Bill Text: HI SB1259 | 2020 | Regular Session | Introduced
Bill Title: Relating To Mandatory Vessel Insurance Coverage.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2019-12-01 - Carried over to 2020 Regular Session. [SB1259 Detail]
Download: Hawaii-2020-SB1259-Introduced.html
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THE SENATE |
S.B. NO. |
1259 |
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THIRTIETH LEGISLATURE, 2019 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO MANDATORY VESSEL INSURANCE COVERAGE.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that owning and operating a recreational vessel can provide many hours of enjoyment and can be a source of income as well as a way to harvest food from the ocean. However, there are many responsibilities and potential hazards that accompany vessel operation, including the elements, other vessels, and the risk of a vessel grounding or sinking. Vessels are a serious investment and can create significant costs in the event of an unexpected accident.
Since 2002, the department of land and natural resources, division of boating and ocean recreation has expended in excess of $2.2 million from the boating special fund to address vessels aground, derelict vessels, and abandoned vessels in waters of the State. In addition to environmental damage from grounded vessels, the State sometimes incurs all costs involved in removing a grounded vessel if the vessel is uninsured. The State has no way to recoup most of these costs because a significant number of grounded vessels are uninsured.
Since 2009, the division of boating and ocean recreation has required mandatory insurance for vessels moored in state small boat harbors as a condition of obtaining a mooring permit but has no mechanism for addressing insurance concerns, in particular, for the numerous trailered vessels that are not stored on property of the department or in a state facility.
The legislature finds that mandatory insurance coverage for all vessels required to be registered with the State and all vessels required to be documented by the United States Coast Guard operating in and on state ocean waters will help to ensure that in the event of injury to another person, damage to property, a grounding, or a sinking, the registered boat owner's insurance policy will be able to remedy any related costs.
The purpose of this Act is to require vessel owners operating a vessel required to be registered with the State or required to be documented by the United States Coast Guard in or on the waters of the State to obtain vessel insurance.
SECTION 2. Chapter 200, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§200-
Vessel insurance.
(a) All vessel owners who operate their vessel in
and on state ocean waters shall obtain marine insurance coverage for the
following:
(1) A vessel
required to be registered pursuant to section 200-31(a); or
(2) A vessel being
operated in state ocean waters with a valid documentation number from the
United States Coast Guard.
(b) Marine insurance coverage required by this
section shall have a combined single limit of not less than $500,000 per
occurrence, in such a form and content as to ensure that removal and salvage of
a grounded vessel are covered.
(c) A transient vessel, except when moored in
state small boat harbors, offshore mooring areas, or other facilities under the
jurisdiction of the department, shall be exempt from the marine insurance
coverage requirement of this section for no more than ten business days after
arriving in state ocean waters.
"Transient vessel" means any vessel visiting the State for a
period of less than ninety days.
(d) The department may adopt rules to carry out
the purpose of this section."
SECTION 3. New statutory material is underscored.
SECTION 4. This Act shall take effect upon its approval.
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INTRODUCED BY: |
_____________________________ |
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BY REQUEST |
Report Title:
Mandatory Vessel Insurance; State Small Boat Harbors
Description:
Requires vessel owners operating a vessel in and on state ocean waters who are required to be registered with the State or required to be documented by the United States Coast Guard to obtain marine insurance. Specifies the type and minimum amount of marine insurance coverage required. Exempts transient vessels from the marine insurance requirement for no more than ten business days after arriving in state ocean waters. Authorizes the Department of Land and Natural Resources to adopt administrative rules concerning marine insurance.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
