Requires owners of public vessels to maintain proof of financial security

2 Multi-sponsors

• William A. Barclay
• Teresa Sayward

BILL NUMBER:A10537

Title of bill

An act to amend the navigation law and the vehicle and traffic law, in relation to requiring owners of public vessels to maintain proof of financial security

Purpose or general idea of bill

To require owners of public vessels to maintain proof of financial security.

Summary of specific provisions

Section 1 of the bill adds a new Section 51 to the Navigation Law which references the new insurance mandates and requires that proof of insurance be posted on the vessel.

Section 2 of this bill amends Section 2251 of the Vehicle and Traffic Law to provide that no public vessel may be registered in this state unless the application for registration is accompanied by proof of financial security. Proof if financial security shall be evidenced by proof of insurance. Owners of public vessels are required to provide coverage of at least $25,000 per allowable passenger. The Commissioner of Motor Vehicles is authorized to promulgate rules and regulations to provide administration and enforcement of the above referenced provision.

Section 3 provides that this act shall take effect 60 days after it shall have become a law.

Justification

Under current law, public vessels are not required to maintain liability insurance. The deficiencies in the law were brought sharply into focus on October 2, 2005 when the Ethan Allen capsized on Lake George. Twenty of the 47 passengers, mostly senior citizens, died. The tragedy was compounded when family members and other survivors learned that the operator of the vessel could not pay their claims because his insurance policy only covered accidents occurring on land. As a result, families of victims have not been reimbursed for funeral costs and survivors have received no assistance in paying their medical bills.

This legislation seeks to close this loophole by mandating that all public vessels carry an insurance policy that provides at least $25,000 of coverage to each passenger.

This legislation will help insure that victims of tragedy not face financial hardship as a result of their misfortune.

Prior legislative history

2008: A.5805; Held for consideration in Environmental Conservation 2007: A.5805: Referred to Environmental Conservation 2006: A.10126; Held for consideration in Environmental Conservation

Effective date

This act shall take effect on the 60th day after it shall have become law.