Overview
Title
To amend title 46, United States Code, to assign specified liability to a person who transfers title of a commercial vessel, or former commercial vessel, to a transferee for use as a recreational vessel if the transferee does not have applicable insurance at the time of the transfer and the vessel sinks, and for other purposes.
ELI5 AI
H.R. 9899 wants to make sure if someone sells a big boat for fun use and it sinks without the new owner having insurance, the person who sold it has to pay for any mess or damage. This doesn’t count if the boat is small, newer, or the new owner has the right insurance.
Summary AI
H.R. 9899, titled the "Abandoned Vessel Prevention Act," seeks to amend U.S. law to assign liability for the costs associated with the sinking of certain commercial vessels that have been converted for recreational use. If a commercial vessel is transferred to another person without the buyer having appropriate insurance, and the vessel sinks, the original owner would be responsible for covering expenses like damages, vessel removal, and pollution clean-up. There are exceptions if the vessel is less than 35 feet long, fewer than 40 years old, or the buyer has the required insurance at the time of transfer.
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AnalysisAI
General Summary of the Bill
The bill titled "Abandoned Vessel Prevention Act" seeks to amend the United States Code concerning commercial vessels. Introduced in the House of Representatives, this legislation mandates that individuals transferring ownership of a commercial vessel—or one that used to be commercial and is now for recreational use—bear liability for specific costs if the vessel sinks. This liability applies unless the vessel is under 35 feet long, less than 40 years old, or the new owner holds adequate insurance at the time of transfer. The costs covered include damages, costs of retrieval and clean-up, and repairs stemming from pollution due to the vessel's sinking.
Summary of Significant Issues
There are various issues surrounding the bill that merit consideration:
Broad Liability Clause: The provision assigning liability to transferors might be too expansive as it applies to all vessel transferors without exception, which could deter individuals from transferring and repurposing such vessels.
Insurance Exception: The bill allows for a liability exemption if the transferee possesses insurance. However, there are concerns that insurance policies might not cover all potential expenses, leaving certain liabilities unaddressed.
Timeframe for Insurance: The insurance requirement is applicable for only the first 12 months post-transfer. This period may not be adequate if vessel-related liabilities manifest later, placing the original transferor at risk.
Vessel Age and Size Exceptions: These exceptions could unintentionally exempt vessels that pose significant environmental or navigational hazards, possibly affecting maritime safety.
Ambiguity in Specified Expenses: The bill's definition of covered expenses is quite broad, leading to potential disputes over the exact financial responsibilities attributed to vessel sinking.
Complex Definitions: Referral to the Internal Revenue Code for defining 'commercial vessel' might be problematic for those unfamiliar, adding unnecessary complexity.
Enforcement Clarity: The bill does not specify a responsible agency for enforcement, which could create challenges ensuring compliance.
Impact on the Public
Broadly, the bill aims to improve accountability and reduce the environmental impact of abandoned or sunken vessels in U.S. waters. By assigning financial responsibility to those transferring vessel ownership, it theoretically discourages negligent transfers and promotes proper vessel maintenance and management.
However, the broad scope of liability could hinder transactions involving older vessels, potentially impacting economic activity related to vessel repurposing. Additionally, if the insurance requirements and financial liabilities are too burdensome, individuals might choose not to engage in vessel transfers, diminishing the market for second-hand vessels and constraining recreational use opportunities.
Impact on Stakeholders
Positive Impacts:
Environmental Organizations: The bill's focus on liability and cleanup responsibilities could reduce the prevalence of abandoned vessels, aligning with conservation and preservation goals.
Insurance Companies: There may be increased demand for policies that cater to vessel transfers, spurring growth in this niche segment of the insurance market.
Negative Impacts:
Vessel Owners and Commercial Industries: The potential liability might deter owners from selling older commercial vessels, causing them to incur storage or disposal costs instead.
Recreational Boaters: Individuals seeking affordable, second-hand recreational vessels might find the market constrained, impacting access to boating as a leisure activity.
The legislation's positive or negative impact largely rests on the clarity of its terms and the feasibility of its insurance requirements. For the bill to successfully achieve its objectives, it must balance owner responsibility with practical considerations for the industry's stakeholders.
Issues
The liability clause in Section 2(a) is potentially too broad as it applies to any transferor of a covered vessel, which could discourage transfers and the repurposing of vessels, leading to a decrease in commercial vessel transactions.
The coverage exception provided in Section 2(b)(2) might be exploited if insurers do not fully cover all potential specified expenses, which could leave gaps in responsibility and risk disputes over liability.
The requirement for insurance to cover specified expenses only for a 12-month period, as specified in Section 2(b)(2), may be insufficient because liabilities associated with the sinking of vessels might manifest after this period, creating financial risk for transferors.
The exception based on vessel length and age in Section 2(b)(1) could inadvertently exempt vessels that still pose environmental or navigational risks, potentially leading to oversight in maritime safety enforcement.
The definition of 'specified expenses' in Section 2(c)(3) is broad and could lead to disputes over what constitutes 'damages attributable to the sinking of the vessel,' making the precise financial responsibilities unclear.
The reference to the Internal Revenue Code for the definition of 'commercial vessel' in Section 2(c)(1) might be cumbersome for those unfamiliar with the code, potentially adding complexity without sufficient explanation and causing implementation challenges.
There is a lack of clarity on what agency will be responsible for overseeing compliance with the law, as mentioned in Section 2(a), which could lead to enforcement difficulties and create challenges for effective implementation.
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title Read Opens in new tab
Summary AI
The section states that the official name of this law is the "Abandoned Vessel Prevention Act."
2. Liability for specified expenses resulting from sinking of certain decommissioned commercial vessels Read Opens in new tab
Summary AI
In this section, a new law is introduced requiring people who transfer old commercial vessels for recreational use to be responsible for certain costs if the vessel sinks, unless it is less than 35 feet long, under 40 years old, or is properly insured. The law covers costs like damages, removal, cleanup, and maintenance related to the sinking.
30107. Liability for specified expenses resulting from sinking of certain decommissioned commercial vessels Read Opens in new tab
Summary AI
In Section 30107, a person who transfers the title of an old commercial vessel to be used as a recreational vessel may be responsible for costs if the vessel sinks, unless the vessel is less than 35 feet long, 40 years old, or the new owner has insurance covering such costs. "Specified expenses" include damages, removal of the vessel, pollution cleanup, and repairs to water intake equipment affected by the sinking.