Shellfish Aquaculture Improvement Act
SHELLFISH AQUACULTURE IMPROVEMENT ACT
REP. MARK SANFORD
Background / Problem
- The Merchant Marine Act of 1920 sets a broad definition of seaman to include all workers who operate in the water.
- Since then, our nation’s aquaculture industry has taken off, but this antiquated policy still impacts them.
- Today, shellfish growers who operate within state waters are required to carry two forms of insurance.
- They must carry a state workers compensation insurance policy and also maritime insurance policy under the Merchant Marine Act.
- They must carry a state workers compensation insurance policy and also maritime insurance policy under the Merchant Marine Act.
- Aquaculture has no relevance to the Act’s original national security and coastal commerce intent.
- Shellfish aquaculture is a near-shore, water-dependent, farming operation, normally conducted solely within state waters.
- Shellfish aquaculture is a near-shore, water-dependent, farming operation, normally conducted solely within state waters.
- This is an unnecessary cost burden on businesses.
- Merchant Marine Act coverage is typically more expensive (varies by state but sometimes as much as 3x more expensive than state workers compensation)
- One business in New Jersey with 32 boats is forced to pay $250,000 a year in Merchant Marine Act insurance alone
Solution
- The Shellfish Aquaculture Improvement Act of 2018 would rectify this by waiving the requirement for shellfish growers to carry both forms of insurance.
- Under this legislation, in states where both forms are offered, the shellfish growers would only be required to carry a state workers compensation policy.
For more information or to sign on as a cosponsor contact Max Fenkell at:
Max.Fenkell@mail.house.gov or (202) 225-3176