Authorizes the board of pilotage commissioners to grant an exemption, from the provisions of the pilotage act, to a vessel that the board finds is: (1) A small passenger vessel that is not more than one thousand three hundred gross tons (international), does not exceed two hundred feet in overall length, is manned by United States-licensed deck and engine officers appropriate to the size of the vessel with merchant mariner credentials issued by the United States coast guard or Canadian deck and engine officers with Canadian-issued certificates of competency appropriate to the size of the vessel, and is operated exclusively in the waters of the Puget Sound pilotage district and lower British Columbia; or

(2) A yacht that is not more than one thousand three hundred gross tons (international) and does not exceed two hundred feet in overall length.