Bill Text: HI SB2635 | 2018 | Regular Session | Amended
Bill Title: Relating To Mandatory Vessel Insurance Coverage.
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Introduced - Dead) 2018-02-14 - Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM. [SB2635 Detail]
Download: Hawaii-2018-SB2635-Amended.html
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THE SENATE |
S.B. NO. |
2635 |
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TWENTY-NINTH LEGISLATURE, 2018 |
S.D. 1 |
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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 grounding the vessel. Vessels are a serious investment and can create significant costs in the event of an accident or grounding.
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. Since 2002, the department of land and natural resources, division of boating and ocean recreation, has expended over $2,200,000 from the boating special fund to address grounded, abandoned, or derelict vessels in state waters. In 2009, the department of land and natural resources began requiring mandatory insurance for vessels moored in state harbors as a condition of obtaining a mooring permit. This has helped reduce costs, but a significant number of vessels remain uninsured. Currently, there is no mechanism for addressing insurance concerns for the numerous trailered vessels that are not stored on property of the department.
The legislature finds that mandatory insurance coverage for vessels operating in state waters will help to ensure that in the event of a boating accident or a grounding, the registered boat owner's insurance policy will be able to remedy any related costs. The purpose of this Act is to:
(1) Require vessel owners operating a vessel in or on the waters of the State to obtain vessel insurance; and
(2) Authorize the chairperson of the board of land and natural resources to adopt administrative rules concerning mandatory vessel insurance.
SECTION 2. Chapter 200, Hawaii Revised Statutes, is amended by adding a new section to part II to be appropriately designated and to read as follows:
"§200- Vessel
insurance. (a) All owners of vessels required to be
registered pursuant to section 200-31(a) shall obtain a vessel insurance policy
upon such vessel; provided that:
(1) Policies for class
A motorboats, as defined in title 46 Code of Federal Regulations section
90.10-23, shall include general liability coverage that meets the minimum
insurance coverage amount required by the department of accounting and general
services, risk management office; and
(2) Policies of all
vessels not included in paragraph (1) shall include general liability coverage and
coverage for vessel removal in the event the vessel runs aground or is
otherwise stranded, that meet the minimum insurance coverage amounts required
by the department of accounting and general services, risk management office.
(b) The following are exempt from this section:
(1) Vessels exempt
from registration requirements pursuant to section 200-31(a)(4); and
(2) Transient
vessels, as defined in section 13-230-8, Hawaii Administrative Rules, except
when moored in state small boat harbors, offshore mooring areas, or other
facilities under the jurisdiction of the department's division of boating and
ocean recreation.
(c) The chairperson
may adopt rules pursuant to chapter 91 to carry out this section."
SECTION 3. New statutory material is underscored.
SECTION 4. This Act shall take effect upon its approval.
Report Title:
Department of Land and Natural Resources; Mandatory Vessel Insurance; Removal
Description:
Requires owners of vessels that are required to register with the State to obtain vessel insurance. Specifies the types of insurance coverage required. Exempts certain vessels from mandatory insurance requirement. Authorizes the chairperson of the board of land and natural resources to adopt administrative rules concerning mandatory vessel insurance. (SD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
