Bill Text: NY S00500 | 2023-2024 | General Assembly | Introduced


Bill Title: Requires public vessels which carry passengers to be covered by insurance or a surety bond covering injury or death to the passengers.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2024-01-03 - REFERRED TO CULTURAL AFFAIRS, TOURISM, PARKS AND RECREATION [S00500 Detail]

Download: New_York-2023-S00500-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                           500

                               2023-2024 Regular Sessions

                    IN SENATE

                                     January 4, 2023
                                       ___________

        Introduced  by  Sen.  STEC  --  read twice and ordered printed, and when
          printed to be committed to the Committee on Cultural Affairs, Tourism,
          Parks and Recreation

        AN ACT to amend the navigation law, in  relation  to  requiring  certain
          policies of insurance for public vessels which carry passengers

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Section 50 of the navigation law, as amended by chapter 672
     2  of the laws of 1962, is amended to read as follows:
     3    § 50. Owners to notify inspector and apply for inspection. It shall be
     4  the duty of the owner of a public vessel which he intends to operate  on
     5  the navigable waters of the state to notify the inspector of such inten-
     6  tion  at  least  one  month  before it is desired to place the vessel in
     7  operation and to request an inspection of such vessel. Upon  receipt  of
     8  such  notification  the  inspector  shall  enter  the application on the
     9  records of his office. A temporary permit to operate such vessel pending
    10  inspection may be issued by the inspector, if he finds through  documen-
    11  tary  evidence  that such vessel is properly equipped and manned for the
    12  safety of life and property. No public vessel shall be used or  operated
    13  without  a  certificate  of inspection or a temporary permit as [herein]
    14  provided in this section.   No certificate of  inspection  or  temporary
    15  permit  shall  be  issued  unless  the owner of a public vessel produces
    16  proof of insurance to the inspector in accordance with section fifty-one
    17  of this part.
    18    § 2. The navigation law is amended by adding two new sections  51  and
    19  52 to read as follows:
    20    §  51.  Liability  insurance on public vessels. 1. Every public vessel
    21  certified to carry passengers which is operated on the navigable  waters
    22  of  the  state, except vessels which navigate on waters which the United
    23  States exercises active control, shall be covered by a corporate  surety
    24  bond  or  a  policy  of protection and indemnity insurance, issued by an

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02921-01-3

        S. 500                              2

     1  insurer authorized to issue policies  in  this  state  pursuant  to  the
     2  insurance  law.  Public vessels certified by the office of parks, recre-
     3  ation and historic preservation to carry passengers shall provide cover-
     4  age  of  at  least  one  million dollars per occurrence for injury to or
     5  death of any person arising out  of  the  negligent  operation  of  said
     6  public vessel.
     7    Every  such  bond  or insurance policy shall contain a provision for a
     8  continuing liability thereunder, notwithstanding any  recovery  thereon,
     9  and  shall  be  in  full  force and effect whenever the public vessel is
    10  underway.
    11    2. No policy or contract shall be issued or delivered  in  this  state
    12  pursuant  to this section unless it contains in substance the provisions
    13  of section three hundred twenty of the insurance law.
    14    3. Proof of bond or  insurance  required  by  this  section  shall  be
    15  produced  and  displayed  by the owner or operator of such public vessel
    16  upon  the  request  of  any  person  having  authority  to  enforce  the
    17  provisions  of  this chapter. The failure to produce such proof upon the
    18  request of any such person shall not be an offense but shall be presump-
    19  tive evidence that the public vessel is being  operated  without  having
    20  such bond or insurance in force and effect.
    21    4.  No owner of a public vessel shall operate or permit the same to be
    22  operated upon the navigable waters of this state without having in  full
    23  force  and  effect  the  liability  insurance  coverage required by this
    24  section, and no person shall operate a public vessel upon the  navigable
    25  waters  of  this state with knowledge that such insurance is not in full
    26  force and effect.
    27    5. Operation of a public vessel in violation of  the  requirements  of
    28  this  section  shall  be  punishable as a misdemeanor in accordance with
    29  section seventy-three-b of this article.
    30    § 52. Self-insurers. The commissioner may, in his or  her  discretion,
    31  upon  the application of an owner of a public vessel to have such public
    32  vessel certified, issue a certificate of self-insurance when he  or  she
    33  is  reasonably satisfied that such person is possessed and will continue
    34  to be possessed  of  the  financial  ability  to  respond  to  judgments
    35  obtained against such person, arising out of the ownership, maintenance,
    36  use or operation of any such person's public vessel. Upon due notice and
    37  hearing, the commissioner may, in his or her discretion and upon reason-
    38  able grounds, cancel a certificate of self-insurance.
    39    §  3.  This  act shall take effect on the ninetieth day after it shall
    40  have become a law.
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