this explanation also came from scotts,, hope they dont mind,,, but heres thier link
http://www.scottsbt.com/ all credit of this goes to scotts and not myself
Some clarification on Shark fishing/permits:
There is some confusion about sharking/permits this year.
If you are intending to fish for sharks on the ocean 3+ miles (Federal Waters) an HMS Permit is required. If you are a HMS permit holder, you must abide by the FEDERAL sharking regulations REGARDLESS of where you are, even in state waters. Below are the federal allowed and prohibited species:
Sharks - Fed. Allowable Species
Large Coastal:Blacktip, Spinner, Tiger, Silky, Nurse, Lemon, Bull, Great Hammerhead, Smooth Hammerhead, Scalloped Hammerhead.
Small Coastal: Atlantic Sharpnose, Finetooth, Blacknose, Bonnethead.
Pelagic Sharks: Shortfin Mako, Common Thresher, Porbeagle, Oceanic Whitetip, Blue Sharks - Fed. PROHIBITED Species
MUST Be Released
Atlantic Angel, Basking, Bigeye Sand Tiger, Sand Tiger, Bigeye Thresher, Bigeye sixgill, Bignose, Carribean Reef, Carribean sharpnose, Dusky, Galapagos, Longfin mako, Narrowtooth, Night, Sandbar (Brown Shark), Sevengill, Silky, Sixgill, Smalltail, Whale & White Sharks
NOW - to try and clarify this some more. If you are fishing in NJ waters...ocean front inside 3 miles and backbay areas, a shark permit is NOT required, NJ does not have one.
NJ prohibited sharks are: Basking, Bigeye Sand Tiger, Sand Tiger, Whale & White Sharks
Again I must state if you are a HMS permit holder, you must follow the FEDERAL regulations, not the state regulations, regardless of where you are. A prime example of this is the sandbar/brown shark. This shark is prohibited under Federal regulations and cannot be fished for if you are a HMS permit holder, even in NJ waters. HOWEVER, a non-permit holder can fish in NJ waters under NJ law and catch the brown/sandbar sharks (so long as the state does not change their regulations, which they have the right to do at any time). So if you prefer browns over makos, you're all set for inshore fishing, but if you like that offshore fishing best, get your permit and the browns are off limits - unless you fish on another boat, as permits are by vessel.
Hope this helps! ~MizMo