of SB 261 during the pendency of appellate proceedings in that matter.  Accordingly, CARB will not enforce Health and Safety Code section 38533 against covered entities for failing to post and submit reports by the January 1, 2026, statutory deadline. Please see CARB’s advisory with guidance to stakeholders available here. 

A hearing on January 9, 2026, will determine whether SB 261 will be upheld and when enforcement will begin.

Port Everglades Dredging Action

DEMA became involved with stopping the dredging project in Fort Lauderdale’s Port Everglades in 2016. At that time the Army Corps of Engineers (ACE) had recently completed a dredging project in PortMiami prior to their proposal to dredge Port Everglades. During the dredging of PortMiami, ACE apparently did not follow proper operational protocols and silted over acres of corals off the coast of Miami, essentially destroying the coral and the reef structure there, which included species that were listed as endangered and at risk, including wiping out pillar corals. 

When ACE proposed to use the same protocols in dredging Port Everglades, DEMA joined with non-profit environmental groups Miami Waterkeeper, Earth Justice, The Center for Biological Diversity, and The Florida Wildlife Federation in filing litigation to stop ACE from moving forward until proper environmental assessments were completed and proper precautions were in place. The litigation stopped the dredging project and DEMA has participated on-and-off again since 2016 in preventing ACE from moving forward with this project until the conditions of the litigation were met. 

The risks on this project are many, including that a faulty dredging plan and operation will wipe out endangered corals off the coast of Fort Lauderdale, as well as killing off one of the last populations of Queen Conch in Florida/US waters. It is currently one of the few places where healthy staghorn coral can be found.

Recently ACE again attempted to push past these environmental and operational requirements, this time with support of lawmakers from the region. DEMA has again joined with our partners in this effort to provide information on this issue to both ACE and lawmakers. This latest campaign is just beginning at this writing, but the Press Release announcing the effort can be found here.

An Integrated Analysis of Coral Density and Community Structure provides additional information on the risks to the coral communities nearby Port Everglades should this dredging operation continue.

DEMA will continue monitoring developments on this important issue.

How “No Taxes On Tips” Law Could Impact You

There are more than 60 job categories that will qualify for the new “no tax on tips” law ushered in through the recently passed U.S. tax cut and spending package.  Service industry workers, ranging from bartenders to golf caddies, and including those in the diving industry, will have the opportunity to receive full payment for their services without being charged taxes on their income. This measure is in effect for tax years 2025 through 2028 and is not a permanent exemption from taxation.

With 60+ categories already on the list of job eligibility, the diving industry may fit into several categories, including:

• Tour guides and escorts
• Travel guides
• Sports and recreation instructors
• Water taxi operators and charter boat workers

Workers who fall under this designation will also qualify for tax deductions of up to $25,000 in tips if they make less than $150,000 — or $300,000 if they’re married and filing jointly. The amount workers can deduct is reduced by $100 for every $1,000 they make beyond $150,000.

According to the IRS, workers who complete overtime will also be eligible for deductions:

• Deduction amount: A deduction of up to $12,500 ($25,000 for those married filing jointly) is available for qualified overtime pay.
• Qualifying overtime: The deduction applies to the "half" portion of time-and-a-half compensation for overtime required by the Fair Labor Standards Act (FLSA).
• Income limits: The deduction phases out for taxpayers with a modified adjusted gross income over $150,000 ($300,000 for those married filing jointly).
• Continuing tax obligations: Overtime pay is still subject to federal payroll taxes, as well as state and local taxes. 

Like the new regulation for tips, the amount workers can deduct is reduced if they make more than $150,000.

How Workers Will Receive the Tax Benefit

• For 2025: The deductions are retroactive to January 1, 2025. Employers will continue regular tax withholding, and eligible workers will claim the deduction when filing their tax returns in early 2026 to receive their tax savings.
• After 2025: The IRS is expected to release guidance and updated tax forms for 2026, which may allow workers to adjust their withholding to receive the benefit in each paycheck.

LEARN MORE HERE

Ask Your Members of Congress to Support the DIVE BOAT Act

DEMA continues to need members of the diving community to tell your Senators and House Representatives to support the DIVE BOAT Act. The diving industry and DEMA will be much more successful in making this change if we come together as a community and federal elected officials hear from their constituents. 

Together, we CAN prevent further layoffs, help bring down insurance costs, and ease some of the domestic scuba diving pricing pressures.

We ask that you share the DIVE BOAT Act campaign messages and graphics with your social media followers in support of this important legislation. Even if you’ve helped before, this MUST be an ongoing campaign if we are to bring this critical issue to these new lawmakers’ attention!

HOW CAN YOU HELP?

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. We ask that you share the campaign messages and images found here with your social media followers, asking for their support of The DIVE BOAT Act.

Click here to learn more about the DIVE BOAT Act.

• U.S. Government Remains Closed
• Compliance with Florida’s Ocean Outfall Law
• Stop the Port Everglades Dredge, Save the Reef
• How the “No Taxes On Tips” Law Could Impact You
• Ask Your Members of Congress to Support the DIVE BOAT Act
• DEMA’s Dive Consumer Research and Public Policy

U.S. Government Remains Closed

The U.S. government remains closed, after Democrats filibustered the Republican proposed Continuing Resolution (CR). The shutdown began at midnight September 30th, following a 55-45 vote, with the CR needing 60 votes to pass. As of this writing, the Senate has voted 12 times on the CR, with two defections from Democrats voting for the CR. 

This government shutdown is now the second longest in US history, outdone only by a 35-day government shutdown occurring from December 22, 2018, to January 25, 2019. If this government shutdown reaches beyond November 5th, it will become the longest running shutdown in US history.

During this time the Senate has remained in session to approve nominations and vote on funding. However, the House has not returned since the shutdown began in September. House Speaker Mike Johnson has indicated that shutdown negotiations are a non-starter and has committed to keeping the House out of session to maximize pressure on the Senate to pass the CR and reopen the government. Until they do, regular appropriations will not move forward. The shutdown could be ended by passing the CR; however, the shutdown can also be mitigated by passing each of the 12 appropriations bills. At present, none of the appropriations bills have had a unified version approved in both chambers.

Compliance with Florida’s Ocean Outfall Law

Source: Florida Department of Environmental Protection Presentation.

In 2008 Florida passed the Ocean Outfall Law, Chapter 2008-232, Florida Statute Chapter 403.086(10)(e). DEMA was involved in setting discharge limitations and deadlines for this law, which forces locations to limit and eliminate untreated sewage discharge into the ocean off the coast of Florida. The law reads in part:

By December 31, 2009, and by December 31 every 5 years thereafter, the holder of a department permit authorizing the discharge of domestic wastewater through an ocean outfall shall submit to the secretary of the department a report summarizing the actions accomplished to date and the actions remaining and proposed to meet the requirements of this subsection, including progress toward meeting the specific deadlines set forth in paragraphs (b) through (e). The report shall include the detailed schedule for and status of the evaluation of re-use and disposal options, preparation of preliminary design reports, preparation and submittal of permit applications, construction initiation, construction progress milestones, construction completion, initiation of operation, and continuing operation and maintenance.

Importantly, cities/counties must stop using outfalls and implement 60% re-use of the discharge by December 31, 2025.

Background

• Prohibits construction of new ocean outfalls and the expansion of existing ocean outfalls.
• Required discharges to meet Advanced waste treatment management (AWTM) requirements by December 31, 2018.
• Requires utilities to implement a re-use system for 60% of a facility’s “baseline flow” for beneficial purposes by December 31, 2025.
• Prohibits discharges of domestic wastewater through ocean outfalls after December 31, 2025, except as a backup discharge during periods of reduced reclaimed water demands, such as periods of wet weather, or as a result of peak flows from other wastewater management systems.
• Requires utilities to submit progress reports to the Florida Department of Environmental Protection (DEP) every five years beginning December 31, 2009, summarizing actions accomplished and actions remaining to meet section 403.086(10), Florida Statutes.
• Required utilities to submit detailed plans by July 1, 2013, and updated plans by July 1, 2016, (these were all received).
• Requires DEP to submit a progress report to the Governor and Florida Legislature every five years beginning July 1, 2010, including increased amount of reclaimed water provided and potable water offsets achieved, and to identify any obstacles to continued progress, including all instances of substantial noncompliance.

Compliance Deadline Approaching: December 31, 2025.

• There are limited discharges allowed after December 31, 2025. These allowable discharges include:
• Backup discharges allowed during periods of reduced reclaimed water demands, such as periods of wet weather, or as a result of peak flows from other wastewater management systems (peak flow discharges limited to 5% of baseline flow, measured as a five-year rolling average). 
• Industrial wastewater (IW) discharges.

Plans to meet this requirement primarily include implementation of water re-use and the use of deep injection wells in the state.

The 2008 law required the use of Advanced Waste Treatment Management (AWTM) by December 31, 2018. Four options were/are available to meet the AWTM requirements (one defaults to December 31, 2025). These include:

1. Complying with the law as written and providing advanced waste treatment by December 31, 2018.
2. Reducing the total nitrogen (TN) and the total phosphorus (TP) loading discharges to the equivalent of the advanced waste treatment (AWT)* baseline flow.
3. Reducing the cumulative TN and TP from 2008 to 2025 in an amount equivalent as if AWT was implemented in 2018. Because of cost and execution issues, this was the most popular option chosen by Florida’s facilities. This option was achieved by diverting flow to deep injection wells, and by implementing re-use of the discharge.
4. Provide 100% re-use (100% of the baseline flow using the annual average discharge flow through ocean outfall as measured between 2003 and 2007).

*AWT ─ defined in section 403.086(4), F.S.; treatment which will provide a reclaimed water product that:

• On a permitted annual average basis contains less than the following concentrations:
  • 5 mg/l of biochemical oxygen demand (CBOD5).
  • 5 mg/l of suspended solids.
  • 3 mg/l of total nitrogen (TN), expressed as N.
  • 1 mg/l of total phosphorus (TP), expressed as P.
• Has received high level disinfection, as defined by Rule 62-600.440, F.A.C.

Important Deadline Approaching – December 31, 2025.

By December 31 of this year the utility must install, or cause to be installed, a “functioning re-use system” providing 60% of “baseline flow.” The baseline flow is the annual average discharge flow through the ocean outfall measured between 2003 – 2007.

• A “functioning re-use system” means an environmentally, economically, and technically feasible system. 
• Alternatively, the facility can divert waste to another facility with the ability for 100% re-use. This counts as re-use.
• The utility can also contract with another utility to provide re-use. 

After December 31, 2025, backup discharges from a re-use system are allowed out the ocean outfall only during periods of reduced demand, such as wet weather.

Monitoring Compliance

DEMA continues to monitor compliance, including objecting to proposed deadline extensions. The following is a synopsis of location compliance to date.

South Central Region (City of Boynton Beach and City of Delray Beach)

This is a 24 mgd facility. 

• These cities have reduced loadings of Total Nitrogen and Total Phosphorus by using deep injection wells for almost all flow as part of their advance waste treatment management.
• The ocean outfall has been eliminated – these cities are now using deep injection wells.
• Regarding compliance with 60% re-use.
  • 7.7 mgd are required; currently reaching 5.6 mgd but must reach 13.3 mgd.
  • South Central can treat entire flow to re-use standards.
  • Progressing on adding distribution systems and users.
  • Needs to add about 6 mgd of re-use users.
    

City Of Boca Raton

This is a 17.5 mgd facility.

• AWTM – 100% re-use has been met (100% of baseline flow).
• Elimination of outfall – 100% re-use requirement met (will be ongoing as facility flows increase).
  • Currently this facility has routine discharges out the ocean outfall during reduced demand (e.g., 3-6 mgd), peak flows, and industrial wastewater discharges (reverse osmosis [RO] concentrate from wastewater treatment).
  • 60% re-use – re-use requirement has been met.
  • 6.2 mgd still needed; added to existing 5.6 mgd results in a total of 11.8 mgd required. 
  • 12.96 mgd of user agreements; users don’t always use all of available discharge.
  • This facility can treat the entire 17.5 mgd flow to re-use standards.

Broward County North Regional

This is a 95 mgd facility.

• AWTM – on schedule to reduce the equivalent TN and TP from 2008-2025 as if AWT had been implemented in 2018.
• Outfall eliminated – replaced with a combination of re-use and deep injection wells (two new IW wells have been installed, adding to six existing wells).
• 60% reuse – likely to be met.
  • 21.45 mgd required; added to existing 4.5 mgd results in a total of 25.95 mgd required. 
  • Broward County North Regional has identified 23.51 mgd of re-use and is progressing towards reaching this amount.
  • Broward has reached an Interlocal Agreement with Palm Beach County for 15.0 mgd for large users.

Hollywood Southern Regional

55.5 mgd facility.

• AWTM – on schedule to reduce the equivalent TN and TP from 2008-2025 as if AWT implemented in 2018.
• Elimination of outfall – primarily deep injection wells with notable reuse quantities.
• 60% re-use status
  • 20.4 mgd required; added to existing 2.3 mgd results in a total of 22.7 mgd required.
  • In January 2016 Hollywood received a DEP letter acknowledging that only 10 mgd of the 20.4 mgd is feasible because of high chloride levels in the discharge.
  • Hollywood is working on maximizing in-plant re-use and current re-use, and has contracted with Miramar for 2.0 mgd of re-use.

Cooper City

3.1 mgd facility.

In this area some effluent is sent to Hollywood for re-use but may end up disposed of through Hollywood’s ocean outfall.

• AWTM – reduction in loadings of TN and TP by using deep injection wells for almost all flow.
• Elimination of outfall – using deep injection wells; by agreement they will continue to send 1.7 mgd of effluent to Hollywood.
• 60% re-use – will be met when Miramar implements contracted re-use.
  • 0.9 mgd required; no current re-use to add.
  • Contract with Miramar to credit Cooper City with 1.0 mgd of Miramar reuse project (paid $3.5 million).

Town Of Davie 76th Avenue

5 mgd facility.

This facility sends some effluent to Hollywood for reuse, but it may be disposed of out Hollywood’s ocean outfall.

• AWTM – built a second facility (3.5 mgd) and is diverting sufficient flow to this facility. On schedule to reduce the equivalent TN and TP from 2008-2025 as if AWT implemented in 2018.
• Elimination of outfall – evaluating more diversion to new facility or installing new deep injection wells.
• 60% re-use.
  • 1.1 mgd required; no existing re-use.
  • New facility has 2.0 mgd re-use capability.
  • Still progressing on adding re-use users for 1.1 mgd.

Miami-Dade Water And Sewer District (MDWASD) – North District

120 mgd facility.

• AWTM – has a projected schedule to reduce the equivalent TN and TP from 2008-2025 as if AWT had been implemented in 2018.
• The reduction relies on discharge of centrate** from biosolids dewatering through an IW well at the MDWASD Central District and new deep injection wells to be constructed at both MDWASD facilities.
• Elimination of outfall – constructing five new deep injection wells to add to existing four wells [underground injection control (UIC) permits issued].
• New wells will be on undeveloped wetlands, multiple permits required.
• Noted fluid movement into non-underground sources of drinking water (USDW) to install high-level disinfection.
• 60% re-use – will not be met by 2025.
  • 48.6 mgd required; added to existing 3.0 mgd for a total of 51.6 mgd.
  • Primary re-use project for Florida Power and Light (FPL) canceled; have a new FPL project at a lower volume. Full re-use claimed not feasible by MDWASD

**Centrate is the liquid phase that remains after most of the solids (sludge) have been removed through mechanical dewatering.

MDWASD Central District

143 mgd facility.

• AWTM – projected schedule to reduce the equivalent TN and TP from 2008-2025 as if the AWT had been implemented in 2018.
• Relies on discharge of centrate from biosolids dewatering through IW well at Central 
• District and new deep injection wells to be constructed at both MDWASD facilities.
• Elimination of outfall – constructing nine new deep injection wells.
• Has requested an aquifer exemption to avoid providing high-level disinfection.
• 60% re-use – will not be met by 2025.
  • 68.9 mgd required; added to existing 5.9 mgd for a total of 74.8 mgd. 
  • Primary re-use project for Florida Power and Light (FPL) canceled; have a new FPL project at a lower volume. 
  • Full re-use claimed not feasible by MDWASD

DEMA and other organizations are concerned that Miami-Dade has indicated it WILL NOT be compliant by December 31, 2025, in violation of the Florida Statute. Interested parties should monitor this issue and be prepared to comment on it.

More Information on Ocean Outfalls can be found here.

Stop the Port Everglades Dredge, Save the Reef

A project to deepen the channels in Port Everglades, located in Fort Lauderdale, Florida, may destroy part of the living reef tract located in that area. The corals there are vital to the local and national marine resources and nearby residential communities, recreational diving operations, commercial and recreational fishing interests, and other tourism-related businesses. 

A similar expansion project that took place in the Miami Harbor (“PortMiami”) expansion project, completed in 2015, using similar methodology and plans, raises serious concerns about the Port Everglades project. During the PortMiami project, dredging produced fine-grained sediment that affected an area 5-10 km from the channel and according to follow-up studies, killed at least 560,000 corals. The National Marine Fisheries Service (NMFS) concluded that approximately 95% of the PortMiami area surveyed on the northern middle reef (out to about 700 m from the channel) is no longer suitable habitat to support coral after dredging related sedimentation impacts, and that parts of the surveyed reef (over 6 acres) would never recover naturally.

While construction during the Miami project took two years to complete, the construction for the Port Everglades Project is estimated to take five-to-six years, producing similar impacts for more than double the period. With similar resources at risk and double the expected project time, as well as the probable need for blasting, the Port Everglades Project could prove to be even more harmful to the reef ecosystem in Fort Lauderdale than the Port of Miami project was to Miami’s reefs. 

In 2016 DEMA joined with Miami Waterkeeper, Earth Justice, The Center for Biological Diversity, and the Florida Wildlife Federation to stop the Army Corps from proceeding with their flawed plan to dredge Port Everglades. Now a similar flawed plan has been put forward. DEMA continues to work with these other organizations to help ensure that these reefs, which are so vital to the diving community and the health of the environment, remain healthy.

DEMA invites you to join with us and Miami Waterkeeper, Earth Justice, The Center for Biological Diversity, and the Florida Wildlife Federation to make your concerns about this flawed dredging project known. You can find out more about this issue, and how you can be involved by going to https://stopthedredge.com/campaign/port-everglades-dredging. 

Ask Your Members of Congress to Support the DIVE BOAT Act

DEMA continues to need members of the diving community to tell your Senators and House Representatives to support the DIVE BOAT Act. The diving industry and DEMA will be much more successful in making this change if we come together as a community and federal elected officials hear from their constituents. 

Together, we CAN prevent further layoffs, help bring down insurance costs, and ease some of the domestic scuba diving pricing pressures.

We ask that you share the DIVE BOAT Act campaign messages and graphics with your social media followers in support of this important legislation. Even if you’ve helped before, this MUST be an ongoing campaign I we are to bring this critical issue to these new lawmakers’ attention!

HOW CAN YOU HELP?

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. We ask that you share the campaign messages and images found here with your social media followers, asking for their support of The DIVE BOAT Act.

Click here to learn more about the DIVE BOAT Act.

• How “No Taxes On Tips” Law Could Impact You
• Freedom to Invest in Tomorrow’s Workforce Act Included in Tax Package
• Visa Bond Pilot Program Could Affect Some International Travelers to the U.S.
• Ask Your Members of Congress to Support the DIVE BOAT Act
• DEMA’s Dive Consumer Research and Public Policy

How “No Taxes On Tips” Law Could Impact You

There are more than 60 job categories that will qualify for the new “no tax on tips” law ushered in through the recently passed U.S. tax cut and spending package.  Service industry workers, ranging from bartenders to golf caddies, and including those in the diving industry, will have the opportunity to receive full payment for their services without being charged taxes on their income. This measure is in effect for tax years 2025 through 2028 and is not a permanent exemption from taxation.

With 60+ categories already on the list of job eligibility, the diving industry may fit into several categories, including:

• Tour guides and escorts
• Travel guides
• Sports and recreation instructors
• Water taxi operators and charter boat workers

Workers who fall under this designation will also qualify for tax deductions of up to $25,000 in tips if they make less than $150,000 — or $300,000 if they’re married and filing jointly. The amount workers can deduct is reduced by $100 for every $1,000 they make beyond $150,000.

According to the IRS, workers who complete overtime will also be eligible for deductions:

• Deduction amount: A deduction of up to $12,500 ($25,000 for those married filing jointly) is available for qualified overtime pay.
• Qualifying overtime: The deduction applies to the "half" portion of time-and-a-half compensation for overtime required by the Fair Labor Standards Act (FLSA).
• Income limits: The deduction phases out for taxpayers with a modified adjusted gross income over $150,000 ($300,000 for those married filing jointly).
• Continuing tax obligations: Overtime pay is still subject to federal payroll taxes, as well as state and local taxes. 

Like the new regulation for tips, the amount workers can deduct is reduced if they make more than $150,000.

How Workers Will Receive the Tax Benefit

• For 2025: The deductions are retroactive to January 1, 2025. Employers will continue regular tax withholding, and eligible workers will claim the deduction when filing their tax returns in early 2026 to receive their tax savings.
• After 2025: The IRS is expected to release guidance and updated tax forms for 2026, which may allow workers to adjust their withholding to receive the benefit in each paycheck.

LEARN MORE HERE

Freedom to Invest in Tomorrow’s Workforce Included in Tax Package

The bipartisan, bicameral, Freedom to Invest in Tomorrow’s Workforce Act (HR 1151 and S 756) expands the use of 529 plans to cover postsecondary training and credentialing, such as licenses and nongovernmental certifications. It transforms these college savings plans into career savings plans and creates more viable pathways to career success.
 
Passed as part of the recent federal tax reform package, this law now expands eligible uses of tax-favorable 529 savings plans to cover costs associated with workforce training and credentialing programs, such as professional certifications. Professional-level certifications, such as recreational diving instructor certifications, could qualify for the benefits listed under these bills.

Prior to passage 529 Savings plans could only be used for college savings as well as savings for K-12 education.  Previously there were two types of 529 plans: prepaid tuition plans and education savings plans. All fifty states and the District of Columbia sponsored at least one type of 529 plan. Prior to passage, training, certifications and other credentials were ineligible under 529 plans.

The Freedom to Invest in Tomorrow’s Workforce Act Would Provide Economic Flexibility and Opportunity 

This bill provides valuable tax-advantaged resources for workers who pursue career growth, mid-career changes or alternative career pathways, and helps those interested in a professional career in recreational diving. Expanding eligible uses for 529 plans empowers workers of any educational background, skill level or age and benefits all industries and professions that rely on employees with specialized training or recognized credentials.

With implementation, American workers and families can use their 529 plans to help cover:

• Certification program tuition.
• Testing fees, including practice exams.
• Required books and equipment.
• Continuing education and certification renewal; and
• Other requirements needed to obtain and maintain a certification.

This is win for the diving industry and all professional credentialing organizations.

Visa Bond Pilot Program Could Affect Some International Travelers to the U.S.

In August the U.S. State Department announced it will launch a 12-month visa bond pilot program that could affect some international visitors traveling to the U.S. to vacation, or to attend U.S.-based meetings and events. While most who visit DEMA Show and most who travel to the U.S. to dive are excluded from this concern, it is well to be aware of the apprehensions some travelers may have, ensuring that there is no confusion on the travelers’ ability to come to the U.S.

Under the program, certain applicants for B1/B2 visitor visas from countries with high visa overstay rates (10% or more) may be required to post a refundable bond of $5,000, $10,000, or $15,000, at the discretion of consular officers. If the traveler complies with visa terms, the bond will be returned.

Key Details:

Pilot Dates: August 20, 2025 – August 5, 2026.
Scope: Estimated 2,000 applicants.
Excluded Countries: This rule excludes travelers from Mexico, Canada, and Visa Waiver Program (VWP) participating countries. 

Visa Waiver Program

The Visa Waiver Program (VWP) enables most citizens or nationals of participating countries to travel to the United States for tourism or business for stays of 90 days or less without obtaining a visa. Travelers must have a valid Electronic System for Travel Authorization (ESTA) approval prior to travel and meet all requirements explained below. If you prefer to have a visa in your passport, you may still apply for a visitor (B) visa.

Visa Waiver Program Improvement and Terrorist Travel Prevention Act of 2015

Under the Visa Waiver Program Improvement and Terrorist Travel Prevention Act of 2015, travelers in the following categories must obtain a visa prior to traveling to the United States as they are no longer eligible to travel under the Visa Waiver Program (VWP):

• Nationals of VWP countries who have traveled to or been present in Democratic People's Republic of Korea, Iran, Iraq, Libya, Somalia, Sudan, Syria, or Yemen on or after March 1, 2011 (with limited exceptions for travel for diplomatic or military purposes in the service of a VWP country).
• Nationals of VWP countries who have traveled to or been present in Cuba on or after January 12, 2021 (with limited exceptions for travel for diplomatic or military purposes in the service of a VWP country).
• Nationals of VWP countries who are also nationals of Cuba, Democratic People's Republic of Korea, Iran, Iraq, Sudan, or Syria.

Requirements for Using the Visa Waiver Program (VWP)

You must meet all the following requirements to travel to the United States on the VWP:

Travel Purpose Must be Permitted on a Visitor (B) Visa. This includes:

Business:

• Consult with business associates
• Attend a scientific, educational, professional, or business convention or conference
• Attend short-term training (you may not be paid by any source in the United States with the exception of expenses incidental to your stay)
• Negotiating a contract

Learn more about Business Travel to the United States.
 
Tourism:

• Tourism
• Vacation (holiday)
• Visit with friends or relatives
• Medical treatment
• Participation in social events hosted by fraternal, social, or service organizations
• Participation by amateurs in musical, sports, or similar events or contests, if not being paid for participating
• Enrollment in a short recreational course of study, not for credit toward a degree (for example, a two-day diving class while on vacation)

Learn more about Visitor Visas - Business and Pleasure. 

 
Travel Purposes NOT Permitted on Visa Waiver Program – Examples:

• Study for credit
• Employment
• Work as foreign press, radio, film, journalists, or other information media
• Permanent residence in the United States

 
Must Be a Citizen or National of a VWP Designated Country

You must be a citizen or national of the following countries to be eligible to travel to the United States under the VWP.

This rule also EXCLUDES travelers from Mexico, Canada, a well as these Visa Waiver Program (VWP) participating countries. 

Why It Matters: 

While limited in scope, this pilot is part of a trend toward more restrictive visa policies. Administration officials have also recently enacted $250 “Visa Integrity Fee” that would apply to all nonimmigrant visa applicants. The fee is essentially structured as a refundable security deposit to encourage compliance with US visa rules, particularly to reduce overstays.

However, its rollout is expected to be delayed, as the Department of Homeland Security has not yet finalized the procedures for collection of the fee as well as reimbursement. 

What's Next: 

DEMA is monitoring this issue along with groups like U.S. Travel and Exhibitions & Conferences Alliance and will continue advocating for policies that keep the U.S. competitive as a destination for international events.

Ask Your Members of Congress to Support the DIVE BOAT Act

DEMA continues to need members of the diving community to tell your Senators and House Representatives to support the DIVE BOAT Act. The diving industry and DEMA will be much more successful in making this change if we come together as a community and federal elected officials hear from their constituents. 

Together, we CAN prevent further layoffs, help bring down insurance costs, and ease some of the domestic scuba diving pricing pressures.

We ask that you share the DIVE BOAT Act campaign messages and graphics with your social media followers in support of this important legislation. Even if you’ve helped before, this MUST be an ongoing campaign I we are to bring this critical issue to these new lawmakers’ attention!

HOW CAN YOU HELP?

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. We ask that you share the campaign messages and images found here with your social media followers, asking for their support of The DIVE BOAT Act.

Click here to learn more about the DIVE BOAT Act.

• Freedom to Invest in Tomorrow’s Workforce Act Included in Tax Package
• Safe Seas Act Threatens Shark Diving
• New Mini-Documentary Explores Sharks Making a Comeback
• Ask Your Members of Congress to Support the DIVE BOAT Act
• DEMA’s Dive Consumer Research and Public Policy
  

Freedom to Invest in Tomorrow’s Workforce Included in Tax Package

The bipartisan, bicameral, Freedom to Invest in Tomorrow’s Workforce Act (HR 1151 and S 756) expands the use of 529 plans to cover postsecondary training and credentialing, such as licenses and nongovernmental certifications. It transforms these college savings plans into career savings plans and creates more viable pathways to career success.
 
Passed as part of the recent federal tax reform package, this law now expands eligible uses of tax-favorable 529 savings plans to cover costs associated with workforce training and credentialing programs, such as professional certifications. Professional-level certifications, such as recreational diving instructor certifications, qualify for the benefits listed under these bills.

Prior to passage 529 Savings plans could only be used for college savings as well as savings for K-12 education.  Previously there were two types of 529 plans: prepaid tuition plans and education savings plans. All fifty states and the District of Columbia sponsored at least one type of 529 plan. Prior to passage, training, certifications and other credentials were ineligible under 529 plans.

The Freedom to Invest in Tomorrow’s Workforce Act Would Provide Economic Flexibility and Opportunity 
This bill provides valuable tax-advantaged resources for workers who pursue career growth, mid-career changes or alternative career pathways, and helps those interested in a professional career in recreational diving. Expanding eligible uses for 529 plans empowers workers of any educational background, skill level or age and benefits all industries and professions that rely on employees with specialized training or recognized credentials.

With implementation, American workers and families can use their 529 plans to help cover:

• Certification program tuition.
• Testing fees, including practice exams.
• Required books and equipment.
• Continuing education and certification renewal; and
• Other requirements needed to obtain and maintain a certification.

This is win for the diving industry and all professional credentialing organizations.

Safe Seas Act Threatens Shark Diving

HR 3831 was introduced in the House of Representatives in June, and was sponsored by Representatives Daniel Webster and Darrel Soto, both from Florida. If passed, this bill would effectively eliminate shark diving in federal waters off the coast of Florida. The bill modifies the Magnuson-Stevens Fishery Conservation And Management Act to prohibit divers from introducing, or attempting to introduce, food or any other substance into the water to attract sharks, while at the same time it permits the fishing community to feed sharks to kill them. The Act is being sought, and strongly supported, by staff of the FWC.

THIS NEW FISH FEEDING REGULATION ONLY PROHIBITS DIVERS FROM FEEDING SHARKS TO OBSERVE AND PHOTOGRAPH THEM. THE BILL DOES NOT PROHIBIT FEEDING SHARKS TO KILL THEM. 

This bill ignores the conclusions of independent scientists such as Dr. Neil Hammerschlag from the University of Miami Rosenstiel School of Marine and Atmospheric Science. Dr. Hammerschlag has concluded from his extensive research that “provisioning ecotourism” - introducing small amounts of food in the water to interest sharks for the purpose of observation – does NOT create an increased risk for non-divers and swimmers not directly engaged in provisioning ecotourism activities.

This bill unnecessarily eliminates the opportunity for thousands of divers each year to actively and safely engage in observing sharks and gain a better understanding of this creature.  In a study published in 2012 in Functional Ecology, Dr. Hammerschlag, et al conducted satellite telemetry studies and movement analysis to examine the long-range migrations and habitat utilization of tiger sharks (Galeocerdi cuvier) originating in the Bahamas and Florida.  These two areas were selected because they differ considerably with regards to the presence and absence of “provisioning ecotourism.” Florida banned provisioning ecotourism in state waters beginning in January 2002 but continues to allow feeding of sharks to harvest them, while the Bahamas does not prohibit shark diving.  The study concluded that “in light of the potential for conservation and public awareness benefits of provisioning ecotourism, this practice should not be dismissed out of hand by (fisheries/site) managers.  Given the pressing need for improved understanding of the functional ecology of apex predators relative to human disturbance (rather than relying on perceived but unproven opinion), empirical studies of different species’ sensitivities to disturbance should be used to guide best-practice ecotourism policies that maximize conservation goals.”

While studies indicate that conditioning seems unlikely when using provisioning ecotourism, should such conditioning actually occur, danger to swimmers and divers still remains unlikely. http://www.oceans-research.com/wp-content/uploads/2014/03/johnson-2006.pdf, South Africa, Allison Kock of the South African Shark Research Centre and Iziko Museums, et al, the authors state that, “It is highly improbable that ‘conditioning’ of sharks to a cage diving vessel would increase danger to human water-users such as swimmers, scuba divers and kayakers.  This is due to the olfactory dissimilarity of these humans to the conditioned neutral stimulus (i.e. the cage diving vessel and associated structures).”

These studies suggest that shark diving, which most often includes provisioning ecotourism, does not create the risk to swimmers, divers and kayakers as imagined by proponents of the shark feeding prohibition contained in HR 3831. 

Economic Value of Diving with Sharks that Includes Provisioning Ecotourism

While studies indicate that there is little to suggest that provisioning ecotourism to attract sharks for observation and photography creates a risk to swimmers, divers or kayakers, there is an abundance of research that indicates this practice is economically beneficial to the nearby communities.  

Almost 200,000 new scuba divers are trained and “certified” in the United States each year, and there are about 3.1 million currently active divers in the U.S.  Florida is the number one diving destination in the United States. The Diving Industry depends on sustainable interaction with the marine environment, and is aware of the need for long term sustainability of these resources for all citizens of the U.S.  The Industry is dedicated to a healthy marine environment and protection of aquatic resources, including sharks.  For these reasons DEMA’s annual goals include a mandate to engage in activities which promote the health of aquatic resources while protecting diver access to those resources.

Divers contribute to local economies by paying to dive and vacationing in areas near dive sites.  According to one study published by Oceana, conducted in collaboration with Duke University, and quoting a study conducted by the Cline Marketing Group, as a group, scuba divers take an estimated 1.7 million dive vacations each year at an average cost of $2,424 per trip, thus spending more than $4.1 billion dollars in dive-related vacations annually.  Divers contribute to tourism and tax revenues by purchasing day outings, extended dive trips, diving equipment, and by spending on hotels, food, airfare and ground transportation, and more.  Through such purchases, diving also creates tourist-related jobs, which contributes to the general economy where such tourism spending takes place.  In total, including purchases of equipment, travel, training and other activities, recreational diving and snorkeling contribute about $11 billion to the US gross domestic product.  For example, when the Oriskany was sunk off the Florida Panhandle in 2006, the direct economic benefit was estimated to be over a million dollars in just three days after the sinking.  

Divers obtain personal value from seeing marine life when they dive, and quantifying this value is important, in part, because it provides economic justification for the protection of marine wildlife.  All one must do is be present on one of these dive boats as divers, both young and old, come back from seeing these rare and majestic creatures - a life-changing experience for all that participate.

The Duke University/Oceana study assessed the value to divers of seeing healthy corals, sea turtles and sharks.  Divers were asked the maximum amount of money they would be willing to pay, in addition to their normal dive costs, for an increased likelihood of seeing a particular species (“willingness to pay” or WTP).  The study found that, assuming the total dive expense was $100, the maximum amount of additional value for a diver to increase the likelihood of seeing a shark while diving was an additional $35.56 per diver.  The total annual value was cited as $212.2 million.

In Socio-economic value and community benefits from shark-diving tourism in Palau: A sustainable use of reef shark populations, authors G.M.S. Vianna, M.G. Meekan, et al determined that sharks may be more economically valuable as a non-harvested resource. On the small island of Palau alone, “shark diving was shown to be a major contributor to the economy of Palau, generating US$18 million per year and accounting for approximately 8% of the gross domestic product of the country. Annually, shark diving was responsible for the disbursement of US$1.2 million in salaries to the local community and generated US$1.5 million in taxes to the government. If the population of approximately 100 sharks that interact with tourists at popular dive sites was harvested by fishers, their economic value would be at most US$10,800, a fraction of the worth of these animals as a non-consumptive resource. Fishers earn more selling fish for consumption to shark divers than they would gain by catching sharks! Shark diving provides an attractive economic alternative to shark fishing, with distribution of revenues benefiting several sectors of the economy, stimulating the development and generating high revenues to the government, while ensuring the ecological sustainability of shark populations.”

Studies in the Bahamas, where shark diving with and without cages is conducted regularly, indicate that these operations contribute in excess of $78 million dollars annually to the Bahamian economy.

Clearly, sharks are far more valuable alive, with the added incentive of conservation and the opportunity for people to better understand this unique creature than if they are harvested.

A Missed Conservation and Learning Opportunity

This bill seeks to prohibit an activity that can consistently bring everyday persons –  trained divers but also novice snorkelers - into contact with these animals for observation, photographic and study purposes - and, far differently than would be suggested by popular misconceptions about shark behavior, it is actually quite unusual to see sharks closely enough for near observation or photography without being able to attract them through controlled feeding – simply put, sharks are normally either too shy or disinterested in divers and snorkelers for such close encounters to occur on a regular basis.  Thirty years ago, divers were concerned that sharks might be nearby.  Now, new divers ask if they will have the chance to see one of these majestic creatures.  That happens when provisioning ecotourism is allowed to happen.

People participating in such activities see sharks first-hand and learn more about them.  DEMA believes, and virtually every resource cited herein agrees, that, because of this benign ecotourism activity, all participants gain an appreciation for these animals that would otherwise be impossible.  Such appreciation can lead to a greater understanding of the importance of these animals in maintaining a healthy aquatic environment, and very often participants become “Shark Ambassadors”- ready to spread the word of the value of sharks in our marine ecosystem.  

When people dive with sharks, they can observe them in their natural surroundings where they quickly learn that these animals are not “insidious monsters” as they are often depicted.  The impact of movies such as “Jaws” and Discovery Channel’s “Shark Week” still drive the average person to initially believe that the only good shark, is a dead shark.  Shark diving, which includes provisioning ecotourism, gives a segment of the population a better understanding of sharks and their role in the ecosystem and thus contributes directly to the protection of these animals and their natural habitat.

Attracting sharks through provisioning ecotourism has not been shown to encourage aggressive shark behavior toward swimmers and others, and studies indicate that this activity does not increase the risk of shark encounters or bites when other people are swimming or are otherwise in the water where these creatures live.  That has been shown at hundreds of shark-feeding sites around the world for more than 40 years.  The studies also indicate great potential for economic value and conservation efforts.

The Decline in Shark Population

As virtually everyone is aware, due to shark harvesting for the purpose of removing their fins, an abhorrent practice continuing in waters throughout the world, the shark population is declining.  Estimates are that approximately 26 to 73 million sharks are being killed worldwide each year to satisfy the demand for shark fin soup.  This point is made clear by the infographic included here, which shows that worldwide fewer than 12 persons per year are killed by sharks, while at the same time, there are approximately 11,000 sharks killed worldwide by people, every single hour of every day.

A Better Alternative

There is a better alternative.  As is suggested by researchers in the 2015 study published in Marine Pollution Bulletin, with only speculative evidence of behavioral changes in sharks from provisioning ecotourism, it would be better if the ecotourism operators were required to implement safe marine interaction practices.  Many years ago, a group of leading experts in the industry, the Global Interactive Marine Experiences Council (GIMEC), which included Peter Benchley (author of Jaws), shark experts from around the country, as well as many from Florida, developed safe interactive practices, many of which are incorporated into the experiences used by operators in the US today.  Similar guidelines are also available through the Project AWARE and World Wildlife Fund.

Requiring use of the GIMEC or Project AWARE/WWF Guidelines would be a much better alternative to banning provisioning ecotourism, while still addressing the initial concern of the regulations, and not denying thousands of US and Florida citizens the opportunity to participate in a marine experience that changes the lives of citizens and benefits the shark. Regulation of this activity is both intrusive and unnecessary. Data indicates that more than 90% of shark dive operators already utilize such guidelines, rendering the need for government regulations moot.

Given the scientific evidence and the economics of observing sharks through “provisioning ecotourism” – the act of temporarily attracting sharks by concentrating a small quantity of food - the logic of allowing sharks to be harvested (killed) because of such feeding, but not simply viewed, escapes those with an understanding of this creature and this activity.

Shark Dive Operators from around the United States are fighting this bill but need your help. Given that marine life interactions are a primary reason to learn to dive, this bill has the potential to create a negative impact on ALL dive operators. Readers are urged to contact their U.S. Representatives and Senators to pass along the information presented here and ask that they oppose this intrusive and unnecessary bill. 

• You can contact your member of the House of Representatives by entering your zip code here: https://www.house.gov/ 
• You can contact your Senators by searching on this website: https://www.senate.gov/senators/senators-contact.htm 

For Additional Information:

• The Magnuson-Stevens Fishery Conservation And Management Act can be found here. 
• HR 3831 modifies Sec. 317 and can be found here.
  

New Mini-Documentary Explores Sharks Making a Comeback

Source: Geographical Magazine

Living with Sharks in the Bahamas is a new mini-documentary from Shark Trust, which explores what the world might look like if shark populations continue to recover.

Sharks are making a comeback – but are we ready to live alongside them? Living with Sharks in the Bahamas offers a glimpse into a hopeful future for the species. As shark populations begin to recover, the challenge is no longer just about protection, but about coexistence.

The mini-documentary from The Shark Trust explores what happens when conservation works. It asks: how do we balance growing coastal communities with the return of these predators? What does it look like to share space with sharks?

Living with Sharks in the Bahamas highlights just the beginning of a long-term program from the Shark Trust to improve relationships with the ocean’s top predators and build a better future for both people and sharks.

SEE THE MINI-DOCUMENTARY HERE

BONUS: See All the Sharks on Netflix – Preview here.

Ask Your Members of Congress to Support the DIVE BOAT Act

DEMA continues to need members of the diving community to tell your Senators and House Representatives to support the DIVE BOAT Act. The diving industry and DEMA will be much more successful in making this change if we come together as a community and federal elected officials hear from their constituents. 

Together, we CAN prevent further layoffs, help bring down insurance costs, and ease some of the domestic scuba diving pricing pressures.

We ask that you share the DIVE BOAT Act campaign messages and graphics with your social media followers in support of this important legislation. Even if you’ve helped before, this MUST be an ongoing campaign I we are to bring this critical issue to these new lawmakers’ attention!

HOW CAN YOU HELP?

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. We ask that you share the campaign messages and images found here with your social media followers, asking for their support of The DIVE BOAT Act.

Click here to learn more about the DIVE BOAT Act.

• Lawsuit Launched Over Manatee Harassment in Crystal River
• Trump Pardons Two Florida Divers who Freed Sharks and a Goliath Grouper
• Florida’s “Boater Freedom Act” Signed by Governor
• Safe Seas Act Threatens Shark Diving
• Ask New Leaders to Support the DIVE BOAT Act
• DEMA’s Manufacturing Purchase Index – How Important Market Research Impacts Public Policy
  

Lawsuit Launched Over Manatee Harassment in Crystal River

The Center for Biological Diversity (CBD) has informed the Trump administration that it intends to sue the U.S. Fish and Wildlife Service and the Department of Government Efficiency because of staff cuts at the Crystal River National Wildlife Refuge (NWR). The CBD alleges that these staff cuts will result in unlawful harassment of protected Florida manatees.

Crystal River National Wildlife Refuge is mostly accessible to visitors by water only. Only the Three Sisters Springs property provides land access via shuttle service, but no access to the water is provided at this site. The refuge doesn’t offer any water-access facilities. However, there are a few free City boat ramps and private ramps (with a fee) that provide access to refuge waters. The Refuge does not provide “Guided Manatee tours,” however, special use permits are granted to tour operators in Kings Bay who offer quality guided tours in Refuge waters. Seeing manatees in the water is both a privilege and a responsibility and these animals should be treated with respect and the utmost care. The manatee season at Crystal River NWR begins in mid-November and ends in late March as the animals move into the warm water of Crystal Springs.

According to the CBD, refuge manage hundreds of thousands of visitors every year and authorize and oversee a variety of commercial manatee tour groups. There are currently 27 active special-use permits, mostly for “swim-with-manatee” tourism operations. In January 2025 eight full-time employees were tasked with managing a 32,000-acre complex of five national wildlife refuges along Florida’s Gulf Coast, including Crystal River. In February the staff size was cut to six, but after federal court orders were issued, the two released staffers were reinstated. CBD alleges that this complement of staff is insufficient to manage the NWR.

The Crystal River National Wildlife Refuge was established in 1983 to protect the Florida manatee, a subspecies of the West Indian manatee. The refuge was established with the intent to help preserve Three Sisters Springs, which is the last unspoiled and undeveloped spring habitat in Kings Bay.

The refuge’s warm-water springs and nearby submerged vegetation provide essential winter habitat for around 20% of Florida’s manatee population. It’s predicted that the importance of the refuge will grow in the coming decades with the expected loss of several industrial warm-water outfalls that currently provide shelter for Florida manatees in the winter months.

For more information, see Crystal River National Wildlife Refuge. 

Trump Pardons Two Florida Divers who Freed Sharks and a Goliath Grouper

In early June President Trump pardoned two Florida divers who were found guilty of theft of fishing gear, in an almost five-year long odyssey that began when the divers saw what they thought was an illegal longline with sharks and a goliath grouper hooked on the line.

In what seems to be a classic case of government overreach, John Moore Jr. and Tanner Mansell were charged with theft of fishing gear and convicted in late 2022 after they rescued some 19 sharks and a goliath grouper off the Jupiter, Florida inlet. During the “rescue” operation they called law enforcement and described the steps they were taking with the longline and the marine animals and removing the longline from the water. While they thought they were “doing the right thing” by stopping the illegal use of the longline, they were charged with theft (a felony) of fishing gear that was owned by one of the few operators that is legally permitted to harvest sandbar sharks for research. 

After seeing on social media that the long line had been removed, the captain of the boat to which the long line belonged placed a call to the National Oceanic and Atmospheric Administration (NOAA) and sought a criminal investigation. Federal prosecutors charged that Moore and Mansell- part of the South Florida shark diving community - knew the line was legal and sabotaged it anyway to preserve shark populations for their own commercial interests. The divers were sentenced to one year of probation and ordered to pay over $3,000 in restitution to the Fort Pierce fisherman whose equipment was destroyed. Their convictions were upheld on appeal. 

But a panel of judges on the 11th U.S. Circuit Court of Appeals questioned why a federal prosecutor filed the theft charges against them in the first place. Appellate Judge Barbara Lagoa said the prosecutions seemed to be “for reasons that defy understanding.”  This was a significant moment in the case, as appellate court judges at the 11th Circuit rarely question criminal prosecutions in this manner.

“Moore and Mansell are felons because they tried to save sharks from what they believed to be an illegal poaching operation,” Lagoa wrote. “They are the only felons I have ever encountered, in eighteen years on the bench and three years as a federal prosecutor, who called law enforcement to report what they were seeing and what actions they were taking in real time.”

In April 2025, a lawyer with the Office of White House Counsel contacted Moore’s defense attorney to inquire about the case. In early June the lawyer called them back with news of their pardons. Discussing this turn of events, the defense counsel indicated, “We are thrilled the White House considered our arguments and determined this was an unjust prosecution.”

Florida “Boater Freedom Act” Signed by Governor

Florida’s “Boater Freedom Act” has been signed by Governor DeSantis and goes into effect on July 1, 2025.

The new law provides that a law enforcement officer may not board any vessel or perform a vessel stop without probable cause that a violation of vessel safety laws has occurred or is occurring, regardless of whether the owner or operator of the vessel is on board. 

The Boater Freedom Act prohibits a law enforcement officer from performing a vessel stop or boarding a vessel for the sole purpose of making a safety or marine sanitation equipment inspection and provides that a violation of safety and marine sanitation equipment requirements may only be considered a secondary offense.

The law requires the Florida Fish and Wildlife Conservation Commission (FWC) and the Florida Department of Highway Safety and Motor Vehicles to create a “Florida Freedom Boater” safety inspection decal. The decal will be issued following the demonstration of compliance with safety equipment carriage and use requirements.

The law also contains the “Watercraft Energy Source Freedom Act,” which prohibits a state agency, municipality, government entity, or county from restricting the use or sale of a watercraft based on the energy source used to power the watercraft.

Importantly, FWC is now authorized to modify the allowable means of anchoring, mooring, beaching, or grounding of vessels within springs protection zones. This is added to current law, which authorizes FWC to restrict vessel speed and operation and to prohibit vessel anchoring, mooring, beaching, or grounding within springs protection zones. The new law revises the threshold to establish these zones from simple “preventing harm” to “preventing significant harm to certain springs, spring groups, and spring runs.” The bill requires vessel operation, anchoring, mooring, beaching, or grounding to be the predominant cause of the significant harm.

The Boater Freedom Act prohibits FWC from issuing a fishing license to any commercial fishing vessel owned by any alien power. Current law prohibits FWC from issuing a fishing license to any commercial fishing vessel owned by an alien power associated with communism.

The enrolled version of the bill can be seen here.

Safe Seas Act Threatens Shark Diving

HR 3831 was introduced in the House of Representatives on June 6, 2025, and if passed, would effectively eliminate shark diving in federal waters off the coast of Florida. The bill modifies the Magnuson-Stevens Fishery Conservation And Management Act to prohibit divers from introducing, or attempting to introduce, food or any other substance into the water to attract sharks for any purpose other than to harvest sharks within the Exclusive Economic Zone seaward of the State of Florida.  The Act is being sought, and strongly supported, by staff of the FWC.

This new fish feeding regulation does not prohibit feeding fish for the purposes of attracting them to harvest (kill) them. 

This text ignores the conclusions of independent scientists such as Dr. Neil Hammerschlag from the University of Miami Rosenstiel School of Marine and Atmospheric Science. Dr. Hammerschlag has concluded from his extensive research that “provisioning ecotourism” - introducing small amounts of food in the water to interest sharks for the purpose of observation – does NOT create an increased risk for non-divers and swimmers not directly engaged in provisioning ecotourism activities.  

This bill unnecessarily eliminates the opportunity for thousands of divers each year to actively and safely engage in observing sharks and gaining a better understanding of this creature.  In a study published in 2012 in Functional Ecology, Dr. Hammerschlag, et al conducted satellite telemetry studies and movement analysis to examine the long-range migrations and habitat utilization of tiger sharks (Galeocerdi cuvier) originating in the Bahamas and Florida.  These two areas were selected because they differ considerably with regards to the presence and absence of “provisioning ecotourism.” Florida banned provisioning ecotourism in state waters beginning in January 2002 but continues to allow feeding of sharks to harvest them, while the Bahamas does not prohibit shark diving.  The study concluded that “in light of the potential for conservation and public awareness benefits of provisioning ecotourism, this practice should not be dismissed out of hand by (fisheries/site) managers.  Given the pressing need for improved understanding of the functional ecology of apex predators relative to human disturbance (rather than relying on perceived but unproven opinion), empirical studies of different species’ sensitivities to disturbance should be used to guide best-practice ecotourism policies that maximize conservation goals.”

While studies indicate that conditioning seems unlikely when using provisioning ecotourism, should such conditioning actually occur, danger to swimmers and divers still remains unlikely. In a study of Great White Sharks (Carcharodon carcharias) published by Ryan L. Johnson of the University of Pretoria, South Africa, Allison Kock of the South African Shark Research Centre and Iziko Museums, et al, the authors state that, “It is highly improbable that ‘conditioning’ of sharks to a cage diving vessel would increase danger to human water-users such as swimmers, scuba divers and kayakers.  This is due to the olfactory dissimilarity of these humans to the conditioned neutral stimulus (i.e. the cage diving vessel and associated structures).”

These studies suggest that shark diving, which most often includes provisioning ecotourism, does not create the risk to swimmers, divers and kayakers as imagined by proponents of the shark feeding prohibition contained in HR 3831. 

Economic Value of Diving with Sharks that Includes Provisioning Ecotourism

These studies indicate that there is little to suggest that provisioning ecotourism to attract sharks for observation and photography creates a risk to swimmers, divers or kayakers, and clearly show there is an abundance of research that indicates this practice is economically beneficial to the nearby communities.  

Almost 200,000 new scuba divers are trained and “certified” in the United States each year, and there are about 2.7 million currently active divers in the U.S.  Florida is the number one diving destination in the United States. The Diving Industry depends on sustainable interaction with the marine environment, and is aware of the need for long term sustainability of these resources for all citizens of the U.S.  The Industry is dedicated to a healthy marine environment and protection of aquatic resources, including sharks.  For these reasons DEMA’s annual goals include a mandate to engage in activities which promote the health of aquatic resources while protecting diver access to those resources.

Divers contribute to local economies by paying to dive and vacationing in areas near dive sites.  According to one study published by Oceana, conducted in collaboration with Duke University, and quoting a study conducted by the Cline Marketing Group, as a group, scuba divers take an estimated 1.7 million dive vacations each year at an average cost of $2,424 per trip, thus spending more than $4.1 billion dollars in dive-related vacations annually.  Divers contribute to tourism and tax revenues by purchasing day outings, extended dive trips, diving equipment, and by spending on hotels, food, airfare and ground transportation, and more.  Through such purchases, diving also creates tourist-related jobs, which contribute to the general economy where such tourism spending takes place.  In total, including purchases of equipment, travel, training and other activities, recreational diving and snorkeling contribute about $11 billion to the US gross domestic product.  For example, when the Oriskany was sunk off the Florida Panhandle in 2006, the direct economic benefit was estimated to be over a million dollars in just three days after the sinking.  

Divers obtain personal value from seeing marine life when they dive, and quantifying this value is important, in part, because it provides economic justification for the protection of marine wildlife.  All one must do is be present on one of these dive boats as divers, both young and old, come back from seeing these rare and majestic creatures - a life-changing experience for all that participate.

The Duke University/Oceana study assessed the value to divers of seeing healthy corals, sea turtles and sharks.  Divers were asked the maximum amount of money they would be willing to pay, in addition to their normal dive costs, for an increased likelihood of seeing a particular species (“willingness to pay” or WTP).  The study found that, assuming the total dive expense was $100, the maximum amount of additional value for a diver to increase the likelihood of seeing a shark while diving was an additional $35.56 per diver.  The total annual value was cited as $212.2 million.

In Socio-economic value and community benefits from shark-diving tourism in Palau: A sustainable use of reef shark populations, authors G.M.S. Vianna, M.G. Meekan, et al determined that sharks may be more economically valuable as a non-harvested resource. On the small island of Palau alone, “shark diving was shown to be a major contributor to the economy of Palau, generating US$18 million per year and accounting for approximately 8% of the gross domestic product of the country. Annually, shark diving was responsible for the disbursement of US$1.2 million in salaries to the local community and generated US$1.5 million in taxes to the government. If the population of approximately 100 sharks that interact with tourists at popular dive sites was harvested by fishers, their economic value would be at most US$10,800, a fraction of the worth of these animals as a non-consumptive resource. Fishers earn more selling fish for consumption to shark divers than they would gain by catching sharks! Shark diving provides an attractive economic alternative to shark fishing, with distribution of revenues benefiting several sectors of the economy, stimulating the development and generating high revenues to the government, while ensuring the ecological sustainability of shark populations.”

Studies in the Bahamas, where shark diving with and without cages is conducted regularly, indicate that these operations contribute in excess of $78 million dollars annually to the Bahamian economy.

Clearly, sharks are far more valuable alive, with the added incentive of conservation and the opportunity for people to better understand this unique creature than if they are harvested.

A Missed Conservation and Learning Opportunity

This bill seeks to prohibit an activity that can consistently bring everyday persons –  trained divers but also novice snorkelers - into contact with these animals for observation, photographic and study purposes - and, far differently than would be suggested by popular misconceptions about shark behavior, it is actually quite unusual to see sharks closely enough for near observation or photography without being able to attract them through controlled feeding – simply put, sharks are normally either too shy or disinterested in divers and snorkelers for such close encounters to occur on a regular basis.  Thirty years ago, divers were concerned that sharks might be nearby.  Now, new divers ask if they will have the chance to see one of these majestic creatures.  That happens when provisioning ecotourism is allowed to happen.

People participating in such activities see sharks first-hand and learn more about them.  DEMA believes, and virtually every resource cited herein agrees, that, because of this benign ecotourism activity, all participants gain an appreciation for these animals that would otherwise be impossible.  Such appreciation can lead to a greater understanding of the importance of these animals in maintaining a healthy aquatic environment, and very often participants become “Shark Ambassadors”- ready to spread the word of the value of sharks in our marine ecosystem.  

When people dive with sharks, they can observe them in their natural surroundings where they quickly learn that these animals are not “insidious monsters” as they are often depicted.  The impact of movies such as “Jaws” and Discovery Channel’s “Shark Week” still drive the average person to initially believe that the only good shark, is a dead shark.  Shark diving, which includes provisioning ecotourism, gives a segment of the population a better understanding of sharks and their role in the ecosystem and thus contributes directly to the protection of these animals and their natural habitat.

Attracting sharks through provisioning ecotourism has not been shown to encourage aggressive shark behavior toward swimmers and others, and studies indicate that this activity does not increase the risk of shark encounters or bites when other people are swimming or are otherwise in the water where these creatures live.  That has been shown at hundreds of shark-feeding sites around the world for more than 40 years.  The studies also indicate great potential for economic value and conservation efforts.

The Decline in Shark Population

As virtually everyone is aware, due to shark harvesting for the purpose of removing their fins, an abhorrent practice continuing in waters throughout the world, the shark population is declining.  Estimates are that approximately 26 to 73 million sharks are being killed worldwide each year to satisfy the demand for shark fin soup.  This point is made clear by the infographic included here, which shows that worldwide fewer than 12 persons per year are killed by sharks, while at the same time, there are approximately 11,000 sharks killed worldwide by people, every single hour of every day.

A Better Alternative

There is a better alternative.  As is suggested by researchers in the 2015 study published in Marine Pollution Bulletin, with only speculative evidence of behavioral changes in sharks from provisioning ecotourism, it would be better if the ecotourism operators were required to implement safe marine interaction practices.  Many years ago, a group of leading experts in the industry, the Global Interactive Marine Experiences Council (GIMEC), which included Peter Benchley (author of Jaws), shark experts from around the country, as well as many from Florida, developed safe interactive practices, many of which are incorporated into the experiences used by operators in the US today.  Similar guidelines are also available through the Project AWARE and World Wildlife Fund.

Requiring use of the GIMEC or Project AWARE/WWF Guidelines would be a much better alternative to banning provisioning ecotourism, while still addressing the initial concern of the regulations, and not denying thousands of US and Florida citizens the opportunity to participate in a marine experience that changes the lives of citizens and benefits the shark. Regulation of this activity is both intrusive and unnecessary. Data indicates that more than 90% of shark dive operators already utilize such guidelines, rendering the need for government regulations moot.

Given the scientific evidence and the economics of observing sharks through “provisioning ecotourism” – the act of temporarily attracting sharks by concentrating a small quantity of food - the logic of allowing sharks to be harvested (killed) because of such feeding, but not simply viewed, escapes those with an understanding of this creature and this activity.

DEMA is continuing to fight this issue and is working toward presenting this information to the bill’s sponsors for further consideration. Readers are urged to contact their Representatives and Senators to ask that they oppose this intrusive and unnecessary bill. 

The Magnuson-Stevens Fishery Conservation And Management Act can be found here. 

HR 3831 modifies Sec. 317 and can be found here.

Ask New Leaders to Support the DIVE BOAT Act

Time to Ask New Leaders to Support the Dive Community!

DEMA continues to need members of the diving community to tell your Senators and House Representatives to support the DIVE BOAT Act. The diving industry and DEMA will be much more successful in making this change if we come together as a community and federal elected officials hear from their constituents. 

Together, we CAN prevent further layoffs, help bring down insurance costs, and ease some of the domestic scuba diving pricing pressures.

We ask that you share the DIVE BOAT Act campaign messages and graphics with your social media followers in support of this important legislation. Even if you’ve helped before, we have a NEW Congress with NEW LEADERS and must bring this critical issue to these new lawmakers’ attention!

HOW CAN YOU HELP?

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. We ask that you share the campaign messages and images found here with your social media followers, asking for their support of The DIVE BOAT Act.

Click here to learn more about the DIVE BOAT Act.

• Motion Granted for Summary Judgment in Prop 65 Litigation
• Federal Aviation Administration (FAA) Bans Portable Chargers and Power Banks that use Lithium Batteries
• Thailand Restricts Underwater Photography by Scuba Divers
• EU Adopts the Corporate Sustainability Due Diligence Directive
• Canada Rules for Travel to United States – Visa Wizard
• New Year, New Congress - Ask New Leaders to Support the DIVE BOAT Act
• DEMA’s Manufacturing Purchase Index – How Important Market Research Impacts Public Policy
  

Motion Granted for Summary Judgment in Prop 65 Litigation

On May 2, 2025, in answer to litigation filed on behalf of California Businesses (including DEMA) by the California Chamber of Commerce (CalChamber) the U.S. District Court for the Eastern District of California granted a CalChamber motion for summary judgment in a case involving Prop 65 and the chemical acrylamide. The litigation has been pending since October of 2019. Specifically, the court held that “the State’s Prop 65 warnings as to dietary acrylamide are unconstitutional and [hereby grants] CalChamber’s request for declaratory relief and a permanent injunction enjoining enforcement of the Prop 65 warning requirements as to dietary acrylamide.” This decision is a legal victory for businesses all over the U.S., as meeting the requirements of California’s Prop 65 impact any product produced or sold in California. The ruling affirms CalChamber’s position that the State of California’s mandated warning for acrylamide in food products violates the First Amendment.

The court agreed that “compelling businesses to provide a warning that implies a known cancer risk—when the science remains unsettled on this —amounts to unconstitutional compelled speech.” The decision mirrors concern raised by Judge Daniel Calabretta during oral argument, particularly that the average consumer is likely to misinterpret the warning as affirming a definitive cancer risk even though such risk is unsupported by consensus scientific evidence.

This outcome not only protects businesses from bounty hunters suing over the presence of acrylamide in food and beverage products, but also upholds the principle that government-mandated disclosures must not be misleading or factually inaccurate. The ruling adds to the growing number of similar cases, setting helpful First Amendment precedence. While the State of California may choose to appeal (deadline for appeal is June 2), this ruling sets an important precedent in defending free speech rights against overly broad regulatory mandates. 

How Does Prop 65 Affect the Diving Industry and DEMA Members?

Prop 65 gives consumers and their attorneys the ability to sue businesses that do not include the proper warning labels on products containing chemicals associated with cancer and birth defects.

Although this law is enacted in in California, it is important for all in the diving industry to understand that it applies to all products sold in the state, regardless of where they are produced. Any product sold in California must meet the Prop 65 requirements.  In fact, the only companies safe from the reach of Prop 65 are those not producing or selling merchandise in California.

California’s Proposition 65 Labeling Law - Overview 

Enacted by California voters in 1986, Prop 65 requires warning labels on products containing chemicals listed as known to cause cancer, birth defects or reproductive harm. As of January 2025, there are over 1,000 chemicals on the list. Prop 65 doesn't stop anyone from selling their products - no matter what chemicals they contain—it is simply a law that requires consumer warning labels under certain circumstances.

Businesses with ten (10) employees or more that do business in California must comply with Prop 65. The warning requirement applies to any business in the chain of distribution, including manufacturers, re-marketers, distributors, and retailers, including out-of-state companies selling products in California.

The California Attorney General or a district attorney can pursue enforcement. However, most suits are brought by private parties claiming to be "acting in the public interest" who will then receive a portion of the fine or settlement ultimately assessed on the alleged violator.

Unfortunately, the law appears to have spawned a predatory trial lawyer industry focused on using the law to net large settlements. Private lawyers start by filing a “notice of violation” with the Attorney General and the accused business. The notice is detailed in terms of the alleged violation, naming a specific chemical(s) for which there may be inadequate warning and including an expert’s statement meant to support the alleged claims.

Under the law, fines can run up to $2,500 per day per violation. For many faced with Prop 65 cases, known as “headhunter” suits, it can feel like a shakedown because Prop 65 lawsuits are expensive to fight, and defendants often settle quickly to avoid the high cost of litigation. At times it may be questionable as to whether there has been a violation of the law since there may be limited consumer exposure to the specific chemical.

Proposition 65 is a complex statutory and regulatory scheme. Every case is different, and compliance will depend on the nature of the product and chemical at issue, how the product is sold, and many other factors. For more information, see https://www.p65warnings.ca.gov/.

Federal Aviation Administration (FAA) Bans Portable Chargers and Power Banks that use Lithium Batteries

Following a U.S. Federal Aviation Administration (FAA) ruling, the Transportation Safety Administration (TSA) says it is now banning passengers from storing portable chargers and power banks that use lithium batteries in their checked bags. Any lithium-ion and lithium-metal batteries, including power banks and portable charging devices, now must be stored in carry-on luggage only.

The FAA has indicated that when a carry-on bag is checked at the gate or at planeside, all spare lithium batteries and power banks must be removed from the bag and kept with the passenger in the aircraft cabin. The battery terminals must be protected from short circuit.  Further, to be permitted on the plane, the lithium-ion batteries and power banks must meet specific requirements:

• The battery must be under 100 watt-hours (Wh) unless the airline gives explicit approval. With airline approval, passengers may also carry up to two spare larger lithium-ion batteries (101–160 Wh) or Lithium metal batteries (2-8 grams). This size covers the larger after-market extended-life laptop computer batteries, and some larger batteries used in professional audio/visual equipment. Batteries exceeding 160 Wh are forbidden.
• The power bank must have a clearly visible label showing its watt-hour rating.
• Unlabeled, oversized, or suspicious-looking chargers are at risk of being confiscated.
• Carrying multiple devices may result in additional screening.

Travelers should be aware of these technical restrictions: chargers sold online often fail to clearly list watt-hour specs, and some cases, the labeling is entirely absent. If TSA agents can’t verify the battery size, they may seize the item on the spot. If you are unsure of your battery’s Wh, you can calculate it using the calculator found at the bottom of this page.

According to the FAA, the reason lithium-ion batteries are now longer allowed in the cargo hold is because of a process called thermal runaway, which can occur without warning due to damaged, overheating, overcharging, exposure to water or improper storage.

Flight crews are trained to deal with any lithium battery-based fires in the cabin, and passengers are asked to notify crew members if their device begins overheating, expanding, smoking or burning.

Southwest Airlines Rules

Beginning May 28, travelers on Southwest Airlines will be required to keep lithium-ion battery chargers (power banks) visible during the flight. These items can no longer be stored in carry-ons in in the overhead bin or zipped-up backpacks under your seat. Instead, the device must be in plain sight so flight crews can respond quickly in case of a malfunction.

According to The Hill, “Southwest will introduce a first-in-industry safety policy on May 28, requiring customers to keep portable charging devices visible while in use during flight,” the airline wrote. “Using portable charging devices while stored in a bag or overhead bin will no longer be permitted.”

Visit the FAA website for more information.

Thailand Restricts Underwater Photography by Scuba Divers

Source: The Nation, www.nationthailand.com

The Thailand Ministry of Natural Resources and Environment has declared new regulations which they claim will protect fragile coral reefs, with restrictions on cameras for less experienced divers.

The regulations state that only divers certified to Advanced Open Water level or those with a logbook proving at least 40 deep dives will be permitted to take cameras underwater. They must also be able to present their certification or logbook to officials upon request.

Thailand authorities have cited the severe damage to the coral reefs from diving tourism as the reason for the stringent regulations, emphasizing the urgent need for conservation to ensure sustainable use of these vital marine resources.

For snorkelers the rules stipulate that the water level must be at least two meters above the coral to minimize disturbance. Dive operators, licensed instructors, and their assistants are empowered to immediately halt the diving activities of anyone who disregards their guidance. Furthermore, instructors and assistants who fail to warn non-compliant tourists could face the revocation of their licenses.

The new rules will not apply to diving activities undertaken for academic research, education, or marine conservation and restoration projects carried out under the supervision of relevant authorities.

EU Adopts the Corporate Sustainability Due Diligence Directive

On May 24, 2024, the European Union (EU) officially adopted the Corporate Sustainability Due Diligence Directive (CSDDD). It was published in the Official Journal of the European Union on July 5, 2024, and entered into full effect on July 25, 2024.

The CSDDD attempts to globally institutionalize sweeping environmental, social and government objectives by mandating practices for companies doing business in the European Union, regardless of whether those companies are headquartered in the EU. The CSDDD requires those companies to impose the same standards on many of the businesses operating within their global supply chains.

EU policymakers deliberately designed the CSDDD to change business practices around the world, rather than only within the jurisdiction of EU member states.

In 2024 Professors Rachel Chambers and David Birchall in the UC Law Business Journal explained that, “[The CSDDD] is designed to be extraterritorial. The aim is to compel companies based within a jurisdiction to comply with human rights rules that are generally well enforced within that jurisdiction throughout its global operations. Extraterritoriality is very much the point.”

All 27 member states of the European Union are required to transpose the CSDDD into their national laws by July 26, 2026. EU countries will then be individually responsible for enforcing those laws. According to the Heartland Institute, “the CSDDD can best be understood as the regulatory floor to which EU member states must adhere during transposition, though they can make the obligations more severe if they choose.” Companies within the CSDDD’s direct scope will be forced to adhere to the CSDDD in various phases, with the largest companies having to comply by July 26, 2027. By July 26, 2029, all affected companies will have been phased in.

The CSDDD requires companies to change large parts of their operations, often in ways that are likely to drive up costs. For example, the CSDDD mandates companies align their practices with the Paris Climate Agreement, curtail water and land consumption, reduce and reverse biodiversity loss, and eventually eliminate their use of fossil fuels, among many other stipulations. All these actions come with substantial economic costs that will be passed on to consumers in the United States, Europe, and around the world.

For more information on the Corporate Sustainability Due Diligence Directive, see this Policy Study from the Heartland Institute.

Canada Updates Travel Rules to United States – Visa Wizard

Canada has updated its rules for citizens traveling to the United States. Starting April 11, Canadians who will be in the United States for more than 30 days will be required to register with United States authorities.

The requirement is part of a previously (largely) unenforced act, also known as the “Smith Act,” established in 1940. Enforcement comes as part of the “Protecting the American People Against Invasion” order signed by U.S. President Donald Trump. The rule requires all visitors over the age of 14, staying for 30 days or longer, to register with the U.S. government.

While most travelers entering the United States from Canada are automatically registered with an electronic I-94 admission record upon entering the U.S., the “Protecting the American People Against Invasion” order mandates that all visitors above the age of 14 who remain in the United States for 30 days or longer must apply for registration and be fingerprinted before the expiration of 30 days, if they were not registered as part of their electronic I-94. Similarly, parents and legal guardians must ensure that their children below the age of 14 are registered. Within 30 days of reaching his or her 14th birthday, the alien child must apply in person for registration and to be fingerprinted.

Visitors are advised to check if they were issued an electronic I-94 upon entry to the United States. This can be done by visiting, https://i94.cbp.dhs.gov/home . Select “Get Most Recent I-94,” agree to the terms of service, then enter your traveler information. This includes your first and last name, date of birth, country of citizenship and your document number (passport number). 

If a visitor’s latest I-94 appears, there is no further action required. An electronic I-94 means they have already registered with the federal government. If an I-94 has not been found, it is advised that the visitor register with U.S. Citizenship and Immigration Services (USCIS).

Under the alien registration requirements of the Immigration and Nationality Act ( INA), with limited exceptions ( e.g., for visa holders who have already been registered and fingerprinted through their application for a visa) and A and G visa holders, see 8 U.S.C. 1201(b)), all aliens above the age of 14 who remain in the United States for 30 days or longer must apply for registration. The law indicates that these aliens staying more than 30 days must be fingerprinted before the expiration of 30 days. See 8 U.S.C. 1302(a), however, as of this writing the Department of Homeland Security has published an interim final rule stating that a fingerprint requirement for Canadian nonimmigrants has been waived.

As the Smith Act is enforced, those arranging for divers to travel to the U.S., and travelers themselves, are advised to review the requirements. The information from the federal register can be found here. The Canadian travel advisory indicates that one should take “normal security precautions.” Additional recommendations and requirements can be found here.

Business Travelers – Is a Visa Required?

Business travelers from Canada entering the United States for the purposes of visiting trade shows and conferences are NOT required to have a visa. Entry into the United State for business purposes can vary depending on the country from which the business traveler is arriving.  To determine the requirements for business entry, go the U.S. government’s “Visa Wizard” page found here.

New Year, New Congress - Ask New Leaders to Support the DIVE BOAT Act

New Year, New Congress! Time to Ask New Leaders to Support the Dive Community!

With all new leaders in the U.S. Congress DEMA needs members of the diving community to tell your Senators and House Representatives to support the DIVE BOAT Act. The diving industry and DEMA will be much more successful in making this change if we come together as a community and federal elected officials hear from their constituents. 

Together, we CAN prevent further layoffs, help bring down insurance costs, and ease some of the domestic scuba diving pricing pressures.

We ask that you share the DIVE BOAT Act campaign messages and graphics with your social media followers in support of this important legislation. Even if you’ve helped before, we have a NEW Congress with NEW LEADERS and must bring this critical issue to these new lawmakers’ attention!

HOW CAN YOU HELP?

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. We ask that you share the campaign messages and images found here with your social media followers, asking for their support of The DIVE BOAT Act.

Click here to learn more about the DIVE BOAT Act.

• EU Adopts the Corporate Sustainability Due Diligence Directive
• UPDATE: House and Senate Bills Propose Wireless Alerts Following a Shark Attack – Lulu’s Law
• Canada Rules for Travel to United States – Visa Wizard
• New Year, New Congress - Ask New Leaders to Support the DIVE BOAT Act
• Florida Dive in Day to Highlight Important Industry Issues
• DEMA’s Certification Census – How Important Market Research Impacts Public Policy 

EU adopts the Corporate Sustainability Due Diligence Directive

On May 24, 2024, the European Union (EU) officially adopted the Corporate Sustainability Due Diligence Directive (CSDDD). It was published in the Official Journal of the European Union on July 5, 2024, and entered into full effect on July 25, 2024.

The CSDDD attempts to globally institutionalize sweeping environmental, social and government objectives by mandating practices for companies doing business in the European Union, regardless of whether those companies are headquartered in the EU. The CSDDD requires those companies to impose the same standards on many of the businesses operating within their global supply chains.

EU policymakers deliberately designed the CSDDD to change business practices around the world, rather than only within the jurisdiction of EU member states. 

In 2024, Professors Rachel Chambers and David Birchall in the UC Law Business Journal explained that, “[The CSDDD] is designed to be extraterritorial. The aim is to compel companies based within a jurisdiction to comply with human rights rules that are generally well enforced within that jurisdiction throughout its global operations. Extraterritoriality is very much the point.”

All 27 member states of the European Union are required to transpose the CSDDD into their national laws by July 26, 2026. EU countries will then be individually responsible for enforcing those laws. According to the Heartland Institute, “the CSDDD can best be understood as the regulatory floor to which EU member states must adhere during transposition, though they can make the obligations more severe if they choose.” Companies within the CSDDD’s direct scope will be forced to adhere to the CSDDD in various phases, with the largest companies having to comply by July 26, 2027. By July 26, 2029, all affected companies will have been phased in.

The CSDDD requires companies to change large parts of their operations, often in ways that are likely to drive up costs. For example, the CSDDD mandates companies align their practices with the Paris Climate Agreement, curtail water and land consumption, reduce and reverse biodiversity loss, and eventually eliminate their use of fossil fuels, among many other stipulations. All these actions come with substantial economic costs that will be passed on to consumers in the United States, Europe, and around the world.

For more information on the Corporate Sustainability Due Diligence Directive, see this Policy Study from the Heartland Institute.

UPDATE: House and Senate Bills Propose Wireless Alerts Following a Shark Attack – Lulu’s Law

In June 2024, a teenager was injured by a shark while swimming near the shore in the Florida Panhandle area. The girl lost her hand, and a leg had to later be amputated.

This specific attack has prompted an Alabama Congressman to propose a federal law to alert the public should a shark attack occur. Called “Lulu’s Law” after the teenage victim of the attack, H.R. 2076 proposes to “require the Federal Communications Commission to issue an order providing that a shark attack is an event for which a wireless emergency alert may be transmitted.” In March a Senate version of the bill was introduced by Alabama Senator Katie Britt.

Sharks are known to frequent the near shore areas in Florida and other states during the summer, and attacks (provoked and unprovoked) are more frequent as more swimmers enter the water during the summer months. According to the International Shark Attack File of the Florida Museum fatalities from shark attack are far less frequent than fatalities from lightning strikes or human bites.

What are the Odds?

According to the West and East Coast US Lifeguard Associations, about 264 million swimmers attend the beaches annually (Source: International Shark Attack File). Using this as a base figure:

Source: International Shark Attack File

A 2024 Shark Attack Summary Report can be found here.

While perhaps well-intentioned, with the odds of being injured or killed low for shark attack and odds of injury or death much higher for many other activities or encounters, it would seem this proposed legislation is misplaced and would generate unnecessary hysteria over the presence of sharks at a swimming beach.  In addition, there are already measures in place at most beaches: when potentially dangerous marine animals are present, purple flags are used, or red flags, for dangerous currents.  These reminder flags are used to advise persons who are present on the beach or in the water, rather than those that may be in their homes or driving their cars.  Additionally, alerts like the Amber and Silver alerts are used to remind people to look for and find potential lost or missing individuals, not to advise persons to avoid a particular life activity.  

The text of HR 2076 can be found here.

The text of S 1003 can be found here.

Canada Updates Travel Rules to United States – Visa Wizard

Canada has updated its rules for citizens traveling to the United States. Starting April 11, Canadians who will be in the United States for more than 30 days will be required to register with United States authorities. 

The requirement is part of a previously (largely) unenforced act, also known as the “Smith Act,” established in 1940. Enforcement comes as part of the “Protecting the American People Against Invasion” order signed by U.S. President Donald Trump. The rule requires all visitors over the age of 14, staying for 30 days or longer, to register with the U.S. government. 

While most travelers entering the United States from Canada are automatically registered with an electronic I-94 admission record upon entering the U.S., the “Protecting the American People Against Invasion” order mandates that all visitors above the age of 14 who remain in the United States for 30 days or longer must apply for registration and be fingerprinted before the expiration of 30 days, if they were not registered as part of their electronic I-94. Similarly, parents and legal guardians must ensure that their children below the age of 14 are registered. Within 30 days of reaching his or her 14th birthday, the alien child must apply in person for registration and to be fingerprinted. 

Visitors are advised to check if they were issued an electronic I-94 upon entry to the United States. This can be done by visiting, https://i94.cbp.dhs.gov/home. Select “Get Most Recent I-94,” agree to the terms of service, then enter your traveler information. This includes your first and last name, date of birth, country of citizenship and your document number (passport number).  

If a visitor’s latest I-94 appears, there is no further action required. An electronic I-94 means they have already registered with the federal government. If an I-94 has not been found, it is advised that the visitor register with U.S. Citizenship and Immigration Services (USCIS).

Under the alien registration requirements of the Immigration and Nationality Act (INA), with limited exceptions ( e.g., for visa holders who have already been registered and fingerprinted through their application for a visa) and A and G visa holders, see 8 U.S.C. 1201(b)), all aliens above the age of 14 who remain in the United States for 30 days or longer must apply for registration. The law indicates that these aliens staying more than 30 days must be fingerprinted before the expiration of 30 days. See 8 U.S.C. 1302(a), however, as of this writing the Department of Homeland Security has published an interim final rule stating that a fingerprint requirement for Canadian nonimmigrants has been waived. 

As the Smith Act is enforced, those arranging for divers to travel to the U.S., and travelers themselves, are advised to review the requirements. The information from the federal register can be found here. The Canadian travel advisory indicates that one should take “normal security precautions.” Additional recommendations and requirements can be found here.

Business Travelers – Is a Visa Required?

Business travelers from Canada entering the United States for the purposes of visiting trade shows and conferences are NOT required to have a visa. Entry into the United State for business purposes can vary depending on the country from which the business traveler is arriving.  To determine the requirements for business entry, go the U.S. government’s “Visa Wizard” page found here.

New Year, New Congress: Ask New Leaders to Support the DIVE BOAT Act

New Year, New Congress! Time to Ask New Leaders to Support the Dive Community!

With all new leaders in the U.S. Congress DEMA needs members of the diving community to tell your Senators and House Representatives to support the DIVE BOAT Act. The diving industry and DEMA will be much more successful in making this change if we come together as a community and federal elected officials hear from their constituents. 

Together, we CAN prevent further layoffs, help bring down insurance costs, and ease some of the domestic scuba diving pricing pressures.

We ask that you share the DIVE BOAT Act campaign messages and graphics with your social media followers in support of this important legislation. Even if you’ve helped before, we have a NEW Congress with NEW LEADERS and must bring this critical issue to these new lawmakers’ attention!

HOW CAN YOU HELP?

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. We ask that you share the campaign messages and images found here with your social media followers, asking for their support of The DIVE BOAT Act.

Click here to learn more about the DIVE BOAT Act.

Florida Dive in Day to Highlight Important Industry Issues

On April 30, 2025, DEMA will sponsor “Dive in Day” at the Capitol in Tallahassee, Florida, giving DEMA Members the opportunity to visit the Florida state Capitol, showcase their diving-related products and services, and promote issues relating to the scuba diving industry. 

Dive in Day provides a platform to engage Florida’s 160 legislators, the Governor and their staff members, and hundreds of visitors to the Capitol.  For the first time since 2019, DEMA has reserved the courtyard and first floor of the Capitol building to give DEMA Members and Florida-based diving businesses an opportunity to showcase Florida’s recreational diving operators. It’s a chance to highlight the importance of scuba diving to Florida’s economy, tourism, and marine ecosystems while advocating for policies that sustain our industry. 

DEMA will also use this opportunity to bring attention to issues critical to the Industry in Florida and has plans to meet with Senators or Representatives or their staff members to discuss diving-related topics important to business leaders.  Attendees are invited to participate, and these meetings can include discussions on a variety of issues that affect the Florida scuba diving industry, such as ecotourism, the future of the goliath grouper, spiny lobster, lionfish environmental issues, and others. 

As part of Dive In Day, DEMA’s legislative advocate Bob Harris has distributed relevant information to legislators (and will provide more for Capitol visitors) which includes the size of the diving industry in Florida and its importance in jobs, tourism, and the economy with a focus on the economic benefit of Florida dive businesses and the protection of sharks and their vital role in the marine ecosystem.  

This is the first Dive In Day in a while as the event had to be postponed due to the COVID-19 pandemic. The Association plans to conduct this program annually going forward. To learn more about DEMA’s Dive In Day and its opportunities, see this year’s information here.

DEMA’s Certification Census: How Important Market Research Impacts Public Policy

DEMA has published the Q4 2024 Certification Census, which records the number of Open Water (entry-level) certifications issued in the U.S. and U.S. territories.

The DEMA Certification Census, along with DEMA’s research on recreational diver behaviors (e.g., the number of annual dives in which they participate, where they are located, etc), consumer buying research, demographic research and manufacturing data, are all critical to DEMA’s ability to advocate on behalf of the industry.

The recreational diving industry gains a better understanding of the health of the industry in the U.S. by observing the number of Open Water certifications issued each quarter. While DEMA’s Certification Census includes only those organizations voluntarily reporting their figures to an independent third party, and for the good of the industry, it remains a key measure that helps in industry planning.

The Quarterly Certification Census subscription is free to any industry member and accounts for U.S.-issued certifications at the Open Water-level, as defined by the Recreational Scuba Training Council (RSTC). State-by-state data is also available by subscription at no charge to DEMA Members and available for purchase by non-members. The Census is valuable in that it helps in planning for the dive retail, manufacturing, and travel sectors. Importantly, DEMA also utilizes this data when advocating on the industry’s behalf.  

For example, when advocating on the industry’s behalf for protections of the reef areas or fish species in Florida, this became a highlight that helped to get the attention of agencies like the Florida Fish and Wildlife Commission (FWC), and the National Oceanic and Atmospheric Administration (NOAA).

Without having data available on certifications and other areas of diving business concern, the diving industry will not be heard over industries, more willing to provide business information on their industry size: industries like snow-related sports, recreational fishing, recreational vehicles, and boating. These multi-billion-dollar industries easily get the attention of lawmakers when they are willing to provide data about user behaviors, industry dollars, and participation rates. 

DEMA’s research efforts are critical to ensuring that our voice is heard by lawmakers and administrative agencies. Industry members must also use this critical data to help grow their own businesses, as well as for use in making sure that the diving industry in the U.S. continues to avoid problems caused by unnecessary regulation.

If your certification organization is not a voluntary contributor to the DEMA Certification Census, ask them to join us! Records are confidential and reported to an independent third-party administrator.  Recording this data is good for everyone in the industry!

• Enforcement of the Corporate Transparency Act Suspended
• Bill Proposes Wireless Alerts Following a Shark Attack—Lulu’s Law
• Canada Updates Rules for Travel to United States
• New Year, New Congress: Ask New Leaders to Support the DIVE BOAT Act
• DEMA’s Certification Census: How Important Market Research Impacts Public Policy

Enforcement of the Corporate Transparency Act Suspended

On March 2, the U.S. Department of the Treasury issued a press release indicating that it, “will not enforce any penalties or fines associated with the beneficial ownership information reporting rule and will additionally not enforce any penalties or fines against U.S. citizens or domestic reporting companies or their beneficial owners after the forthcoming rule changes take effect.”

This change in the Department of the Treasury’s position through the Trump Administration effectively negates enforcement of the Corporate Transparency Act for domestic U.S. companies.  The Department of the Treasury did indicate that it will be issuing proposed rulemaking that will “narrow the scope of the rule to foreign reporting companies only.”

For readers of DEMA’s Public Policy Digest you know that this has been an ongoing issue since 2021, as the CTA went in and out of courts of various jurisdictions. As late as February of this year it was anticipated that the CTA enforcement would begin by March 21. This is no longer the case.  You can learn more about the CTA here.

The U.S. Department of the Treasury March 2 press release can be found here.

Bill Proposes Wireless Alerts Following a Shark Attack—Lulu’s Law

In June 2024, a teenager was injured by a shark while swimming near the shore in the Florida Panhandle area. The girl lost her hand, and a leg had to later be amputated.

This specific attack has prompted an Alabama Congressman to propose a federal law to alert the public should a shark attack occur. Called “Lulu’s Law” after the teenage victim of the attack, H.R. 2076 proposes to “require the Federal Communications Commission to issue an order providing that a shark attack is an event for which a wireless emergency alert may be transmitted.”

Sharks are known to frequent the near shore areas in Florida and other states during the summer, and attacks (provoked and unprovoked) are more frequent as more swimmers enter the water during the summer months. According to the International Shark Attack File of the Florida Museum fatalities from shark attack are far less frequent than fatalities from lightning strikes or human bites.

What are the Odds?

According to the West and East Coast US Lifeguard Associations, about 264 million swimmers attend the beaches annually (Source: International Shark Attack File). Using this as a base figure:

Source: International Shark Attack File

A 2024 Shark Attack Summary Report can be found here.

While perhaps well-intentioned, with the odds of being injured or killed low for shark attack and odds of injury or death much higher for many other activities or encounters, it would seem this proposed legislation is misplaced and would generate unnecessary hysteria over the presence of sharks in a swimming beach.  In addition, there are already measures in place at most beaches: when potentially dangerous marine animals are present, purple flags are used, or red flags, for dangerous currents.  These reminder flags are used to advise persons who are actually on the beach or in the water, rather than those that may be in their homes or driving their cars.  Additionally, alerts like the Amber and Silver alerts are used to remind people to look for and find potential lost or missing individuals, not to advise persons to avoid a particular life activity. 

The text of HR 2076 can be found here.

Canada Updates Travel Rules to United States

Canada has updated its rules for citizens traveling to the United States. Starting April 11, Canadians who will be in the United States for more than 30 days will be required to register with United States authorities. 

The requirement is part of a previously unenforced act, also known as the “Smith Act,” established in 1940. Enforcement comes as part of the “Protecting the American People Against Invasion” order signed by U.S. President Donald Trump. The rule requires all visitors over the age of 14, staying for 30 days or longer, to register with the U.S. government. 

While most travelers entering the United States from Canada are automatically registered with an electronic I-94 admission record upon entering the U.S., the “Protecting the American People Against Invasion” order mandates that all visitors above the age of 14 who remain in the United States for 30 days or longer must apply for registration and be fingerprinted before the expiration of 30 days, if they were not registered as part of their electronic I-94. Similarly, parents and legal guardians must ensure that their children below the age of 14 are registered. Within 30 days of reaching his or her 14th birthday, the alien child must apply in person for registration and to be fingerprinted. 

Visitors are advised to check if they were issued an electronic I-94 upon entry to the United States. This can be done by visiting, https://i94.cbp.dhs.gov/home. Select “Get Most Recent I-94,” agree to the terms of service, then enter your traveler information. This includes your first and last name, date of birth, country of citizenship and your document number (passport number).  

If a visitor’s latest I-94 appears, there is no further action required. An electronic I-94 means they have already registered with the federal government. If an I-94 has not been found, it is advised that the visitor register with U.S. Citizenship and Immigration Services (USCIS).

Under the alien registration requirements of the Immigration and Nationality Act (INA), with limited exceptions ( e.g., for visa holders who have already been registered and fingerprinted through their application for a visa) and A and G visa holders, see 8 U.S.C. 1201(b), all aliens above the age of 14 who remain in the United States for 30 days or longer must apply for registration. The law indicates that these aliens staying more than 30 days must be fingerprinted before the expiration of 30 days. See 8 U.S.C. 1302(a), however, as of this writing the Department of Homeland Security has published an interim final rule stating that a fingerprint requirement for Canadian nonimmigrants has been waived. 

As the Smith Act is enforced, those arranging for divers to travel to the U.S., and travelers themselves, are advised to review the requirements. The information from the federal register can be found here. The Canadian travel advisory indicates that one should take “normal security precautions.” Additional recommendations and requirements can be found here.

New Year, New Congress: Ask New Leaders to Support the DIVE BOAT Act

New Year, New Congress! Time to Ask New Leaders to Support the Dive Community!

With all new leaders in the U.S. Congress DEMA needs members of the diving community to tell your Senators and House Representatives to support the DIVE BOAT Act. The diving industry and DEMA will be much more successful in making this change if we come together as a community and federal elected officials hear from their constituents. 

Together, we CAN prevent further layoffs, help bring down insurance costs, and ease some of the domestic scuba diving pricing pressures.

We ask that you share the DIVE BOAT Act campaign messages and graphics with your social media followers in support of this important legislation. Even if you’ve helped before, we have a NEW Congress with NEW LEADERS and must bring this critical issue to these new lawmakers’ attention!

HOW CAN YOU HELP?

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. We ask that you share the campaign messages and images found here with your social media followers, asking for their support of The DIVE BOAT Act.

Click here to learn more about the DIVE BOAT Act.

DEMA’s Certification Census: How Important Market Research Impacts Public Policy

DEMA has published the Q4 2024 Certification Census, which records the number of Open Water (entry-level) certifications issued in the U.S. and U.S. territories.

The DEMA Certification Census, along with DEMA’s research on recreational diver behaviors (e.g., the number of annual dives in which they participate, where they are located, etc), consumer buying research, demographic research and manufacturing data, are all critical to DEMA’s ability to advocate on behalf of the industry.

The recreational diving industry gains a better understanding of the health of the industry in the U.S. by The recreational diving industry gains a better understanding of the health of the industry in the U.S. by observing the number of Open Water certifications issued each quarter. While DEMA’s Certification Census includes only those organizations voluntarily reporting their figures to an independent third party, and for the good of the industry, it remains a key measure that helps in industry planning.

The Quarterly Certification Census subscription is free to any industry member and accounts for U.S.-issued certifications at the Open Water-level, as defined by the Recreational Scuba Training Council (RSTC). State-by-state data is also available by subscription at no charge to DEMA Members and available for purchase by non-members. The Census is valuable in that it helps in planning for the dive retail, manufacturing, and travel sectors. Importantly, DEMA also utilizes this data when advocating on the industry’s behalf.  

For example, when advocating on the industry’s behalf for protections of the reef areas or fish species in Florida, this became a highlight that helped to get the attention of agencies like the Florida Fish and Wildlife Commission (FWC), and the National Oceanic and Atmospheric Administration (NOAA).

Without having data available on certifications and other areas of diving business concern, the diving industry will not be heard over industries, more willing to provide business information on their industry size: industries like snow-related sports, recreational fishing, recreational vehicles, and boating. These multi-billion-dollar industries easily get the attention of lawmakers when they are willing to provide data about user behaviors, industry dollars, and participation rates. 

DEMA’s research efforts are critical to ensuring that our voice is heard by lawmakers and administrative agencies. Industry members must also use this critical data to help grow their own businesses, as well as for use in making sure that the diving industry in the U.S. continues to avoid problems caused by unnecessary regulation.

If your certification organization is not a voluntary contributor to the DEMA Certification Census, ask them to join us! Records are confidential and reported to an independent third-party administrator.  Recording this data is good for everyone in the industry!

• New Deadline for Reporting Companies: Corporate Transparency Act Reinstated
• Florida Manatees Denied Greater Endangered Species Act Protections
• The U.S. Federal Trade Commission Files Suit Against Equipment Manufacturer–Ramifications for Diving
• SS United States Starts its Journey to Become Historic Wreck
• DEMA’s Certification Census–How Important Market Research Impacts Public Policy

New Deadline for Reporting Companies: Corporate Transparency Act Reinstated

On February 17, 2025, the U.S. District Court for the Eastern District of Texas, in Smith, et al. v. U.S. Department of the Treasury, granted the Department of Justice’s request to stay the nationwide injunction that had previously paused Corporate Transparency Act (CTA) reporting requirements. The decision from the Eastern District of Texas effectively reinstates the CTA’s reporting obligations.

On February 18, 2025, the U.S. Treasury and the Financial Crimes Enforcement Network (FinCEN), issued a notice announcing the Court’s decision. FinCEN recognized that reporting entities may need additional time to comply, and generally extended the deadline to comply with CTA’s reporting obligations 30 calendar days to March 21, 2025. FinCEN, citing its “…commitment to reducing regulatory burden on businesses…” potentially due to the change of administration, also stated that it would be assessing its options to further modify deadlines while prioritizing reporting requirements for those entities that pose the most significant national security risks.

What Does This Mean for CTA Compliance?

As of February 18, 2025, reporting entities are required to file their initial Beneficial Ownership Information (BOI) reports with FinCEN by March 21, 2025.

Reporting companies that previously had a reporting deadline later than the March 21, 2025, deadline must file their initial BOI report by that later deadline. As required under the original BOI Reporting rules, any reports filed with FinCEN must be “true, correct and complete”.  

Future of the CTA

Many of the questions and challenges that existed surrounding the applicability of the BOI reporting rules persist (including as to applicability to nonprofits, HOAs, inactive entities, etc.). FinCEN did announce its intention to revise the BOI Reporting Rule to reduce the burden for lower-risk entities, including many U.S. small businesses, although the timing of any of these revisions is uncertain. Dated April 10, 2024, those types of companies exempt from this reporting process can be found in this article. 

There are several measures currently in Congress that may alter or change reporting requirements, including requirements for small businesses and those that address the assessment of penalties, although the final outcome of these measures is unclear at this time. 

For example, on February 10, 2025, the U.S. House of Representatives unanimously passed, by a 408-0 vote, the Protect Small Businesses from Excessive Paperwork Act of 2025, which would extend the initial reporting deadline for reporting companies formed prior to 2024 to not later than January 1, 2026. As drafted, this extension does not apply to entities formed on or after January 1, 2024, and it is unclear whether this is intentional, or an oversight.

On February 11, 2025, a companion bill was introduced in the U.S. Senate with almost a dozen co-sponsors. Senator Tim Scott, the lead sponsor, confirmed the bill would “extend the filing deadline for businesses to report beneficial ownership information (BOI) until January 1, 2026, giving the U.S. Department of Treasury more time to educate business owners on the new reporting requirements, assess Biden administration BOI decisions, and ensure small businesses are not overburdened –and potentially held liable – with unclear and unnecessarily complicated regulations.” The bill has already been referred to the Senate Banking, Housing, and Urban Affairs Committee (and Senator Scott is the Chairman of that committee).

Also, it is still unclear whether the new Trump administration will make changes to the reporting requirements (noting that President Trump originally had vetoed the CTA near the end of his term in 2020). Treasury Secretary, Scott Bessent indicated during his confirmation hearings that he was “…committed to reviewing the regulatory implementation of the CTA to ensure that Treasury meets the law’s objective of combating illicit finance without unduly burdening small businesses, as Congress directed.”

Despite the continued uncertainty, reporting companies should continue to be prepared to file their BOI Reports on or before March 21, 2025, unless the extensions referred to above are passed into law. Importantly, entities formed on or after January 1, 2024, should continue to monitor any updates to these bills – as it is unclear whether the longer extensions, described in the House and Senate bills, are intended to apply to them (and, as drafted, they do not).

Resources:

• To assist you, FinCEN has provided a step-by-step video tutorial on how to file: How to File BOI Report
• You can file directly through the official FinCEN website here: File Your BOI Report ("File Online" option seems easiest if self-reporting)
• For additional details, please visit the FinCEN BOI webpage: FinCEN BOI Reporting Information
  
  

Florida Manatees Denied Greater Endangered Species Act Protections

NOTE: This is information is from a press release from the Center for Biological Diversity, January 13, 2025

Florida Manatees Denied Greater Endangered Species Act Protections
Antillean Manatee in Puerto Rico Granted Endangered Status

ST. PETERSBURG, Fla.— The U.S. Fish and Wildlife Service under the Biden Administration today denied endangered status for the Florida manatee and proposed to protect the Antillean manatee of Puerto Rico as endangered.

A 2022 petition submitted by Harvard Law School’s Animal Law & Policy Clinic on behalf of the Center for Biological Diversity, Save the Manatee Club, Miami Waterkeeper and Frank S. González Garcia sought to increase protections for Florida manatees from threatened to endangered under the Endangered Species Act.

“It’s great news that Puerto Rico’s Antillean manatees finally won the endangered status they need to get on the road to recovery, but I’m disappointed the Fish and Wildlife Service didn’t give Florida manatees the same protection,” said Ragan Whitlock, a Florida-based attorney with the Center for Biological Diversity. “The agency’s denial completely failed to account for the ongoing die-off that is weakening the manatees’ chance at long-term survival. Thousands of manatees have starved to death in the last few years, and that should have been accounted for.”

The West Indian manatee, including both the Florida and Puerto Rico subspecies, was previously downlisted to threatened in 2017. At the time, despite warnings from conservation organizations, the Service failed to consider the possibility that an unusual mortality event was on the horizon in the Indian River Lagoon.

The Florida manatee has now endured more than three years of a devastating die-off event in which more than 2,000 manatees have starved to death. Despite having the mortality data, the Service failed to incorporate the threat into today’s finding.

“While we are disappointed by the Fish and Wildlife Service’s decision not to extend endangered status to all West Indian manatees, we are pleased that the agency acknowledged the endangered status of the Antillean manatee,” said Mary Hollingsworth of Harvard’s Animal Law & Policy Clinic. “We remain steadfast in our commitment to advocate for the conservation of all West Indian manatees.”

The Service previously issued a 90-day finding indicating the petition presented substantial information that increasing protections may be warranted. The agency found that as seagrass dwindles because of water pollution, Florida manatees may need greater protections.

Today’s finding dismissed the declining seagrasses across Florida despite recognition from the EPA and the Service that water-quality standards in the Indian River Lagoon in Florida, one of the most ecologically important estuaries for the species, aren’t being met.

“The failure of the Fish and Wildlife Service to take into account the best available scientific information regarding uncontrolled risks and threats to the manatees’ future survival when they unjustifiably downlisted manatees from endangered to threatened in 2017 left the manatee population unprotected from the ensuing devastating mass starvation due to large scale seagrass loss over the preceding decade,” said Patrick Rose, an aquatic biologist and executive director of Save the Manatee Club. “Sadly, it appears the Service has repeated its previous grievous mistake by once again failing to incorporate the best available scientific information as it relates to the well documented Unusual Mortality Event of thousands of Florida manatees from starvation. Thereby, denying the manatees the full strength of the Endangered Species Act at a time when current risks and threats to Florida manatees are rapidly accelerating due to water quality degradation and climate change.”

Water-quality degradation across the state has led to precipitous seagrass declines. Unchecked pollution — from wastewater treatment discharges, leaking septic systems, fertilizer runoff and other sources — is fueling the collapse of the Indian River Lagoon, leading to the unprecedented mortality event. Nearly 2,000 manatees died in just 2021 and 2022 combined. This two-year record represents more than 20% of all manatees in Florida.

State and federal agencies are also preparing for the loss of several warm-water havens that manatees frequent along Florida’s coast as warm-water outfalls are removed from several coastal power plants. The Service estimates that more than half of Florida’s manatees seek shelter from the cold at warm-water discharges from power plants. Natural warm-water sources are severely threatened by water-quality declines from excess nutrient pollution and groundwater pumping, leaving the manatees dependent on these man-made refugia. Many natural warm water sources are also impeded by manmade structures like the Rodman/Kirkpatrick dam on the Ocklawaha River.

“The failure to uplist Florida's manatee ignores the widespread population declines that manatees have suffered, as well as the severity of the ongoing threats to the survival of the species — particularly from seagrass loss due to water pollution,” said Dr. Rachel Silverstein, executive director and waterkeeper of Miami Waterkeeper. “This decision leaves the manatee without the stronger protections that it needs to persist. Miami Waterkeeper, alongside our partners, remains committed to advocating for the Florida manatee and to address the water pollution and other threats that are causing its decline.”

Meanwhile, the Antillean population of manatees also faces significant threats. Current estimates suggest as few as 250 manatees currently live in Puerto Rico. The population’s genetic diversity is also very low, which decreases manatees’ ability to adapt to changing conditions and rebound after unexpected mortality events such as hurricanes, boat strikes or disease. Today’s finding separates the Florida manatee from the Antillean manatee in Puerto Rico as listable entities. The Antillean manatee is now proposed for endangered status.

"This is one small, late step forward for Puerto Rico's Antillean manatees, but a wasted opportunity for the recovery and protection of Florida manatees,” said Frank S. González García, a Puerto Rican engineer concerned about the loss of natural resources. “Both subspecies face extremely high mortality rates and risk of extinction, vastly due to an ever-increasing plethora of diverse unfavorable human activities and conditions.”

The Endangered Species Act is a powerful tool for preventing extinction and helping vulnerable species recover. It’s 99% effective at preventing species under its protection from going extinct.

Contact:

• Ragan Whitlock, Center for Biological Diversity, (727) 426-3653, Rwhitlock@biologicaldiversity.org
• Nirva Patel, Harvard Animal Law & Policy Clinic, (617) 961-2196, npatel@law.harvard.edu
• Dr. Rachel Silverstein, Miami Waterkeeper, (305) 905-0856, rachel@miamiwaterkeeper.org
• Patrick Rose, Save the Manatee Club, (850) 570-1373, prose@savethemanatee.org
• Frank S. González García, (787) 674-5422, tinglarpr@yahoo.com
  

The U.S. Federal Trade Commission Files Suit Against Equipment Manufacturer – Ramifications for Diving

NOTE: This article is sourced from Today’s General Counsel, February 13, 2025.

While this information provides an example from outside the diving industry, its implications are that all manufacturers (including those in the diving industry) must take care to provide access to parts and tools for equipment repair.

FTC and State of Minnesota v. Deere & Company

The U.S. Federal Trade Commission and Illinois and Minnesota attorneys general have filed a lawsuit against John Deere. The lawsuit accuses Deere of a monopoly on repair services by limiting access to essential software, forcing farmers to rely on Deere’s authorized dealers for repairs.

The FTC argues that such restrictions harm independent repair shops and farmers who need timely and affordable equipment repairs. Deere maintains that it supports customers’ right to repair and has taken steps to provide access to repair tools.

The case stems from concerns about Deere’s use of proprietary software in its agricultural equipment. Farmers and independent repair shops have struggled to get necessary diagnostic and repair tools. Deere reserves the only fully functional repair software for its authorized network. This leads to increased repair costs and delays, negatively impacting farmers’ ability to maintain their machinery during critical agricultural seasons. In response to mounting pressure, Deere signed an agreement with the American Farm Bureau Federation (AFBF) in 2023, pledging to expand access to repair tools.

The FTC’s lawsuit contends that Deere’s actions constitute abuse of monopoly power in violation of antitrust laws. The agency seeks to eliminate Deere’s repair restrictions, arguing that these policies limit competition and inflate repair costs. Deere disputes the claims, arguing that the lawsuit ignores ongoing negotiations to resolve these concerns.

Notably, the change in administration may affect this case. President Trump’s FTC chair, Andrew Ferguson, has voiced skepticism about the lawsuit’s timing, suggesting it may interfere with an ongoing investigation and negotiations. 

For dive manufacturers, the case underscores the growing regulatory scrutiny of repair restrictions across industries under former FTC chair Lina Khan. The present administration change may temper aggressive enforcement, although much of its base supports right-to-repair mandates. 

Companies implementing similar repair limitations should be prepared for potential legal challenges under antitrust and consumer protection laws. Broadly, this litigation signals an aggressive shift in the right-to-repair movement. Whether that trend continues affects technology, automotive, and other equipment-dependent sectors, including the diving industry.

SS United States Starts its Journey to Become Historic Wreck

After nearly 30 years, the historic SS United States departed Philadelphia on Wednesday, Feb. 19, 2025. It's headed to the coast of Florida, where it will be sunk and eventually turned into the world’s largest artificial reef. 

The ship will stop in Mobile, Alabama for preparation. That includes removing contaminants such as fuel and paint, along with command bridge components, engine room equipment, wires, cables, loose items, flooring, furnishings, and others before it is taken to Florida. This process is expected to take until the end of this year.

Once cleaned, the ship will be headed to Okaloosa County, Florida where the ocean liner will be sunk and turned into a scuba-diving destination, and fish attractor. “The SS United States will be towed more than 1800 nautical miles, at 5 knots per hour, from Philadelphia, through Delaware Bay, into the Atlantic Ocean, past Cape Hatteras, around the Florida Peninsula, into the Gulf, and onto The Bay of Mobile,” said Captain Joseph Farrell, who organizers noted as a ship-sinking and reef expert, in a statement. “The voyage is expected to take 18 days.”

The SS United States was once considered the "pride of America’s merchant marine fleet.” According to Captain Farrell, “the SS United States is a testament to America’s might and engineering ingenuity. Her sinking is the final chapter for the last all-American-made; America-flagged ocean liner.”

When it was in service, from 1952 through 1969, the Steam Ship (SS) United States hosted many well-known passengers, including four U.S. Presidents, Marilyn Monroe, John Wayne, Jackie Gleason, Marlon Brando, Judy Garland, Charlton Heston, Joan Crawford, Walt Disney, Bob Hope and others. The ship holds the record for the fastest eastbound and westbound trans-Atlantic cruise ship crossing.

DEMA has long been a supporter of artificial reefs which help aggregate and attract marine life and help take fishing and other pressures off natural reefs. DEMA supported Florida’s Ships2Reefs bill, enacted in 2008. A letter from DEMA in support of the SS United States can be found here.

A video of the departure from Philadelphia of the SS United States can be seen on YouTube here.

DEMA’s Certification Census – How Important Market Research Impacts Public Policy

DEMA has published the Q4 2024 Certification Census, which records the number of Open Water (entry-level) certifications issued in the U.S. and U.S. territories.

The DEMA Certification Census, along with DEMA’s research on recreational diver behaviors (e.g., the number of annual dives in which they participate, where they are located, etc), consumer buying research, demographic research and manufacturing data, are all critical to DEMA’s ability to advocate on behalf of the industry.

The recreational diving industry gains a better understanding of the health of the industry in the U.S. by observing the number of Open Water certifications issued each quarter. While DEMA’s Certification Census includes only those organizations voluntarily reporting their figures to an independent third party, and for the good of the industry, it remains a key measure that helps in industry planning.

The Quarterly Certification Census subscription is free to any industry member and accounts for U.S.-issued certifications at the Open Water-level, as defined by the Recreational Scuba Training Council (RSTC). State-by-state data is also available by subscription at no charge to DEMA Members and available for purchase by non-members. The Census is valuable in that it helps in planning for the dive retail, manufacturing, and travel sectors. Importantly, DEMA also utilizes this data when advocating on the industry’s behalf.

For example, when advocating on the industry’s behalf for protections of the reef areas or fish species in Florida, this became a highlight that helped to get the attention of agencies like the Florida Fish and Wildlife Commission (FWC), and the National Oceanic and Atmospheric Administration (NOAA).

Without having data available on certifications and other areas of diving business concern, the diving industry will not be heard over industries, more willing to provide business information on their industry size: industries like snow-related sports, recreational fishing, recreational vehicles, and boating. These multi-billion-dollar industries easily get the attention of lawmakers when they are willing to provide data about user behaviors, industry dollars, and participation rates. 

DEMA’s research efforts are critical to ensuring that our voice is heard by lawmakers and administrative agencies. Industry members must also use this critical data to help grow their own businesses, as well as for use in making sure that the diving industry in the U.S. continues to avoid problems caused by unnecessary regulation.

If your certification organization is not a voluntary contributor to the DEMA Certification Census, ask them to join us! Records are confidential and reported to an independent third-party administrator. Recording this data is good for everyone in the industry!

• Continuing Injunction on Enforcement of the Corporate Transparency Act
• 2025 NDAA Passes Without Including the USCG Reauthorization and the DIVE BOAT Act
• FL Keys National Marine Sanctuary Rules Sent to FL Governor – Unnecessarily Rules Prohibit Provisioning Ecotourism
• The U.S. FISHES Act Passes Signed by the President
• DEMA’s Manufacturing Purchase Index – How Important Market Research Impacts Public Policy
  
  
  

Continuing Injunction on Enforcement of the Corporate Transparency Act

On December 26, 2024, the United States Court of Appeals for the Fifth Circuit reinstated a nationwide injunction, enjoining the enforcement of the Corporate Transparency Act (CTA). 

As a result, at this writing, reporting companies are NOT required to file beneficial ownership information reports with the Financial Enforcement Network (FinCEN) while the injunction remains in place. 

The Fifth Circuit Court of Appeals has scheduled a hearing on the government’s appeal of this ruling for March 25, 2025. 

As readers of DEMA’s Public Policy Digest will recall, if the federal CTA is enforced, almost all diving businesses domiciled or operating in the United States will be impacted. If enforced, CTA requires many companies formed or operating in the United States to report information about their beneficial owners to Treasury’s Financial Crimes Enforcement Network (FinCEN), which has indicated it will store this sensitive information in a “secure, confidential database.” If the injunction is lifted, businesses that meet the specified criteria will be considered a “Reporting Company,” and must submit a Beneficial Ownership Information (BOI) Report to the Department of Treasury FinCEN and may incur criminal or civil penalties for not filing or updating this report.

Earlier in December 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. 

As indicated, on December 26, 2024, a panel of the U.S. Court of Appeals for the Fifth Circuit issued an order that effectively stopped the requirement to report in accord with the tenants of the CTA. Accordingly, as of that December 26, 2024, date, the injunction issued by the district court in Texas Top Cop Shop, Inc. v. Garland is in effect and reporting companies are not required to file beneficial ownership information with FinCEN. 

The CTA purports to enhance transparency and combat financial crimes by requiring companies to disclose their ownership structures. However, the Court’s analysis echoes the sentiments of many business owners, “[t]he notion that one may use a company to veil their illicit financial crimes is unassailable. But the Commerce Clause does not justify regulating all companies based on nothing more than the fear that a reporting company might shelter a financial criminal.”

Prior to this ruling, more than 8 million BOI reports had been submitted to FinCEN, far less than the anticipated 32.6 million filings. The current injunction temporarily puts a national halt to the enforcement efforts related to these reporting obligations.

Where Do Companies Go From Here? 

The Court’s ruling is authoritative. It has made a legal determination that a nationwide scope for the injunction is appropriate. Until that opinion is overturned it will continue to stand. According to the Financial Crimes Enforcement Network (FinCEN - https://fincen.gov/boi), “In light of a recent federal court order, reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.”

With a hearing scheduled by the Fifth Circuit Court of Appeals for March 25, 2025, companies should watch this case carefully and determine their beneficial owners and should be prepared to file if the injunction is lifted.

ALERT: Supreme Court Allows Law Requiring Small Businesses to Report Ownership Information

On January 23, 2025, the Supreme Court granted the government’s motion to stay a nationwide injunction issued by a federal judge in Texas (Texas Top Cop Shop, Inc. v. McHenry—formerly, Texas Top Cop Shop v. Garland). As a separate nationwide order issued by a different federal judge in Texas (Smith v. U.S. Department of the Treasury) still remains in place, reporting companies are not currently required to file beneficial ownership information with FinCEN despite the Supreme Court’s action in Texas Top Cop Shop. Reporting companies also are not subject to liability if they fail to file this information while the Smith order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.

The DIVE BOAT Act: 2025 NDAA Passes Without Including the USCG Reauthorization and the DIVE BOAT Act

On December 17, 2024, the U.S. Senate and U.S. House of Representatives passed the 2025 National Defense Authorization Act (NDAA) and sent it to then President Biden for signature. Unfortunately, the last Congress did not finish its work on U.S. Coast Guard Reauthorization, so it was not included in the 2025 NDAA. This means that the opportunity for the DIVE BOAT Act to be enacted during the 118th Congress and as part of the 2025 NDAA was eliminated. With a new Congress and new President sworn in during January, DEMA will continue to fight for much needed insurance relief in the 119th Congress.

DEMA worked to educate staff and elected officials serving on the Congressional Committees of jurisdiction in the House and Senate and made considerable progress in garnering support and sympathy from policymakers on both sides of the aisle. DEMA also briefed the Coast Guard Office of Policy Provision, which had no problem with the proposed insurance fix in the DIVE BOAT Act.  However, the House and Senate could not resolve differences in their separate priorities for the U.S. Coast Guard Reauthorization, and broader negotiations broke down. Because the last Congress did not finish its work, the new 119th Congress will seek to complete the work on the Coast Guard Reauthorization. 

This outcome is certainly not what DEMA and DEMA Members have fought for over the last two-years, but with DEMA Board and Public Policy Committee support, DEMA is already taking up the fight for passage of the DIVE BOAT Act again in the new 119th Congress.

DEMA has made significant inroads to overturn and correct the commercial insurance market that Congress broke, and some things have changed since DEMA, and the industry, started on this effort two years ago. All of these can make a positive difference in 2025: 

• DEMA has committed resources to continuing its federal and state advocacy efforts in 2025. 
• DEMA is likely in a better position to achieve passage of the DIVE BOAT Act with the newly elected Congress, which is under new leadership and more sympathetic to regulatory and litigation concerns from the small business community.   
• In late 2024, DEMA secured support for passage of the DIVE BOAT Act from the Passenger Vessel Association (PVA), which previously had declined to weigh in because they mistakenly believed their members were not affected. As a result, PVA recently reached out to senior House Republican USCG subcommittee staff to alert them to the PVA support for the DIVE BOAT Act.
• The DEMA Board continues to specifically support efforts to enact the DIVE BOAT Act, including continuing to fight as necessary to fix the insurance market broken by Congress.
• DEMA Members are more aware than ever of the need for this important legislation and have joined in this fight.
• The path has been paved for members of the diving industry everywhere in the US to support this effort and reach out to their local legislators in Washington. 

As the 119th Congress convenes, DEMA is already directly advocating for passage with members of the Committees that failed to act in 2024 and engaging the press on these efforts.  DEMA is also engaging with the incoming Senate Commerce Chair’s senior staff and some impacted constituents, including obtaining help from DEMA Board members from that state.  

Like any public policy effort, DEMA was aware that the DIVE BOAT Act might take a long time to enact and would face setbacks.  If anything, this situation affirms that DEMA must be at the federal advocacy table and have a voice in Washington, D.C. to help avoid these kinds of issues in the future. As this episode has proven, getting this kind of faulty legislation stopped before it gets started is far easier than correcting it once enacted. DEMA remains committed for the long haul to participating in these kinds of state and federal advocacy efforts.

FL Keys National Marine Sanctuary Rules Sent to Governor – Rules Unnecessarily Prohibit Provisioning Ecotourism

On January 16, 2025, NOAA’s Office of National Marine Sanctuaries released the final rule for the Florida Keys National Marine Sanctuary (FKNMS) Restoration Blueprint. 

DEMA has long been a supporter of National Marine Sanctuaries, when the science indicates the need and when divers are not unnecessarily restricted from access or activities.  DEMA has testified before the Congressional Subcommittee of jurisdiction to support reauthorization of the National Marine Sanctuary Act. 

Unfortunately, the latest Blueprint for Restoration for the Florida Keys National Sanctuary (FKNMS) unnecessarily restricts divers from participating in certain diving activities inside the Sanctuary area.  Specifically, according to the Blueprint, the final rule includes a new sanctuary-wide regulation prohibiting the feeding or attracting of fish, including sharks, or other marine species from any vessel and/or while diving.  This new fish feeding regulation does not prohibit feeding fish for the purposes of attracting them to harvest (kill) them (“traditional fishing”). 

While the rule sent to Governor DeSantis for final approval indicates that “the regulatory text has been developed with additional input from agency staff with expertise in impacts to sharks and shark depredation, human safety concerns, and compliance and Enforcement,” the regulatory text ignores the conclusions of independent scientists such as Neil Hammerschlag from the Rosenstiel School of Marine and Atmospheric Science, University of Miami. Dr. Hammerschlag has concluded from his research that “provisioning ecotourism” - introducing small amounts of food in the water to interest sharks for the purpose of observation – does NOT create an increased risk for non-divers and swimmers not directly engaged in provisioning ecotourism activities.  

This rule unnecessarily eliminates the opportunity for thousands of divers each year to actively and safely engage in observing sharks and gaining a better understanding of this creature.  In a study published in 2012 in Functional Ecology, Dr. Hammerschlag, et al conducted satellite telemetry studies and movement analysis to examine the long-range migrations and habitat utilization of tiger sharks (Galeocerdi cuvier) originating in the Bahamas and Florida.  These two areas were selected because they differ considerably with regards to the presence and absence of “provisioning ecotourism.” Florida banned shark diving beginning in January 2002 but continues to allow feeding of sharks in order to harvest them, while the Bahamas does not prohibit shark diving.  The study concluded that, “in light of the potential for conservation and public awareness benefits of provisioning ecotourism, this practice should not be dismissed out of hand by (fisheries/site) managers.  Given the pressing need for improved understanding of the functional ecology of apex predators relative to human disturbance (rather than relying on perceived but unproven opinion), empirical studies of different species’ sensitivities to disturbance should be used to guide best-practice ecotourism policies that maximize conservation goals.”

While studies indicate that conditioning seems unlikely when using provision ecotourism, should such conditioning actually occur, danger to swimmers and divers still remains unlikely. In a study of Great White Sharks (Carcharodon carcharias) published by Ryan L. Johnson of the University of Pretoria, South Africa, Allison Kock of the South African Shark Research Centre and Iziko Museums, et al, the authors state that, “It is highly improbable that ‘conditioning’ of sharks to a cage diving vessel would increase danger to human water-users such as swimmers, scuba divers and kayakers.  This is due to the olfactory dissimilarity of these humans to the conditioned neutral stimulus (i.e. the cage diving vessel and associated structures).”

In a Hawai’i-based study of cage diving with sharks, which included provisioning ecotourism, Researchers Carl G. Meyer, University of Hawai'i System, and Yannis P. Papastamatiou, Florida International University found that, “Galapagos sharks (Carcharhinus galapagensis) and sandbar sharks (Carcharhinus plumbeus) were the most common species seen at cage diving sites (98% of all sharks observed). These species are rarely implicated in attacks on humans. Sharks remain at cage diving sites throughout the day and disperse at night. Sharks that visit North Shore cage diving sites also migrate seasonally to deep waters off the West side of Oahu, and range as far afield as Maui and Kauai. Inshore movements by sharks associated with cage diving operations are extremely rare. There is no evidence of sharks following boats back to the harbor. There is no evidence indicating Haleiwa shark cage diving operations are a threat to public safety.”

These studies suggest that shark diving which most often includes provisioning ecotourism, does not create the risk to swimmers, divers and kayakers as supposed by proponents of the shark feeding prohibition contained in the FKNMS rules. 

Is there economic value in diving with sharks that includes provisioning ecotourism?

While it should now be clear that there is little to suggest that provisioning ecotourism to attract sharks creates a risk to swimmers, divers or kayakers, there is an abundance of research that indicates this practice is economically beneficial to the nearby communities.  

Almost 200,000 new divers are trained and “certified” in the United States each year, and there are about 2.7 million currently active divers in the U.S.  As stated, the Diving Industry depends on sustainable interaction with the marine environment, and is aware of the need for long term sustainability of these resources for all citizens of the U.S.  The Industry is dedicated to a healthy marine environment and protection of aquatic resources, including sharks.  For these reasons DEMA’s annual goals include a mandate to engage in activities which promote the health of aquatic resources while protecting diver access to those resources.

Divers contribute to local economies by paying to dive and vacationing in areas near dive sites.  According to a study published by Oceana, conducted in collaboration with Duke University, and quoting a study conducted by the Cline Marketing Group, as a group scuba divers take an estimated 1.7 million dive vacations each year at an average cost of $2,424 per trip, thus spending more than $4.1 billion dollars in dive-related vacations annually.  Divers contribute to tourism and tax revenues by purchasing day outings, extended dive trips, diving equipment, and by spending on hotels, food, airfare and ground transportation, and more.  Through such purchases, diving also creates tourist-related jobs, which contribute to the general economy where such tourism spending takes place.  In total, including purchases of equipment, travel, training and other activities, recreational diving and snorkeling contribute about $11 billion to the US gross domestic product.

Divers obtain personal value from seeing marine life when they dive and quantifying this value is important, in part, because it provides economic justification for the protection of marine wildlife.  All one must do is be present on one of these dive boats as divers, both young and old, come back from seeing these rare and majestic creatures - a life changing experience for all that participate.

The Duke University/Oceana study assessed the value to divers of seeing healthy corals, sea turtles and sharks.  Divers were asked the maximum amount of money they would be willing to pay, in addition to their normal dive costs, for an increased likelihood of seeing a particular species (“willingness to pay” or WTP).  The study found that, assuming the total dive expense was $100, the maximum amount of additional value for a diver to increase the likelihood of seeing a shark while diving was an additional $35.56 per diver.  The total annual value was cited as $212.2 million.

In Socio-economic value and community benefits from shark-diving tourism in Palau: A sustainable use of reef shark populations, authors G.M.S. Vianna, M.G. Meekan, et al determined that sharks may be more economically valuable as a non-harvested resource. On the small island of Palau alone, “shark diving was shown to be a major contributor to the economy of Palau, generating US$18 million per year and accounting for approximately 8% of the gross domestic product of the country. Annually, shark diving was responsible for the disbursement of US$1.2 million in salaries to the local community and generated US$1.5 million in taxes to the government. If the population of approximately 100 sharks that interact with tourists at popular dive sites was harvested by fishers, their economic value would be at most US$10,800, a fraction of the worth of these animals as a non-consumptive resource. Fishers earn more selling fish for consumption to shark divers than they would gain by catching sharks. Shark diving provides an attractive economic alternative to shark fishing, with distribution of revenues benefiting several sectors of the economy, stimulating the development and generating high revenues to the government, while ensuring the ecological sustainability of shark populations.”

Studies in the Bahamas, where shark diving with and without cages is conducted regularly, indicate that these operations contribute in excess of $78 million dollars annually to the Bahamian economy.

Clearly, sharks are far more valuable alive, with the added incentive of conservation and the opportunity for people to better understand this unique creature, than if they are harvested.

A missed conservation and learning opportunity

These rules seek to prohibit an activity that can consistently bring everyday persons –  trained divers but also novice snorkelers - into contact with these animals for observation, photographic and study purposes - and, far differently than would be suggested by popular misconceptions about shark behavior, it is actually quite unusual to see sharks closely enough for near observation or photography without being able to attract them through controlled feeding – simply put, sharks are normally either too shy or disinterested in divers and snorkelers for such close encounters to occur on a regular basis.  

Persons participating in such activities see sharks first-hand and learn more about them.  DEMA believes, and virtually every resource cited herein agrees, that, because of this benign ecotourism activity, all participants gain an appreciation for these animals that would otherwise be impossible.  Such appreciation can lead to a greater understanding of the importance of these animals in maintaining a healthy aquatic environment, and very often participants become “Shark Ambassadors”- ready to spread the word of the value of sharks in our marine ecosystem.  

When people dive with sharks, they can observe them in their natural surroundings where they quickly learn that these animals are not “insidious monsters” as they are often depicted.  The impact of movies such as “Jaws” and Discovery Channel’s “Shark Week” still drive the average citizen to initially believe that the only good shark, is a dead shark.  Shark diving, which includes provisioning ecotourism, gives a broad segment of the population a better understanding of sharks and their role in the ecosystem and thus contributes directly to the protection of these animals and their natural habitat.

Attracting sharks through provisioning ecotourism has not been shown to encourage aggressive shark behavior toward swimmers and others, and studies indicate that this activity does not increase the risk of shark encounters or bites when other persons are swimming or are otherwise in the water where these creatures live.  That has been shown at hundreds of shark feeding sites around the world for more than 30 years.  The studies also indicate a great potential for economic value and conservation efforts.

The decline in shark population

As virtually everyone is aware, due to shark harvesting for the purpose of removing their fins, an abhorrent practice continuing in waters throughout the world, the shark population is declining.  Estimates are that approximately 26 to 73 million sharks are being killed worldwide each year to satisfy the demand for shark fin soup.  This point is made clear by the infographic included here, which shows that worldwide fewer than 12 persons per year are killed by sharks, while at the same time, there are approximately 11,000 sharks killed worldwide by people, every single hour of every day.

A better alternative

There is an alternative.  As is suggested by researchers in the 2015 study published in Marine Pollution Bulletin, with only speculative evidence of behavioral changes in sharks from provisioning ecotourism, it would be better if the ecotourism operators were required to implement safe marine interaction practices.  Many years ago, a group of leading experts in the industry, the Global Interactive Marine Experiences Council (GIMEC), which included Peter Benchley (author of Jaws),  shark experts from around the country, as well as many from Florida, developed safe interactive practices, many of which are incorporated into the experiences used by operators in the US today.  Similar guidelines are also available through the Project AWARE and World Wildlife Fund.

Requiring use of the GIMEC or Project AWARE Guidelines would be a much better alternative to banning provisioning ecotourism, while still addressing the initial concern of the bill, and not denying thousands of US citizens the opportunity to participate in a marine experience that changes the lives of both the citizen and the shark. U.S. Federal regulation of this activity is both intrusive and unnecessary. Data indicate that more than 90% of shark dive operators already utilize such guidelines, rendering the need for government regulations moot.

It should be clear that there should be no prohibition on shark feeding as found in these unnecessary rules.  This section is clearly designed to prohibit divers and others from seeing sharks swim unmolested in the water yet allows sharks to be harvested (killed) by fishers.  Given the scientific evidence and the economics of observing sharks through “provisioning ecotourism” – the act of temporarily attracting sharks by concentrating a small quantity of food - the logic of allowing sharks to be harvested (killed) because of such feeding, but not simply viewed, escapes those with an understanding of this creature and this activity.

DEMA urges interested members to write directly to Governor Ron DeSantis of Florida as soon as possible and express your opposition to these unnecessary and obtrusive rules contained in the Florida Keys National Marine Sanctuary “Blueprint for Restoration.” The deadline for approval of these obtrusive rules is February 28, 2025. You can write to Governor DeSantis here.

For more information see the Blueprint here: https://floridakeys.noaa.gov/, specifically pages 31, 78, 117 and 131. 

The U.S. FISHES Act Passes Signed by the President

In early January H.R. 5103 – "The Bipartisan Fishery Improvement to Streamline untimely regulatory Hurdles post Emergency Situation Act (FISHES) Act," was signed into law by the President of the United States.
 
"The FISHES Act" was broadly supported, bipartisan legislation meant to improve the federal regulatory process associated with the allocation of fishery disaster relief. Specifically, this bill seeks to expedite the distribution of federal disaster relief following official fishery disaster declarations–which the State of Florida has requested seven times since 2012.

H.R. 5103 was sponsored by Congressman Byron Donalds (R-FL) and passed both the U.S. House of Representatives and U.S. Senate with votes of unanimous support. The legislation received the support of 160 endorsing entities including DEMA, along with fifty-two members of the U.S. House of Representatives and the U.S. Senate. In the Senate, Senator Rick Scott (R-FL) was the sponsor of "The Bipartisan FISHES Act" Senate companion bill.
 
“For years, fishery disaster determinations across our nation have been left pending due to bureaucratic inaction,” said Congressman Byron Donalds (R-FL 19). “This includes the catastrophic devastation caused by Hurricane Ian to our Southwest Florida community. This is a national problem and must change; and this is why I introduced ‘The FISHES Act’ alongside Senator Rick Scott (R-FL) to expedite fishery disaster relief to communities in need.” 

Prior to passage, states applied for federal fishery disaster relief for a variety of reasons including day-to-day extreme weather, water quality issues, damage from hurricanes, and others.  Some of these specific fishery impacts affect recreational diving, including: 

• Boats and docks that are damaged or destroyed.
• Hotel and restaurant infrastructure damage that dissuades clients from diving in an affected area. 
• Water quality issues impacting fish health due to high levels of salinity, harmful algal blooms in the water and other water quality problems. Some of these are well known to the diving industry, such as red tide impacts on goliath grouper. 
  

This bill will help to modernize and streamline the federal fishery disaster relief funding process, helping to reduce the time needed to assist many diving businesses and associated small businesses (restaurants, hotels, etc) which could otherwise go out of business before the relief is made available.

In April 2024 DEMA was asked by Congressman Donalds (FL-19) to support the federal FISHES Act.  After review, DEMA’s PUBLIC POLICY COMMITTEE RECOMMENDED SUPPORTING THIS BILL and passed along their recommendation to the DEMA Board of Directors.  On April 22, 2024, the DEMA Board signed and submitted a letter to Representative Donalds with thanks for assisting the recreational diving industry. The DEMA Board letter is available here.

DEMA’s Manufacturing Purchase Index – How Important Market Research Impacts Public Policy

DEMA will shortly publish the final quarter 2024 Manufacturing Purchase Index (MPI). This manufacturing sector report reflects the sector’s work to develop a simplified but useful report that includes New Orders and Inventories in key diving equipment Categories. 

DEMA’s MPI is unique in that it captures aggregate trend data for New Orders and for Inventory in stock on a quarterly basis.  Participating manufacturers report to an independent third-party administrator (TPA) to ensure their data remains confidential and secure. Reporting consists of companies comparing their data points in the current reporting period to those in the previous quarter, as well as to the same quarter during the previous year.  

• New Orders: Reflects the levels of new orders received from customers.
• Inventories: Reflects the changes in inventory levels in stock at the time of the report.

Aggregated trend data is available on both Equipment Type and Category. The Category definitions can be found within the report and include Soft Goods, Exposure Protection, Hard Goods and Accessories and Bags.  Each Category is further defined within the reports as Equipment Types, and include regulators, BCs, fins, masks, snorkels, wetsuits, drysuits, and more.

This research, along with DEMA’s Certification Census, and the most recent Diver Behavioral Research, and the just-published Dive Consumer Household Studies, are all critical to DEMA’s ability to advocate on behalf of the industry.

As every company is aware, manufacturers (and all diving businesses) cannot manage what is not measured. The recreational diving industry gains a better understanding of the health of the industry in the U.S. by observing diver activities and preferences as well as sales data. The Manufacturing Purchase Index trend data was provided by DEMA-member manufacturers and includes both domestic and international new orders and inventory data.  The results provide key data points that help members of the industry but can also greatly assist DEMA in its public policy work.

For example, in DEMA’s more than two-year battle to overturn onerous regulations that have caused vessel and operations insurance to skyrocket, having data on inventory and new orders in the dive manufacturing sector (and other sectors) has been instrumental in helping lawmakers understand the nature of this industry.

Without having trend data available from the manufacturing sector, the diving industry risks being overlooked by lawmakers in comparison to other industries that are more willing to provide business information on their industry size: industries like snow-related sports, recreational fishing, recreational vehicles, and boating. These multi-billion-dollar industries easily get the attention of lawmakers when they are willing to provide data about user behaviors, household makeup and details, industry dollars, participation rates and trends in manufacturing. Without similar data, the diving industry is easily ignored by policy makers.

DEMA’s research efforts are critical to ensuring that our voice is heard by lawmakers and administrative agencies. Industry members also use this critical data to help understand and grow their own businesses, as well as for use in making sure that the diving industry in the U.S. continues to avoid problems caused by unnecessary regulation.

How Can You Help?

Download and use this information – data on the current status of manufacturing is relevant to every sector of the diving industry. DEMA Members can download the latest 2024 Manufacturing Purchase Index Category reports at no cost, and non-members can pay a non-member rate for this data.  DEMA Members also have access to more latest, more detailed 2024 Equipment Type data at member rates, while others can purchase this data at non-member rates. Reports are available in the DEMA Store.

If your key manufacturer is NOT participating in the MPI, please ask them to participate by sharing this link with your representative – more manufacturers participating will help the entire industry!

• Injunction on Enforcement of the Corporate Transparency Act
• Over 80 Supporters Sign Onto Letter Asking Legislators for Their Support of the DIVE BOAT Act
• 2025 NDAA Passes Without USCG Reauthorization and the DIVE BOAT Act
• DEMA’s Manufacturing Purchase Index – How Important Market Research Impacts Public Policy
  
  

Injunction on Enforcement of the Corporate Transparency Act

On December 3, 2024, in ruling on a lawsuit challenging the constitutionality of the Corporate Transparency Act (CTA) and Reporting Rule on various grounds, Judge Amos L. Mazzant of the U.S. District Court for the Eastern District of Texas granted plaintiffs’ motion for a preliminary injunction. Unlike another court that had held the CTA unconstitutional, Judge Mazzant preliminarily enjoined enforcement of the CTA and Reporting Rule nationwide. Moreover, the court invoked its power under the Administrative Procedure Act’s stay provision, 5 U.S.C. § 705, to “postpone the effective date of” the Reporting Rule.

As readers of DEMA’s Public Policy Digest will recall, almost all diving businesses domiciled or operating in the United States are impacted by this federal regulation. CTA requires many companies formed or operating in the United States to report information about their beneficial owners to Treasury’s Financial Crimes Enforcement Network (FinCEN), which has indicated it will store this sensitive information in a secure, confidential database. Businesses that meet the specified criteria are considered a “Reporting Company,” and must submit a Beneficial Ownership Information (BOI) Report to the Department of Treasury FinCEN and may incur criminal or civil penalties for not filing or updating this report.

The preliminary injunction, issued by the United States District Court on December 3, halts the enforcement of the Corporate Transparency Act. The U.S. government has appealed Judge Mazzant’s ruling to the Fifth Circuit Court of Appeals.  The Court's injunction applies nationwide, rather than just to specific plaintiffs, and relieves all companies from having to comply with the CTA’s reporting requirements, enjoining FinCEN from nationwide enforcement of the CTA’s reporting requirements, and effectively staying the CTA’s January 1, 2025, reporting deadline.

The CTA purports to enhance transparency and combat financial crimes by requiring companies to disclose their ownership structures. However, the Court’s analysis echoes the sentiments of many business owners, “[t]he notion that one may use a company to veil their illicit financial crimes is unassailable. But the Commerce Clause does not justify regulating all companies based on nothing more than the fear that a reporting company might shelter a financial criminal.”

Prior to this ruling, more than 8 million BOI reports were submitted to FinCEN, far less than the anticipated 32.6 million filings. The preliminary injunction, however, puts a temporary and national halt to the enforcement efforts related to these reporting obligations.

Where Do Companies Go From Here? 

The Court’s ruling is authoritative. It has made a legal determination that a nationwide scope is appropriate. Until that opinion is overturned or the preliminary injunction is lifted, it will continue to stand. According to the Financial Crimes Enforcement Network (FinCEN - https://fincen.gov/boi), “In light of a recent federal court order, reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.”

Please note:  In mid-December the Biden administration filed an emergency motion with the district court and the United States Court of Appeals for the Fifth Circuit to stay the district court’s injunction, pending appeal.   It is unknown what action the Fifth Circuit will take but it is a Texas-based more conservative appellate court and may let the injunction stand for the time being.  Absent a filing deadline extension by the court or FinCEN, the January 1, 2025, filing deadline may be reinstated by a motion granted by either the district court or the court of appeals. Companies should analyze their entities and determine their beneficial owners and should be ready to file if the injunction is lifted.

Over 80 Supporters Sign Onto Letter Asking Legislators for Their Support of the DIVE BOAT Act

On November 26, DEMA, along with 82 scuba retailers and dive industry professionals sent a letter urging Congress to support the DIVE BOAT Act.

The letter urgently appeals to congressional leaders to address the adverse impacts of the Small Passenger Vessel Act (SPVA) on the U.S. dive industry, which has led to significant and unjustified insurance cost increases for dive businesses. It requests support for modifying Section 11503 of the 2023 National Defense Authorization Act with proposed changes outlined in the DIVE BOAT Act. Those proposed changes aim to ensure fair liability standards and prevent the unfair punishment of an entire industry and its consumers.

DEMA is grateful to all who signed on to this appeal to the U.S. Congress.

SEE THE LETTER HERE.

The DIVE BOAT Act: 2025 NDAA Passes Without USCG Reauthorization and the DIVE BOAT Act

On December 17, 2024, the U.S. Senate and U.S. House of Representatives passed the 2025 National Defense Authorization Act (NDAA) and sent it to the President for signature. Unfortunately, the U.S. Coast Guard Reauthorization was not included in the final version of the bill. This means that the opportunity for the DIVE BOAT Act to be enacted during this Congress and as part of the 2025 NDAA has been eliminated.

Although staff members from the Senate Commerce Committee and Senators on that Committee personally worked with DEMA to include the DIVE BOAT Act in the Coast Guard Reauthorization and NDAA, it appears that staff members from the U.S. House of Representatives and the Transportation and Infrastructure Committee worked to undermine support from the Commerce Committee, citing “safety” as an objection to the DIVE BOAT Act. This occurred even though the DIVE BOAT Act doesn’t adversely affect safety, and DEMA openly supported new safety measures adopted following the Conception tragedy. 

This outcome is certainly not what DEMA and DEMA Members have fought for over the last two-years, but with DEMA Board and Public Policy Committee support, DEMA will take up the fight again in the new Congress starting in 2025.  In the intervening months, DEMA has made significant inroads to overturn and correct the commercial insurance market that Congress broke, and some things have changed since the industry started on this effort two years ago, all of which can make a positive difference going into 2025:

• DEMA has committed resources to continuing its federal and state advocacy efforts. 
• DEMA is likely in a better position to achieve passage of the DIVE BOAT Act under the next Congress when control of the Senate Commerce Committee and House Transportation and Infrastructure Committees - the committees of jurisdiction impacting the Small Passenger Vessel Act (SPVA) that broke the insurance market - cedes to a different party that supports the fix. 
• DEMA recently secured support from the Passenger Vessel Association (PVA), which previously had declined to weigh in because they mistakenly thought their members were not affected. 
• Recently, PVA proactively reached out to senior House Republican USCG subcommittee staff to alert them to their support for the DIVE BOAT Act.
• The DEMA Board continues to specifically support efforts to enact the DIVE BOAT Act going forward, including continuing to fight as necessary to fix the insurance market broken by Congress.
• DEMA Members are more aware than ever of the need for this important legislation and have joined in this fight.
• The path has been established for members other than the 82 who signed DEM’s letter to support this effort and reach out to their local legislators in Washington. 

In the coming weeks as the new Congress convenes, DEMA will keep pressure on the Committees that failed to act through continued direct advocacy and press engagement.  DEMA is also making plans with the incoming Senate Commerce Chair’s senior staff and some of the impacted constituents, including obtaining help from DEMA Board members from that state.

Like any public policy effort, DEMA was aware that the DIVE BOAT Act may take a long time to enact and would have setbacks.  If anything, this situation affirms that DEMA must be at the federal advocacy table and have a voice in Washington, D.C. to help avoid these kinds of issues in the future. As this episode has proven, getting this kind of faulty legislation stopped before it gets started is far easier than correcting it once enacted.

DEMA’s Manufacturing Purchase Index – How Important Market Research Impacts Public Policy

DEMA will shortly publish the next 2024 Manufacturing Purchase Index (MPI) report. This manufacturing sector report reflects the sector’s work to develop a simplified but useful report that includes New Orders and Inventories in key diving equipment Categories. 

DEMA’s MPI is unique in that it captures aggregate trend data for New Orders and for Inventory in stock on a quarterly basis.  Participating manufacturers report to an independent third-party administrator (TPA) to ensure their data remains confidential and secure. Reporting consists of companies comparing their data points in the current reporting period to those in the previous quarter, as well as to the same quarter during the previous year.  

• New Orders: Reflects the levels of new orders received from customers.
• Inventories: Reflects the changes in inventory levels in stock at the time of the report.

Aggregated trend data is available on both Equipment Type and Category. The Category definitions can be found within the report and include Soft Goods, Exposure Protection, Hard Goods and Accessories and Bags.  Each Category is further defined within the reports as Equipment Types, and include regulators, BCs, fins, masks, snorkels, wetsuits, drysuits, and more.

This research, along with DEMA’s Certification Census, and the most recent Diver Behavioral Research, are all critical to DEMA’s ability to advocate on behalf of the industry.  

As manufacturers are aware, you cannot manage what you don’t measure. The recreational diving industry gains a better understanding of the health of the industry in the U.S. by observing diver activities and preferences as well as sales data. The Manufacturing Purchase Index trend data was provided by DEMA-member manufacturers and includes both domestic and international new orders and inventory data.  The results provide key data points that help members of the industry but can also greatly assist DEMA in its public policy work.

For example, in DEMA’s two-year battle to overturn onerous regulations that have caused vessel and operations insurance to skyrocket, having data on the trends currently impacting the manufacturing sector (and other sectors) has been instrumental in helping lawmakers understand the nature of the dive industry.

Without having trend data available on the manufacturing sector, the diving industry will not be heard over industries that are more willing to provide business information on their industry size: industries like snow-related sports, recreational fishing, recreational vehicles, and boating. These multi-billion-dollar industries easily get the attention of lawmakers when they are willing to provide data about user behaviors, industry dollars, participation rates and trends in manufacturing. Without similar data, the diving industry is ignored by policy makers.

DEMA’s research efforts are critical to ensuring that our voice is heard by lawmakers and administrative agencies. Industry members also use this critical data to help grow their own businesses, as well as for use in making sure that the diving industry in the U.S. continues to avoid problems caused by unnecessary regulation.

DEMA will continue to publish more manufacturing research each quarter to help the entire industry understand more about the status of the sport. Please follow DEMA’s research efforts at www.dema.org and when surveys come your way, please participate. If you are a DEMA-member manufacturer selling rubber goods (masks, fins, snorkels, exposure protection) and hard goods such as regulators, BCs and computers, and are interested in participating, apply to be part of the MPI here. It’s good for your business and helps DEMA provide information that keeps dive sites open, and limits or eliminates unnecessary regulation!

How Can You Help?

Download and use this information – data on the current status of manufacturing is relevant to every sector of the diving industry. DEMA Members can download the latest 2024 Manufacturing Purchase Index Category reports at no cost, and non-members can pay a non-member rate for this data.  DEMA Members also have access to more latest, more detailed 2024 Equipment Type data at member rates, while others can purchase this data at non-member rates. Reports are available in the DEMA Store.

If your key manufacturer is NOT participating in the MPI, please ask them to participate by sharing this link with your representative – more manufacturers participating will help the entire industry!

• The SS United States – A New Artificial Reef
• The Corporate Transparency Act is Now in Effect – Deadline For All Filings Approaches
• Help Fight Rising U.S. Insurance Rates by Joining the DIVE BOAT Act Social Media Campaign
• Help Support for the Education and Workforce Freedom Act
• DEMA’s Manufacturing Purchase Index – How Important Market Research Impacts Public Policy
  
  

The SS United States – A New Artificial Reef

Okaloosa County, Florida has taken title to the SS United States, a 990-foot long, former cruise ship originally designed as a troop carrier. The county plans to submerge the vessel in the Gulf of Mexico off the coast of Destin as part of its long-standing efforts to boost the popularity of sport diving and fishing around artificial reefs.

Part of the deal between Okaloosa County and the SS United States Conservancy includes funding from the county to support the Conservancy’s establishment of a land-based museum that will provide divers, local residents and visitors an opportunity to learn about the legacy of “America’s Flagship.”

The SS United States was built in 1951 and shuttled the likes of US Presidents Harry Truman, Dwight Eisenhower, John Kennedy, and a young Bill Clinton, plus Marlon Brando, Coco Chanel, Sean Connery, Duke Ellington, Salvador Dali, Walt Disney, Judy Garland, Cary Grant, Bob Hope, Marilyn Monroe, and John Wayne. The ship’s designer, William Francis Gibbs, is also the designer of the Liberty Ship, so important to the effort to win World War II.  You can learn more about the history of the designer and the ship from the SS United States Conservancy’s website. 

Once placed on the sandy bottom off Destin-Fort Walton Beach, the SS United States will be the largest vessel converted to an artificial reef and will be home for a wide array of marine life. The size and history of the SS United States, along with the presence of the museum and artifacts, will attract divers and anglers from around the world. 

DEMA has long been a supporter of using vessels for artificial reefs, creating dive sites, fish attractors and anchors for invertebrate life. These artificial reefs take pressure off the natural reefs and are a key habitat for the vulnerable Goliath Grouper in Florida.  In 2008 a bill authored by DEMA advocate Bob Harris entitled the Ships to Reefs Act (Florida SB 432) was passed by the Florida House and Senate and signed by then Governor Crist, in support of DEMA’s efforts.  The legislation authorizes the State of Florida to provide up to 50% of the funding for sinking vessels as artificial reefs.

DEMA wholeheartedly supports the “reefing” of the SS United States. This topic will be part of the sponsored education at DEMA Show 2024.  Bob Harris, author of the Ships to Reefs Act and DEMA Advocate, along with Alex Fogg, Natural Resources Chief for Okaloosa County, will present an update on the SS United States.  Bob will also present on other Florida issues impacting scuba diving, including recent legislation which led to the opening of the Office of Ocean Economy at Florida Atlantic University (FAU) and plans for the 2025 Dive Day at the Florida Capitol event planned by DEMA for early spring, to which all dive-related Florida businesses are invited.

The Corporate Transparency Act is Now in Effect – Deadline For All Filing Approaches

Background

The Corporate Transparency Act (CTA) went into effect on January 1, 2024, impacting millions of small businesses across the U.S. Signed into law under the current administration in 2021, CTA purportedly was enacted to “prevent corrupt and other actors from laundering illicit funds through anonymous companies in the United States. This effort will equip law enforcement and other partners with the information they need to disrupt financial anonymity that enables crimes such as corruption, drug trafficking, and terrorism.” 

According to the U.S. Treasury, “CTA requires many companies formed or operating in the United States to report information about their beneficial owners to Treasury’s Financial Crimes Enforcement Network (FinCEN), which will store this sensitive information in a secure, confidential database.” Businesses that meet the specified criteria are considered a “Reporting Company,” and must submit a Beneficial Ownership Information Report (BOIR) to the Department of Treasury FinCEN and may incur criminal or civil penalties for not filing or updating this report.

The CTA requires many U.S. entities to disclose their individual beneficial owners in a report filed with the U.S. Treasury. The CTA statute was enacted in 2021.  Its regulations require many entities formed in 2024 to report beneficial ownership information within 90 days of formation. The CTA requires many entities formed prior to 2024 to report beneficial ownership information by January 1, 2025.

In March 2024, the U.S. District Court for the Northern District of Alabama ruled that the Corporate Transparency Act (“CTA”) is unconstitutional. Since that time the case has been appealed to the 11th Circuit Court of Appeals, in Atlanta.  Parties have submitted briefs and a decision is expected prior to January 1, 2025.  Regardless of whether the 11th Circuit upholds the law as unconstitutional, it is likely headed to the US Supreme Court.  

The decision by the Alabama federal court only applies to the Plaintiffs in the case, Mr. Wilkins, and members of the National Small Business Association (NSBA).  The federal judge hearing the case could have issued an injunction nationwide, but he did not.  Therefore, for all other businesses in the US, the law remains in effect.  

One of the arguments made by the US Government in support of the law has concerned many small businesses.  They argued that the law was constitutional because Congress has the right under its taxing authority to know which persons might owe taxes.  The law was presented as a means to stop terrorists and money laundering, but the real impact for small businesses will be on April 15th of each year.

Because the March injunction was not issued nationwide, all other entities that are reporting companies under the CTA are still required to report their beneficial owners to FinCEN within the required deadlines (i.e., ninety days for entities formed or registered to do business in 2024, and thirty days for entities formed or registered thereafter).

Deadline Approaching Fast - Which Companies Must File?

Reporting companies created before January 1, 2024, will have until January 1, 2025, to comply. A “Reporting Company” is defined as a corporation, limited liability company (LLC), or any other privately held company, whether domestic or foreign, registered to conduct business in the U.S. with the Secretary of State or similar office. Publicly traded companies do not fall under the CTA, as they are subject to their own reporting requirements. 

• A domestic reporting company is defined as any entity that is a corporation, a limited liability company, or is created by the filing of a document with a Secretary of State or similar office under the law of a state or Indian tribe.
• A foreign reporting company is defined as any entity that is a corporation, a limited liability company, or other entity formed under the law of a foreign country and registered to do business in any state or tribal jurisdiction by the filing of a document with a Secretary of State or similar office under the law of a state or Indian tribe.

What Entities are Exempt and are NOT REQUIRED to File a BOIR Report?

There are 23 exemptions. Most are for companies that are already subject to substantial federal or state regulation under which their beneficial ownership may already be known. Most recreational diving businesses domiciled or doing business in the U.S. will be required to file. A detailed list of exemptions can be found here. 

If your company is not an LLC or corporation, contact your legal counsel to determine whether your business falls under the definition of a reporting company.

Who is a Beneficial Owner? What Information Is Required?

A beneficial owner is any individual who owns or controls at least 25% of an organization, or directly or indirectly exercises substantial control in any of the following roles:

• They serve as a senior officer, such as a president, CEO, or general counsel.
• They have the authority to appoint or remove senior officers, board members, or other similar roles.
• They make important decisions concerning the company’s business, finances, and/or structure.
  

Eligible small businesses will need to report the following information about their companies:

• The full legal name of the company.
• The company’s business address; P.O. boxes or lawyer’s/adviser’s offices cannot be accepted.
• The state or Tribal jurisdiction where the company was formed or first registered.
• The taxpayer identification number and an identity document, such as a filed Articles of Incorporation or Organization.

Corporate transparency reports must also include the below information about any beneficial owners:

• Their full legal name and date of birth.
• Their home address; P.O. boxes or lawyer’s/adviser’s offices cannot be accepted.
• A photocopy of their U.S. driver’s license or passport.  
  

Once you have identified any beneficial owners, contact each to inform them that the CTA requires your business to report their personal information to FinCEN. Beneficial owners can choose to apply for a FinCEN Identifier and provide information to FinCEN directly.  If the beneficial owner chooses to send the information directly, you have them download a copy of the blank BOIR form as a PDF here and fill in the information. They can then upload the completed PDF using this page (Adobe Acrobat required). Otherwise, they can send the necessary information directly to you (the company) to be included in your business’s beneficial ownership information report.

By What Date is Filing Required?

A reporting company created or registered to do business before January 1, 2024, will have until January 1, 2025, to file its initial beneficial ownership information report.

A reporting company created or registered on or after January 1, 2024, and before January 1, 2025, will have 90 calendar days after receiving notice of the company’s creation or registration to file its initial BOI report. This 90-calendar day deadline runs from the time the company receives actual notice that its creation or registration is effective, or after a secretary of state or similar office first provides public notice of its creation or registration, whichever is earlier.

Reporting companies created or registered on or after January 1, 2025, will have 30 calendar days from actual or public notice that the company’s creation or registration is effective to file their initial BOI reports with FinCEN.

Future Updates

FinCEN is engaging in an outreach and education campaign to establish awareness. These efforts include continually issuing guidance available at www.fincen.gov/boi, multimedia resources, webinars and events, and a widespread public awareness campaign incorporating key stakeholder engagement. Businesses should subscribe to these updates to be sure of any changes. 

Help Fight Rising U.S. Insurance Rates by Joining the DIVE BOAT Act Social Media Campaign

DIVE BOAT Act Update

Even with the ongoing dysfunction in Washington, DEMA continues its efforts to push the DIVE BOAT Act forward. Our team developed policy language with the support of outside actuaries to provide dive boat and shop operators with much needed commercial insurance relief. 

Since the beginning of 2024 DEMA’s team has been meeting with Members of Congress to help them understand the real-world costs that operators and consumers face as a result of the Small Passenger Vessel Act, which was included in the 2023 National Defense Authorization.  Our initial efforts focused on including the DIVE BOAT Act in the 2024 U.S. Coast Guard Reauthorization. However, the Senate has yet to draft its proposed legislation.  Given this lapse by Congress, DEMA is exploring other legislative “vehicles” that must be passed.  

You may have seen from the news that this has been the least productive Congress in post-WW2 history, with fewer than 40 bills passed during the last 14 months. For comparison, the prior record for the most “do nothing Congress” was in 2013-2014, with 72 bills. However, DEMA is forging ahead and has instead only redoubled our efforts to educate Members and Senators about the challenges our community faces. 

We continue to need your help to spread the word to policymakers and consumers across the country. Now is a great time to leverage DEMA’s social media campaign materials to educate the community about the reason for increased costs and ask for their support of the DIVE BOAT Act.

ACCESS DEMA’S CAMPAIGN MATERIALS AND SHARE

If you haven’t yet contacted your U.S. House Representative or two U.S. Senators, please do so here.  We also invite you to share with us directly your experience of increased costs.  This is essential – please share with legislators the harmful effects of this new law. 

Help Support for the Education and Workforce Freedom Act

On July 9, the U.S. House Ways and Means Committee approved H.R. 8915, the Education and Workforce Freedom Act, by a vote of 23-13. H.R. 8915 has now been reported to the House floor, for consideration at a time yet to be determined.
 
Section 3 of H.R. 8915 encompasses a revised version the Freedom to Invest in Tomorrow’s Workforce Act which would permit beneficiaries of 529 savings accounts to use the funds in those accounts to cover costs associated with obtaining and maintaining postsecondary credentials, including professional certifications and occupational licenses.
 
This bill will expand eligible uses of  tax-favorable 529 savings plans to cover costs associated with workforce training and credentialing programs, such as professional certifications. Professional-level certifications, such as recreational diving instructor certifications, qualify for the benefits listed under these bills.

529 Savings plans can currently be used for college savings as well as savings for K-12 education.  There are two types of 529 plans: prepaid tuition plans and education savings plans. All fifty states and the District of Columbia sponsor at least one type of 529 plan. Currently, training, certifications and other credentials are ineligible under 529 plans.

There are two primary differences between H.R. 1477 (the original House bill) and Section 3 of H.R. 8915. First, H.R. 8915 has language that expressly covers programs connected with obtaining a postsecondary credential, including those required to obtain a state or federal license. This change would effectively cover training programs for pilots and airplane mechanics required to obtain Federal Aviation Administration certification for those professions—which opens up a whole new group of supporters for this bill who had previously sponsored different legislation (H.R. 1818) that would have expanded 529s specifically for the purpose of covering these aviation training programs. 
 
Secondly, H.R. 8915 includes more examples of qualified recognized post-secondary credentials and credential programs, such as accreditation by the National Commission of Certifying Agencies, the American National Standards Institute or the Institute for Credentialing Excellence; inclusion in the Department of Defense’s “Credentialing Opportunities Online” database; inclusion in the database of training programs maintained by the Department of Veterans Affairs; or meeting other criteria established by the IRS in consultation with the Department of Labor (a catch-all category that should capture reputable certification programs that don’t fall in the categories listed in the above examples).  As such, we believe the postsecondary credential provisions in H.R. 8915 represent an improvement to the introduced version of the Freedom to Invest to Invest in Tomorrow’s Workforce Act and we are excited to see them advance.

Of course, with Congress, nothing is ever straightforward. H.R. 8915 also contains provisions in other sections of the bill that would expand 529 savings plans to cover costs related to private school education and homeschooling, without a cap. These provisions are generally opposed by Democrats, which led to a party-line vote, even though one Democratic Ways and Means member (Rep. John Larson from Connecticut) has cosponsored the bill and another committee Democrat, Rep. Jimmy Panetta (D-Calif.), spoke out in favor of expanding 529 plans to cover certifications / postsecondary credentials and explicitly praised the Freedom to Invest in Tomorrow’s Workforce Act during the hearing.

H.R. 8915 would provide valuable tax-advantaged resources for workers who pursue career growth, mid-career changes or alternative career pathways, and would help those interested in a professional career in recreational diving. Expanding eligible uses for 529 plans would empower workers of any educational background, skill level or age and would benefit all industries and professions that rely on employees with specialized training or recognized credentials.

• Certification program tuition
• Testing fees, including practice exams
• Required books and equipment
• Continuing education and certification renewal; and
• Other charges required to obtain and maintain a certification.

How Can You Help?

With this change and improvement, we suggest again reaching out to your U.S. Senators and Representative and ask them to support the Education and Workforce Freedom Act, H.R. 8915. You can find your lawmakers at this links.

• Find your Senators here
• Find your Representative here

DEMA’s Manufacturing Purchase Index – How Important Market Research Impacts Public Policy

DEMA will shortly publish the second quarter 2024 Manufacturing Purchase Index (MPI). This manufacturing sector report reflects the sector’s work to develop a simplified but useful report that includes New Orders and Inventories in key diving equipment Categories. 

DEMA’s MPI is unique in that it captures aggregate trend data for New Orders and for Inventory in stock on a quarterly basis.  Participating manufacturers report to an independent third-party administrator (TPA) to ensure their data remains confidential and secure. Reporting consists of companies comparing their data points in the current reporting period to those in the previous quarter, as well as to the same quarter during the previous year.  

• New Orders: Reflects the levels of new orders received from customers.
• Inventories: Reflects the changes in inventory levels in stock at the time of the report.

Aggregated trend data is available on both Equipment Type and Category. The Category definitions can be found within the report and include Soft Goods, Exposure Protection, Hard Goods and Accessories and Bags.  Each Category is further defined within the reports as Equipment Types, and include regulators, BCs, fins, masks, snorkels, wetsuits, drysuits, and more.

This research, along with DEMA’s Certification Census, and the most recent Diver Behavioral Research, are all critical to DEMA’s ability to advocate on behalf of the industry.  

As manufacturers are aware, you cannot manage what you don’t measure. The recreational diving industry gains a better understanding of the health of the industry in the U.S. by observing diver activities and preferences as well as sales data. The Manufacturing Purchase Index trend data was provided by DEMA-member manufacturers and includes both domestic and international new orders and inventory data.  The results provide key data points that help members of the industry but can also greatly assist DEMA in its public policy work.

For example, in DEMA’s two-year battle to overturn onerous regulations that have caused vessel and operations insurance to skyrocket, having data on the trends currently impacting the manufacturing sector (and other sectors) has been instrumental in helping lawmakers understand the nature of the dive industry.

Without having trend data available on the manufacturing sector, the diving industry will not be heard over industries that are more willing to provide business information on their industry size: industries like snow-related sports, recreational fishing, recreational vehicles, and boating. These multi-billion-dollar industries easily get the attention of lawmakers when they are willing to provide data about user behaviors, industry dollars, participation rates and trends in manufacturing. Without similar data, the diving industry is ignored by policy makers.

DEMA’s research efforts are critical to ensuring that our voice is heard by lawmakers and administrative agencies. Industry members also use this critical data to help grow their own businesses, as well as for use in making sure that the diving industry in the U.S. continues to avoid problems caused by unnecessary regulation.

DEMA will continue to publish more manufacturing research each quarter to help the entire industry understand more about the status of the sport. Please follow DEMA’s research efforts at www.dema.org and when surveys come your way, please participate. If you are a DEMA-member manufacturer selling rubber goods (masks, fins, snorkels, exposure protection) and hard goods such as regulators, BCs and computers, and are interested in participating, apply to be part of the MPI here. It’s good for your business and helps DEMA provide information that keeps dive sites open, and limits or eliminates unnecessary regulation!

How Can You Help?

Download and use this information – data on the current status of manufacturing is relevant to every sector of the diving industry. DEMA Members can download the broad Q1 2024 Manufacturing Purchase Index Category reports at no cost, and non-members can pay a non-member rate for this data.  DEMA Members also have access to more detailed Q1 2024 Equipment Type data at member rates, while others can purchase this data at non-member rates. Reports are available in the DEMA Store. The Q2 2024 data will be available soon.

If your key manufacturer is NOT participating in the MPI, please ask them to participate by sharing this link with your representative – more manufacturers participating will help the entire industry!

• The Corporate Transparency Act is Now in Effect – Deadline Approaches
• Alabama National Marine Sanctuary Proposed
• DEMA & Dive Retailers Write to Legislators Asking for Their Support of the DIVE BOAT Act
• Help Fight Rising U.S. Insurance Rates by Joining the DIVE BOAT Act Social Media Campaign
• Help Support for the Education and Workforce Freedom Act – Update!
  
  

The Corporate Transparency Act is Now in Effect – Deadline Approaches

Background

The Corporate Transparency Act (CTA) went into effect on January 1, 2024, impacting millions of small businesses across the U.S. Signed into law under the current administration in 2021, CTA purportedly was enacted to “prevent corrupt and other actors from laundering illicit funds through anonymous companies in the United States. This effort will equip law enforcement and other partners with the information they need to disrupt financial anonymity that enables crimes such as corruption, drug trafficking, and terrorism.” 

According to the U.S. Treasury, “CTA requires many companies formed or operating in the United States to report information about their beneficial owners to Treasury’s Financial Crimes Enforcement Network (FinCEN), which will store this sensitive information in a secure, confidential database.” Businesses that meet the specified criteria are considered a “Reporting Company,” and must submit a Beneficial Ownership Information Report (BOIR) to the Department of Treasury FinCEN and may incur criminal or civil penalties for not filing or updating this report.

The CTA requires many U.S. entities to disclose their individual beneficial owners in a report filed with the U.S. Treasury. The CTA statute was enacted in 2021.  Its regulations require many entities formed in 2024 to report beneficial ownership information within 90 days of formation. The CTA requires many entities formed prior to 2024 to report beneficial ownership information by January 1, 2025.

In March 2024, the U.S. District Court for the Northern District of Alabama ruled that the Corporate Transparency Act (“CTA”) is unconstitutional. 

However, the Appellate Court cannot, on its own, declare the CTA to be unconstitutional nationwide.  AS A RESULT, THE LAW REMAINS IN EFFECT FOR MOST BUSINESSES.  

As such, all other entities that are reporting companies under the CTA are still required to report their beneficial owners to FinCEN within the required deadlines (i.e., ninety days for entities formed or registered to do business in 2024, and thirty days for entities formed or registered thereafter).

Deadline Approaching Fast - Which Companies Must File?

Reporting companies created before January 1, 2024, will have until January 1, 2025, to comply. A “Reporting Company” is defined as a corporation, limited liability company (LLC), or any other privately held company, whether domestic or foreign, registered to conduct business in the U.S. with the Secretary of State or similar office. Publicly traded companies do not fall under the CTA, as they are subject to their own reporting requirements. 

• A domestic reporting company is defined as any entity that is a corporation, a limited liability company, or is created by the filing of a document with a Secretary of State or similar office under the law of a state or Indian tribe.
• A foreign reporting company is defined as any entity that is a corporation, a limited liability company, or other entity formed under the law of a foreign country and registered to do business in any state or tribal jurisdiction by the filing of a document with a Secretary of State or similar office under the law of a state or Indian tribe.

What Entities are Exempt and are NOT REQUIRED to File a BOIR Report?

There are 23 exemptions. Most are for companies that are already subject to substantial federal or state regulation under which their beneficial ownership may already be known. Most recreational diving businesses domiciled or doing business in the U.S. will be required to file. A detailed list of exemptions can be found here. 

If your company is not an LLC or corporation, contact your legal counsel to determine whether your business falls under the definition of a reporting company.

Who is a Beneficial Owner? What Information Is Required?

A beneficial owner is any individual who owns or controls at least 25% of an organization, or directly or indirectly exercises substantial control in any of the following roles:

• They serve as a senior officer, such as a president, CEO, or general counsel.
• They have the authority to appoint or remove senior officers, board members, or other similar roles.
• They make important decisions concerning the company’s business, finances, and/or structure.
  

Eligible small businesses will need to report the following information about their companies:

• The full legal name of the company.
• The company’s business address; P.O. boxes or lawyer’s/adviser’s offices cannot be accepted.
• The state or Tribal jurisdiction where the company was formed or first registered.
• The taxpayer identification number and an identity document, such as a filed Articles of Incorporation or Organization.

Corporate transparency reports must also include the below information about any beneficial owners:

• Their full legal name and date of birth.
• Their home address; P.O. boxes or lawyer’s/adviser’s offices cannot be accepted.
• A photocopy of their U.S. driver’s license or passport.  
  

Once you have identified any beneficial owners, contact each to inform them that the CTA requires your business to report their personal information to FinCEN. Beneficial owners can choose to apply for a FinCEN Identifier and provide information to FinCEN directly.  If the beneficial owner chooses to send the information directly, you have them download a copy of the blank BOIR form as a PDF here and fill in the information. They can then upload the completed PDF using this page (Adobe Acrobat required). Otherwise, they can send the necessary information directly to you (the company) to be included in your business’s beneficial ownership information report.

By What Date is Filing Required?

A reporting company created or registered to do business before January 1, 2024, will have until January 1, 2025, to file its initial beneficial ownership information report.

A reporting company created or registered on or after January 1, 2024, and before January 1, 2025, will have 90 calendar days after receiving notice of the company’s creation or registration to file its initial BOI report. This 90-calendar day deadline runs from the time the company receives actual notice that its creation or registration is effective, or after a secretary of state or similar office first provides public notice of its creation or registration, whichever is earlier.

Reporting companies created or registered on or after January 1, 2025, will have 30 calendar days from actual or public notice that the company’s creation or registration is effective to file their initial BOI reports with FinCEN.

Future Updates

FinCEN is engaging in an outreach and education campaign to establish awareness. These efforts include continually issuing guidance available at www.fincen.gov/boi, multimedia resources, webinars and events, and a widespread public awareness campaign incorporating key stakeholder engagement. Businesses should subscribe to these updates to be sure of any changes. 

Alabama National Marine Sanctuary Proposed

An ancient underwater forest found in 2012 in Alabama after being uncovered following Hurricane Ivan in 2004, is being considered for designation as a National Marine Sanctuary.  Earlier this year, bills in the Congress and Senate were introduced which seek to designate the Alabama Underwater Forest as a marine sanctuary under the Marine Protection, Research and Sanctuaries Act of 1972.

The House version of the bill (H.R. 897) was passed in May 2024, after being sponsored by U.S. Rep. Jerry Carl (R-Mobile). The House version passed by a vote of 349-19. A similar bill was first introduced in 2020 and again in 2021 to protect the underwater forest. One of the key use designations is for recreational diving.  More about the preservation proposal can be found here. 

The current Senate version, S. 4816 was introduced by Senator Tommy Tuberville, the senior Senator from Alabama, in July. The Senate bill adds a 60,000-year-old underwater cypress forest located 10 miles south of Gulf Shores and 60 feet underwater to the National Marine Sanctuary system.

The Alabama Underwater Forest site is the only known location where trees between 50,000 and 70,000 years old have been preserved intact with the ecosystem in which they were growing. After Hurricane Ivan in 2004, the forest was revealed. Currently, there are no recognized sanctuaries in Alabama waters and only two in the Gulf of Mexico. The National Oceanic and Atmospheric Administration administers the National Marine Sanctuary program and recognizes 16 sanctuaries.

Congressman Carl’s bill frames the area as a tourist attraction. The Office of National Marine Sanctuaries authorizes certain activities in the underwater parks, such as diving, fishing and boating. Conservation is the ultimate goal, but until both the House and Senate versions are passed, oil and gas exploration will be allowed at the site. 

If the bill passes the U.S. Senate, the Secretary of Commerce will establish an advisory council for the sanctuary that would include a representative from the Alabama Department of Conservation and Natural Resources. They will then develop a management plan for the sanctuary with input from the general public within two years.

“I'm thrilled that my Alabama Underwater Forest National Marine Sanctuary and Protection Act is one step closer to becoming law after being voted out of the House Natural Resources Committee," Carl stated. "This legislation is an incredible win for the coastal Alabama community and all those who enjoy recreational activities in our area."

This effort was designed to designate the underwater forest as a marine sanctuary and eliminate the concern for explosives or drilling, the removal of subsurface cypress tree salvage and the lowering of certain intrusive devices or seabed cables in the area. Pre-existing oil and gas projects authorized prior to the enactment of this bill continue as planned, with fishing, diving and other recreational activities also all still permitted under the act.
 
In 2018, the Alabama Coastal Foundation assisted Raines in producing "The Underwater Forest," a documentary that explores its discovery. Gulf Coast Media previously reported that ACF began introducing legislation to Congress in 2020 to have the area designated as a National Marine Sanctuary.

A documentary on this area, The Underwater Forest, can be seen here. 

In September DEMA and more than 30 dive retailers will send a letter urging Congress to support the DIVE BOAT Act.

Help Fight Rising U.S. Insurance Rates by Joining the DIVE BOAT Act Social Media Campaign

DIVE BOAT Act Update

Even with the ongoing dysfunction in Washington, DEMA continues its efforts to push the DIVE BOAT Act forward. Our team developed policy language with the support of outside actuaries to provide dive boat and shop operators with much needed commercial insurance relief. 

Since the beginning of 2024 DEMA’s team has been meeting with Members of Congress to help them understand the real-world costs that operators and consumers face as a result of the Small Passenger Vessel Act, which was included in the 2023 National Defense Authorization.  Our initial efforts focused on including the DIVE BOAT Act in the 2024 U.S. Coast Guard Reauthorization. However, the Senate has yet to draft its proposed legislation.  Given this lapse by Congress, DEMA is exploring other legislative “vehicles” that must be passed.  

You may have seen from the news that this has been the least productive Congress in post-WW2 history, with fewer than 40 bills passed during the last 14 months. For comparison, the prior record for the most “do nothing Congress” was in 2013-2014, with 72 bills. However, DEMA is forging ahead and has instead only redoubled our efforts to educate Members and Senators about the challenges our community faces. 

We continue to need your help to spread the word to policymakers and consumers across the country. Now is a great time to leverage DEMA’s social media campaign materials to educate the community about the reason for increased costs and ask for their support of the DIVE BOAT Act.

ACCESS DEMA’s CAMPAIGN MATERIALS AND SHARE

If you haven’t yet contacted your U.S. House Representative or two U.S. Senators, please do so here.  We also invite you to share with us directly your experience of increased costs.  This is essential – please share with legislators the harmful effects of this new law. 

Help Support for the Education and Workforce Freedom Act – Update!

On July 9, the U.S. House Ways and Means Committee approved H.R. 8915, the Education and Workforce Freedom Act, by a vote of 23-13. H.R. 8915 has now been reported to the House floor, for consideration at a time yet to be determined.
 
Section 3 of H.R. 8915 encompasses a revised version the Freedom to Invest in Tomorrow’s Workforce Act which would permit beneficiaries of 529 savings accounts to use the funds in those accounts to cover costs associated with obtaining and maintaining postsecondary credentials, including professional certifications and occupational licenses.
 
This bill will expand eligible uses of  tax-favorable 529 savings plans to cover costs associated with workforce training and credentialing programs, such as professional certifications. Professional-level certifications, such as recreational diving instructor certifications, qualify for the benefits listed under these bills.

529 Savings plans can currently be used for college savings as well as savings for K-12 education.  There are two types of 529 plans: prepaid tuition plans and education savings plans. All fifty states and the District of Columbia sponsor at least one type of 529 plan. Currently, training, certifications and other credentials are ineligible under 529 plans.

There are two primary differences between H.R. 1477 (the original House bill) and Section 3 of H.R. 8915. First, H.R. 8915 has language that expressly covers programs connected with obtaining a postsecondary credential, including those required to obtain a state or federal license. This change would effectively cover training programs for pilots and airplane mechanics required to obtain Federal Aviation Administration certification for those professions—which opens up a whole new group of supporters for this bill who had previously sponsored different legislation (H.R. 1818) that would have expanded 529s specifically for the purpose of covering these aviation training programs. 
 
Secondly, H.R. 8915 includes more examples of qualified recognized post-secondary credentials and credential programs, such as accreditation by the National Commission of Certifying Agencies, the American National Standards Institute or the Institute for Credentialing Excellence; inclusion in the Department of Defense’s “Credentialing Opportunities Online” database; inclusion in the database of training programs maintained by the Department of Veterans Affairs; or meeting other criteria established by the IRS in consultation with the Department of Labor (a catch-all category that should capture reputable certification programs that don’t fall in the categories listed in the above examples).  As such, we believe the postsecondary credential provisions in H.R. 8915 represent an improvement to the introduced version of the Freedom to Invest to Invest in Tomorrow’s Workforce Act and we are excited to see them advance.

Of course, with Congress, nothing is ever straightforward. H.R. 8915 also contains provisions in other sections of the bill that would expand 529 savings plans to cover costs related to private school education and homeschooling, without a cap. These provisions are generally opposed by Democrats, which led to a party-line vote, even though one Democratic Ways and Means member (Rep. John Larson from Connecticut) has cosponsored the bill and another committee Democrat, Rep. Jimmy Panetta (D-Calif.), spoke out in favor of expanding 529 plans to cover certifications / postsecondary credentials and explicitly praised the Freedom to Invest in Tomorrow’s Workforce Act during the hearing.

H.R. 8915 would provide valuable tax-advantaged resources for workers who pursue career growth, mid-career changes or alternative career pathways, and would help those interested in a professional career in recreational diving. Expanding eligible uses for 529 plans would empower workers of any educational background, skill level or age and would benefit all industries and professions that rely on employees with specialized training or recognized credentials.

• Certification program tuition
• Testing fees, including practice exams
• Required books and equipment
• Continuing education and certification renewal; and
• Other charges required to obtain and maintain a certification.

How Can You Help?

With this change and improvement, we suggest again reaching out to your U.S. Senators and Representative and ask them to support the Education and Workforce Freedom Act, H.R. 8915. You can find your lawmakers at this links.

• Find your Senators here
• Find your Representative here

• NOAA publishes Extension Notice for Florida Keys National Marine Sanctuary Temporary Special Use Areas
• Legislation to Reform California's Labor Code Private Attorneys General Act (PAGA)
• Help Fight Rising U.S. Insurance Rates by Joining the DIVE BOAT Act Social Media Campaign
• Help Support for the Education and Workforce Freedom Act – Update!
  
   
  
  

NOAA publishes Extension Notice for Florida Keys National Marine Sanctuary Temporary Special Use Areas

On July 27, 2024, NOAA issued a temporary emergency rule (RIN 0648-BN10) creating three temporary special use areas for the purpose of coral restoration within the Federal waters of the Florida Keys National Marine Sanctuary (FKNMS) for 60 days with the possibility of extending an additional 60 days following public notice ( 89 FR 53483). 

Section 15 CFR 922.164(e) of the FKNMS regulations allows the ONMS Director to set aside discrete areas of the Sanctuary as special use areas in order to provide for, among other uses, the restoration of degraded or otherwise injured sanctuary resources (15 CFR 922.164(e)(1)(i)). A special use area shall be no larger than the size the ONMS Director deems reasonably necessary to accomplish the applicable objective. No person may enter a special use area except to conduct restoration activities under a valid ONMS permit, continuous transit without interruption, or law enforcement purposes. Activities that are currently allowed in the area, including fishing, are prohibited.

NOAA’s Office of National Marine Sanctuaries is extending the Florida Keys National Marine Sanctuary temporary special use areas established on July 27, 2024. The marine heatwave that created the initial need for the temporary special use areas is ongoing, as August and September are typically the hottest months of the year. Until temperatures fall below the bleaching threshold and all the corals are moved out of this area, protections from physical impact are still warranted, therefore, the special use area will continue in effect for an additional 60 days until October 25, 2024.

The three temporary special use areas were established in accordance with 15 CFR 922.165 of the FKNMS regulations (62 FR 32154, June 12, 1997). Section 922.165 provides that, where necessary to prevent or minimize the destruction of, loss of, or injury to a Sanctuary resource, all activities are subject to immediate temporary regulation, including prohibition, for up to 60 days, with one 60-day extension. 

NOAA has now extended by 60 days the three temporary special use areas. In NOAA’s words, “this notification is for one 60-day extension to allow water temperatures to cool and complete the relocation of the corals from these offshore temporary special use areas back to the original in-shore permitted nursery site.” According to NOAA, the interim final rule was necessitated by anticipation of a marine heat wave this summer that would impact and likely kill coral reefs in the Florida Keys at an unprecedented rate and scale. The coral nursery stocks are in shallow protected waters which are likely to heat up more quickly than offshore locations.

For more information on the establishment of these temporary special use areas and the extension of these restrictions, see the August 23, 2024 Federal Register here.

Legislation to Reform California's Labor Code Private Attorneys General Act

California’s Private Attorneys General Act (PAGA) authorizes disgruntled employees to file lawsuits to recover civil penalties on behalf of themselves, other employees, and the State of California for Labor Code violations. These plaintiffs are permitted to not only bring their own civil action or a class action against an employer and to seek damages for alleged violations of the California Labor Code (including very minor violations such as an incorrect employer address on a pay stub) but are also entitled to undertake the duties of the California Labor Commissioner and pursue penalties for alleged violations of the Labor Code on behalf of California’s Labor Workforce Development Agency (LWDA). Under this labor code, the LWDA receives 75 percent of the recovered penalties, with the remaining 25 percent distributed to “aggrieved” employees. Access to these PAGA penalties incentivizes individuals to bring private litigation on the agency's behalf.

Amendments to PAGA were recently negotiated in the form of two separate bills which were signed into law on July 1, 2024 ( Assembly Bill 2288 and Senate Bill 92). These amendments limit the claims and penalties that can be imposed in many future PAGA lawsuits. Most of the amendment provisions take effect immediately and apply to PAGA actions filed on or after June 19, 2024.

PAGA has been criticized because it permits lawsuits, often for minor technical violations that did not impact employees' pay. In recent years the incentive to file for even minor violations has resulted in some 5,000 PAGA lawsuits being filed annually. 

Penalties for PAGA violations were often quite harsh – initial violations resulted in fines of $100 per employee per pay period, and $200 for subsequent violations – with no cap on penalties. Such egregious penalties have applied for ALL violations, including those with no impact on employee pay (e.g., having an incorrect employer address on a pay stub). Making matters worse, even if the employer corrected the issue, the same penalties still applied.

Some California lawmakers proposed a ballot initiative for this November which would repeal PAGA. With the threat of repeal, other concerned lawmakers negotiated several reforms, resulting in new legislation that includes several different and less egregious provisions:

• Penalty caps: For employers that have taken all reasonable steps to correct a situation and have done so prior to receiving notice from an employee of an intent to file a PAGA claim, penalties can be capped at no more than 15% of the otherwise-applicable penalty. Examples of reasonable steps include conducting payroll audits, taking corrective action, implementing new policies in response to the audit, and training supervisors. The legislation also limits penalties to "no more than 30%" of the otherwise-applicable amount for employers that have taken all reasonable steps to prospectively comply with the law after receipt of a PAGA Notice.
  
  
• Penalty reductions: Penalties are reduced from $100 per employee per pay period to $50 per employee per pay period for violations that are isolated, non-recurring incidents limited to 30 days or four pay periods.  The $200 penalty now only applies to employer conduct deemed "malicious, fraudulent, or oppressive." 
  
  
• For violations of these labor codes regarding pay statement information requirements, the penalty is less: $25 per employee per pay period when the employee could easily determine the required, accurate information from the pay stub alone.  Thus, for example, the penalty for violations of the requirements to include the correct name and address of the employer on each pay statement is limited to $25 per employee per pay period "if the employee would not be confused or misled about the correct identity of their employer or farm labor contractor."
  
  
• The legislation reduces penalties by half for companies that pay weekly, addressing the unintended issue that companies paying weekly were liable for twice the penalty amount as PAGA penalties apply to each pay period.
  
  
• The bill increases the share of penalties that go to workers, to 35% from 25%, and reduces the allocation to the agency to 65% from 75%. NOTE: This may cause additional scrutiny by employees.

Expanded Ability to Cure

• The new legislation expands the types of violations that can be cured to avoid penalties.
  
  
• Employers with fewer than 100 employees are provided a more comprehensive "right to cure" to avoid litigation over Labor Code violations within 33 days of receipt of a PAGA notice.
  
  
• Employers with 100 or more employees have a bit more flexibility; these companies can seek an "early evaluation conference" with a means to settle the claims when confronted with PAGA litigation.
  
  
• For non-pay statement claims, employees should be "made whole" by payment of any wage underpayments, along with interest, any liquidated damages and attorney's fees.
  
  
• All pay statement violations are now eligible to be cured. For example, violations of pay statement-related provisions are cured upon a showing that the employer has provided the correct written statements to each employee for each pay period in which the violation occurred, going back up to three years from the date of the PAGA notice.

Other Changes

• The bill generally limits standing for PAGA plaintiffs to employees that personally suffered a violation of the code section as is alleged for any other employees. Exceptions apply for certain non-profit legal aid organizations.
  
  
• Courts are given more authority to limit the scope of claims.
  
  
• Derivative claims beyond the underlying Labor Code violation are restricted.

Employers receiving a PAGA claim should immediately contact their legal counsel. For more information on the new legislation, see Assembly Bill 2288 and Senate Bill 92. 

DIVE BOAT Act Update

Even with the ongoing dysfunction in Washington, DEMA continues its efforts to push the DIVE BOAT Act forward. Our team developed policy language with the support of outside actuaries to provide dive boat and shop operators with much needed commercial insurance relief. 

Since the beginning of 2024, DEMA’s team has been meeting with Members of Congress to help them understand the real-world costs that operators and consumers face as a result of the Small Passenger Vessel Act, which was included in the 2023 National Defense Authorization.  Our initial efforts focused on including the DIVE BOAT Act in the 2024 U.S. Coast Guard Reauthorization. However, the Senate has yet to draft its proposed legislation.  Given this lapse by Congress, DEMA is exploring other legislative “vehicles” that must be passed.  

You may have seen from the news that this has been the least productive Congress in post-WW2 history, with fewer than 40 bills passed during the last 14 months. For comparison, the prior record for the most “do nothing Congress” was in 2013-2014, with 72 bills. However, DEMA is forging ahead and has instead only redoubled our efforts to educate Members and Senators about the challenges our community faces. 

We continue to need your help to spread the word to policymakers and consumers across the country. Now is a great time to leverage DEMA’s social media campaign materials to educate the community about the reason for increased costs and ask for their support of the DIVE BOAT Act.

ACCESS DEMA’s CAMPAIGN MATERIALS AND SHARE

If you haven’t yet contacted your U.S. House Representative or two U.S. Senators, please do so here.  We also invite you to share with us directly your experience of increased costs.  This is essential – please share with legislators the harmful effects of this new law.

Help Support for the Education and Workforce Freedom Act – Update!

On July 9, the U.S. House Ways and Means Committee approved H.R. 8915, the Education and Workforce Freedom Act, by a vote of 23-13. H.R. 8915 has now been reported to the House floor, for consideration at a time yet to be determined.

Section 3 of H.R. 8915 encompasses a revised version the Freedom to Invest in Tomorrow’s Workforce Act which would permit beneficiaries of 529 savings accounts to use the funds in those accounts to cover costs associated with obtaining and maintaining postsecondary credentials, including professional certifications and occupational licenses.

This bill will expand eligible uses of tax-favorable 529 savings plans to cover costs associated with workforce training and credentialing programs, such as professional certifications. Professional-level certifications, such as recreational diving instructor certifications, qualify for the benefits listed under these bills.

529 Savings plans can currently be used for college savings as well as savings for K-12 education.  There are two types of 529 plans: prepaid tuition plans and education savings plans. All fifty states and the District of Columbia sponsor at least one type of 529 plan. Currently, training, certifications and other credentials are ineligible under 529 plans.

There are two primary differences between H.R. 1477 (the original House bill) and Section 3 of H.R. 8915. First, H.R. 8915 has language that expressly covers programs connected with obtaining a postsecondary credential, including those required to obtain a state or federal license. This change would effectively cover training programs for pilots and airplane mechanics required to obtain Federal Aviation Administration certification for those professions—which opens up a whole new group of supporters for this bill who had previously sponsored different legislation (H.R. 1818) that would have expanded 529s specifically for the purpose of covering these aviation training programs.
 

Secondly, H.R. 8915 includes more examples of qualified recognized post-secondary credentials and credential programs, such as accreditation by the National Commission of Certifying Agencies, the American National Standards Institute or the Institute for Credentialing Excellence; inclusion in the Department of Defense’s “Credentialing Opportunities Online” database; inclusion in the database of training programs maintained by the Department of Veterans Affairs; or meeting other criteria established by the IRS in consultation with the Department of Labor (a catch-all category that should capture reputable certification programs that don’t fall in the categories listed in the above examples).  As such, we believe the postsecondary credential provisions in H.R. 8915 represent an improvement to the introduced version of the Freedom to Invest to Invest in Tomorrow’s Workforce Act and we are thrilled to see them advance.

Education and Workforce Freedom Act Would Provide Economic Flexibility and Opportunity 

Of course, with Congress, nothing is ever straightforward. H.R. 8915 also contains provisions in other sections of the bill that would expand 529 savings plans to cover costs related to private school education and homeschooling, without a cap. These provisions are generally opposed by Democrats, which led to a party-line vote, even though one Democratic Ways and Means member (Rep. John Larson from Connecticut) has cosponsored our bill and another committee Democrat, Rep. Jimmy Panetta (D-Calif.), spoke out in favor of expanding 529 plans to cover certifications / postsecondary credentials and explicitly praised the Freedom to Invest in Tomorrow’s Workforce Act during the hearing.

H.R. 8915 would provide valuable tax-advantaged resources for workers who pursue career growth, mid-career changes or alternative career pathways, and would help those interested in a professional career in recreational diving. Expanding eligible uses for 529 plans would empower workers of any educational background, skill level or age and would benefit all industries and professions that rely on employees with specialized training or recognized credentials.

American workers and families could use their 529 plans to help cover:

• Certification program tuition
• Testing fees, including practice exams
• Required books and equipment
• Continuing education and certification renewal; and
• Other charges required to obtain and maintain a certification.

How Can You Help?

With this change and improvement, we suggest again reaching out to your U.S. Senators and Representative and ask them to support the Education and Workforce Freedom Act, H.R. 8915. You can find your lawmakers at this links.

• Find your Senators here
• Find your Representative here

• Are Shark Bites on the Rise?
• The Loper Bright Case – Supreme Court Ruling on Chevron, and the Impact on Business Regulation
• NOAA Designates the Lake Ontario National Marine Sanctuary
• Help Fight Rising U.S. Insurance Rates by Joining the DIVE BOAT Act Social Media Campaign.
• NEW! Help Support for the Education and Workforce Freedom Act – Update!
  
  
   

Are Shark Bites on the Rise?

According to Gavin Naylor, director of the Florida Program for Shark Research at the University of Florida, while the official tally of shark bites will take some time because scientists differentiate between provoked and unprovoked attacks, it appears that the numbers of these encounters, this time of year, are normal for 2024.

In 2023, the Florida Museum of Natural History’s International Shark Attack File investigated 120 worldwide alleged shark-human interactions. It confirmed 69 unprovoked and 22 provoked shark bites on humans. Unprovoked bites happen when the shark initiates the incident, while provoked attacks occur because of some action by the swimmer, surfer, or diver.

Dr. Naylor was quoted in a Florida-based WFTV television interview on July 8, indicating that most shark bite incidents are because of low water visibility and mistaken identity. “When they’re chasing bait fish, the bait fish are very close in the water and they see somebody’s foot on a surfboard, or paddling, they see a flash of light skin, and they bite it.” He said those bites are a lot less likely than some may think.

“You’re about 200 times less likely to be bitten by a shark than you are to drown in the ocean,” Dr. Naylor said. “Drowning is a much bigger problem. Riptides are a much bigger problem than shark bites.”  “I tell people if sharks targeted people we would have 10,000 bites a day.”

The Florida Museum Yearly Worldwide Shark Attack Summary indicates that annual fluctuations in shark-human interactions are expected. While the number of fatalities in 2023 was considerably higher than in 2022, there have been years in the past (e.g., 2011) in which fatalities were also higher. The 2023 uptick in fatalities due to white sharks may reflect random year-to-year variation, but it might also be the consequence of the increasing number of white sharks seen at aggregation sites near beaches that are popular with surfers (particularly in Australia). One such Australian incident occurred in late July.

More information on the Florida Museum Shark Attack Summary can be found here: https://www.floridamuseum.ufl.edu/shark-attacks/yearly-worldwide-summary/

The Loper Bright Case – Supreme Court Ruling on the Chevron Deference, and the Impact on Business Regulation

In recent years U.S. federal regulators have built up a cache of rules and mandates that impose significantly higher costs on businesses, American families, and the U.S. economy. Despite the widespread impact on the economy, regulators and the politicians that empower them often undervalue the true costs of creating these sweeping federal rules.

It is within this regulatory environment that the case of Loper Bright v. Raimondo arrived before the Supreme Court. In that case, a group of family-run fishing businesses challenged a costly rule that required them to pay for third-party federal regulation monitors that cost up to $700 per day per ship, amounting to up to 20% of a ship’s take-home pay. Loper Bright challenged this regulation, and the ensuing case was eventually taken up by the U.S. Supreme Court.

Background

Since 2021 at least 923 federal rules have been finalized, projected to cost more than $1.6 trillion. Nearly $1.2 trillion of these were finalized so far in 2024. Such new regulations impose increased costs to families (on items like health care) and to small businesses. New regulations from the Environmental Protection Agency (EPA) alone are projected to cost some $870 billion, adding to the already-expensive impacts of inflation. 

Other costly rules imposed in the current regulatory environment include new “Corporate Transparency Act” (CTA) reporting requirements for businesses ($84 billion), PFAS drinking water regulations ($63.4 billion), staffing and transparency requirements for Medicare and Medicaid ($43.1 billion), and emissions standards for heavy-duty vehicles and engines ($39 billion). Professor Casey Mulligan of the University of Chicago for the Committee to Unleash Prosperity examined the impact that the current regulations will have on families. The report found that new administrative/regulatory rules imposed since 2021 have led to almost $10,000 in added present and future costs for the average household, which could reach $60,000 per household if the same rate of regulator increases remains unchecked. 

An independent study published in 2023 found that, when accounting for compliance costs and the economic impact, federal regulations cost more than $1.9 trillion annually. That dollar value represents about 7% of the United States’ Gross Domestic Product (GDP) and is nearly five times the value of corporate taxes collected by the federal government in 2023 ($409 billion).

Where Did These Regulations Originate?

The Administrative Procedure Act (APA) was passed by Congress in 1946. In the aftermath of the significant expansion of federal administrative agencies during the New Deal, the APA sought to regulate the activity of these agencies in two ways. First, the APA established procedures for agency rulemaking and adjudication. Second, the APA codified the bases on which federal courts may set aside an agency’s action or determinations. In doing so the APA required courts to defer to agencies unless their actions were “arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law.” Courts were required to accept agency factual findings unless they were “unsupported by substantial evidence.” 

This framework changed in 1984, when the Supreme Court imposed a limitation on review of agency legal conclusions. Chevron v. Natural Resources Defense Council involved a challenge to the EPA’s decision to regulate all pieces of equipment in each facility as a single “stationary source” of pollution under the Clean Air Act, rather than regulating each individual piece of equipment as a separate stationary source. Theoretically, this eased the burden on regulated companies: under this interpretation, a company did not need to obtain a permit before making modifications to individual pieces of equipment within the equipment cluster. At that time, the Court concluded that the statute did not offer a clear definition of “stationary source.” The Court held that, so long as the agency’s interpretation of an ambiguous or unclear statutory provision was “reasonable,” it was “entitled to deference” under the assumption that judges are not “experts in the field.” Agencies, by contrast, were supposed to have subject-matter expertise. In cases where Congress has not clearly spoken, then, the Court held it was appropriate for agencies, rather than the courts, to decide which statutory interpretation best reconciles “manifestly competing interests.” 

Importantly, the so-called Chevron deference was never about agencies’ authority to set standards or make policy determinations based on the discretion that Congress expressly delegates. Instead, Chevron operated only in the relatively narrow class of cases where a court disagreed with an agency’s statutory interpretation that was nonetheless “reasonable.” The Chevron deference applied only to agency interpretations of ambiguous law—specifically, to agency interpretations of congressional statutes that are “‘silent or ambiguous with respect to the specific issue’ at hand.” 

The Loper Bright Case

In the Loper Bright case a group of family-run fishing businesses challenged a costly rule that required them to pay for third-party federal regulation monitors that cost up to $700 per day per ship, amounting to up to 20% of a ship’s take-home pay. The Supreme Court examined the case and overturned Chevron, allowing federal courts to draw their own conclusions about the correct legal interpretation of otherwise ambiguous federal statutes. 

Loper Bright is not a complete rejection of agency expertise or authority. There are many areas where federal courts are still required to give significant deference to agency action, including discretionary agency action or agency fact-finding. Although Loper Bright is one of a series of decisions in which the current Supreme Court has pared back the flexibility and power of administrative agencies, this ruling may not always serve to allow a challenge to federal agency rulemaking and authority. Loper Bright’s application is limited to specific situations, but the Loper Bright case may have the effect of reining in some of the federal bureaucracy created by federal administrative agencies, reducing costs to businesses and households alike.

You can read more about the Loper Bright case here: https://loperbrightcase.com/ 

NOAA Designates the Lake Ontario National Marine Sanctuary

The Lake Ontario National Marine Sanctuary (LOMNS) covers a 1,722 square-mile area (1,300 square nautical miles) which contains waters that act as a gateway between the Great Lakes and the ocean and protects culturally significant places, resources, and artifacts integral to American history and the heritage of Indigenous Peoples.

According to NOAA, this is the most recent national marine sanctuary designation since NOAA announced the inclusion of Wisconsin Shipwreck Coast National Marine Sanctuary in 2021, and it is the third sanctuary to be designated in the Great Lakes.

In June, NOAA issued final regulations for the designation of this Marine Sanctuary in eastern Lake Ontario to recognize the national significance of the area's historical, archaeological, and cultural resources and to manage this area as part of the National Marine Sanctuary System. In addition to DEMA, the designation of Lake Ontario National Marine Sanctuary is supported by local governments (in Jefferson, Wayne, Cayuga, and Oswego counties), the governor of New York, the Onondaga Nation, and several historical societies, museums, recreation, conservation, tourism, and education groups. NOAA and the state of New York will co-manage the sanctuary. Information on the final rules pertaining to this newest National Marine Sanctuary can be found here. 

The Lake Ontario National Marine Sanctuary includes 43 known shipwrecks and one known aircraft, but according to NOAA, and based on historical records, an additional 20 shipwrecks, three aircraft, and several other underwater archaeological sites may also be located there.  Some are too deep for recreational diving purposes, but Lake Ontario has a rich cultural history going all the way back to the early days of the United States. 

For example, the earliest known shipwreck in the Lake Ontario area is Lady Washington, a Pennsylvania-built sloop believed to have been built in 1797. Purchased for use on the lake in 1801, the sloop brought goods between Canadian and American ports. During a trip across the lake in 1803, Lady Washington disappeared and was presumed lost with all hands. For the next 200 years, the vessel would sit undiscovered on the lakebed. The site was discovered by local shipwreck explorers in 2016 using a remotely operated vehicle to obtain video. The discovery team believes Lady Washington is the oldest confirmed commercial sailing ship to be discovered in the Great Lakes.

More information about the Lake Ontario National Marine Sanctuary can be found here: https://sanctuaries.noaa.gov/news/jun24/introducing-lake-ontario-sanctuary.html

New Advisory Council

• Citizen-at-Large (1 member, 1 alternate) - 2 year term
• Citizen-at-Large (1 member, 1 alternate) - 3-year term
• Business, Marketing and Economic Development (1 member, 1 alternate) - 2 year term
• Business, Marketing and Economic Development (1 member, 1 alternate) - 3 year term
• Divers, Dive Clubs and Archaeology (1 member, 1 alternate) - 2 year term
• Divers, Dive Clubs and Archaeology (1 member, 1 alternate) - 3 year term
• Education (K-12) (1 member, 1 alternate) - 2 year term
• Higher Education (1 member, 1 alternate) - 3 year term
• Fishing (1 member, 1 alternate) - 3 year term
• History, Heritage and Public Interpretation (1 member, 1 alternate) - 2 year term
• History, Heritage and Public Interpretation (1 member, 1 alternate) - 3 year term
• Recreation (1 member, 1 alternate) - 3 year term
• Research, Science and Technology (1 member, 1 alternate) - 3 year term
• Tourism (1 member, 1 alternate) - 2 year term
• Tourism (1 member, 1 alternate) - 3 year term
• Youth (14-17) - non-voting (1 member, 1 alternate)  - 2 year
• Youth (14-17) - non-voting (1 member, 1 alternate)  - 3 year

Applicants do not necessarily need prior first-hand experience within the sanctuary, but they should be very familiar with their constituents' regional interests and how they relate to, or benefit, the management of Lake Ontario National Marine Sanctuary. Anyone with the desire and ability to effectively represent their respective community’s interest in the management of the sanctuary is encouraged to apply, regardless of the applicant's geographic location within the region.

The application deadline is September 17, 2024. Applications not received or postmarked by September 17, 2024 will not be considered. For more information, including a copy of the application, please visit the Lake Ontario National Marine Sanctuary Advisory Council recruitment webpage at https://sanctuaries.noaa.gov/lake-ontario/advisory or contact Ellen Brody, ellen.brody@noaa.gov, 734-276-6387.

To learn more about the Lake Ontario National Marine Sanctuary visit: https://sanctuaries.noaa.gov/lake-ontario

DIVE BOAT Act Update

Even with the ongoing dysfunction in Washington, DEMA continues its efforts to push the DIVE BOAT Act forward. Our team developed policy language with the support of outside actuaries to provide dive boat and shop operators with much needed commercial insurance relief. 

Since the beginning of 2024, DEMA’s team has been meeting with Members of Congress to help them understand the real-world costs that operators and consumers face as a result of the Small Passenger Vessel Act, which was included in the 2023 National Defense Authorization.  Our initial efforts focused on including the DIVE BOAT Act in the 2024 U.S. Coast Guard Reauthorization. However, the Senate has yet to draft its proposed legislation.  Given this lapse by Congress, DEMA is exploring other legislative “vehicles” that must be passed.  

You may have seen from the news that this has been the least productive Congress in post-WW2 history, with fewer than 40 bills passed during the last 14 months. For comparison, the prior record for the most “do nothing Congress” was in 2013-2014, with 72 bills. However, DEMA is forging ahead and has instead only redoubled our efforts to educate Members and Senators about the challenges our community faces. 

We continue to need your help to spread the word to policymakers and consumers across the country. Now is a great time to leverage DEMA’s social media campaign materials to educate the community about the reason for increased costs and ask for their support of the DIVE BOAT Act with divers planning for Spring and Summer Vacations.

ACCESS DEMA’s CAMPAIGN MATERIALS AND SHARE

If you haven’t yet contacted your U.S. House Representative or two U.S. Senators, please do so here.  We also invite you to share with us directly your experience of increased costs.  This is essential – please share with legislators the harmful effects of this new law.

NEW! Help Support for the Education and Workforce Freedom Act – Update!

On July 9, the U.S. House Ways and Means Committee approved H.R. 8915, the Education and Workforce Freedom Act, by a vote of 23-13. H.R. 8915 has now been reported to the House floor, for consideration at a time yet to be determined.

Section 3 of H.R. 8915 encompasses a revised version the Freedom to Invest in Tomorrow’s Workforce Act which would permit beneficiaries of 529 savings accounts to use the funds in those accounts to cover costs associated with obtaining and maintaining postsecondary credentials, including professional certifications and occupational licenses.

This bill will expand eligible uses of tax-favorable 529 savings plans to cover costs associated with workforce training and credentialing programs, such as professional certifications. Professional-level certifications, such as recreational diving instructor certifications, qualify for the benefits listed under these bills.

529 Savings plans can currently be used for college savings as well as savings for K-12 education.  There are two types of 529 plans: prepaid tuition plans and education savings plans. All fifty states and the District of Columbia sponsor at least one type of 529 plan. Currently, training, certifications and other credentials are ineligible under 529 plans.

There are two primary differences between H.R. 1477 (the original House bill) and Section 3 of H.R. 8915. First, H.R. 8915 has language that expressly covers programs connected with obtaining a postsecondary credential, including those required to obtain a state or federal license. This change would effectively cover training programs for pilots and airplane mechanics required to obtain Federal Aviation Administration certification for those professions—which opens up a whole new group of supporters for this bill who had previously sponsored different legislation (H.R. 1818) that would have expanded 529s specifically for the purpose of covering these aviation training programs. 
 
Secondly, H.R. 8915 includes more examples of qualified recognized post-secondary credentials and credential programs, such as accreditation by the National Commission of Certifying Agencies, the American National Standards Institute or the Institute for Credentialing Excellence; inclusion in the Department of Defense’s “Credentialing Opportunities Online” database; inclusion in the database of training programs maintained by the Department of Veterans Affairs; or meeting other criteria established by the IRS in consultation with the Department of Labor (a catch-all category that should capture reputable certification programs that don’t fall in the categories listed in the above examples).  As such, we believe the postsecondary credential provisions in H.R. 8915 represent an improvement to the introduced version of the Freedom to Invest to Invest in Tomorrow’s Workforce Act and we are thrilled to see them advance.

Education and Workforce Freedom Act Would Provide Economic Flexibility and Opportunity 

Of course, with Congress, nothing is ever straightforward. H.R. 8915 also contains provisions in other sections of the bill that would expand 529 savings plans to cover costs related to private school education and homeschooling, without a cap. These provisions are generally opposed by Democrats, which led to a party-line vote, even though one Democratic Ways and Means member (Rep. John Larson from Connecticut) has cosponsored our bill and another committee Democrat, Rep. Jimmy Panetta (D-Calif.), spoke out in favor of expanding 529 plans to cover certifications / postsecondary credentials and explicitly praised the Freedom to Invest in Tomorrow’s Workforce Act during the hearing.

H.R. 8915 would provide valuable tax-advantaged resources for workers who pursue career growth, mid-career changes or alternative career pathways, and would help those interested in a professional career in recreational diving. Expanding eligible uses for 529 plans would empower workers of any educational background, skill level or age and would benefit all industries and professions that rely on employees with specialized training or recognized credentials.

American workers and families could use their 529 plans to help cover:

• Certification program tuition
• Testing fees, including practice exams
• Required books and equipment
• Continuing education and certification renewal; and
• Other charges required to obtain and maintain a certification.

How Can You Help?

With this change and improvement, we suggest again reaching out to your U.S. Senators and Representative and ask them to support the Education and Workforce Freedom Act, H.R. 8915. You can find your lawmakers at this links.

• Find your Senators here
• Find your Representative here

• White House Announces Strategies to Advance Sustainable Ocean Management
• Florida Establishes an “Office of Ocean Economy”
  
• Florida and Environmental Group Battle in Manatees Case
• Help Fight Rising U.S. Insurance Rates by Joining the DIVE BOAT Act Social Media Campaign
• Help Support the Freedom to Invest in Tomorrow’s Workforce Act
   

White House Announces Strategies to Advance Sustainable Ocean Management

Source: National Ocean Policy Coalition.

In June, the White House Office of Science and Technology Policy (OSTP) announced three strategies "to advance sustainable ocean management" and "advance U.S. President Biden's program said to conserve and protect the ocean…”

OSTP Director and Chief Advisor on Science and Technology Arati Prabhakar said the reports "point the way to work with this precious natural resource to address inequities and injustice, and to meet the challenges of the climate crisis and biodiversity loss," while White House Council on Environmental Quality Chair Brenda Mallory said the reports "help us better understand how to achieve our shared conservation and ecosystem restoration goals and integrate climate action and environmental justice into a sustainable ocean economy."

Readers are advised to review these important documents related to these administrative/Executive strategies:

• National Strategy for a Sustainable Ocean Economy (Sustainable Ocean Plan)
• National Ocean Biodiversity Strategy
• National Aquatic Environmental DNA Strategy

National Strategy for a Sustainable Ocean Economy (Sustainable Ocean Plan)

Developed by the Ocean Policy Committee in response to the United States' accession in 2021 to the High Level Panel for a Sustainable Ocean Economy and the consequent commitment to develop a sustainable ocean plan within 5 years, the Strategy notes that implementation of the "while-of-government vision" to guide the U.S. ocean agenda through 2029 will occur through ongoing federal efforts, with a focus on conserving, protecting, restoring, and maintaining healthy ocean and coastal ecosystems, supporting resilient people and communities, and advancing sustainable and just economic development.

It adds that the Ocean Policy Committee and its subcommittees will include high-level actions in future work plans to support implementation of the Strategy, which it says will enable a sustainable ocean economy that will "increase the quality of life for all Americans and ensure marine and coastal ecosystems and economies will survive and thrive."

Goal: Conserve, Protect, Restore, and Maintain Healthy Ecosystems
Noting that marine wildlife, biodiversity, and ocean ecosystems are threatened by marine resource extraction, habitat degradation, and anthropogenic stressors, the Strategy identifies key opportunities for action including the following:

• Create, connect, strengthen, and expand ecologically connected marine protected areas and marine protected area networks Promote international action and global ambition to conserve or protect at least 30% of ocean waters by 2030 and halt and reverse biodiversity loss by 2030.
• Fully implement the U.S. National Strategy to Develop Statistics for Environmental-Economic Decisions (Natural Capital Accounting).
• Fully implement the National Ocean Biodiversity Strategy.
• Complete and build on the National Natural Assessment.
• Improve scientific understanding of deep-sea ecosystems and continue to consider policies and regulations appropriate to potential seabed mineral resource development that promote strong scientific, environmental, labor, tribal consultation, and indigenous and community engagement standards.
• Continue to strive toward integrated, ecosystem-based approaches for ocean uses, including continued sustainable management of federally managed fisheries, reduction of bycatch, offshore wind energy regulation, sustainable aquaculture, green shipping, and subsea cables.
• Mitigate underwater noise associated with shipping, energy development, and other marine industrial activity through applicable regulatory measures, new technology, funding to incentivize innovation, and implementing strategies like NOAA's Ocean Nosie Strategy.
• Track and model shifting habitat and species compositions.
• Conserve, protect, enhance, and sustainably manage existing blue carbon habitats through expanded research, exploration, and mapping.
• Develop responsible regulatory frameworks for emerging tools and technologies like offshore carbon sequestration, marine carbon dioxide removal, and green hydrogen.

Goal: Support Resilient People and Communities
Noting that communities that "experience disproportionate and adverse human health or environmental burdens as a result of inequitable access to clean water, air, and natural places, as well as underinvestment in basic infrastructure and services, are further disadvantaged due to the cumulative impacts of these exposures and other stressors such as climate change," the Strategy identifies key opportunities for action including the following:

• Prioritize consideration of ancestrally, culturally, historically, and traditionally important areas while considering food security in conservation designations, offshore energy developments, environmental reviews, and other coastal planning decisions.
• Continue to identify nationally significant natural and cultural ocean areas for recognition or protection through designations of national marine sanctuaries, national estuary programs, national wildlife refuges, and national marine monuments.
• Designate and manage marine protected areas as informed by indigenous knowledge, as appropriate.
• Adopt and enforce hazard-resistant building codes.
• Expand use of actionable social vulnerability and socioeconomic data and encourage linkages between existing social science databases to identify communities that may need assistance preparing for, responding to, or recovering from extreme weather events.
• Meet emerging and existing needs of employers in sectors such as shipping, offshore energy, and ocean observing, while helping workers find high-quality jobs.

Goal: Advance Sustainable and Just Economic Development
Stating that "transformational research, development of new technologies, partnerships across sectors, and a skilled workforce are required to significantly advance ocean sustainability and climate solutions," the Strategy identifies key opportunities for action including:

• Continue to identify responsible offshore wind and marine energy areas.
• Expand establishment of green shipping corridors.
• Develop and implement a U.S. Maritime Decarbonization Action Plan.
• Use evolving science and ecosystem-based fishery management to support sustainable U.S. wild capture production.
• Prevent overfishing in federally managed fisheries, work to reduce bycatch, and develop global partnerships to reduce overfishing of stocks that cross national boundaries.
• Build and sustain climate-ready fisheries.
• Support diverse and sustainably managed aquaculture through a regulatory approach to considers and mitigates impacts on wild stocks, protected resources, essential fish habitat, and marine ecosystems, and continue negotiating, developing, and integrating updated guidelines for sustainable aquaculture.
• Use information-sharing and technologies to combat illegal, unreported and unregulated (IUU) fishing.
• Upgrade port infrastructure to improve resilience against climate change effects.
• Cross-cutting efforts include leveraging partnerships across multiple scales and sectors and collaboration to produce data that supports regional-level management, as well as engaging internationally, including:
  • Advancing U.S. priorities regarding the Agreement under the UN Convention on the Law of the Sea on the Conservation and Sustainable Use of Marine Biological Diversity of Areas Beyond National Jurisdiction, and
  • Actively engaging the International Seabed Authority for an international regulatory framework that "effectively protects the marine environment alongside the U.S. seabed minerals regime."

National Ocean Biodiversity Strategy

Developed by the National Science & Technology Council's Interagency Working Group on Biodiversity of the Subcommittee on Ocean Science & Technology, the Strategy provides a roadmap to strengthen U.S. capacity to monitor U.S. ocean biodiversity and expand public-private sector coordination in support of existing mandates to conserve, restore, and sustainably managing living ocean resources.

Next steps include the Subcommittee on Ocean Science & Technology's development of an Implementation Plan to describe and direct specific actions to implement the Strategy, which it says will "enable evidence-based management and protection of the ocean," among other things.

Among other things, the Strategy notes that emerging ocean uses including offshore renewable energy development, marine carbon dioxide removal, seabed mineral exploration and extraction, and aquaculture are "proceeding with inadequate knowledge of the species and habitats that may be affects an in some cases without well-established regulatory frameworks to determine and avoid impacts on biodiversity." It also cites the need for "more work to conserve a geographically representative, ecologically connected, and climate-resilient set of marine areas off all U.S. coasts" and strategies that include additional marine sanctuaries, refuges, and monuments, and states that the administration's initiative to value natural assets (natural capital accounting), combined with emerging markets for biodiversity, "would support measures to require market players to consider the economic costs of degrading  biodiversity in decision making, and help put more accurate prices on activities that harm biodiversity, making the hidden costs of nature degradation explicit in policy and markets."

Goal: Drive Delivery of Ocean Biodiversity Knowledge at the National Scale
In support of this goal, the Strategy calls for the establishment of a coordination mechanism across agencies and sectors for federal ocean biodiversity efforts, development of an implementation plan that includes listening sessions and tribal consultations, and identification of key gaps in ocean biodiversity knowledge and coordination between the development of marine and ecosystem natural capital account statistics and ocean biodiversity efforts.

Goal: Strengthen Tools and Institutions to Deliver Ocean Biodiversity Knowledge
In support of this goal, the Strategy calls for establishing a robust, interoperable pipeline for ocean biodiversity information, harnessing science and technology to accelerate access to biodiversity knowledge (including through the National Aquatic eDNA Strategy, and rebuilding and expanding human capital and infrastructure for biodiversity science.

Goal: Protect, Conserve, Restore, and Sustainably Use Ocean Biodiversity
In support of this goal, the Strategy calls for expanding and delivering biodiversity knowledge for ocean conservation, restoration, and sustainable development, establishing and incentivizing diverse partnerships across scales and sectors (including through listening sessions), and inspiring, educating, and involving the public to discover and value oceanlife.

National Aquatic Environmental DNA Strategy

Developed by the National Science & Technology Council's eDNA Task Team of the Interagency Working Group on Biodiversity of the Subcommittee on Ocean Science and Technology, the Strategy clarifies sectors where federal investment in aquatic eDNA research can accelerate research and development for biological monitoring, improve information content, encourage partnerships, and help foster job creation. It adds that application of an eDNA "toolkit" could increase efficiencies, reduce costs, harmonize protocols, and deliver improved, enhanced information across multiple agency missions and mandates, with the Strategy being a "pillar of implementation" for the National Strategy for a Sustainable Ocean Economy, National Ocean Biodiversity Strategy, and National Nature Assessment.

The Strategy is focused on the following goals and associated objectives:

• Coordinate Across Sectors to Facilitate Integration of Aquatic eDNA into Decision Making.
• Coordinate Across Agencies to Align the National Aquatic eDNA Community.
• Promote Aquatic eDNA Standards and Best Practices.
• Disseminate Unified Messaging to Advance Technical Insights.
• Build Capacity, Infrastructure, and the Research Enterprise Needed to Employ Aquatic eDNA Technology at Scale
• Build Human Capacity via Education and Training
• Enhance Infrastructure to Meet Technical Demands.Support Continued Research and Development to Address Priority Science and Technology Needs
• Advance Coordinated Aquatic eDNA Observations to Aid Assessments in U.S. Waters
• Identify Priority Sites and Applications for Aquatic eDNA Sampling.Implement Technological Advances to Build Operational Capacity
• Operationalize Biological Resource Data for Societal Benefit.

Next steps include development of a set of implementation plans to achieve the Strategy's goals and objectives.

Source: National Ocean Policy Coalition.

Florida Establishes an “Office of Ocean Economy”

Florida has a new Office of Ocean Economy. The purpose of this new office is to spur the development of water-related discoveries and use these discoveries to create commercially successful economic opportunities in the maritime industries, aquaculture and tourism.

The Office of the Ocean Economy will be housed at Florida Atlantic University. The goal of the initiative is to move toward sustainable growth and environmental stewardship.

Representative Chip LaMarca, quoted in The Capitolist, indicated “Florida has 8,436 miles of coastline, the second longest in the U.S., containing essential, valuable, and iconic natural resources, which makes it the best place for us to plant the blue economy flag. This bill creates the path for the state to connect the economic resources with the relevant industries needed to make Florida a global leader in this space.”

Key responsibilities of the Office include fostering collaboration among state universities and colleges, facilitating the commercialization of academic research, and developing strategies to overcome economic challenges through technological and innovative solutions.

The office is additionally tasked with publishing annual reports on job growth, wages, and addressing labor shortages within the blue economy sectors, thereby providing a framework for targeted economic development and policy-making. The measure also mandates the office to engage in educational activities and promote Florida as a leading destination for blue economy investments and activities on both national and international stages.

The effort, which envisions a collaboration among all state universities and businesses, was sponsored by Democratic and Republican state lawmakers from South Florida. Florida Atlantic University is also home to the research facility, Harbor Branch Oceanographic Institute.

The original proposal to create this office, House Bill 1311, stalled as stand-alone legislation. It was incorporated into House Bill 1285, which included changes in the way in which people are allowed to challenge school library books and makes it easier for charter schools to take over operations at traditional public schools that aren’t performing well. It was signed into law by Gov. Ron DeSantis and takes effect July 1.

According to DEMA’s most recent Certification Census, Florida is the second largest state in the U.S., in terms of creating new (open water) divers. With a mandate to assist marine-related tourism, DEMA is hopeful that this Office of Ocean Economy will be helpful in promoting recreational diving in Florida and elsewhere, while keeping dive sites healthy and accessible to divers.

Florida and Bear Warriors United Battle in Manatees Case

The Florida Department of Environmental Protection (DEP) and an environmental group are battling in a federal lawsuit about whether the state violated the Endangered Species Act because the DEP allowed sewage discharges into the Indian River Lagoon (IRL) – an area key for manatees.

Attorneys for the DEP and the group Bear Warriors United filed competing motions for summary judgment in June in the lawsuit, which began in 2022. Bear Warriors United (BWU) contended in its filing that the department has not adequately regulated sewage-treatment plants and septic systems, leading to discharges that killed seagrass — a vital food source for manatees in the IRL.

The filing said the department “has known for decades that the septic tanks and wastewater plants it authorizes, release human nitrogen” that causes such problems as algae blooms in the lagoon. BWU attorneys indicated that “DEP thus authorizes the destruction of the lagoon’s ability to sustain seagrass and other macroalgae which are essential food sources for the manatees' survival, and as such, DEP’s regulatory regime for septic tanks and wastewater plants directly and indirectly results in the ongoing unlawful ‘take’ of manatees, in violation of (a section of the Endangered Species Act), and this court must issue an injunction requiring compliance with the ESA (Endangered Species Act) to prevent further take of manatees.”

The DEP indicated in their motion that the state has taken a series of steps in recent years to try to reduce discharges into the lagoon and disputed that it has violated the Endangered Species Act. The motion said the department’s “actions are not the proximate cause of any harm” to manatees, which are classified as a threatened species.

The state’s motion indicates that “…the record shows that DEP has not authorized or entitled any party to cause a violation of water quality standards. It has, instead, worked diligently to restore impaired water quality. There is no proximate cause. DEP is entitled to judgment as a matter of law because with no dispute of material fact, it has not violated the ESA.”

Florida had a record 1,100 manatee deaths in 2021, with many of the deaths linked to starvation because of a lack of seagrass. Brevard County suffered the largest number of manatee deaths (358) and is the focus of the lawsuit.
The state recorded 800 manatee deaths in 2022, before the number dropped to 555 in 2023, according to Florida Fish and Wildlife Conservation Commission data. As of May 31, a reported 315 manatees had died in 2024.

Atrial in the lawsuit has been scheduled for November in U.S. District Court. If the court grants wither side’s motion for summary judgement it would stop the need for a trial.

DIVE BOAT Act Update

Even with the ongoing dysfunction in Washington, DEMA continues its efforts to push the DIVE BOAT Act forward. Our team developed policy language with the support of outside actuaries to provide dive boat and shop operators with much needed commercial insurance relief. 

Since the beginning of 2024 DEMA’s team has been meeting with Members of Congress to help them understand the real-world costs that operators and consumers face as a result of the Small Passenger Vessel Act, which was included in the 2023 National Defense Authorization.  Our initial efforts focused on including the DIVE BOAT Act in the 2024 U.S. Coast Guard Reauthorization. However, the Senate has yet to draft its proposed legislation.  Given this lapse by Congress, DEMA is exploring other legislative “vehicles” that must be passed.  

You may have seen from the news that this has been the least productive Congress in post-WW2 history, with fewer than 40 bills passed during the last 14 months. For comparison, the prior record for the most “do nothing Congress” was in 2013-2014, with 72 bills. However, DEMA is forging ahead and has instead only redoubled our efforts to educate Members and Senators about the challenges our community faces. 

We still need your help to spread the word to policymakers and consumers across the country. Now is a great time to leverage DEMA’s social media campaign materials to educate the community about the reason for increased costs and ask for their support of the DIVE BOAT Act with divers planning for Spring and Summer Vacations.

ACCESS DEMA’s CAMPAIGN MATERIALS AND SHARE

If you haven’t yet contacted your U.S. House Representative or two U.S. Senators, please do so here.  We also invite you to share with us directly your experience of increased costs.  This is essential – please share with legislators the harmful effects of this new law.

Help Support for the Freedom to Invest in Tomorrow’s Workforce Act

The bipartisan, bicameral, Freedom to Invest in Tomorrow’s Workforce Act (S. 722 / H.R. 1477) will expand eligible uses of tax-favorable 529 savings plans to cover costs associated with workforce training and credentialing programs, such as professional certifications. Professional-level certifications, such as recreational diving instructor certifications, qualify for the benefits listed under these bills.

529 Savings plans can currently be used for college savings as well as savings for K-12 education.  There are two types of 529 plans: prepaid tuition plans and education savings plans. All fifty states and the District of Columbia sponsor at least one type of 529 plan. Currently, training, certifications and other credentials are ineligible under 529 plans.

The Freedom to Invest in Tomorrow’s Workforce Act Would Provide Economic Flexibility and Opportunity

This bill would provide valuable tax-advantaged resources for workers who pursue career growth, mid-career changes or alternative career pathways, and would help those interested in a professional career in recreational diving. Expanding eligible uses for 529 plans would empower workers of any educational background, skill level or age and would benefit all industries and professions that rely on employees with specialized training or recognized credentials.

American workers and families could use their 529 plans to help cover:

• Certification program tuition
• Testing fees, including practice exams
• Required books and equipment
• Continuing education and certification renewal; and
• Other charges required to obtain and maintain a certification.

How Can You Help?

Reach out to your U.S. Senators and Representative and ask them to support The Freedom to Invest in Tomorrow’s Workforce Act (S. 722 / H.R. 1477). You can find your lawmakers at these links.

• Find your Senators here
• Find your Representative here

• Department of Labor Rule: Exempt Employees Overtime Pay
  
• Corporate Transparency Act Now in Effect
  
• Florida Governor Signs HB 1557 Department of Environmental Protection
  
• Help Fight Rising U.S. Insurance Rates by Joining the DIVE BOAT Act Social Media Campaign
  
• DEMA & Dive Manufacturers Write to Legislators Asking for Their Support for the DIVE BOAT Act
• Help Support the Freedom to Invest in Tomorrow’s Workforce Act
• DEMA’s Manufacturing Purchase Index – How Important Market Research Impacts Public Policy

U.S. Department of Labor Rule: Exempt Employees Overtime Pay

Starting July 1, 2024, employers with “exempt” employees making less than the new minimum salary for exempt workers will need to determine how to stay within the new Department of Labor (DOL) rules.  Some employers have indicated they will raise the salaries of workers so that they can remain exempt, while others have reacted by re-classifying employees as non-exempt.  Each of these courses of action will come with financial and other consequences.

What are the New Rules?
The new overtime/exempt rules raise the standard “exempt threshold” salary in two steps – one going into effect on July 1, 2024, and the other on January 1, 2025. The first step moves the exempt threshold from its current $684 per week (equivalent to $35,568 per year) to $844 per week (equivalent to $43,888 per year) – a whopping 23% increase. The second step on January 1, 2025, will raise the threshold even more - to $1,128 per week (equivalent to $58,656 per year). This is an additional 34% from the July 1 threshold, and a 65% total increase over the current (pre-July 2024) threshold. Workers with salaries below these thresholds must be paid overtime, even if they are classified as a manager or professional. 

According to the new rules, following implementation in January 2025, there will be automatic increases to the salary threshold every three years. Non-discretionary bonuses and incentives, including commissions paid annually (or more frequently) can be used to satisfy up to 10% of the new standard salary threshold. 

Do the new rules permit exempt classification of workers?
Yes, but to be considered exempt from overtime under the new Fair Labor Standards Act (FLSA) rules, workers falling into the classification of “Executive, Administrative & Professional” (EAP) must be paid minimal threshold salary amount AND must meet standard duties tests for at least one of these categories. The 2024 duties tests have not been changed from those implemented in 2016 and 2019.

If workers are paid less than the salary threshold OR do not meet the prescribed duties tests, they must be paid 1.5 times their regular hourly rate if they work for more than 40 hours in a workweek.

How Can an Employer Claim a Worker as “Exempt?”– Three Basic Tests
According to the DOL, for an employer to claim an exemption for a particular worker, three tests need to be satisfied:

• PAYMENT ON A SALARY BASIS: The employee must be paid a predetermined and fixed salary that is not subject to reduction because of variations in the quality or quantity of work performed; and
• PAYMENT OF A MINIMUM SALARY LEVEL: The amount of salary paid must meet a specified minimum amount; and
• A DUTIES TEST: The worker’s job duties must primarily involve those associated with exempt classification: executive, administrative, professional, outside sales, or computer employees.

Salary Basis
Salary basis simply means the employer must pay the worker on a salaried basis – that is, an employee regularly receives a predetermined amount of money constituting all or part of the employee’s compensation for each pay period (typically on a weekly, or less frequent, basis). The predetermined salary amount cannot be reduced because of variations in the quality or quantity of the employee’s work. An exempt employee must receive the salary for any week in which the employee performs any work, regardless of the number of days or hours worked. Exempt employees do not need to be paid for any workweek in which they perform no work.

The salary basis test does NOT apply to outside sales employees, teachers, and employees practicing law or medicine. 

Being Paid on a “Fee Basis”
Administrative, professional, and computer employees may be paid on a “fee basis” rather than on a salary basis. If the worker is paid an agreed sum for a single job, regardless of the time required for its completion, the worker is being paid on a “fee basis.” A fee payment is generally paid for a unique job, rather than for a series of jobs repeated some number of times and for which identical payments are repeatedly made. 

Fees must still meet the minimum salary level requirement.  To determine whether the fee payment meets this minimum salary requirement, the test is to consider the time worked on the job and determine whether the payment is at a rate that would amount to at least the full standard salary level if the employee worked 40 hours. 

For example, under the $1,128 per week standard salary level that takes effect on January 1, 2025, a diving instructor paid $600 for a course/class that took 20 hours to complete meets the minimum salary requirement since the rate would result in $1,200 if 40 hours were worked.

Salary Level
As indicated in the new rules, to be considered “exempt,” the worker must be paid at least the minimum standard salary ($844 per week starting July 1, 2024, and $1,128 starting January 1, 2025). These levels will be revisited in 2027.

As with the salary basis test, the salary level test does NOT apply to outside sales employees, teachers, and employees practicing law or medicine. The salary level test also does not apply to business owners who own at least a bona fide 20-percent equity interest in their enterprise and are actively engaged in its management.

Duties Test
Under the standard duties test, a worker’s primary duty must be that of an exempt executive, administrative, or professional employee. “Primary duty” means the principal, main, major, or most important duty that the employee performs. Determination of an employee’s primary duty must be based on all the facts in a particular case, with the major emphasis on the character of the employee’s whole job.

As previously described, to be considered exempt from overtime under the new Fair Labor Standards Act (FLSA) rules, the “Executive, Administrative & Professional” (EAP) workers meet standard duties tests for at least one of these categories. The duties tests have not been changed from those implemented in 2016 and 2019.

The Department of Labor’s Small Entity Compliance Guide to the Fair Labor Standards Act’s Exemptions can be found at: https://www.dol.gov/agencies/whd/overtime/rulemaking/small-entity-compliance-guide#executeExemption

According to the Society for Human Resources Management, in light of the near-certainty that the final rule will be challenged in court, and in light of the successful challenge to these same rules made by various organizations (including DEMA) in 2016, employers should start preparing their plans now for how to comply. Employers are advised to proceed with caution in terms of actual rollout or implementation, and they should prepare for uncertainty.

For more information visit the Department of Labor website at https://www.dol.gov/ot.  Questions on compliance and enforcement should be directed to your employment attorney or the nearest Wage and Hour Department (WHD) district office. Locate the nearest office by calling the WHD’s toll-free help line at (866) 4US–WAGE ((866) 487-9243)) during business hours or log onto WHD’s website at https://www.dol.gov/agencies/whd/contact/local-offices for a nationwide listing of WHD district and area offices.

The Corporate Transparency Act is Now in Effect

Background
The Corporate Transparency Act (CTA) went into effect on January 1, 2024, impacting millions of small businesses across the U.S. Signed into law under the current administration in 2021, CTA purportedly was enacted to “prevent corrupt and other actors from laundering illicit funds through anonymous companies in the United States. This effort will equip law enforcement and other partners with the information they need to disrupt financial anonymity that enables crimes such as corruption, drug trafficking, and terrorism.” 

According to the U.S. Treasury, “CTA requires many companies formed or operating in the United States to report information about their beneficial owners to Treasury’s Financial Crimes Enforcement Network (FinCEN), which will store this sensitive information in a secure, confidential database.” Businesses that meet the specified criteria are considered a “Reporting Company,” and must submit a Beneficial Ownership Information Report (BOIR) to the Department of Treasury FinCEN and may incur criminal or civil penalties for not filing or updating this report.

CTA UPDATE:
On March 1, 2024, the U.S. District Court for the Northern District of Alabama ruled that the Corporate Transparency Act (“CTA”) is unconstitutional. The case is moving to the Eleventh Circuit (Alabama, Georgia, and Florida). The appeals court judge can affirm the ruling obtained from the District Court or disagree with the ruling and reinstate the CTA requirements for all small businesses as defined in the CTA.  

The Appellate Court cannot, on its own, declare the CTA to be unconstitutional basis nationwide.  AS A RESULT, THE LAW REMAINS IN EFFECT FOR MOST BUSINESSES.

The CTA requires many U.S. entities to disclose their individual beneficial owners in a report filed with the U.S. Treasury. The CTA statute was enacted in 2021.  Its regulations require many entities formed in 2024 to report beneficial ownership information within 90 days of formation. The CTA requires many entities formed prior to 2024 to report beneficial ownership information by January 1, 2025.

• A domestic reporting company is defined as any entity that is a corporation, a limited liability company, or is created by the filing of a document with a Secretary of State or similar office under the law of a state or Indian tribe.  
  
• A foreign reporting company is defined as any entity that is a corporation, a limited liability company, or other entity formed under the law of a foreign country and registered to do business in any state or tribal jurisdiction by the filing of a document with a Secretary of State or similar office under the law of a state or Indian tribe.
  

What Entities are Exempt and are NOT REQUIRED to File a BOIR Report?
There are 23 exemptions. Most are for companies that are already subject to substantial federal or state regulation under which their beneficial ownership may already be known. Most recreational diving businesses domiciled or doing business in the U.S. will be required to file. A detailed list of exemptions can be found here. 

If your company is not an LLC or corporation, contact your legal counsel to determine whether your business falls under the definition of a reporting company.

Who is a Beneficial Owner? What Information Is Required?
A beneficial owner is any individual who owns or controls at least 25% of an organization, or directly or indirectly exercises substantial control in any of the following roles:

• They serve as a senior officer, such as a president, CEO, or general counsel.
• They have the authority to appoint or remove senior officers, board members, or other similar roles.
• They make important decisions concerning the company’s business, finances, and/or structure.
  

Eligible small businesses will need to report the following information about their companies:

• The full legal name of the company.
  
• The company’s business address; P.O. boxes or lawyer’s/adviser’s offices cannot be accepted.
  
• The state or Tribal jurisdiction where the company was formed or first registered.
  
• The taxpayer identification number and an identity document, such as a filed Articles of Incorporation or Organization.

Corporate transparency reports must also include the below information about any beneficial owners:

• Their full legal name and date of birth.
• Their home address; P.O. boxes or lawyer’s/adviser’s offices cannot be accepted.
• A photocopy of their U.S. driver’s license or passport.  

Once you have identified any beneficial owners, contact each to inform them that the CTA requires your business to report their personal information to FinCEN. Beneficial owners can choose to apply for a FinCEN Identifier and provide information to FinCEN directly. If the beneficial owner chooses to send the information directly, you have them download a copy of the blank BOIR form as a PDF here and fill in the information. They can then upload the completed PDF using this page (Adobe Acrobat required). Otherwise, they can send the necessary information directly to you (the company) to be included in your business’s beneficial ownership information report.

By What Date is Filing Required?
A reporting company created or registered to do business before January 1, 2024, will have until January 1, 2025, to file its initial beneficial ownership information report.

A reporting company created or registered on or after January 1, 2024, and before January 1, 2025, will have 90 calendar days after receiving notice of the company’s creation or registration to file its initial BOI report. This 90-calendar day deadline runs from the time the company receives actual notice that its creation or registration is effective, or after a secretary of state or similar office first provides public notice of its creation or registration, whichever is earlier.

Reporting companies created or registered on or after January 1, 2025, will have 30 calendar days from actual or public notice that the company’s creation or registration is effective to file their initial BOI reports with FinCEN.

Future Updates
FinCEN is engaging in an outreach and education campaign to establish awareness. These efforts include continually issuing guidance available at www.fincen.gov/boi , multimedia resources, webinars and events, and a widespread public awareness campaign incorporating key stakeholder engagement. Businesses should subscribe to these updates to be sure of any changes.

Florida Governor Signs HB 1557 Department of Environmental Protection

In May, Governor Ron DeSantis of Florida signed HB 1557 Department of Environmental Protection, now Chapter No. 2024-180. The regulations will take effect on July 1st, 2024. 

This bill establishes several new methods to protect the coasts and coral reefs in Florida:

• First, the bill designates 105 miles from Key Biscayne to the St. Lucie Inlet as the Kristin Jacobs Coral Reef Ecosystem Conservation Area. 
• The new law requires the state’s five Wildlife Management Districts to develop rules by December 31, 2025, to promote the reuse of reclaimed water and encourage water savings. The bill enforces stricter regulations on Consumptive Use Permits for wastewater treatment standards and includes provisions that encourage water supply development projects that would use reclaimed water.
• The bill also transfers regulatory power over Onsite Sewage Programs from the Department of Health to the Department of Environmental Protection. 

Learn more by reviewing the legislative summary here.

Help Fight Rising U.S. Insurance Rates by Joining the DIVE BOAT Act Social Media Campaign

DIVE BOAT Act Update

Even with the ongoing dysfunction in Washington, DEMA continues its efforts to push the DIVE BOAT Act forward. Our team developed policy language with the support of outside actuaries to provide dive boat and shop operators with much needed commercial insurance relief. 

Since the beginning of 2024 DEMA’s team has been meeting with Members of Congress to help them understand the real-world costs that operators and consumers face as a result of the Small Passenger Vessel Act, which was included in the 2023 National Defense Authorization.  Our initial efforts focused on including the DIVE BOAT Act in the 2024 U.S. Coast Guard Reauthorization. However, the Senate has yet to draft its proposed legislation.  Given this lapse by Congress, DEMA is exploring other legislative “vehicles” that must be passed.  

You may have seen from the news that this has been the least productive Congress in post-WW2 history, with fewer than 40 bills passed during the last 14 months. For comparison, the prior record for the most “do nothing Congress” was in 2013-2014, with 72 bills. However, DEMA is forging ahead and has instead only redoubled our efforts to educate Members and Senators about the challenges our community faces. 

We still need your help to spread the word to policymakers and consumers across the country. Now is a great time to leverage DEMA’s social media campaign materials to educate the community about the reason for increased costs and ask for their support of the DIVE BOAT Act with divers planning for Spring and Summer Vacations.

ACCESS DEMA’s CAMPAIGN MATERIALS AND SHARE

If you haven’t yet contacted your U.S. House Representative or two U.S. Senators, please do so here.  We also invite you to share with us directly your experience of increased costs.  This is essential – please share with legislators the harmful effects of this new law.

DEMA & Scuba Manufacturers Write to Legislators Asking for Their Support of the DIVE BOAT Act

On May 6, DEMA, along with leading scuba manufacturers Catalina Cylinders, H2Odyssey, Head Water Sports, Highland, Light & Motion, Marelux USA, Mares, Mods Drysuit, ProAsia Design, ProShot & Tidal Sports, Scubapro, Sea Pearls, SEADIVE, Sherwood Scuba, Spacefish Army, Stream2Sea, Tektite, Thermo, and XS Scuba, sent a letter urging Congress to support the DIVE BOAT Act.

The letter urgently appeals to congressional leaders to address the adverse impacts of the Small Passenger Vessel Act (SPVA) on the U.S. dive industry, which has led to significant and unjustified insurance cost increases for dive businesses. It requests support for modifying Section 11503 of the 2023 National Defense Authorization Act with proposed changes outlined in the DIVE BOAT Act. Those proposed changes aim to ensure fair liability standards and prevent the unfair punishment of an entire industry and its consumers.

Learn more about the latest developments with the DIVE BOAT Act here and view DEMA’s letter here.

Help Support the Freedom to Invest in Tomorrow’s Workforce Act

The bipartisan, bicameral, Freedom to Invest in Tomorrow’s Workforce Act (S. 722 / H.R. 1477) will expand eligible uses of tax-favorable 529 savings plans to cover costs associated with workforce training and credentialing programs, such as professional certifications. Professional-level certifications, such as recreational diving instructor certifications, qualify for the benefits listed under these bills.

529 Savings plans can currently be used for college savings as well as savings for K-12 education.  There are two types of 529 plans: prepaid tuition plans and education savings plans. All fifty states and the District of Columbia sponsor at least one type of 529 plan. Currently, training, certifications and other credentials are ineligible under 529 plans.

The Freedom to Invest in Tomorrow’s Workforce Act Would Provide Economic Flexibility and Opportunity

This bill would provide valuable tax-advantaged resources for workers who pursue career growth, mid-career changes or alternative career pathways, and would help those interested in a professional career in recreational diving. Expanding eligible uses for 529 plans would empower workers of any educational background, skill level or age and would benefit all industries and professions that rely on employees with specialized training or recognized credentials.

American workers and families could use their 529 plans to help cover:

• Certification program tuition
• Testing fees, including practice exams
• Required books and equipment
• Continuing education and certification renewal; and
• Other charges required to obtain and maintain a certification.

How Can You Help?

Reach out to your U.S. Senators and Representative and ask them to support The Freedom to Invest in Tomorrow’s Workforce Act (S. 722 / H.R. 1477). You can find your lawmakers at these links.

• Find your Senators here
• Find your Representative here

DEMA’s Manufacturing Purchase Index – How Important Market Research Impacts Public Policy

DEMA has published the fourth quarter 2023 Manufacturing Purchase Index (MPI) and will soon begin publishing figures for Q1 2024, marking the beginning of the second year for this important index. This manufacturing sector includes New Orders and Inventories in key diving equipment Categories. Data from the MPI reports, covering quarter 4 (Q4) of 2023 and comparing them to Q4 2022 and Q3 2023 is now available for download or purchase .

DEMA’s MPI is unique in that it captures aggregate trend data for New Orders and for Inventory in stock on a quarterly basis.  Participating manufacturers report to an independent third-party administrator (TPA) to ensure their data remains confidential and secure. Reporting consists of companies comparing their data points in the current reporting period to those in the previous quarter, as well as to the same quarter during the previous year.  

• New Orders: Reflects the levels of new orders received from customers.
• Inventories: Reflects the changes in inventory levels in stock at the time of the report.

Aggregated trend data is available on both Equipment Type and Category. The Category definitions can be found within the report and include Soft Goods, Exposure Protection, Hard Goods and Accessories and Bags.  Each Category is further defined within the reports as Equipment Types, and include regulators, BCs, fins, masks, snorkels, wetsuits, drysuits, and more.

This research, along with DEMA’s Certification Census, the most recent Diver Behavioral Research, and DEMA’s recent Blueprint for Growth Retail Operation Data are all critical to DEMA’s ability to advocate on behalf of the industry.

The recreational diving industry gains a better understanding of the health of the industry in the U.S. by observing diver activities and preferences as well as sales data. The Manufacturing Purchase Index trend data was provided by DEMA-member manufacturers and includes both domestic and international new orders and inventory data.  The results provide key data points that help members of the industry but can also greatly assist DEMA in its public policy work.

For example, in DEMA’s year-long battle to overturn onerous regulations that have caused vessel and operations insurance to skyrocket, having data on the trends currently impacting the manufacturing sector (and other sectors) has been instrumental in helping lawmakers understand the nature of the dive industry.

Without having trend data available on the manufacturing sector, the diving industry will not be heard over industries that are more willing to provide business information on their industry size: industries like snow-related sports, recreational fishing, recreational vehicles, and boating. These multi-billion-dollar industries easily get the attention of lawmakers when they are willing to provide data about user behaviors, industry dollars, participation rates and trends in manufacturing. Without similar data, the diving industry is ignored by policy makers.

DEMA’s research efforts are critical to ensuring that our voice is heard by lawmakers and administrative agencies. Industry members also use this critical data to help grow their own businesses, as well as for use in making sure that the diving industry in the U.S. continues to avoid problems caused by unnecessary regulation.

DEMA will continue to publish more manufacturing research each quarter to help the entire industry understand more about the status of the sport. Please follow DEMA’s research efforts at www.dema.org and when surveys come your way, please participate. If you are a DEMA-member manufacturer selling rubber goods (masks, fins, snorkels, exposure protection) and hard goods such as regulators, BCs and computers, and are interested in participating, apply to be part of the MPI here.  

It’s good for your business and helps DEMA provide information that keeps dive sites open, and limits or eliminates unnecessary regulation!

How Can You Help?

Download and use this information – data on the current status of manufacturing is relevant to every sector of the diving industry. DEMA Members can download the broad Q4 Manufacturing Purchase Index Category reports at no cost, and non-members can pay a non-member rate for this data.  DEMA Members also have access to more detailed Q4 Equipment Type data at member rates, while others can purchase this data at non-member rates. Reports are available in the DEMA Store.

If your key manufacturer is NOT participating in the MPI, please ask them to participate by sharing this link with your representative – more manufacturers participating will help the entire industry!

• U.S. Coast Guard Will Not Enforce California Commercial Harbor Craft (CHC) Emissions Rule
• DEMA Board Supports the FISHES Act
• New Airline Rules to Deliver Automatic Refunds 
• Help Fight Rising U.S. Insurance Rates by Joining the DIVE BOAT Act Social Media Campaign 
• DEMA & Scuba Training Organizations Write to Legislators Asking for Their Support of the DIVE BOAT Act
• Help Support the Freedom to Invest in Tomorrow’s Workforce Act
• DEMA’s Manufacturing Purchase Index – How Important Market Research Impacts Public Policy
  
   

U.S. Coast Guard Will Not Enforce California Commercial Harbor Craft Emissions Rule

There are several types of harbor craft in California, including fishing vessels, ferries, excursion vessels (including dive excursion), tugboats, tow boats, crew and supply boats, barges, dredges, and other vessel types.  A California Air Resources Board (CARB) rule now requires commercial harbor craft to install diesel particulate filters (DPF).

DPFs capture soot and other particulate matter leaving a diesel engine. The highly flammable material is cleared out by DPF “regeneration” — bringing the engine up to high speeds and increased heat to make the built-up material catch on fire, with the goal of clearing it out. Unfortunately, DPFs have been linked to several vessel fires. 

The federal Environmental Protection Agency’s (EPA) Clean Air Act regulates air quality standards in the U.S. Before enforcing the DPF rule, CARB is required to receive authorization for a waiver from the EPA under the Clean Air Act, which it is yet to secure. Reported in The Western News, Coast Guard Rear Admiral Andrew M. Sugimoto, who commands the USCG’s Eleventh District (running from the California-Oregon border to Peru), wrote a letter to CARB detailing his issues with the pending requirement, and citing “potential fire safety issues associated with DPFs,” “feasibility and potential stability issues,” and “potential safety issues over DPF operating temperatures and the fire load of the vessel due to varied hull materials.”  Rear Admiral Sugimoto informed CARB that the U.S. Coast Guard will not enforce the DPF rule. 

The elements of this CARB rule, which went into effect in 2023, include: 

• Zero-emission short-run ferries and zero‑emission capable new excursion vessels.
• All other regulated vessels: cleanest certified engine (Tier 3 or 4) plus a diesel particulate filter.
• Initial compliance dates between 2023 and 2032; with up to 8 additional years in compliance extensions (to end of 2034).
• Requirements expanded to all vessels and engines, with earliest compliance for oldest, highest-emitting engines.
• Facilities (such as marinas and ports) must report vessels to the California Air Resources Board (CARB), provide infrastructure for shore power, and support zero‑emission vessel deployment.
• Alternative compliance plans and zero-emission credits to encourage zero-emission vessel deployment and/or fleet averaging.
• Biennial opacity testing, renewable diesel fuel, annual compliance fees.
  

DEMA will continue to monitor developments in this issue as it could have ramifications for dive vessels in other states and U.S. territories. DEMA also continues to monitor activities of The American Waterways Operators who are opposed to this rule and have shared additional information from their letter to Governor Gavin Newsom on the issues involved. At this writing we are aware that seventeen states are suing the U.S. Environmental Protection Agency for giving, in effect, “an exemption to California alone, by power of its market size, to enact its own air standards that govern much of the rest of the country.”

DEMA Board Supports the U.S. FISHES Act

In April, DEMA was asked by Congressman Byron Donalds (FL-19) to support the federal FISHES Act which would expedite the disbursement of federal fisheries emergency funds in the occurrence of a disaster or other event that impacts a fishery. Currently there is no required deadline for the Office of Budget Management (OMB) to disburse the funds to a state applying for fisheries disaster relief. This bill would change that.  

States currently apply for federal fishery disaster relief for a variety of reasons including day-to-day extreme weather, water quality issues, damage from hurricanes, and others.  Some of these specific fishery impacts can affect recreational diving, including: 

• Boats and docks that are damaged or destroyed.
• Hotel and restaurant infrastructure damage that dissuades clients from diving in an affected area. 
• Water quality issues impacting fish health due to high levels of salinity, harmful algal blooms in the water and other water quality problems. Some of these are well known to the diving industry, such as red tide impacts on goliath grouper.

This bill would help to modernize and streamline the federal fishery disaster relief funding process, helping to reduce the time needed to assist many diving businesses and associated small businesses (restaurants, hotels, etc) which could otherwise go out of business before the relief is made available.

After review, DEMA’s PUBLIC POLICY COMMITTEE RECOMMENDED SUPPORTING THIS BILL and passed along their recommendation to the DEMA Board of Directors.  On April 18, 2024, the DEMA Board signed and submitted a letter to Representative Donalds with thanks for assisting the recreational diving industry. The DEMA Board letter is available here.

New Airline Rules to Deliver Automatic Refunds

Several new regulations enacted by the Department of Transportation (DOT) in April will change the way airlines are required to process and distribute ticket and baggage refunds for flight delays and cancellations. As enacted, these rules may assist some passengers, but economists fear that these new regulations will likely change available flight schedules, and drive ticket cost up for all.

Automatic Refunds

According to the Department of Transportation website, the new rule requires airlines to promptly provide passengers with automatic cash refunds when owed, such as when airlines cancel or significantly change their flights, significantly delay their checked bags, or fail to provide the extra services they purchased. 

Prior to this rule, airlines were permitted to set their own standards for what kind of flight changes warranted a refund. As a result, refund policies differed from airline to airline – some offering refunds, some offering vouchers, and some offering both. DOT suggests that some airlines revised and applied “less consumer-friendly” refund policies during spikes in flight cancellations and changes. 

Significant Changes Defined

Under the rule, passengers are entitled to a refund for canceled or significantly changed flights, if they do not accept alternative transportation or travel credits offered. A “significant change” is defined as:

• One on which departure or arrival times are delayed more than 3 hours domestically and 6 hours internationally
• Departures or arrivals are from a different airport.
• Increases in the number of connections.
• Instances where passengers are downgraded to a lower class of service.
• Connections at different airports or flights on different planes that are less accessible or accommodating to a person with a disability.

These rules also impact other aspects of the flight:

• Delayed baggage - Passengers who file a mishandled baggage report will be entitled to a refund of their checked bag fee if it is not delivered within 12 hours of their domestic flight arriving at the gate, or 15-30 hours of their international flight arriving at the gate, depending on the length of the flight.
• Extra services not provided: Passengers will be entitled to a refund for the fee they paid for an extra service — such as Wi-Fi, seat selection, or in-flight entertainment — if an airline fails to provide this service.

The final rule requires that:

• Airlines must automatically issue refunds of the ticket purchase price, minus the value of any portion of transportation already used, including all government-imposed taxes and fees and airline-imposed fees, regardless of whether the taxes or fees are refundable to airlines. Refunds must be issued without passengers having to explicitly request them.
• Refunds must be given within seven business days for credit card and 20 calendar days for other payment methods.
• Refunds be given in cash or in the original form of payment (which could include airline miles).
• Airlines may only substitute vouchers, travel credits, or other forms of compensation if the passenger affirmatively chooses to accept alternative compensation.
• The final rule also requires airlines to provide prompt notifications to consumers affected by a cancelled or significantly changed flight of their right to a refund of the ticket and extra service fees, as well as any related policies.

Restrictions or Medical Advisory 

In addition, in instances where consumers are restricted by a government or advised by a medical professional not to travel to, from, or within the United States due to a serious communicable disease, the final rule requires that airlines must provide travel credits or vouchers. Consumers may be required to provide documentary evidence to support their request. Travel vouchers or credits provided by airlines must be transferrable and valid for at least five years from the date of issuance.

Family Seating

In a separately proposed bill, an air carrier or foreign air carrier that does not assign seats or allow individuals to select seats in advance of the date of departure shall board customers in a manner that ensures each young child is seated adjacent to an accompanying adult. Air carriers or foreign air carrier may not charge a fee or impose additional cost to seat a young child or children adjacent to an accompanying adult within the same class of service, and every class of service an air carrier or foreign air carrier offers must allow for seating of a young child or children adjacent to an accompanying adult, with no limit to the availability of adjacent seats.

In an interview with a Dallas-based media outlet, Southern Methodist University Economist Mike Davis indicated he believes the new reimbursement rules will help some consumers but fears it could lead to an increase in the cost of an airline ticket due to the forced payout to customers.

"This sort of regulation is going to cost the airlines something," he said. "The other thing that I wonder and actually worry about is whether the airlines are going to be adjusting schedules to make it more likely that they can avoid these kinds of delays," Davis said. "It's really hard to tell how they would accommodate this, but whatever the airlines do is going to cost their passengers some money."

DIVE BOAT Act Update

Even with the ongoing dysfunction in Washington, DEMA continues its efforts to push the DIVE BOAT Act forward. Our team developed policy language with the support of outside actuaries to provide dive boat and shop operators with much needed commercial insurance relief. 

Since the beginning of 2024 DEMA’s team has been meeting with Members of Congress to help them understand the real-world costs that operators and consumers face as a result of the Small Passenger Vessel Act, which was included in the 2023 National Defense Authorization.  Our initial efforts focused on including the DIVE BOAT Act in the 2024 U.S. Coast Guard Reauthorization. However, the Senate has yet to draft its proposed legislation.  Given this lapse by Congress, DEMA is exploring other legislative “vehicles” that must be passed.  

You may have seen from the news that this has been the least productive Congress in post-WW2 history, with fewer than 40 bills passed during the last 14 months. For comparison, the prior record for the most “do nothing Congress” was in 2013-2014, with 72 bills. However, DEMA is forging ahead and has instead only redoubled our efforts to educate Members and Senators about the challenges our community faces. 

We still need your help to spread the word to policymakers and consumers across the country. Now is a great time to leverage DEMA’s social media campaign materials to educate the community about the reason for increased costs and ask for their support of the DIVE BOAT Act with divers planning for Spring and Summer Vacations.

ACCESS DEMA’s CAMPAIGN MATERIALS AND SHARE

If you haven’t yet contacted your U.S. House Representative or two U.S. Senators, please do so here.  We also invite you to share with us directly your experience of increased costs.  This is essential – please share with legislators the harmful effects of this new law.

DEMA & Scuba Training Organizations Write to Legislators Asking for Their Support of the DIVE BOAT Act

On April 15, DEMA joined with leading scuba training organizations NAUI, PADI, SDI, and SEI, and sent a letter urging Congress to support the DIVE BOAT Act.

The letter urgently appeals to congressional leaders to address the adverse impacts of the Small Passenger Vessel Act (SPVA) on the U.S. dive industry, which has led to significant and unjustified insurance cost increases for dive businesses. It requests support for modifying Section 11503 of the 2023 National Defense Authorization Act with proposed changes outlined in the DIVE BOAT Act. Those proposed changes aim to ensure fair liability standards and prevent the unfair punishment of an entire industry and its consumers.

DEMA offered all current DEMA member training organizations the opportunity to cosign the letter and wishes to thank NAUI, PADI, SDI, and SEI, for cosigning and supporting this effort. In addition, both SSI and IDEA have since joined with their ongoing support of this important initiative.

Learn more about the latest developments with the DIVE BOAT Act here and view DEMA’s letter here.

Help Support for the Freedom to Invest in Tomorrow’s Workforce Act

The bipartisan, bicameral, Freedom to Invest in Tomorrow’s Workforce Act (S. 722 / H.R. 1477) will expand eligible uses of tax-favorable 529 savings plans to cover costs associated with workforce training and credentialing programs, such as professional certifications. Professional-level certifications, such as recreational diving instructor certifications, qualify for the benefits listed under these bills.

529 Savings plans can currently be used for college savings as well as savings for K-12 education.  There are two types of 529 plans: prepaid tuition plans and education savings plans. All fifty states and the District of Columbia sponsor at least one type of 529 plan. Currently, training, certifications and other credentials are ineligible under 529 plans.

The Freedom to Invest in Tomorrow’s Workforce Act Would Provide Economic Flexibility and Opportunity

This bill would provide valuable tax-advantaged resources for workers who pursue career growth, mid-career changes or alternative career pathways, and would help those interested in a professional career in recreational diving. Expanding eligible uses for 529 plans would empower workers of any educational background, skill level or age and would benefit all industries and professions that rely on employees with specialized training or recognized credentials.

American workers and families could use their 529 plans to help cover:

• Certification program tuition
• Testing fees, including practice exams
• Required books and equipment
• Continuing education and certification renewal; and
• Other charges required to obtain and maintain a certification.

How Can You Help?

Reach out to your U.S. Senators and Representative and ask them to support The Freedom to Invest in Tomorrow’s Workforce Act (S. 722 / H.R. 1477). You can find your lawmakers at these links.

• Find your Senators here
• Find your Representative here
  

DEMA’s Manufacturing Purchase Index – How Important Market Research Impacts Public Policy

DEMA has published the fourth quarter 2023 Manufacturing Purchase Index (MPI) and will soon begin publishing figures for Q1 2024, marking the beginning of the second year for this important index. This manufacturing sector includes New Orders and Inventories in key diving equipment Categories. Data from the MPI reports, covering quarter 4 (Q4) of 2023 and comparing them to Q4 2022 and Q3 2023 is now available for download or purchase.

DEMA’s MPI is unique in that it captures aggregate trend data for New Orders and for Inventory in stock on a quarterly basis.  Participating manufacturers report to an independent third-party administrator (TPA) to ensure their data remains confidential and secure. Reporting consists of companies comparing their data points in the current reporting period to those in the previous quarter, as well as to the same quarter during the previous year.  

• New Orders: Reflects the levels of new orders received from customers.
• Inventories: Reflects the changes in inventory levels in stock at the time of the report.

Aggregated trend data is available on both Equipment Type and Category. The Category definitions can be found within the report and include Soft Goods, Exposure Protection, Hard Goods and Accessories and Bags.  Each Category is further defined within the reports as Equipment Types, and include regulators, BCs, fins, masks, snorkels, wetsuits, drysuits, and more.

This research, along with DEMA’s Certification Census, the most recent Diver Behavioral Research, and DEMA’s recent Blueprint for Growth Retail Operation Data are all critical to DEMA’s ability to advocate on behalf of the industry.

The recreational diving industry gains a better understanding of the health of the industry in the U.S. by observing diver activities and preferences as well as sales data. The Manufacturing Purchase Index trend data was provided by DEMA-member manufacturers and includes both domestic and international new orders and inventory data.  The results provide key data points that help members of the industry but can also greatly assist DEMA in its public policy work.

For example, in DEMA’s year-long battle to overturn onerous regulations that have caused vessel and operations insurance to skyrocket, having data on the trends currently impacting the manufacturing sector (and other sectors) has been instrumental in helping lawmakers understand the nature of the dive industry.

Without having trend data available on the manufacturing sector, the diving industry will not be heard over industries that are more willing to provide business information on their industry size: industries like snow-related sports, recreational fishing, recreational vehicles, and boating. These multi-billion-dollar industries easily get the attention of lawmakers when they are willing to provide data about user behaviors, industry dollars, participation rates and trends in manufacturing. Without similar data, the diving industry is ignored by policy makers.

DEMA’s research efforts are critical to ensuring that our voice is heard by lawmakers and administrative agencies. Industry members also use this critical data to help grow their own businesses, as well as for use in making sure that the diving industry in the U.S. continues to avoid problems caused by unnecessary regulation.

DEMA will continue to publish more manufacturing research each quarter to help the entire industry understand more about the status of the sport. Please follow DEMA’s research efforts at www.dema.org and when surveys come your way, please participate. If you are a DEMA-member manufacturer selling rubber goods (masks, fins, snorkels, exposure protection) and hard goods such as regulators, BCs and computers, and are interested in participating, apply to be part of the MPI here.  

It’s good for your business and helps DEMA provide information that keeps dive sites open, and limits or eliminates unnecessary regulation!

How Can You Help?

Download and use this information – data on the current status of manufacturing is relevant to every sector of the diving industry. DEMA Members can download the broad Q4 Manufacturing Purchase Index Category reports at no cost, and non-members can pay a non-member rate for this data.  DEMA Members also have access to more detailed Q4 Equipment Type data at member rates, while others can purchase this data at non-member rates. Reports are available in the DEMA Store.

If your key manufacturer is NOT participating in the MPI, please ask them to participate by sharing this link with your representative – more manufacturers participating will help the entire industry!

• UPDATE: The Corporate Transparency Act
• Help Fight Rising U.S. Insurance Rates by Joining the DIVE BOAT Act Social Media Campaign 
• Thanks to Representative Aaron Bean (R-FL) for Introducing the DIVE BOAT Act
• Help Support the Freedom to Invest in Tomorrow’s Workforce Act
• Legislation Watch for March: Florida 
• DEMA’s Manufacturing Purchase Index – How Important Market Research Impacts Public Policy

The Corporate Transparency Act

Background

The Corporate Transparency Act (CTA) went into effect on January 1, 2024, impacting millions of small businesses across the U.S. Signed into law under the current administration in 2021, CTA purportedly was enacted to “prevent corrupt and other actors from laundering illicit funds through anonymous companies in the United States. This effort will equip law enforcement and other partners with the information they need to disrupt financial anonymity that enables crimes such as corruption, drug trafficking, and terrorism.” 

According to the U.S. Treasury, “CTA requires many companies formed or operating in the United States to report information about their beneficial owners to Treasury’s Financial Crimes Enforcement Network (FinCEN), which will store this sensitive information in a secure, confidential database.” Businesses that meet the specified criteria are considered a “Reporting Company,” and must submit a Beneficial Ownership Information Report (BOIR) to the Department of Treasury FinCEN and may incur criminal or civil penalties for not filing or updating this report.

CTA UPDATE:

On March 1, 2024, the U.S. District Court for the Northern District of Alabama ruled that the Corporate Transparency Act (“CTA”) is unconstitutional. The CTA requires many U.S. entities to disclose their individual beneficial owners in a report filed with the U.S. Treasury. The CTA statute was enacted in 2021.  Its regulations require many entities formed in 2024 to report beneficial ownership information within 90 days of formation. The CTA requires many entities formed prior to 2024 to report beneficial ownership information by January 1, 2025.

The federal court’s ruling held that, “the Commerce Clause, the Necessary and Proper clause, the taxing power, and the U.S. government’s authority over foreign affairs and national security do not provide sufficient authority for the Corporate Transparency Act (“CTA”), and the CTA is unconstitutional as a result; and the U.S. government is enjoined from enforcing the CTA as to the (plaintiffs) in the case.”

Unfortunately, the court did NOT issue a nationwide injunction barring the U.S. government from enforcing the law against other entities within the scope of the CTA’s reporting requirements, except the specified plaintiffs.  

On March 11, 2024, the U.S. Government filed a notice of appeal of the court’s ruling. On the same day, the Financial Crimes Enforcement Network (“FinCEN”), which is the U.S. Treasury bureau that administers the CTA, stated that it will continue to implement the CTA while complying with the court’s order. As of this writing, all applicable small businesses must continue to report.  

What is Next on CTA?  

The case is moving to the Eleventh Circuit (Alabama, Georgia, and Florida). The appeals court judge can affirm the ruling obtained from the District Court or disagree with the ruling and reinstate the CTA requirements for all small businesses as defined in the CTA.  The Appellate Court cannot, on its own, declare the CTA to be unconstitutional basis nationwide.

Alternatively, Congress can repeal this law, or it could end up in the Supreme Court for consideration, probably more than a year from now.  

Senator Tim Scott (R-SC) has also introduced a S 3625, a bill which would provide additional time for businesses to submit their required reporting information. To date there are no co-sponsors, but there is a comparable House Resolution 5119 which did pass the House on December 12, 2023.

Until There is a Final Ruling, Which Companies Must File?

Reporting companies created before January 1, 2024, will have until January 1, 2025, to comply. A “Reporting Company” is defined as a corporation, limited liability company (LLC), or any other privately held company, whether domestic or foreign, registered to conduct business in the U.S. with the Secretary of State or similar office. Publicly traded companies do not fall under the CTA, as they are subject to their own reporting requirements. 

• A domestic reporting company is defined as any entity that is a corporation, a limited liability company, or is created by the filing of a document with a Secretary of State or similar office under the law of a state or Indian tribe.
• A foreign reporting company is defined as any entity that is a corporation, a limited liability company, or other entity formed under the law of a foreign country and registered to do business in any state or tribal jurisdiction by the filing of a document with a Secretary of State or similar office under the law of a state or Indian tribe.

What Entities are Exempt and Are NOT REQUIRED to File a BOIR Report?

There are 23 exemptions. Most are for companies that are already subject to substantial federal or state regulation under which their beneficial ownership may already be known. Most recreational diving businesses domiciled or doing business in the U.S. will be required to file. A detailed list of exemptions can be found here. 

If your company is not an LLC or corporation, contact your legal counsel to determine whether your business falls under the definition of a reporting company.

Who is a Beneficial Owner? What Information Is Required?

A beneficial owner is any individual who owns or controls at least 25% of an organization, or directly or indirectly exercises substantial control in any of the following roles:

• They serve as a senior officer, such as a president, CEO, or general counsel.
• They have the authority to appoint or remove senior officers, board members, or other similar roles.
• They make important decisions concerning the company’s business, finances, and/or structure.

Eligible small businesses will need to report the following information about their companies:

• The full legal name of the company.
• The company’s business address; P.O. boxes or lawyer’s/adviser’s offices cannot be accepted.
• The state or Tribal jurisdiction where the company was formed or first registered.
• The taxpayer identification number and an identity document, such as a filed Articles of Incorporation or Organization.

Corporate transparency reports must also include the below information about any beneficial owners:

• Their full legal name and date of birth.
• Their home address; P.O. boxes or lawyer’s/adviser’s offices cannot be accepted.
• A photocopy of their U.S. driver’s license or passport.  

Once you have identified any beneficial owners, contact each to inform them that the CTA requires your business to report their personal information to FinCEN. Beneficial owners can choose to apply for a FinCEN Identifier and provide information to FinCEN directly. If the beneficial owner chooses to send the information directly, you have them download a copy of the blank BOIR form as a PDF here and fill in the information. They can then upload the completed PDF using this page (Adobe Acrobat required). Otherwise, they can send the necessary information directly to you (the company) to be included in your business’s beneficial ownership information report.

By What Date is Filing Required?

A reporting company created or registered to do business before January 1, 2024, will have until January 1, 2025, to file its initial beneficial ownership information report.

A reporting company created or registered on or after January 1, 2024, and before January 1, 2025, will have 90 calendar days after receiving notice of the company’s creation or registration to file its initial BOI report. This 90-calendar day deadline runs from the time the company receives actual notice that its creation or registration is effective, or after a secretary of state or similar office first provides public notice of its creation or registration, whichever is earlier.

Reporting companies created or registered on or after January 1, 2025, will have 30 calendar days from actual or public notice that the company’s creation or registration is effective to file their initial BOI reports with FinCEN.

Future Updates

FinCEN is engaging in an outreach and education campaign to establish awareness. These efforts include continually issuing guidance available at www.fincen.gov/boi, multimedia resources, webinars and events, and a widespread public awareness campaign incorporating key stakeholder engagement. Businesses should subscribe to these updates to be sure of any changes.

Help Fight Rising U.S. Insurance Rates by Joining the DIVE BOAT Act Social Media Campaign

DIVE BOAT Act Update

Even with the ongoing dysfunction in Washington, DEMA continues its efforts to push the DIVE BOAT Act forward. Our team developed policy language with the support of outside actuaries to provide dive boat and shop operators with much needed commercial insurance relief. 

Since the beginning of 2024 DEMA’s team has been meeting with Members of Congress to help them understand the real-world costs that operators and consumers face as a result of the Small Passenger Vessel Act, which was included in the 2023 National Defense Authorization.  Our initial efforts focused on including the DIVE BOAT Act in the 2024 U.S. Coast Guard Reauthorization. However, the Senate has yet to draft its proposed legislation.  Given this lapse by Congress, DEMA is exploring other legislative “vehicles” that must be passed.  

You may have seen from the news that this has been the least productive Congress in post-WW2 history, with fewer than 40 bills passed during the last 14 months. For comparison, the prior record for the most “do nothing Congress” was in 2013-2014, with 72 bills. However, DEMA is forging ahead and has instead only redoubled our efforts to educate Members and Senators about the challenges our community faces. 

We still need your help to spread the word to policymakers and consumers across the country. Now is a great time to leverage DEMA’s social media campaign materials to educate the community about the reason for increased costs and ask for their support of the DIVE BOAT Act with divers planning for Spring and Summer Vacations.

ACCESS DEMA’s CAMPAIGN MATERIALS AND SHARE

If you haven’t yet contacted your U.S. House Representative or two U.S. Senators, please do so here.  We also invite you to share with us directly your experience of increased costs.  This is essential – please share with legislators the harmful effects of this new law.

Thanks to Representative Aaron Bean (R-FL) for Introducing the DIVE BOAT Act

DEMA wishes to publicly thank Representative Aaron Bean (R-FL, District 04) for his work in introducing the DIVE BOAT Act amendment to Section 11503 of the 2023 National Defense Authorization Act, the Small Passenger Vessel Act (SPVA). The SPVA is largely responsible for disrupting the insurance market, causing explosive increases in vessel and other insurance costs specifically targeting the recreational diving industry. Here is a link to the Congressman’s biography.  

The genesis of the SPVA, the tragic and horrific loss of life resulting from a fire aboard the overnight vessel Conception, appears to have been caused by crew members’ violations of U.S. Coast Guard rules. No law or regulation can stop bad behavior, and bad actors should face consequences for their decisions. Unfortunately, the broad scope of the SPVA language is harming the entire diving industry. It 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.
 
The insurance cost increases are hurting many of DEMA’s small business members. One operator in West Palm Beach, Florida reported a $160,000 increase in their store and vessel liability coverage cost. They are now paying nearly 10% of their annual cash receipts on insurance. Another reported a $25,000 increase for his two small vessels –more than double what was paid last year. An operator in Hawaii reported a $40,000 insurance cost increase, and a dive and travel shop with no vessels in Washington, DC reported a $40,000 increase. We have also heard from boat owners who cannot get insurance to operate. These sharp price increases are threatening the livelihood and families of owners and employees. Many of the operators have been forced to pass the cost increases to consumers. We do not believe this was the intent and outcome lawmakers were hoping for when Congress enacted SPVA.
 
As a member of the House Subcommittee on Coast Guard & Maritime Transportation, in the U.S. House Committee on Transportation & Infrastructure, Representative Bean introduced the DIVE BOAT Act amendment in 2023 and is helping us create a bipartisan fix to this issue, while continuing to search for the correct legislative vehicle for this important amendment.
 
On behalf of a grateful industry, DEMA thanks Representative Bean for his willingness to work with us and consider the amendment we developed with input from insurance actuaries. Representative Bean believes that the draft language we have shared with the committee staff will ensure bad actors are held accountable, while significantly easing the burden of unfair cost increases for those who follow the rules.
 
Representative Bean’s Office may be contacted directly:
1239 Longworth House Bldg.
Washington, DC 20515
202-225-0123
https://bean.house.gov 

Help Support for the Freedom to Invest in Tomorrow’s Workforce Act

The bipartisan, bicameral, Freedom to Invest in Tomorrow’s Workforce Act (S. 722 / H.R. 1477) will expand eligible uses of tax-favorable 529 savings plans to cover costs associated with workforce training and credentialing programs, such as professional certifications. Professional-level certifications, such as recreational diving instructor certifications, qualify for the benefits listed under these bills.

529 Savings plans can currently be used for college savings as well as savings for K-12 education.  There are two types of 529 plans: prepaid tuition plans and education savings plans. All fifty states and the District of Columbia sponsor at least one type of 529 plan. Currently, training, certifications and other credentials are ineligible under 529 plans.

The Freedom to Invest in Tomorrow’s Workforce Act Would Provide Economic Flexibility and Opportunity

This bill would provide valuable tax-advantaged resources for workers who pursue career growth, mid-career changes or alternative career pathways, and would help those interested in a professional career in recreational diving. Expanding eligible uses for 529 plans would empower workers of any educational background, skill level or age and would benefit all industries and professions that rely on employees with specialized training or recognized credentials.

American workers and families could use their 529 plans to help cover:

• Certification program tuition
• Testing fees, including practice exams
• Required books and equipment
• Continuing education and certification renewal; and
• Other charges required to obtain and maintain a certification.

How Can You Help?

Reach out to your U.S. Senators and Representative and ask them to support The Freedom to Invest in Tomorrow’s Workforce Act (S. 722 / H.R. 1477). You can find your lawmakers at these links.

• Find your Senators here
• Find your Representative here
  

DEMA’s Manufacturing Purchase Index – How Important Market Research Impacts Public Policy

DEMA has published the fourth quarter 2023 Manufacturing Purchase Index (MPI) and will soon begin publishing figures for Q1 2024, marking the beginning of the second year for this important index. This manufacturing sector includes New Orders and Inventories in key diving equipment Categories. Data from the MPI reports, covering quarter 4 (Q4) of 2023 and comparing them to Q4 2022 and Q3 2023 is now available for download or purchase.

DEMA’s MPI is unique in that it captures aggregate trend data for New Orders and for Inventory in stock on a quarterly basis.  Participating manufacturers report to an independent third-party administrator (TPA) to ensure their data remains confidential and secure. Reporting consists of companies comparing their data points in the current reporting period to those in the previous quarter, as well as to the same quarter during the previous year.  

• New Orders: Reflects the levels of new orders received from customers.
• Inventories: Reflects the changes in inventory levels in stock at the time of the report.

Aggregated trend data is available on both Equipment Type and Category. The Category definitions can be found within the report and include Soft Goods, Exposure Protection, Hard Goods and Accessories and Bags.  Each Category is further defined within the reports as Equipment Types, and include regulators, BCs, fins, masks, snorkels, wetsuits, drysuits, and more.

This research, along with DEMA’s Certification Census, the most recent Diver Behavioral Research, and DEMA’s recent Blueprint for Growth Retail Operation Data are all critical to DEMA’s ability to advocate on behalf of the industry.

The recreational diving industry gains a better understanding of the health of the industry in the U.S. by observing diver activities and preferences as well as sales data. The Manufacturing Purchase Index trend data was provided by DEMA-member manufacturers and includes both domestic and international new orders and inventory data.  The results provide key data points that help members of the industry but can also greatly assist DEMA in its public policy work.

For example, in DEMA’s year-long battle to overturn onerous regulations that have caused vessel and operations insurance to skyrocket, having data on the trends currently impacting the manufacturing sector (and other sectors) has been instrumental in helping lawmakers understand the nature of the dive industry.

Without having trend data available on the manufacturing sector, the diving industry will not be heard over industries that are more willing to provide business information on their industry size: industries like snow-related sports, recreational fishing, recreational vehicles, and boating. These multi-billion-dollar industries easily get the attention of lawmakers when they are willing to provide data about user behaviors, industry dollars, participation rates and trends in manufacturing. Without similar data, the diving industry is ignored by policy makers.

DEMA’s research efforts are critical to ensuring that our voice is heard by lawmakers and administrative agencies. Industry members also use this critical data to help grow their own businesses, as well as for use in making sure that the diving industry in the U.S. continues to avoid problems caused by unnecessary regulation.

DEMA will continue to publish more manufacturing research each quarter to help the entire industry understand more about the status of the sport. Please follow DEMA’s research efforts at www.dema.org and when surveys come your way, please participate. If you are a DEMA-member manufacturer selling rubber goods (masks, fins, snorkels, exposure protection) and hard goods such as regulators, BCs and computers, and are interested in participating, apply to be part of the MPI here.  

It’s good for your business and helps DEMA provide information that keeps dive sites open, and limits or eliminates unnecessary regulation!

How Can You Help?

Download and use this information – data on the current status of manufacturing is relevant to every sector of the diving industry. DEMA Members can download the broad Q4 Manufacturing Purchase Index Category reports at no cost, and non-members can pay a non-member rate for this data.  DEMA Members also have access to more detailed Q4 Equipment Type data at member rates, while others can purchase this data at non-member rates. Reports are available in the DEMA Store.

If your key manufacturer is NOT participating in the MPI, please ask them to participate by sharing this link with your representative – more manufacturers participating will help the entire industry!

• The Corporate Transparency Act
• PFAS and the Recreational Diving Industry – FREE Webinar March 7th
• UPDATE: Final Rules on Independent Contractor/Employees Released by U.S. Department of Labor
• Help Support the Freedom to Invest in Tomorrow’s Workforce Act
• Help Fight Rising U.S. Insurance Rates by Joining the DIVE BOAT Act Social Media Campaign 
• Legislation Watch for February: Florida 
• DEMA’s Retail Advertising Survey—Deadline to Participate Extended to March 12th
  

The Corporate Transparency Act

The Corporate Transparency Act (CTA) went into effect on January 1, 2024, impacting millions of small businesses across the U.S. Signed into law under the current administration in 2021, CTA purportedly was enacted to “prevent corrupt and other actors from laundering illicit funds through anonymous companies in the United States. This effort will equip law enforcement and other partners with the information they need to disrupt financial anonymity that enables crimes such as corruption, drug trafficking, and terrorism.” 

According to the U.S. Treasury, “CTA requires many companies formed or operating in the United States to report information about their beneficial owners to Treasury’s Financial Crimes Enforcement Network (FinCEN), which will store this sensitive information in a secure, confidential database.” Businesses that meet the specified criteria are considered a “Reporting Company,” and must submit a Beneficial Ownership Information Report (BOIR) to the Department of Treasury FinCEN and may incur criminal or civil penalties for not filing or updating this report.

Which Companies Must File?

A “Reporting Company” is defined as a corporation, limited liability company (LLC), or any other privately held company, whether domestic or foreign, registered to conduct business in the U.S. with the Secretary of State or similar office. Publicly traded companies do not fall under the CTA, as they are subject to their own reporting requirements. 

• A domestic reporting company is defined as any entity that is a corporation, a limited liability company, or is created by the filing of a document with a Secretary of State or similar office under the law of a state or Indian tribe. 
• A foreign reporting company is defined as any entity that is a corporation, a limited liability company, or other entity formed under the law of a foreign country and registered to do business in any state or tribal jurisdiction by the filing of a document with a Secretary of State or similar office under the law of a state or Indian tribe.

What Entities are Exempt and Are NOT REQUIRED to File a BOIR Report?

There are 23 exemptions. Most are for companies that are already subject to substantial federal or state regulation under which their beneficial ownership may already be known. Most recreational diving businesses domiciled or doing business in the U.S. will be required to file. A detailed list of exemptions can be found here. 

If your company is not an LLC or corporation, contact your legal counsel to determine whether your business falls under the definition of a reporting company.

Who is a Beneficial Owner? What Information Is Required?

A beneficial owner is any individual who owns or controls at least 25% of an organization, or directly or indirectly exercises substantial control in any of the following roles:

• They serve as a senior officer, such as a president, CEO, or general counsel.
• They have the authority to appoint or remove senior officers, board members, or other similar roles.
• They make important decisions concerning the company’s business, finances, and/or structure.

Eligible small businesses will need to report the following information about their companies:

• The full legal name of the company.
• The company’s business address; P.O. boxes or lawyer’s/adviser’s offices cannot be accepted.
• The state or Tribal jurisdiction where the company was formed or first registered.
• The taxpayer identification number and an identity document, such as a filed Articles of Incorporation or Organization.

Corporate transparency reports must also include the below information about any beneficial owners:

• Their full legal name and date of birth.
• Their home address; P.O. boxes or lawyer’s/adviser’s offices cannot be accepted.
• A photocopy of their U.S. driver’s license or passport. 

Once you have identified any beneficial owners, contact each to inform them that the CTA requires your business to report their personal information to FinCEN. Beneficial owners can choose to apply for a FinCEN Identifier and provide information to FinCEN directly. If the beneficial owner chooses to send the information directly, you have them download a copy of the blank BOIR form as a PDF here and fill in the information. They can then upload the completed PDF using this page (Adobe Acrobat required). Otherwise, they can send the necessary information directly to you (the company) to be included in your business’s beneficial ownership information report.

By What Date is Filing Required?

A reporting company created or registered to do business before January 1, 2024, will have until January 1, 2025, to file its initial beneficial ownership information report.

A reporting company created or registered on or after January 1, 2024, and before January 1, 2025, will have 90 calendar days after receiving notice of the company’s creation or registration to file its initial BOI report. This 90-calendar day deadline runs from the time the company receives actual notice that its creation or registration is effective, or after a secretary of state or similar office first provides public notice of its creation or registration, whichever is earlier.

Reporting companies created or registered on or after January 1, 2025, will have 30 calendar days from actual or public notice that the company’s creation or registration is effective to file their initial BOI reports with FinCEN.

Future Updates

FinCEN is engaging in an outreach and education campaign to establish awareness. These efforts include continually issuing guidance available at www.fincen.gov/boi, multimedia resources, webinars and events, and a widespread public awareness campaign incorporating key stakeholder engagement. Businesses should subscribe to these updates to be sure of any changes.

PFAS and the Recreational Diving Industry

Per- and polyfluoroalkyl substances (PFAS) represent a large group of synthetic chemicals that have been in use since the 1940s in a wide variety of consumer and industrial products. While PFAS can take different forms, their common characteristic is the presence of multiple fluorine atoms. The carbon–fluorine bond is the strongest chemical bond in organic chemistry.

Due to the strength of the carbon–fluorine bond, the PFAS molecules are chemically very stable and are highly resistant to biological degradation. PFAS repel both water and oil, giving them excellent surfactant capabilities. 

What Does Science Say About PFAS Impact on Human Health?

With PFAS detections in the environment, federal and state agencies are increasingly vocalizing their opinion that PFAS should be banned, although little is known about how these substances might affect human health.  As admitted by David Ross, U.S. EPA Assistant Administrator for Water, during a March 28 2023 congressional hearing on PFAS, “the body of science necessary to fully understand and regulate these chemicals is not yet as robust as it needs to be.” And the National Center for Environmental Health continues to report on its website that “[s]tudies in humans and animals are inconsistent and inconclusive but suggest that certain PFAS may affect a variety of possible endpoints. Confirmatory research is needed.”

Until the data can provide more consistent information about how, or if, PFAS cause harm, federal and state agencies should take caution in adopting onerous regulatory requirements that provide uncertain or non-existent health benefits.

FREE WEBINAR

Several U.S. states, such as California and Maine, as well as the U.S. federal government have moved to ban the sale of products using PFAS. The laws proposed or enacted can be confusing and will have an impact on recreational diving products. 

To help members of the diving industry understand the complex PFAS (and other current) laws, DEMA is working with attorney Anne Marie Ellis and the Buchalter Law Group to provide FREE access to a live WEBINAR on March 7, delving into the most pressing legal challenges and topics facing businesses in California. This webinar will provide information that is useful to operators in all states, as more states follow California’s example.

The Free Webinar will cover:

• Telephone Consumer Protection Act (TCPA) and California Invasion of Privacy Act (CIPA) claims.
• Consumers Legal Remedies Act and False Advertising Claims.
• California’s Proposition 65 and Per- and Polyfluorinated Substances (“PFAS”) Laws.
• ADA/California Unruh Act Compliance- for Websites and Brick and Mortar Locations.
  

You can register for the webinar by clicking here.

UPDATE: Final Rules on Independent Contractor/Employees Released by U.S. Department of Labor

In January, the long-delayed federal rules on classifying Independent Contractors versus Employees were published by the Department of Labor (DOL) and must be implemented effective March 11, 2024. 

As expected, these federal rules mirror those found in California. The new U.S. federal guidance should assist in determining if a worker should be classified as an employee or independent contractor.  For those in the diving industry currently hiring instructors, equipment technicians, or other positions as independent contractors, this change in the rules could have a significant impact on your cost of doing business. DEMA strongly advises consulting with your employment attorney and tax specialist as these are implemented in the first quarter of the year.  

The Department of Labor (DOL) has issued the long-awaited regulations addressing how to analyze whether a worker is an employee or an independent contractor under the Fair Labor Standards Act (FLSA). These regulations are effective March 11, 2024. Employees receive the protection of the FLSA while Independent Contractors are in business for themselves and are not covered by the FLSA.

Under these new rules, whether a worker is an employee, or an independent contractor is determined by the “Economic Reality Test” – a six-factor test that examines the worker’s actual relationship with the employer. When the totality of the economic realities indicates that the worker is dependent on the employer for work, then the worker is considered an employee and must be given the protections of the FLSA. When the totality of the relationship indicates that the worker is in business for themselves, then the worker is an independent contractor and is ineligible for these FLSA protections.

The DOL presumes that these six primary factors are an analysis based on the “totality of the circumstances,” which will likely require much more work on the employer’s part to select the correct classification. The six factors include the following:

1. Opportunity for the worker’s profit or loss depending on managerial skill,
2. Investments by the worker and the employer - is the worker’s investment either capital or entrepreneurial, and what is the worker’s investment relative to employer’s investment,
3. Nature and degree of control over the worker.
4. Degree of permanence of the work relationship,
5. Is work performed an “integral” part of the employer’s business?
6. Skill and initiative.

The new rule also includes a seventh factor, an “others as needed” clause. DOL indicates that “Additional factors may be used as well if they are relevant to whether the worker is in business for themselves or is economically dependent on the employer for work.” 

Note: These new rules only apply when determining worker classification under federal wage and hour laws. Employers might also have compliance obligations regarding the complex tests for determining worker status under additional federal, state, local, and other regulations, and laws.

A brief explanation of each factor may provide a better understanding of these rules. These explanations are from the DOL, but it is critical that dive operators consult with an employment attorney and tax specialist to be certain these rules are followed.

Opportunity for profit or loss depending on managerial skill.

If a worker has no opportunity to negotiate a fee for the work they complete, does not hire others, cannot reject a task, and other actions, they may be considered an employee. 

The investments by the worker and the employer.

This new rule states that an investment borne by the worker must be capital or entrepreneurial in nature to indicate independent contractor status.  For example, the worker may be more likely to be considered an independent contractor if the worker occasionally completes projects for a local firm, buys their own equipment or tools, spends money to market their services, and in general is in business for themself. Other factors will also play a role in determining their status. These types of investments support an independent business and would likely be viewed as capital in nature (e.g., they allow the worker to do more work and extend their market reach). 

Nature and degree of control over the worker.

According to the new rules, if control can be exerted directly in the workplace by an employer, such as when it sets a worker’s schedule, compels attendance, or directs or supervises the work, the worker is more likely an employee. Employers may also exercise control in other ways, such as by relying on technology to supervise a workforce, setting prices for services, or restricting a worker’s ability to work for others—actions that can exert control without the traditional use of direct supervision, assignment, or scheduling. If the employer/business (not the worker) conducts itself in these ways, the workers being scheduled may be considered employees.

Degree of permanence of the work relationship

Under this requirement, if the time frame for the job being done is continuous or indefinite, an “employee/employer” relationship is likely suggested.  A project-based or non-exclusive relationship could indicate independent contractor status. 

Is work performed an “integral” part of the employer’s business?

If the work performed is critical or central to the principal business (e.g., selling dive equipment, instruction and travel), then it may be considered an “integral part” and the worker will likely be considered an employee.  If the work performed is ancillary to the business, such as an accounting service for a dive center – then the worker may be considered an independent contractor.

Skill and Initiative

The new rule indicates that the determination of employee or independent contractor should consider whether a worker uses their own specialized skills to perform the work and whether those skills contribute to business-like initiative that is consistent with the worker being in business for themself instead of being economically dependent on the employer.

If a worker needs training or is applying no specialized skills to perform tasks, then the indication would be that their status is an employee. 

How Could the New Worker Classification Rule Impact Businesses and the Economy?

As implemented, the impact of this new rule will likely be felt across all industries, as all employers will have to navigate a more complex and stringent test to avoid the significant liability that can result from worker misclassification.

According to a study released in January 2024 by the Mercatus Center, a free market think tank housed at George Mason University rules implemented in California in 2019, which mirror the new federal regulations, caused self-employment in that state to fall by 10.5 percent and overall employment dropped by 4.4 percent. In professions where self-employment was more common, the effects were more dramatic, and in some fields, employment declined by as much as 28 percent after California’s A.B. 5 was implemented.  

Many sources indicate that the new federal rules could have dramatic financial implications for employers, particularly when the changes suggest individuals formerly classified as independent contractors should be classified as employees and are perhaps eligible for the employer’s health coverage and retirement benefits. It is widely expected that ride-sharing services and other app-based businesses – those impacted directly by these new rules - will sue the Department of Labor over its new policy, potentially delaying or blocking its implementation.

Readers should be aware that misclassifying a worker can have serious financial consequences for a business, including owing fines, penalties, back wages, and back taxes. Employers/businesses should review the Department of Labor information about new classifications to ensure they are in compliance and should seek the advice of their employment attorney and tax specialist. A DOL Small Entity Compliance Guide can be found here.

Help Support for the Freedom to Invest in Tomorrow’s Workforce Act

The bipartisan, bicameral Freedom to Invest in Tomorrow’s Workforce Act (S. 722 / H.R. 1477) would expand eligible uses of tax-favorable 529 savings plans to cover costs associated with workforce training and credentialing programs, such as professional certifications. Professional-level certifications, such as recreational diving instructor certifications, qualify for the benefits listed under these bills.

529 Savings plans can currently be used for college savings as well as savings for K-12 education.  There are two types of 529 plans: prepaid tuition plans and education savings plans. All fifty states and the District of Columbia sponsor at least one type of 529 plan. Currently, training, certifications and other credentials are ineligible under 529 plans.

The Freedom to Invest in Tomorrow’s Workforce Act Would Provide Economic Flexibility and Opportunity

This bill would provide valuable tax-advantaged resources for workers who pursue career growth, mid-career changes or alternative career pathways, and would help those interested in a professional career in recreational diving. Expanding eligible uses for 529 plans would empower workers of any educational background, skill level or age and would benefit all industries and professions that rely on employees with specialized training or recognized credentials.

American workers and families could use their 529 plans to help cover:

• Certification program tuition
• Testing fees, including practice exams
• Required books and equipment
• Continuing education and certification renewal; and
• Other charges required to obtain and maintain a certification.

How Can You Help?

Reach out to your U.S. Senators and Representative and ask them to support The Freedom to Invest in Tomorrow’s Workforce Act (S. 722 / H.R. 1477). You can find your lawmakers at these links.

• Find your Senators here
• Find your Representative here
  

Help Fight Rising U.S. Insurance Rates by Joining the DIVE BOAT Act Social Media Campaign

DIVE BOAT Act Update

Even with the ongoing dysfunction in Washington, DEMA continues its efforts to push the DIVE BOAT Act forward. Our team developed policy language with the support of outside actuaries to provide dive boat and shop operators with much needed commercial insurance relief. 

Since the beginning of 2024 DEMA’s team has been meeting with Members of Congress to help them understand the real-world costs that operators and consumers face as a result of the Small Passenger Vessel Act, which was included in the 2023 National Defense Authorization.  Our initial efforts focused on including the DIVE BOAT Act in the 2024 U.S. Coast Guard Reauthorization. However, the Senate has yet to draft its proposed legislation.  Given this lapse by Congress, DEMA is exploring other legislative “vehicles” that must be passed.  

You may have seen from the news that this has been the least productive Congress in post-WW2 history, with fewer than 40 bills passed during the last 14 months. For comparison, the prior record for the most “do nothing Congress” was in 2013-2014, with 72 bills. However, DEMA is forging ahead and have instead only redoubled our efforts to educate Members and Senators about the challenges our community face. 

We still need your help to spread word to policymakers and consumers across the country. Now is a great time to leverage DEMA’s social media campaign materials to educate the community about the reason for increased costs and ask for their support of the DIVE BOAT Act with divers planning for Spring and Summer Vacations.

If you haven’t yet contacted your U.S. House Representative or two U.S. Senators, please do so here.  We also invite you to share with us directly your experience of increased costs. 

DEMA’s Retail Advertising Survey: Deadline to Participate Extended to March 12th

In February 2024, DEMA launched a Retailer Advertising Research Survey. The survey requests advertising information from retail stores worldwide, with the goal of obtaining benchmarking information for all retailers and answering insightful advertising and marketing questions. The results of the survey will include information about almost every aspect of dive retail advertising and marketing, from budget planning to time spent on organic marketing.

Retail dive centers worldwide are encouraged to participate in the survey. Click here to learn more and participate. The survey will close at 4:00 p.m. Pacific Time on March 12, 2024.

This type of data, along with DEMA’s Certification Census, and the most recent Diver Behavioral Research, are all critical to DEMA’s ability to advocate on behalf of the industry. The recreational diving industry gains a better understanding of the health of the industry in the U.S. by observing retail operational data and preferences, along with other operational facets. The results of these studies provide key data points that help members of the industry but can also greatly assist DEMA in its public policy work.

Trends in advertising are indicative of retail innovation and ingenuity. As more retailers rely on email and social media advertising, retailers ae saving money when compared to many other ad forms.  Those retailers who also gather and utilize other data for advertising can also gain a better understanding of who their customers are, their spending habits and even demographic data. The advertising survey data gathered helps DEMA and members of the industry understand trends and strategies that work well and help eliminate those that don’t.  

Without basic trend data, lawmakers are less likely to hear the diving industry over industries that are more willing to provide business information on their industry size: industries like snow-related sports, recreational fishing, recreational vehicles, and boating. These multi-billion-dollar industries easily get the attention of lawmakers when they are willing to provide data about user behaviors, industry dollars, participation rates and trends in retail, manufacturing, travel, and training. Without similar data, the diving industry is ignored by policy makers.

DEMA’s research efforts are critical to ensuring that our voice is heard by lawmakers and administrative agencies. Industry members also use this critical data to help grow their own businesses, as well as for use in making sure that the diving industry in the U.S. continues to avoid problems caused by unnecessary regulation.

DEMA will continue to publish more research to help the entire industry understand good professional practices. Please follow DEMA’s research efforts at www.dema.org and when surveys, such as the current advertising survey come your way, please participate. It’s good for your business and helps DEMA provide benchmarking information that may help keep dive sites open or limits unnecessary regulation!

How Can You Help?

If you are a retailer, please take the DEMA Advertising Survey! Hurry! The survey closes on March 12.

• UPDATE: Final Rules on Independent Contractor/Employees Released by U.S. Department of Labor
• Reese’s Law and the Diving Industry – Affecting Devices Using Button and Coin Batteries
• Help Support the Freedom to Invest in Tomorrow’s Workforce Act
• Help Fight Rising U.S. Insurance Rates by Joining the DIVE BOAT Act Social Media Campaign
• Legislation Watch for January: Florida
• DEMA’s Manufacturing Purchase Index – How Important Market Research Impacts Public Policy

UPDATE: Final Rules on Independent Contractor/Employees Released by U.S. Department of Labor

Earlier this month the long-delayed federal rules on classifying Independent Contractors versus Employees were published by the Department of Labor (DOL) and must be implemented effective March 11, 2024. 

As expected, these federal rules mirror those found in California. The new U.S. federal guidance should assist in determining if a worker should be classified as an employee or independent contractor.  For those in the diving industry currently hiring instructors, equipment technicians, or other positions as independent contractors, this change in the rules could have a significant impact on your cost of doing business. DEMA strongly advises consulting with your employment attorney and tax specialist as these are implemented in the first quarter of the year.  

The Department of Labor (DOL) has issued the long-awaited regulations addressing how to analyze whether a worker is an employee or an independent contractor under the Fair Labor Standards Act (FLSA). These regulations are effective March 11, 2024. Employees receive the protection of the FLSA while Independent Contractors are in business for themselves and are not covered by the FLSA.

Under these new rules, whether a worker is an employee, or an independent contractor is determined by the “Economic Reality Test” – a six-factor test that examines the worker’s actual relationship with the employer. When the totality of the economic realities indicates that the worker is dependent on the employer for work, then the worker is considered an employee and must be given the protections of the FLSA. When the totality of the relationship indicates that the worker is in business for themselves, then the worker is an independent contractor and is ineligible for these FLSA protections.

The DOL presumes that these six primary factors are an analysis based on the “totality of the circumstances,” which will likely require much more work on the employer’s part to select the correct classification. The six factors include the following:

1. Opportunity for the worker’s profit or loss depending on managerial skill,
2. Investments by the worker and the employer - is the worker’s investment either capital or entrepreneurial, and what is the worker’s investment relative to employer’s investment,
3. Nature and degree of control over the worker.
4. Degree of permanence of the work relationship,
5. Is work performed an “integral” part of the employer’s business?
6. Skill and initiative.

The new rule also includes a seventh factor, an “others as needed” clause. DOL indicates that “Additional factors may be used as well if they are relevant to whether the worker is in business for themselves or is economically dependent on the employer for work.” 

Note: These new rules only apply when determining worker classification under federal wage and hour laws. Employers might also have compliance obligations regarding the complex tests for determining worker status under additional federal, state, local, and other regulations, and laws.

A brief explanation of each factor may provide a better understanding of these rules. These explanations are from the DOL, but it is critical that dive operators consult with an employment attorney and tax specialist to be certain these rules are followed.

Opportunity for profit or loss depending on managerial skill.

If a worker has no opportunity to negotiate a fee for the work they complete, does not hire others, cannot reject a task, and other actions, they may be considered an employee. 

The investments by the worker and the employer.

This new rule states that an investment borne by the worker must be capital or entrepreneurial in nature to indicate independent contractor status.  For example, the worker may be more likely to be considered an independent contractor if the worker occasionally completes projects for a local firm, buys their own equipment or tools, spends money to market their services, and in general is in business for themself. Other factors will also play a role in determining their status. These types of investments support an independent business and would likely be viewed as capital in nature (e.g., they allow the worker to do more work and extend their market reach). 

Nature and degree of control over the worker.

According to the new rules, if control can be exerted directly in the workplace by an employer, such as when it sets a worker’s schedule, compels attendance, or directs or supervises the work, the worker is more likely an employee. Employers may also exercise control in other ways, such as by relying on technology to supervise a workforce, setting prices for services, or restricting a worker’s ability to work for others—actions that can exert control without the traditional use of direct supervision, assignment, or scheduling. If the employer/business (not the worker) conducts itself in these ways, the workers being scheduled may be considered employees.

Degree of permanence of the work relationship

Under this requirement, if the time frame for the job being done is continuous or indefinite, an “employee/employer” relationship is likely suggested.  A project-based or non-exclusive relationship could indicate independent contractor status. 

Is work performed an “integral” part of the employer’s business?

If the work performed is critical or central to the principal business (e.g., selling dive equipment, instruction and travel), then it may be considered an “integral part” and the worker will likely be considered an employee.  If the work performed is ancillary to the business, such as an accounting service for a dive center – then the worker may be considered an independent contractor.

Skill and Initiative

The new rule indicates that the determination of employee or independent contractor should consider whether a worker uses their own specialized skills to perform the work and whether those skills contribute to business-like initiative that is consistent with the worker being in business for themself instead of being economically dependent on the employer.

If a worker needs training or is applying no specialized skills to perform tasks, then the indication would be that their status is an employee. 

How Could the New Worker Classification Rule Impact Businesses and the Economy?

As implemented, the impact of this new rule will likely be felt across all industries, as all employers will have to navigate a more complex and stringent test to avoid the significant liability that can result from worker misclassification.

According to a study released in January 2024 by the Mercatus Center, a free market think tank housed at George Mason University rules implemented in California in 2019, which mirror the new federal regulations, caused self-employment in that state to fall by 10.5 percent and overall employment dropped by 4.4 percent. In professions where self-employment was more common, the effects were more dramatic, and in some fields, employment declined by as much as 28 percent after California’s A.B. 5 was implemented.  

Many sources indicate that the new federal rules could have dramatic financial implications for employers, particularly when the changes suggest individuals formerly classified as independent contractors should be classified as employees and are perhaps eligible for the employer’s health coverage and retirement benefits. It is widely expected that ride-sharing services and other app-based businesses – those impacted directly by these new rules - will sue the Department of Labor over its new policy, potentially delaying or blocking its implementation.

Readers should be aware that misclassifying a worker can have serious financial consequences for a business, including owing fines, penalties, back wages, and back taxes. Employers/businesses should review the Department of Labor information about new classifications to ensure they are in compliance and should seek the advice of their employment attorney and tax specialist. A DOL Small Entity Compliance Guide can be found here.

Reese’s Law and the Diving Industry – Affecting Devices Using Button and Coin Batteries

In 2022, in response to the death of an 18-month-old child who ingested a button battery and died, a new U.S. law was enacted requiring the U.S. Consumer Product Safety Commission (CPSC) to create safety standards for button batteries to ensure they are safe for children in their packaging and when they are in household devices such as remote controls and key fobs. The law is named after the 18-month-old Reese Hamsmith.

In September 2023 the U.S. CPSC voted to adopt the previously voluntary standard, making it mandatory. The now-mandatory standard is ANSI/UL 4200A-2023 Standard for Safety for Products Incorporating Button Batteries or Coin Cell Batteries. The Commission also established labeling requirements for button cell or coin battery packaging, to warn of the ingestion hazard to children.

Per ANSI/UL 4200A-2023, the requirements for consumer products containing or designed to use button cell or coin batteries are as follows:

• Battery compartments containing replaceable button cell or coin batteries must be secured such that they require the use of a tool or at least two independent and simultaneous hand movements to open.
• Button cell or coin battery compartments must not allow such batteries to be accessed or liberated as a result of use and abuse testing.
• The packaging for the overall product must bear a warning.
• The product itself must bear a warning, if practicable.
• Accompanying instructions and manuals must include all of the applicable warnings.

Additionally, the law requires that any button cell or coin battery offered for sale, manufactured for sale, imported into the U.S., or included separately with a consumer product, meet the child-resistant packaging requirements in the Poison Prevention Packaging Standards after February 12, 2023.

The CPSC has published a direct final rule (88 FR 65274) that incorporates by reference ANSI/UL 4200A-2023 as the mandatory safety standard. The requirements are codified at 16 CFR part 1263 and apply to consumer products that contain button cell or coin batteries manufactured or imported on or after October 23, 2023. Third party testing and certification of children’s products subject to 16 CFR part 1263 is not required until on or after December 20, 2023.

A “button cell or coin battery” that is subject to the requirements of 16 CFR part 1263 means a single cell battery with a diameter greater than the height of the battery. The rule excludes zinc-air button cell or coin batteries from the scope of 16 CFR part 1263.

The Commission recognizes that there may be limited testing availability and potential hardship with meeting the mandatory requirements; therefore, the Commission has granted an enforcement discretion such that these requirements will apply to products manufactured or imported after March 19, 2024

READ ANSI/UL 4200A-2023 HERE
 Note: You will need to register/log in to view the standard

Help Support for the Freedom to Invest in Tomorrow’s Workforce Act

The bipartisan, bicameral Freedom to Invest in Tomorrow’s Workforce Act (S. 722 / H.R. 1477) would expand eligible uses of tax-favorable 529 savings plans to cover costs associated with workforce training and credentialing programs, such as professional certifications. Professional-level certifications, such as recreational diving instructor certifications, qualify for the benefits listed under these bills.

529 Savings plans can currently be used for college savings as well as savings for K-12 education.  There are two types of 529 plans: prepaid tuition plans and education savings plans. All fifty states and the District of Columbia sponsor at least one type of 529 plan. Currently, training, certifications and other credentials are ineligible under 529 plans.

The Freedom to Invest in Tomorrow’s Workforce Act Would Provide Economic Flexibility and Opportunity

This bill would provide valuable tax-advantaged resources for workers who pursue career growth, mid-career changes or alternative career pathways, and would help those interested in a professional career in recreational diving. Expanding eligible uses for 529 plans would empower workers of any educational background, skill level or age and would benefit all industries and professions that rely on employees with specialized training or recognized credentials.

American workers and families could use their 529 plans to help cover:

• Certification program tuition
• Testing fees, including practice exams
• Required books and equipment
• Continuing education and certification renewal; and
• Other charges required to obtain and maintain a certification.

How Can You Help?

Reach out to your U.S. Senators and Representative and ask them to support The Freedom to Invest in Tomorrow’s Workforce Act (S. 722 / H.R. 1477). You can find your lawmakers at this links.

• Find your Senators here
• Find your Representative here
  

Help Fight Rising U.S. Insurance Rates by Joining the DIVE BOAT Act Social Media Campaign

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.

How Can You Help?

Several dive stores are helping DEMA reach out to members of Congress, and we need your help too! Here are some steps YOU can take NOW:

• Contact your members of Congress.  You can do this easily TODAY by clicking here and sending an email to your U.S. Senators and Member of the U.S. House, asking them to support The DIVE BOAT Act. You can even send a tweet directly to them, asking them for their support.
• Insurance prices are on the way up. If you are being impacted by these price increases, please share this with us by using this link. 
• Please help spread the word about The DIVE BOAT Act. Ask your fellow divers and diving professionals to help us! Share the social media campaign images and messages TODAY with your social media followers, asking for their support of The DIVE BOAT Act. 

ACCESS CAMPAIGN MATERIALS & START SHARING

DEMA’s Manufacturing Purchase Index – How Important Market Research Impacts Public Policy

DEMA has published the third quarter 2023 Manufacturing Purchase Index (MPI) and will soon publish the fourth quarter. This manufacturing sector report is the result of two years’ work to develop a simplified but useful manufacturing report that includes New Orders and Inventories in key diving equipment Categories. Data from the MPI reports, covering quarter 3 (Q3) of 2023 and comparing them to Q3 2022 and Q2 2023 is now available for download or purchase.

DEMA’s MPI is unique in that it captures aggregate trend data for New Orders and for Inventory in stock on a quarterly basis.  Participating manufacturers report to an independent third-party administrator (TPA) to ensure their data remains confidential and secure. Reporting consists of companies comparing their data points in the current reporting period to those in the previous quarter, as well as to the same quarter during the previous year. 

• New Orders: Reflects the levels of new orders received from customers.
• Inventories: Reflects the changes in inventory levels in stock at the time of the report.

Aggregated trend data is available on both Equipment Type and Category. The Category definitions can be found within the report and include Soft Goods, Exposure Protection, Hard Goods and Accessories and Bags.  Each Category is further defined within the reports as Equipment Types, and include regulators, BCs, fins, masks, snorkels, wetsuits, drysuits, and more.

This research, along with DEMA’s Certification Census, and the most recent Diver Behavioral Research, are all critical to DEMA’s ability to advocate on behalf of the industry.

The recreational diving industry gains a better understanding of the health of the industry in the U.S. by observing diver activities and preferences as well as sales data. The Manufacturing Purchase Index trend data was provided by DEMA-member manufacturers and includes both domestic and international new orders and inventory data.  The results provide key data points that help members of the industry but can also greatly assist DEMA in its public policy work.

For example, in DEMA’s year-long battle to overturn onerous regulations that have caused vessel and operations insurance to skyrocket, having data on the trends currently impacting the manufacturing sector (and other sectors) has been instrumental in helping lawmakers understand the nature of the dive industry.

Without having trend data available on the manufacturing sector, the diving industry will not be heard over industries that are more willing to provide business information on their industry size: industries like snow-related sports, recreational fishing, recreational vehicles, and boating. These multi-billion-dollar industries easily get the attention of lawmakers when they are willing to provide data about user behaviors, industry dollars, participation rates and trends in manufacturing. Without similar data, the diving industry is ignored by policy makers.

DEMA’s research efforts are critical to ensuring that our voice is heard by lawmakers and administrative agencies. Industry members also use this critical data to help grow their own businesses, as well as for use in making sure that the diving industry in the U.S. continues to avoid problems caused by unnecessary regulation.

DEMA will continue to publish more manufacturing research each quarter to help the entire industry understand more about the status of the sport. Please follow DEMA’s research efforts at www.dema.org and when surveys come your way, please participate. If you are a DEMA-member manufacturer selling rubber goods (masks, fins, snorkels, exposure protection) and hard goods such as regulators, BCs and computers, and are interested in participating, apply to be part of the MPI here. It’s good for your business and helps DEMA provide information that keeps dive sites open, and limits or eliminates unnecessary regulation!

How Can You Help?

Download and use this information – data on the current status of manufacturing is relevant to every sector of the diving industry. DEMA Members can download the broad Q3 Manufacturing Purchase Index Category reports at no cost, and non-members can pay a non-member rate for this data.  DEMA Members also have access to more detailed Q3 Equipment Type data at member rates, while others can purchase this data at non-member rates. Reports are available in the DEMA Store.

If your key manufacturer is NOT participating in the MPI, please ask them to participate by sharing this link with your representative – more manufacturers participating will help the entire industry!

• Florida Stops Manatee Feeding Program 
• Reese’s Law and the Diving Industry – Affecting Devices Using Button and Coin Batteries
• UPDATE: Industry Awaits Final Rules on Independent Contractor/Employees
• Help Support the Freedom to Invest in Tomorrow’s Workforce Act
  
• Help Fight Rising U.S. Insurance Rates by Joining the DIVE BOAT Act Social Media Campaign
• DEMA’s Certification Census – How Important Market Research Impacts Public Policy

Florida Stops Manatee Feeding Program

The state of Florida has halted a controversial feeding program begun two years ago which provided lettuce to starving manatees. Many manatees died off in 2021 and 2022 due in part to starvation. In addition to deaths caused by vessel collisions and other causes, the manatees’ primary food source, seagrass, was lost due to pollution, leaving the manatees unable to find sufficient food to stay alive.

The feeding program, providing large amounts of lettuce to the starving manatees, began in 2021, in response to the deaths of a record 1,100+ manatees. The state of Florida dropped more than 202,000 pounds of lettuce in the warm water near a Cape Canaveral power plant, where manatees gather as the weather turns colder. State officials hoped the program would stem the deaths of manatees many of which died as a result of starvation, following a loss of seagrass beds on which they feed, caused by pollution from agriculture, and urban and sewage sources.

The number of manatee deaths is down to about 735 in 2023, triggering the end of the program. According to a December 1 update from the Florida Fisha and Wildlife Commission, “The Atlantic Coast Manatee Unusual Mortality Event (UME) investigation continues as staff review information from multiple research and monitoring efforts. Entering into the 2023/2024 winter season, seagrass monitoring in Mosquito Lagoon indicates adequate foraging resources. Additionally, as we move into winter, there are currently no indications that manatees in this region are in poor or compromised body condition due to the UME.”

LEARN MORE

Reese’s Law and the Diving Industry – Affecting Devices Using Button and Coin Batteries

In 2022, in response to the death of an 18-month-old child who ingested a button battery and died, a new U.S. law was enacted requiring the U.S. Consumer Product Safety Commission (CPSC) to create safety standards for button batteries to ensure they are safe for children in their packaging and when they are in household devices such as remote controls and key fobs. The law is named after the 18-month-old Reese Hamsmith.

In September 2023 the U.S. CPSC voted to adopt the previously voluntary standard, making it mandatory. The now-mandatory standard is ANSI/UL 4200A-2023 Standard for Safety for Products Incorporating Button Batteries or Coin Cell Batteries. The Commission also established labeling requirements for button cell or coin battery packaging, to warn of the ingestion hazard to children.

Per ANSI/UL 4200A-2023, the requirements for consumer products containing or designed to use button cell or coin batteries are as follows:

• Battery compartments containing replaceable button cell or coin batteries must be secured such that they require the use of a tool or at least two independent and simultaneous hand movements to open.
• Button cell or coin battery compartments must not allow such batteries to be accessed or liberated as a result of use and abuse testing.
• The packaging for the overall product must bear a warning.
• The product itself must bear a warning, if practicable.
• Accompanying instructions and manuals must include all of the applicable warnings.

Additionally, the law requires that any button cell or coin battery offered for sale, manufactured for sale, imported into the U.S., or included separately with a consumer product, meet the child-resistant packaging requirements in the Poison Prevention Packaging Standards after February 12, 2023.

The CPSC has published a direct final rule (88 FR 65274) that incorporates by reference ANSI/UL 4200A-2023 as the mandatory safety standard. The requirements are codified at 16 CFR part 1263 and apply to consumer products that contain button cell or coin batteries manufactured or imported on or after October 23, 2023. Third party testing and certification of children’s products subject to 16 CFR part 1263 is not required until on or after December 20, 2023.

A “button cell or coin battery” that is subject to the requirements of 16 CFR part 1263 means a single cell battery with a diameter greater than the height of the battery. The rule excludes zinc-air button cell or coin batteries from the scope of 16 CFR part 1263.

The Commission recognizes that there may be limited testing availability and potential hardship with meeting the mandatory requirements; therefore, the Commission has granted an enforcement discretion such that these requirements will apply to products manufactured or imported after March 19, 2024

READ ANSI/UL 4200A-2023 HERE
 Note: You will need to register/log in to view the standard

UPDATE: Industry Awaits Final Rules on Independent Contractor/Employees

DEMA and the diving Industry still await the long-delayed publication of federal rules on classifying Independent Contractors versus Employees. In September, the Department of Labor (DOL) indicated a new rule was to be issued in October. On October 4, sources reported  that the Labor Department sent its final independent contractor rule to the Office of Management and Budget for review. These reviews can take up to 90 days to complete.  As a result, at this writing, we still have seen no new rules.
  
More than a year ago the DOL published a proposed Employee or Independent Contractor Classification Under the Fair Labor Standards Act and public comments were accepted until the end of December. After considerable delays, the final rules are still not available. The new U.S. federal guidance should assist in determining if a worker should be classified as an employee or independent contractor.  For those in the diving industry currently hiring instructors, equipment technicians, or other positions as independent contractors, this change in the rules could have a significant impact on your cost of doing business. DEMA strongly advises consulting with your employment attorney and tax specialist as these changes become public and go into place.

After receiving more than 54,000 public comments, it is unclear at this writing what the DOL final rules will be, but if final rules follow those proposed, significant changes will likely occur.  

The previous Independent Contractor rules were considered “employer-friendly” and emphasized two key issues to consider when classifying a worker as an “employee” or as an “independent contractor”: 

• Opportunity for the worker’s profit or loss depending on managerial skill,
• Nature and degree of control over the worker.

The proposed rule would include these two factors along with four others for a total of six, to make this determination. Under the proposed rules a seventh factor is also included, almost as an “others as needed” clause. The DOL presumes that the primary factors are an analysis based on the “totality of the circumstances,” which will likely require much more work on the employer’s part to select the correct classification: The other factors are:

• Degree of permanence of the work relationship,
• Is work performed an “integral” part of the employer’s business?
• Skill and initiative,
• Is the worker’s investment either capital or entrepreneurial, and what is the worker’s investment relative to employer’s investment – a determination of whether an individual is economically dependent on the employer. 

Note: These proposed rules only apply when determining worker classification under federal wage and hour laws. Employers might also have compliance obligations regarding the complex tests for determining worker status under additional federal, state, local, and other regulations and laws.

A brief explanation of each factor may provide a better understanding of these proposed rules, but once the final rules are in place, consulting with your employment attorney and tax specialist is a must.

Opportunity for profit or loss depending on managerial skill.

As with the current rules, if a worker has no opportunity to negotiate a fee for the work they complete, does not hire others, cannot reject a task, and other actions, they may be considered an employee. 

Nature and degree of control over the worker.

According to the proposed rules, control can be exerted directly in the workplace by an employer, such as when it sets a worker’s schedule, compels attendance, or directs or supervises the work. Employers may also exercise control in other ways, such as by relying on technology to supervise a workforce, setting prices for services, or restricting a worker’s ability to work for others—actions that can exert control without the traditional use of direct supervision, assignment, or scheduling. If the employer/business (not the worker) conducts itself in these ways, the workers being scheduled may be considered employees.

Degree of permanence of the work relationship

Under this requirement, if the time frame for the job being done is continuous or indefinite, an “employee/employer” relationship is likely suggested.  A project-based or non-exclusive relationship could indicate independent contractor status. 

Is work performed an “integral” part of the employer’s business?

If the work performed is critical or central to the principal business (e.g., selling dive equipment, instruction and travel), then it may be considered an “integral part” and the worker will likely be considered an employee.  If the work performed is ancillary to the business, such as an accounting service for a dive center – then the worker may be considered an independent contractor.

Skill and Initiative

The proposed rule indicates that the determination of employee or independent contractor should consider whether a worker uses specialized skills to perform the work and whether those skills contribute to business-like initiative that is consistent with the worker being in business for themselves instead of being economically dependent on the employer.

If a worker needs training or is applying no specialized skills to perform tasks, then the indication would be that their status is an employee. 

The investments by the worker and the employer.

This proposed rule states that an investment borne by the worker must be capital or entrepreneurial in nature to indicate independent contractor status.  For example, the worker may be more likely to be considered an independent contractor if the worker occasionally completes projects for a local firm, buys their own equipment or tools, spends money to market their services, and in general is in business for themself. Other factors will also play a role in determining their status. These types of investments support an independent business and would likely be viewed as capital in nature (e.g., they allow the worker to do more work and extend their market reach). 

How Could the New Worker Classification Rule Impact Businesses?

If implemented, the impact of this new rule will likely be felt across all industries, as all employers will have to navigate a more complex and stringent test to avoid the significant liability that can result from worker misclassification.

According to Paychex.com, the changes associated with the new rule could have financial implications for employers, particularly when the changes suggest individuals formerly classified as independent contractors should be classified as employees and are perhaps eligible for the employer’s health coverage and retirement benefits. Misclassifying a worker can have serious financial consequences for a business, including owing fines, penalties, back wages, and back taxes. Employers/businesses should review the Department of Labor information about current and proposed classifications to ensure they are complying and should seek the advice of their employment attorney and tax specialist.

Help Support for the Freedom to Invest in Tomorrow’s Workforce Act

The bipartisan, bicameral Freedom to Invest in Tomorrow’s Workforce Act (S. 722 / H.R. 1477) would expand eligible uses of tax-favorable 529 savings plans to cover costs associated with workforce training and credentialing programs, such as professional certifications. Professional-level certifications, such as recreational diving instructor certifications, qualify for the benefits listed under these bills.

529 Savings plans can currently be used for college savings as well as savings for K-12 education.  There are two types of 529 plans: prepaid tuition plans and education savings plans. All fifty states and the District of Columbia sponsor at least one type of 529 plan. Currently, training, certifications and other credentials are ineligible under 529 plans.

The Freedom to Invest in Tomorrow’s Workforce Act Would Provide Economic Flexibility and Opportunity

This bill would provide valuable tax-advantaged resources for workers who pursue career growth, mid-career changes or alternative career pathways, and would help those interested in a professional career in recreational diving. Expanding eligible uses for 529 plans would empower workers of any educational background, skill level or age and would benefit all industries and professions that rely on employees with specialized training or recognized credentials.

American workers and families could use their 529 plans to help cover:

• Certification program tuition;
• Testing fees, including practice exams;
• Required books and equipment;
• Continuing education and certification renewal; and
• Other charges required to obtain and maintain a certification.

How Can You Help?

Reach out to your U.S. Senators and Representative and ask them to support The Freedom to Invest in Tomorrow’s Workforce Act (S. 722 / H.R. 1477). You can find your lawmakers at this links.

• Find your Senators here
• Find your Representative here
  

Help Fight Rising U.S. Insurance Rates by Joining the DIVE BOAT Act Social Media Campaign

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.

How Can You Help?

Several dive stores are helping DEMA reach out to members of Congress, and we need your help too! Here are some steps YOU can take NOW:

• Contact your members of Congress.  You can do this easily TODAY by clicking here and sending an email to your U.S. Senators and Member of the U.S. House, asking them to support The DIVE BOAT Act. You can even send a tweet directly to them, asking them for their support.
• Insurance prices are on the way up. If you are being impacted by these price increases, please share this with us by using this link. 
• Please help spread the word about The DIVE BOAT Act. Ask your fellow divers and diving professionals to help us! Share the social media campaign images and messages TODAY with your social media followers, asking for their support of The DIVE BOAT Act. 

ACCESS CAMPAIGN MATERIALS & START SHARING

DEMA’s Certification Census – How Important Market Research Impacts Public Policy

DEMA will soon publish the Q3 and Q4 2023 Certification Census data, which records the number of Open Water (entry-level) certifications issued in the U.S. and U.S. territories.  

The DEMA Certification Census, along with DEMA’s research on recreational diver behaviors (e.g., the number of annual dives in which they participate, where, etc), consumer buying research, demographic research and manufacturing data, are all critical to DEMA’s ability to advocate on behalf of the industry.

The recreational diving industry gains a better understanding of the health of the industry in the U.S. by observing the number of Open Water certifications issued each quarter. While DEMA’s Certification Census includes only those organizations voluntarily reporting their figures to an independent third party, and for the good of the industry, it remains a key measure that helps in industry planning.

The Quarterly Certification Census report is free to any industry member and accounts for U.S.-issued certifications at the Open Water-level, as defined by the Recreational Scuba Training Council (RSTC). State-by-state data is also available at no charge to DEMA Members and available for purchase by non-members. The Census is valuable in that it helps in planning for the dive retail, manufacturing, and travel sectors. Importantly, DEMA also utilizes this data when advocating on the industry’s behalf.  

For example, during the pandemic when some states were more open to outdoor and retail activity than others, DEMA saw a change in the states with the highest number of certifications issued. The state-by-state certification report, available to members at no cost, indicated a shift away from California issuing the largest number of open water certifications, to Florida taking the top spot.  When advocating on the industry’s behalf for protections of the reef areas or fish species in Florida, this became a highlight that helped to get the attention of agencies like the Florida Fish and Wildlife Commission (FWC), and the National Oceanic and Atmospheric Administration (NOAA).

Absent data on certifications and other critical areas of diving business concern, the diving industry will not be heard over industries, who are more willing to provide business information on their industry size: industries like snow-related sports, recreational fishing, recreational vehicles, and boating. These multi-billion-dollar industries easily get the attention of lawmakers when they are willing to provide data about user behaviors, industry dollars, and participation rates. 

DEMA’s research efforts are critical to ensuring that our voice is heard by lawmakers and administrative agencies. Industry members must also use this critical data to help grow their own businesses, as well as for use in making sure that the diving industry in the U.S. continues to avoid problems caused by unnecessary regulation.

If your certification organization is not a voluntary contributor to the DEMA Certification Census, ask them to join us! Records are confidential and reported to an independent third-party administrator.  Recording this data is good for everyone in the industry!

• The U.S. Federal SHARKED Act
• Industry Awaits Final Rules on Independent Contractor/Employees
• Help Support the Freedom to Invest in Tomorrow’s Workforce Act
• Help Fight Rising U.S. Insurance Rates by Joining the DIVE BOAT Act Social Media Campaign
• DEMA’s Manufacturing Purchase Index - How Important Market Research Impacts Public Policy
• Schedule a Free, Private Prop 65 Attorney Meeting at DEMA Show 2023
  

The U.S. Federal SHARKED Act

The U.S. House Committee on Natural Resources favorably reported the SHARKED Act (HR 4051), which would require the Secretary of Commerce to establish a task force to address shark depredation.

This act includes a mandate to identify research priorities and funding opportunities for such priorities, to include:

• Identifying shark species involved in interactions with humans.
• Shark stock assessments.
• How sharks become habituated to humans, thus leading to more interactions between sharks and humans.
• How angler behavior and fishery regulatory frameworks may influence shark interactions.
• Techniques and strategies to reduce harmful interactions between sharks humans, including the development and use of non-lethal deterrents.
• Develop recommended management strategies to address shark depredation.
  
• Coordinate the development and distribution of educational materials to help the fishing community minimize shark interactions.

The SHARKED Act is currently sponsored, co-sponsored or supported in the House by:

• R Wittman, Robert [R-VA1] Primary Sponsor, Natural Resources - Water, Wildlife and Fisheries Subcommittee
• R Graves, Garret [R-LA6], Original Cosponsor, Natural Resources - Water, Wildlife and Fisheries Subcommittee
• R Webster, Daniel [R-FL11], Natural Resources - Water, Wildlife and Fisheries Subcommittee
• D Soto, Darren [D-FL9], Original Cosponsor
• D Veasey, Marc [D-TX33], Original Cosponsor
• D Pappas, Chris [D-NH1], Supporter

See the bill text here.

Industry Awaits Final Rules on Independent Contractor/Employees

DEMA and the diving Industry still await the long-delayed publication of federal rules on classifying Independent Contractors versus Employees. In September the Department of Labor (DOL) indicated a new rule was to be issued in October. At this writing no new rules have been issued.  More than a year ago the DOL published a proposed Employee or Independent Contractor Classification Under the Fair Labor Standards Act and public comments were accepted until the end of December. After considerable delays, the final rules are still not available. The new U.S. federal guidance should assist in determining if a worker should be classified as an employee or independent contractor.  For those in the diving industry currently hiring instructors, equipment technicians, or other positions as independent contractors, this change in the rules could have a significant impact on your cost of doing business. DEMA strongly advises consulting with your employment attorney and tax specialist as these changes become public and go into place.

After receiving thousands of public comments, it is unclear at this writing what the DOL final rules will be, but if final rules follow those proposed, significant changes will likely occur.

The previous Independent Contractor rules were considered “employer-friendly” and emphasized two key issues to consider when classifying a worker as an “employee” or as an “independent contractor”: 

• Opportunity for the worker’s profit or loss depending on managerial skill,
• Nature and degree of control over the worker.

The proposed rule would include these two factors along with four others for a total of six, to make this determination. Under the proposed rules a seventh factor is also included, almost as an “others as needed” clause. The DOL presumes that the primary factors are an analysis based on the “totality of the circumstances,” which will likely require much more work on the employer’s part to select the correct classification: The other factors are:

• Degree of permanence of the work relationship,
• Is work performed an “integral” part of the employer’s business?
• Skill and initiative,
• Is the worker’s investment either capital or entrepreneurial, and what is the worker’s investment relative to employer’s investment – a determination of whether an individual is economically dependent on the employer.

Note: These proposed rules only apply when determining worker classification under federal wage and hour laws. Employers might also have compliance obligations regarding the complex tests for determining worker status under additional federal, state, local, and other regulations and laws.

A brief explanation of each factor may provide a better understanding of these proposed rules, but once the final rules are in place, consulting with your employment attorney and tax specialist is a must.

Opportunity for profit or loss depending on managerial skill.

As with the current rules, if a worker has no opportunity to negotiate a fee for the work they complete, does not hire others, cannot reject a task, and other actions, they may be considered an employee. 

Nature and degree of control over the worker.

According to the proposed rules, control can be exerted directly in the workplace by an employer, such as when it sets a worker’s schedule, compels attendance, or directs or supervises the work. Employers may also exercise control in other ways, such as by relying on technology to supervise a workforce, setting prices for services, or restricting a worker’s ability to work for others—actions that can exert control without the traditional use of direct supervision, assignment, or scheduling. If the employer/business (not the worker) conducts itself in these ways, the workers being scheduled may be considered employees.

Degree of permanence of the work relationship.

Under this requirement, if the time frame for the job being done is continuous or indefinite, an “employee/employer” relationship is likely suggested.  A project-based or non-exclusive relationship could indicate independent contractor status. 

Is work performed an “integral” part of the employer’s business?

If the work performed is critical or central to the principal business (e.g., selling dive equipment, instruction and travel), then it may be considered an “integral part” and the worker will likely be considered an employee.  If the work performed is ancillary to the business, such as an accounting service for a dive center – then the worker may be considered an independent contractor.

Skill and Initiative

The proposed rule indicates that the determination of employee or independent contractor should consider whether a worker uses specialized skills to perform the work and whether those skills contribute to business-like initiative that is consistent with the worker being in business for themselves instead of being economically dependent on the employer.

If a worker needs training or is applying no specialized skills to perform tasks, then the indication would be that their status is an employee.

The investments by the worker and the employer.

This proposed rule states that an investment borne by the worker must be capital or entrepreneurial in nature to indicate independent contractor status.  For example, the worker may be more likely to be considered an independent contractor if the worker occasionally completes projects for a local firm, buys their own equipment or tools, spends money to market their services, and in general is in business for themself. Other factors will also play a role in determining their status. These types of investments support an independent business and would likely be viewed as capital in nature (e.g., they allow the worker to do more work and extend their market reach). 

How could the new worker classification rule impact businesses?

If implemented, the impact of this new rule will likely be felt across all industries, as all employers will have to navigate a more complex and stringent test to avoid the significant liability that can result from worker misclassification.

According to Paychex.com, the changes associated with the new rule could have financial implications for employers, particularly when the changes suggest individuals formerly classified as independent contractors should be classified as employees and are perhaps eligible for the employer’s health coverage and retirement benefits. Misclassifying a worker can have serious financial consequences for a business, including owing fines, penalties, back wages, and back taxes. Employers/businesses should review the Department of Labor information about current and proposed classifications to ensure they are complying and should seek the advice of their employment attorney and tax specialist.

Help Support for the Freedom to Invest in Tomorrow’s Workforce Act

The bipartisan, bicameral Freedom to Invest in Tomorrow’s Workforce Act (S. 722 / H.R. 1477) would expand eligible uses of tax-favorable 529 savings plans to cover costs associated with workforce training and credentialing programs, such as professional certifications. Professional-level certifications, such as recreational diving instructor certifications, qualify for the benefits listed under these bills.

529 Savings plans can currently be used for college savings as well as savings for K-12 education.  There are two types of 529 plans: prepaid tuition plans and education savings plans. All fifty states and the District of Columbia sponsor at least one type of 529 plan. Currently, training, certifications and other credentials are ineligible under 529 plans.

The Freedom to Invest in Tomorrow’s Workforce Act Would Provide Economic Flexibility and Opportunity 

This bill would provide valuable tax-advantaged resources for workers who pursue career growth, mid-career changes or alternative career pathways, and would help those interested in a professional career in recreational diving. Expanding eligible uses for 529 plans would empower workers of any educational background, skill level or age and would benefit all industries and professions that rely on employees with specialized training or recognized credentials.

American workers and families could use their 529 plans to help cover:

• Certification program tuition;
• Testing fees, including practice exams;
• Required books and equipment;
• Continuing education and certification renewal; and
• Other charges required to obtain and maintain a certification.

How Can You Help?

Reach out to your U.S. Senators and Representative and ask them to support The Freedom to Invest in Tomorrow’s Workforce Act (S. 722 / H.R. 1477). You can find your lawmakers at this links.

• Find your Senators Here
• Find your Representative Here
  

Help Fight Rising U.S. Insurance Rates by Joining the DIVE BOAT Act Social Media Campaign

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.

How Can You Help?

Several dive stores are helping DEMA reach out to members of Congress, and we need your help too! Here are some steps YOU can take NOW:

• Contact your members of Congress.  You can do this easily TODAY by clicking here and sending an email to your U.S. Senators and Member of the U.S. House, asking them to support The DIVE BOAT Act. You can even send a tweet directly to them, asking them for their support.
• Insurance prices are on the way up. If you are being impacted by these price increases, please share this with us by using this link. 
• Please help spread the word about The DIVE BOAT Act. Ask your fellow divers and diving professionals to help us! Share the social media campaign images and messages TODAY with your social media followers, asking for their support of The DIVE BOAT Act. 

ACCESS CAMPAIGN MATERIALS & START SHARING

DEMA’s Manufacturing Purchase Index – How Important Market Research Impacts Public Policy

DEMA will soon publish the third quarter 2023 Manufacturing Purchase Index (MPI). This manufacturing sector report is the result of two years’ work to develop a simplified but useful manufacturing report that includes New Orders and Inventories in key diving equipment Categories. Data from the MPI reports, covering quarter 1 (Q1) and quarter 2 (Q2) of 2023 and comparing them to Q2 2022 and Q1 2023 is now available for download or purchase, and Q3 will be available in early November.

DEMA’s MPI is unique in that it captures aggregate trend data for New Orders and for Inventory in stock on a quarterly basis.  Participating manufacturers report to an independent third-party administrator (TPA) to ensure their data remains confidential and secure. Reporting consists of companies comparing their data points in the current reporting period to those in the previous quarter, as well as to the same quarter during the previous year.  

• New Orders: Reflects the levels of new orders received from customers.
• Inventories: Reflects the changes in inventory levels in stock at the time of the report.

Aggregated trend data is available on both Equipment Type and Category. The Category definitions can be found within the report and include Soft Goods, Exposure Protection, Hard Goods and Accessories and Bags.  Each Category is further defined within the reports as Equipment Types, and include regulators, BCs, fins, masks, snorkels, wetsuits, drysuits, and more.

This research, along with DEMA’s Certification Census, and the most recent Diver Behavioral Research, are all critical to DEMA’s ability to advocate on behalf of the industry.

The recreational diving industry gains a better understanding of the health of the industry in the U.S. by observing diver activities and preferences as well as sales data. The Manufacturing Purchase Index trend data was provided by DEMA-member manufacturers and includes both domestic and international new orders and inventory data.  The results provide key data points that help members of the industry but can also greatly assist DEMA in its public policy work.

For example, in DEMA’s recent effort to overturn onerous regulations that have caused vessel and operations insurance to skyrocket, having data on the trends currently impacting the manufacturing sector has been instrumental in helping lawmakers understand the nature of the dive industry.

Without having trend data available on the manufacturing sector, the diving industry will not be heard over industries that are more willing to provide business information on their industry size: industries like snow-related sports, recreational fishing, recreational vehicles, and boating. These multi-billion-dollar industries easily get the attention of lawmakers when they are willing to provide data about user behaviors, industry dollars, participation rates and trends in manufacturing. Without similar data, the diving industry is ignored by policy makers.

DEMA’s research efforts are critical to ensuring that our voice is heard by lawmakers and administrative agencies. Industry members also use this critical data to help grow their own businesses, as well as for use in making sure that the diving industry in the U.S. continues to avoid problems caused by unnecessary regulation.

DEMA will continue to publish more manufacturing research each quarter to help the entire industry understand more about the status of the sport. Please follow DEMA’s research efforts at www.dema.org and when surveys come your way, please participate. If you are a DEMA-member manufacturer interested in participating, apply to be part of the MPI here.  It’s good for your business and helps DEMA provide information that keeps dive sites open, and limits or eliminates unnecessary regulation!

How Can You Help?

Download and use this information – data on the current status of manufacturing is relevant to every sector of the diving industry. DEMA Members can download the broad Q2 Manufacturing Purchase Index Category reports at no cost, and non-members can pay a non-member rate for this data.  DEMA Members also have access to more detailed Q2 Equipment Type data at member rates, while others can purchase this data at non-member rates. Reports are available in the DEMA Store.

If your key manufacturer is NOT participating in the MPI, please ask them to participate by sharing this link with your representative – more manufacturers participating will help the entire industry!

Schedule a Free, Private Prop 65 Attorney Meeting at DEMA Show 2023

Private meetings with an attorney that specializes in Prop 65 issues are available in 20-minute segments at DEMA Show 2023. 

Litigation and fines from California’s Safe Drinking Water and Toxic Enforcement Act of 1986 (referred to as “Prop 65”) have already impacted many diving manufacturers and retailers – are you next?

As the 5th largest economy in the world, a vast majority of diving products can end up in the stream of commerce in California where they will be subject to Prop 65. This law reaches far beyond California and can affect any diving equipment manufacturer anywhere (even internationally) as well as any entity in the chain of manufacturing and distribution including retailers or resorts selling the product.

Funded by the DEMA Manufacturing Committee and free to DEMA Show attendees and exhibitors, this is a unique opportunity to schedule a one-on-one meeting with an attorney that specializes in Prop 65 issues. Private meetings are available in 20-minute segments.

These free 20-minute meetings are available on a first-come, first-served basis only to DEMA Show 2023 registered attendees and exhibitors. Register now to secure your private meeting.

REGISTER FOR A MEETING

• U.S. Executive Order Creates American Climate Corps
• U.S. Signs High Seas Treaty
• Sea Otters Remain on Threatened Species List
• The U.S. Federal SHARKED Act
• Final Rules on Independent Contractor/Employees Now Due in October
• Help Support the Freedom to Invest in Tomorrow’s Workforce Act
• Help Fight Rising U.S. Insurance Rates by Joining the DIVE BOAT Act Social Media Campaign
• DEMA’s Manufacturing Purchase Index - How Important Market Research Impacts Public Policy
  
   

U.S. Executive Order Creates American Climate Corps

President Biden issued an executive order on September 20 to create the American Climate Corps.  This EO launches a workforce training and service initiative that offers access to skills-based training for careers in clean energy, conservation and climate resiliency. Part of the federal spending initiative which includes advancing the “Justice40 Initiative,” directing 40 percent of the benefits from key federal investments to disadvantaged communities, the government program aims to mobilize young people to work in the clean energy and conservation fields. 

According to the White House Fact Sheet:
“The American Climate Corps will mobilize a new, diverse generation of more than 20,000 Americans – putting them to work conserving and restoring our lands and waters, bolstering community resilience, deploying clean energy, implementing energy efficient technologies, and advancing environmental justice, all while creating pathways to high-quality, good-paying clean energy and climate resilience jobs in the public and private sectors after they complete their paid training program.”

U.S. Signs High Seas Treaty

The United States and 74 other nations signed the High Seas Treaty in late September 2023. The Treaty, also known as the agreement on Biodiversity Beyond National Jurisdiction, purports to create a coordinated approach to establishing marine protected areas in parts of the ocean that are not currently controlled by any nation. 

The agreement will create ocean sanctuaries where some activities such as fishing will be prohibited, and also require that human activity on the high seas become subject to environmental impact assessments. The International Union for the Conservation of Nature estimates that $500 million in funding will be required to kickstart the treaty, and a special implementation and capacity-building fund could require another $100 million per year.

The Treaty contains obligations to share both nonmonetary benefits – for example, access to samples and increased scientific cooperation – and monetary benefits for both Marine Genetic Resources (MGRs) and Digital Sequence Information (DSI). It establishes a financial mechanism into which monetary benefits will be paid, as well as providing a guaranteed funding stream drawn from national contributions to developing States.

Never in its history has the United States consensually placed its own interests or the operations of its private sector under the complete control of an international regulatory regime such as that established by the United Nations Convention on the Law of the Sea (UNCLOS). 

The High Seas Treaty has been open for signature by all governments since 20 September 2023 and will remain open for two years. Signing does not bind governments to the Treaty, but it shows their willingness to proceed to ratification. Signing also creates a good faith obligation to refrain from acts that would defeat the object and the purpose of the Treaty. Following signature, countries can ratify the Treaty. 

At this writing, the Treaty is not yet ratified in the U.S., as the U.S. Senate must first consider it. The Senate does not ratify treaties, but rather treaties are first considered by the Committee on Foreign Relations, then the Senate either approves or rejects a resolution of ratification. If the resolution passes, then ratification takes place when the instruments of ratification are formally exchanged between the United States and the foreign power(s). Since pending treaties are not required to be resubmitted at the beginning of each new Congress, they may remain under consideration by the Senate Foreign Relations Committee for an extended period of time.

Opinions and other information on the High Seas Treaty can be found from many internet sources. Here are two divergent opinions: 

• Heritage Foundation
• Sea Save
  

Readers are advised to familiarize themselves with the Treaty and to contact their U.S. Senators to provide input. You can find your state’s senate offices by clicking here.

Sea Otters Remain on Threatened Species List

The U.S. Fish and Wildlife Service (USFSW) announced that southern sea otters will retain their status as a threatened species under the Endangered Species Act. 

Following an in-depth review of the species’ status, including information provided by species experts, the Service has announced a not-warranted 12-month finding on a petition to remove ESA protection for the southern sea otter. Read the species status assessment here.

"While southern sea otters have made strides toward recovery after coming back from the brink of extinction in our recent history, they continue to face significant threats from climate change, shark-bite mortality, and limited range,” said Steve Henry, field supervisor for the U.S. Fish and Wildlife Service in Ventura. “Based on scientific projections of future conditions for the species, these threats will continue to impact southern sea otter abundance and connectivity between populations in ways that will most likely reduce the ability of the species to sustain itself in the future.” 

Other species also retained their protections. 

SEE MORE INFORMATION HERE

The U.S. Federal SHARKED Act

The U.S. House Committee on Natural Resources favorably reported the SHARKED Act (HR 4051), which would require the Secretary of Commerce to establish a task force to address shark depredation.

This act includes a mandate to identify research priorities and funding opportunities for such priorities, to include:

• Identifying shark species involved in interactions with humans.
• Shark stock assessments.
• How sharks become habituated to humans, thus leading to more interactions between sharks and humans.
• How angler behavior and fishery regulatory frameworks may influence shark interactions.
• Techniques and strategies to reduce harmful interactions between sharks humans, including the development and use of non-lethal deterrents.
• Develop recommended management strategies to address shark depredation.
• Coordinate the development and distribution of educational materials to help the fishing community minimize shark interactions.

SEE MORE INFORMATION HERE

Final Rules on Independent Contractor/Employees Now Due in October

The long-delayed publication of federal rules on classifying Independent Contractors versus Employees is now due in October. A year ago the U.S. Department of Labor (DOL) published a proposed Employee or Independent Contractor Classification Under the Fair Labor Standards Act and public comments were accepted until the end of December. After considerable delays, the final rules for this issue are expected in October 2023, and will provide new U.S. federal guidance on determining if a worker should be classified as an employee or independent contractor.  For those in the diving industry currently hiring instructors, equipment technicians, or other positions as independent contractors, this change in the rules could have a significant impact on your cost of doing business. DEMA strongly advises consulting with your employment attorney and tax specialist as these changes go into place.  

After receiving thousands of public comments, it is unclear at this writing what the DOL final rules will be, but if final rules follow those proposed, significant changes will likely occur.  

The previous Independent Contractor rules were considered “employer-friendly” and emphasized two key issues to consider when classifying a worker as an “employee” or as an “independent contractor”: 

• Opportunity for the worker’s profit or loss depending on managerial skill,
• Nature and degree of control over the worker.

The proposed rule would include these two factors along with four others for a total of six, to make this determination. Under the proposed rules a seventh factor is also included, almost as an “others as needed” clause. The DOL presumes that the primary factors are an analysis based on the “totality of the circumstances,” which will likely require much more work on the employer’s part to select the correct classification: The other factors are:

• Degree of permanence of the work relationship,
• Is work performed an “integral” part of the employer’s business?
• Skill and initiative,
• Is the worker’s investment either capital or entrepreneurial, and what is the worker’s investment relative to employer’s investment – a determination of whether an individual is economically dependent on the employer. 

Note: These proposed rules only apply when determining worker classification under federal wage and hour laws. Employers might also have compliance obligations regarding the complex tests for determining worker status under additional federal, state, local, and other regulations and laws.

A brief explanation of each factor may provide a better understanding of these proposed rules, but once the final rules are in place, consulting with your employment attorney and tax specialist is a must.

Opportunity for profit or loss depending on managerial skill.

As with the current rules, if a worker has no opportunity to negotiate a fee for the work they complete, does not hire others, cannot reject a task, and other actions, they may be considered an employee. 

Nature and degree of control over the worker.

According to the proposed rules, control can be exerted directly in the workplace by an employer, such as when it sets a worker’s schedule, compels attendance, or directs or supervises the work. Employers may also exercise control in other ways, such as by relying on technology to supervise a workforce, setting prices for services, or restricting a worker’s ability to work for others—actions that can exert control without the traditional use of direct supervision, assignment, or scheduling. If the employer/business (not the worker) conducts itself in these ways, the workers being scheduled may be considered employees.

Degree of permanence of the work relationship

Under this requirement, if the time frame for the job being done is continuous or indefinite, an “employee/employer” relationship is likely suggested.  A project-based or non-exclusive relationship could indicate independent contractor status. 

Is work performed an “integral” part of the employer’s business?

If the work performed is critical or central to the principal business (e.g., selling dive equipment, instruction and travel), then it may be considered an “integral part” and the worker will likely be considered an employee.  If the work performed is ancillary to the business, such as an accounting service for a dive center – then the worker may be considered an independent contractor.

Skill and Initiative

The proposed rule indicates that the determination of employee or independent contractor should consider whether a worker uses specialized skills to perform the work and whether those skills contribute to business-like initiative that is consistent with the worker being in business for themselves instead of being economically dependent on the employer.

If a worker needs training or is applying no specialized skills to perform tasks, then the indication would be that their status is an employee.

The investments by the worker and the employer.

This proposed rule states that an investment borne by the worker must be capital or entrepreneurial in nature to indicate independent contractor status.  For example, the worker may be more likely to be considered an independent contractor if the worker occasionally completes projects for a local firm, buys their own equipment or tools, spends money to market their services, and in general is in business for themself. Other factors will also play a role in determining their status. These types of investments support an independent business and would likely be viewed as capital in nature (e.g., they allow the worker to do more work and extend their market reach). 

How Could the New Worker Classification Rule Impact Businesses?

If implemented, the impact of this new rule will likely be felt across all industries, as all employers will have to navigate a more complex and stringent test to avoid the significant liability that can result from worker misclassification.

According to Paychex.com, the changes associated with the new rule could have financial implications for employers, particularly when the changes suggest individuals formerly classified as independent contractors should be classified as employees and are perhaps eligible for the employer’s health coverage and retirement benefits. Misclassifying a worker can have serious financial consequences for a business, including owing fines, penalties, back wages, and back taxes. Employers/businesses should review the Department of Labor information about current and proposed classifications to ensure they are complying and should seek the advice of their employment attorney and tax specialist.

Help Support for the Freedom to Invest in Tomorrow’s Workforce Act

The bipartisan, bicameral Freedom to Invest in Tomorrow’s Workforce Act (S. 722 / H.R. 1477) would expand eligible uses of tax-favorable 529 savings plans to cover costs associated with workforce training and credentialing programs, such as professional certifications. Professional-level certifications, such as recreational diving instructor certifications, qualify for the benefits listed under these bills.

529 Savings plans can currently be used for college savings as well as savings for K-12 education.  There are two types of 529 plans: prepaid tuition plans and education savings plans. All fifty states and the District of Columbia sponsor at least one type of 529 plan. Currently, training, certifications and other credentials are ineligible under 529 plans.

The Freedom to Invest in Tomorrow’s Workforce Act Would Provide Economic Flexibility and Opportunity 

This bill would provide valuable tax-advantaged resources for workers who pursue career growth, mid-career changes or alternative career pathways, and would help those interested in a professional career in recreational diving. Expanding eligible uses for 529 plans would empower workers of any educational background, skill level or age and would benefit all industries and professions that rely on employees with specialized training or recognized credentials.

American workers and families could use their 529 plans to help cover:

• Certification program tuition;
• Testing fees, including practice exams;
• Required books and equipment;
• Continuing education and certification renewal; and
• Other charges required to obtain and maintain a certification.

How Can You Help?

Reach out to your U.S. Senators and Representative and ask them to support The Freedom to Invest in Tomorrow’s Workforce Act (S. 722 / H.R. 1477). You can find your lawmakers at this links.

• Find your Senators Here
• Find your Representative Here

Help Fight Rising U.S. Insurance Rates by Joining the DIVE BOAT Act Social Media Campaign

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.

How Can You Help?

Several dive stores are helping DEMA reach out to members of Congress, and we need your help too! Here are some steps YOU can take NOW:

• Contact your members of Congress.  You can do this easily TODAY by clicking here and sending an email to your U.S. Senators and Member of the U.S. House, asking them to support The DIVE BOAT Act. You can even send a tweet directly to them, asking them for their support.
• Insurance prices are on the way up. If you are being impacted by these price increases, please share this with us by using this link. 
• Please help spread the word about The DIVE BOAT Act. Ask your fellow divers and diving professionals to help us! Share the social media campaign images and messages TODAY with your social media followers, asking for their support of The DIVE BOAT Act. 

ACCESS CAMPAIGN MATERIALS & START SHARING

DEMA’s Manufacturing Purchase Index – How Important Market Research Impacts Public Policy

DEMA has published the second quarter 2023 Manufacturing Purchase Index (MPI). This manufacturing sector report is the result of two years’ work to develop a simplified but useful manufacturing report that includes New Orders and Inventories in key diving equipment Categories. Data from the MPI reports, covering quarter 1 (Q1) and quarter 2 (Q2) of 2023 and comparing them to Q2 2022 and Q1 2023 is now available for download or purchase.

DEMA’s MPI is unique in that it captures aggregate trend data for New Orders and for Inventory in stock on a quarterly basis.  Participating manufacturers report to an independent third-party administrator (TPA) to ensure their data remains confidential and secure. Reporting consists of companies comparing their data points in the current reporting period to those in the previous quarter, as well as to the same quarter during the previous year.  

• New Orders: Reflects the levels of new orders received from customers.
• Inventories: Reflects the changes in inventory levels in stock at the time of the report.

Aggregated trend data is available on both Equipment Type and Category. The Category definitions can be found within the report and include Soft Goods, Exposure Protection, Hard Goods and Accessories and Bags.  Each Category is further defined within the reports as Equipment Types, and include regulators, BCs, fins, masks, snorkels, wetsuits, drysuits, and more.

This research, along with DEMA’s Certification Census, and the most recent Diver Behavioral Research, are all critical to DEMA’s ability to advocate on behalf of the industry.

The recreational diving industry gains a better understanding of the health of the industry in the U.S. by observing diver activities and preferences as well as sales data. The Manufacturing Purchase Index trend data was provided by DEMA-member manufacturers and includes both domestic and international new orders and inventory data.  The results provide key data points that help members of the industry but can also greatly assist DEMA in its public policy work.

For example, in DEMA’s recent effort to overturn onerous regulations that have caused vessel and operations insurance to skyrocket, having data on the trends currently impacting the manufacturing sector has been instrumental in helping lawmakers understand the nature of the dive industry.

Without having trend data available on the manufacturing sector, the diving industry will not be heard over industries that are more willing to provide business information on their industry size: industries like snow-related sports, recreational fishing, recreational vehicles, and boating. These multi-billion-dollar industries easily get the attention of lawmakers when they are willing to provide data about user behaviors, industry dollars, participation rates and trends in manufacturing. Without similar data, the diving industry is ignored by policy makers.

DEMA’s research efforts are critical to ensuring that our voice is heard by lawmakers and administrative agencies. Industry members also use this critical data to help grow their own businesses, as well as for use in making sure that the diving industry in the U.S. continues to avoid problems caused by unnecessary regulation.

DEMA will continue to publish more manufacturing research each quarter to help the entire industry understand more about the status of the sport. Please follow DEMA’s research efforts at www.dema.org and when surveys come your way, please participate. If you are a DEMA-member manufacturer interested in participating, apply to be part of the MPI here.  It’s good for your business and helps DEMA provide information that keeps dive sites open, and limits or eliminates unnecessary regulation!

How Can You Help?

Download and use this information – data on the current status of manufacturing is relevant to every sector of the diving industry. DEMA Members can download the broad Q2 Manufacturing Purchase Index Category reports at no cost, and non-members can pay a non-member rate for this data.  DEMA Members also have access to more detailed Q2 Equipment Type data at member rates, while others can purchase this data at non-member rates. Reports are available in the DEMA Store.

If your key manufacturer is NOT participating in the MPI, please ask them to participate by sharing this link with your representative – more manufacturers participating will help the entire industry!

• Help Support the Freedom to Invest in Tomorrow’s Workforce Act
• Help Fight Rising U.S. Insurance Rates by Joining the DIVE BOAT Act Social Media Campaign
• NOAA releases draft designation documents for the proposed Chumash Heritage National Marine Sanctuary, CA
• NOAA Seeking Applications for Advisory Council Seats - Monterey Bay National Marine Sanctuary
• U.S. National Strategy for a Sustainable Ocean Economy – Comment Period Extended to September 14, 2023
• DEMA’s Manufacturing Purchase Index - How Important Market Research Impacts Public Policy

Help Support for the Freedom to Invest in Tomorrow’s Workforce Act