Yup, I have heard the same thing too. Here is a copy from their site which is incredibly vague.
Mufflers: No person may operate a motorboat without a muffler or one which exceeds noise level standards (86 dB on an “A” weighted scale) with a muffler. Operators must submit to testing when requested. Muffler cutout devices are prohibited which allow the noise level to exceed 86 dB.
Here is the responce I got from Wisconsin DNR:
Wisconsin law sets 3 testing standards that motorboats must pass. The standards for each are established by the Society of Automotive Engineers. The passby test (J34) is conducted at full throttle with the meter located 50 feet from the course the boat is operating on. The stationary test (J2005) is conducted at idle speed with the meter located 40 inches behind the boat.
The shoreline test (J1970) is a passby test where the meter is located within 20 feet of the shoreline.
Now go to GBB website for an explanation of the tests. Sounds like the last test may not be performed correctly.
Craig