Waste dicharge in costal waters?

im a marine tech in machussettes with 9 years expeirence i just recently started a new job with a different company. today i was commisioning an old sailboat and realized that the head discharges directly overboard when flushed. there isnt a holding tank and its not chemicaly treated before exiting out the threw hull. i mentioned this to the owner(who is quite an ) and also mentioned that i believe this is now illegal you cannot discharge waste liquid or solid from a vessel within three miles of shore. he looked at me and very frankly said that its fine the way it is, not wanting to be confrontational with my new boss and also second guessing myself i just said ok i tried googleing m boating laws and didnt find anything. can you guys help?