SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Boating Occupancy and Teaching 
Safety Act'' or the ``BOATS Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Flying bridge.--The term ``flying bridge'' means an 
        open deck above the main navigating bridge of a recreational 
        vessel.
            (2) Passenger.--The term ``passenger'' includes any 
        individual aboard a vessel.
            (3) Recreational vessel.--
                    (A) In general.--The term ``recreational vessel'' 
                means any vessel of greater than 20 feet and less than 
                45 feet overall in length, that is--
                            (i) manufactured or used primarily for 
                        pleasure; or
                            (ii) leased, rented, or chartered to a 
                        person for the pleasure of that person.
                    (B) Exclusion.--The term ``recreational vessel'' 
                does not include a vessel that--
                            (i) is subject to Coast Guard inspection;
                            (ii) is constructed before January 1, 2016; 
                        and
                            (iii)(I) is engaged in commercial use; or
                            (II) carries paying passengers.

SEC. 3. CAPACITY LIMITS FOR RECREATIONAL VESSELS.

    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, the Commandant of the Coast Guard shall--
            (1) establish standards for determining the maximum 
        passenger capacity in whole number of passengers and in pounds 
        for recreational vessels;
            (2) require each manufacturer of a passenger vessel to post 
        such maximum passenger capacity on the passenger vessel as 
        described in subsection (b); and
            (3) require each operator of a passenger vessel to ensure 
        that--
                    (A) such maximum passenger capacity is posted as 
                described in subsection (b) and legible to passengers; 
                and
                    (B) notice of the need to balance the weight 
                carried by the vessel to avoid capsizing is posted as 
                described in subsection (b) and legible to passengers.
    (b) Elements and Locations of Displays.--The maximum passenger 
capacity, maximum carrying capacity in pounds, and notice of the need 
to balance the carried weight for a passenger vessel shall each be 
permanently displayed in a legible matter--
            (1) in a location that is clearly visible to a passenger 
        boarding the passenger vessel; and
            (2) on each flying bridge of the vessel, in a location that 
        is clearly visible to a passenger on the flying bridge.
    (c) Penalties.--Not later than 180 days after the date of the 
enactment of this Act, the Commandant of the Coast Guard shall publish 
regulations that establish appropriate penalties for a manufacturer of 
a recreational vessel that does not comply with the requirements of 
this section.
    (d) Application.--The requirements of this section shall apply to 
any recreational vessel manufactured after the date that is 180 days 
after the date of the enactment of this Act.

SEC. 4. STATE RECREATIONAL BOATING SAFETY PROGRAMS.

    (a) Program Acceptance.--Section 13103 of title 46, United States 
Code, is amended--
            (1) in subsection (c)--
                    (A) in paragraph (4) by striking ``and'' at the 
                end;
                    (B) in paragraph (5) by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(6) contracting practices in accordance with subsection 
        (e).''; and
            (2) by adding at the end the following:
    ``(e) Contracting.--
            ``(1) In general.--A State carrying out a State 
        recreational boating safety program may enter into a contract 
        with a local government or private entity to have the 
        government or entity provide boating safety education services 
        under the program.
            ``(2) Expenditure requirement.--Each fiscal year, a State 
        carrying out a State recreational boating safety program shall 
        expend on contracts described in paragraph (1) not less than 5 
        percent of the Federal amounts received by that State in that 
        fiscal year under this chapter.
            ``(3) Considerations.--In entering into contracts under 
        paragraph (1), a State shall consider--
                    ``(A) the need for geographic diversity among the 
                local governments and private entities providing 
                education services under the contracts;
                    ``(B) the need to have education services that 
                address the various vessels utilized in the State;
                    ``(C) the need to have education services that 
                address the various waterways in the State; and
                    ``(D) all the costs related to providing education 
                services under the contracts that may affect the local 
                governments and private entities providing the 
                services.
            ``(4) Eligibility.--
                    ``(A) In general.--To be eligible to enter into a 
                contract under paragraph (1), a local government or 
                private entity shall--
                            ``(i) submit to the appropriate State lead 
                        authority or agency designated under subsection 
                        (a)(4) a detailed proposal for the provision of 
                        boating safety education services; and
                            ``(ii) certify that the government or 
                        entity will not profit financially from 
                        providing the services.
                    ``(B) Exceptions.--
                            ``(i) Existing providers.--Subparagraph 
                        (A)(i) does not apply to a local government or 
                        private entity that provided boating safety 
                        education services before the date of enactment 
                        of this subsection under standards established 
                        by the relevant State.
                            ``(ii) 501(c)(3) organizations.--
                        Subparagraph (A)(ii) does not apply to an 
                        organization described in section 501(c)(3) of 
                        the Internal Revenue Code of 1986 and exempt 
                        from taxation under section 501(a) of such Code 
                        if the organization certifies to the relevant 
                        State that all relevant profits will be used to 
                        advance boating safety.
            ``(5) Education services criteria.--The Secretary, in 
        consultation with States and relevant stakeholders, shall 
        establish criteria for the boating safety education services 
        provided by local governments and private entities under this 
        subsection. Using the criteria, a State shall establish 
        outlines specifying the requirements for education services in 
        that State and education services in that State shall be 
        provided in accordance with the outlines.
            ``(6) Additional contracting.--A local government that 
        enters into a contract under paragraph (1) to provide boating 
        safety education services may contract with a private entity to 
        receive assistance with the provision of those services.
            ``(7) Advertising.--A local government or private entity 
        that enters into a contract under paragraph (1) to provide 
        boating safety education services may utilize funds provided 
        under that contract to advertise such services.
            ``(8) Report.--Each fiscal year, a State that entered into 
        contracts under this subsection shall submit to the Secretary a 
        report specifying the governments and entities contracted with 
        in that fiscal year.''.
    (b) Sport Fish Restoration and Boating Trust Fund.--Section 
9504(b)(2)(A) of the Internal Revenue Code of 1986 is amended by 
striking ``the MAP-21'' and inserting ``Boating Occupancy and Teaching 
Safety Act''.
Output: Boating Occupancy and Teaching Safety Act or the BOATS Act - Directs the Commandant of the Coast Guard to: (1) establish maximum passenger capacity and maximum weight capacity standards for recreational vessels, and (2) require manufacturers and operators of passenger vessels to permanently display in a legible manner that is clearly visible, including on each flying bridge of the vessel, to vessel passengers such maximum capacity requirements and a notice of the need to balance vessel weight to avoid capsizing. Defines &quot;flying bridge&quot; to mean an open deck above the main navigating bridge of a recreational vessel. Amends federal shipping law to revise state recreational boating safety program requirements. Allows a state to contract with a local government or private entity to provide boating safety education services under a state recreational boating safety program. Amends the Internal Revenue Code to make amounts in the Sport Fish Restoration and Boating Trust Fund available for expenditures to carry out the purposes of the Dingell-Johnson Sport Fish Restoration Act (as in effect upon enactment of this Act).