North Carolina

New Developments (updated 3/16/99)

Legislation to prohibit cruise-to-nowhere vessels moved forward in the House: House Bill (H.B.) 19 would ban gambling on vessels that embark passengers from a point in North Carolina and disembark them at the same or another point in the state without making an intervening stop within the boundaries of another state.

Gaming vessels that embark and disembark passengers in North Carolina, but which make an intervening stop in a neighboring state, would be regulated under the bill. To be considered to have made an intervening stop, a vessel would have to dock at a port in another state, remain continuously at the port for at least six hours, and allow passengers to disembark the vessel for sightseeing, shopping, or other similar tourism-related activity. Such vessels would be required to pay a tax of $6 per passenger, withhold state income tax from payouts to state residents amounting to more than $600 dollars, acquire an alcohol permit at a cost of $10,000, and "comply with the Safety of Life at Sea (SOLAS) standards and requirements normally applicable in international waters," among other requirements.

H.B. 19 was approved by the House Judiciary Committee and sent to the House Finance Committee, which is scheduled to hold a hearing later this week on the measure.