NY State Senate Bill 2017-S6829

Senate Bill S6829

2017-2018 Legislative Session

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

download bill text pdf

Archive: Last Bill Status - In Senate Committee Cultural Affairs, Tourism, Parks And Recreation Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to cultural affairs, tourism, parks and recreation
Jun 23, 2017	referred to rules

2017-S6829 (ACTIVE) - Details

Current Committee:: Senate Cultural Affairs, Tourism, Parks And Recreation
Law Section:: Navigation Law
Laws Affected:: Amd §50, add §§51 & 52, Nav L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S2022
2021-2022: S5351
2023-2024: S500

2017-S6829 (ACTIVE) - Summary

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

2017-S6829 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S6829

 TITLE OF BILL :

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

 PURPOSE :

To require public vessels which carry passengers to be covered by
insurance or a surety bond covering injury or death to the passengers.

 SUMMARY OF PROVISIONS :

Section 1 amends the Navigation Law Section 50 of chapter 672 of the
laws of 1962 by requiring no certificate of inspection or temporary
permit shall be issued unless the owner of a public vessel produces
proof of insurance to the inspector in accordance with section
fifty-one of this part.

Section two amends the Navigation Law by adding two new sections 51
and 52 of liability insurance on public vessels. Every public vessel
certified to carry passengers which is operated on the navigable
waters of the state, except vessels which navigate on waters which the
United States exercises active control, shall be covered by a
corporate surety bond or a policy of protection and indemnity

insurance, issued by an insurer authorized to issue policies in this
state pursuant to the insurance law.

Section three amends the effective date (ninetieth day after it shall
become law).

 JUSTIFICATION :

A tragic capsizing of the Ethan Allen on Lake George, on October 2,
2005, resulted in the deaths of 20 individuals. After an investigation
of a Panamanian global money-laundering and tax evasion scheme, it was
revealed that a fake $2 million liability insurance policy was held by
the owners of the Ethan Allen tour boat. The Ethan Allen owner
discovered soon after the accident that the insurance policy he bought
was backed up by non-existent assets.

This bill addresses the current gap in law to require every public
vessel certified to carry passengers which is operated on the
navigable waters of the state, except vessels which navigate on waters
which the United States exercises active control, shall be covered by
a corporate surety bond or a policy of protection and indemnity
insurance, issued by an insurer authorized to issue policies in this
state pursuant to the insurance law.

 LEGISLATIVE HISTORY :

New bill.

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
Ninetieth day after it shall have become a law.

2017-S6829 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6829
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               June 23, 2017
                                ___________
 
 Introduced  by  Sen.  LITTLE -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 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:
 
   Section 1. Section 50 of the navigation law, as amended by chapter 672
 of the laws of 1962, is amended to read as follows:
   § 50. Owners to notify inspector and apply for inspection. It shall be
 the duty of the owner of a public vessel which he intends to operate  on
 the navigable waters of the state to notify the inspector of such inten-
 tion  at  least  one  month  before it is desired to place the vessel in
 operation and to request an inspection of such vessel. Upon  receipt  of
 such  notification  the  inspector  shall  enter  the application on the
 records of his office. A temporary permit to operate such vessel pending
 inspection may be issued by the inspector, if he finds through  documen-
 tary  evidence  that such vessel is properly equipped and manned for the
 safety of life and property. No public vessel shall be used or  operated
 without  a  certificate  of inspection or a temporary permit as [herein]
 provided IN THIS SECTION.   NO CERTIFICATE OF  INSPECTION  OR  TEMPORARY
 PERMIT  SHALL  BE  ISSUED  UNLESS  THE OWNER OF A PUBLIC VESSEL PRODUCES
 PROOF OF INSURANCE TO THE INSPECTOR IN ACCORDANCE WITH SECTION FIFTY-ONE
 OF THIS PART.
   § 2. The navigation law is amended by adding two new sections  51  and
 52 to read as follows:
   §  51.  LIABILITY  INSURANCE ON PUBLIC VESSELS. 1. EVERY PUBLIC VESSEL
 CERTIFIED TO CARRY PASSENGERS WHICH IS OPERATED ON THE NAVIGABLE  WATERS
 OF  THE  STATE, EXCEPT VESSELS WHICH NAVIGATE ON WATERS WHICH THE UNITED
 STATES EXERCISES ACTIVE CONTROL, SHALL BE COVERED BY A CORPORATE  SURETY
 BOND  OR  A  POLICY  OF PROTECTION AND INDEMNITY INSURANCE, ISSUED BY AN
 INSURER AUTHORIZED TO ISSUE POLICIES  IN  THIS  STATE  PURSUANT  TO  THE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD13283-01-7

 S. 6829                             2
 
 INSURANCE  LAW.  PUBLIC VESSELS CERTIFIED BY THE OFFICE OF PARKS, RECRE-
 ATION AND HISTORIC PRESERVATION TO CARRY PASSENGERS SHALL PROVIDE COVER-
 AGE OF AT LEAST ONE MILLION DOLLARS PER  OCCURRENCE  FOR  INJURY  TO  OR
 DEATH  OF  ANY  PERSON  ARISING  OUT  OF THE NEGLIGENT OPERATION OF SAID
 PUBLIC VESSEL.
   EVERY SUCH BOND OR INSURANCE POLICY SHALL CONTAIN A  PROVISION  FOR  A
 CONTINUING  LIABILITY  THEREUNDER, NOTWITHSTANDING ANY RECOVERY THEREON,
 AND SHALL BE IN FULL FORCE AND EFFECT  WHENEVER  THE  PUBLIC  VESSEL  IS
 UNDERWAY.
   2.  NO  POLICY  OR CONTRACT SHALL BE ISSUED OR DELIVERED IN THIS STATE
 PURSUANT TO THIS SECTION UNLESS IT CONTAINS IN SUBSTANCE THE  PROVISIONS
 OF SECTION THREE HUNDRED TWENTY OF THE INSURANCE LAW.
   3.  PROOF  OF  BOND  OR  INSURANCE  REQUIRED  BY THIS SECTION SHALL BE
 PRODUCED AND DISPLAYED BY THE OWNER OR OPERATOR OF  SUCH  PUBLIC  VESSEL
 UPON  THE  REQUEST  OF  ANY  PERSON  HAVING  AUTHORITY  TO  ENFORCE  THE
 PROVISIONS OF THIS CHAPTER. THE FAILURE TO PRODUCE SUCH PROOF  UPON  THE
 REQUEST OF ANY SUCH PERSON SHALL NOT BE AN OFFENSE BUT SHALL BE PRESUMP-
 TIVE  EVIDENCE  THAT  THE PUBLIC VESSEL IS BEING OPERATED WITHOUT HAVING
 SUCH BOND OR INSURANCE IN FORCE AND EFFECT.
   4. NO OWNER OF A PUBLIC VESSEL SHALL OPERATE OR PERMIT THE SAME TO  BE
 OPERATED  UPON THE NAVIGABLE WATERS OF THIS STATE WITHOUT HAVING IN FULL
 FORCE AND EFFECT THE  LIABILITY  INSURANCE  COVERAGE  REQUIRED  BY  THIS
 SECTION,  AND NO PERSON SHALL OPERATE A PUBLIC VESSEL UPON THE NAVIGABLE
 WATERS OF THIS STATE WITH KNOWLEDGE THAT SUCH INSURANCE IS NOT  IN  FULL
 FORCE AND EFFECT.
   5.  OPERATION  OF  A PUBLIC VESSEL IN VIOLATION OF THE REQUIREMENTS OF
 THIS SECTION SHALL BE PUNISHABLE AS A  MISDEMEANOR  IN  ACCORDANCE  WITH
 SECTION SEVENTY-THREE-B OF THIS ARTICLE.
   §  52.  SELF-INSURERS. THE COMMISSIONER MAY, IN HIS OR HER DISCRETION,
 UPON THE APPLICATION OF AN OWNER OF A PUBLIC VESSEL TO HAVE SUCH  PUBLIC
 VESSEL  CERTIFIED,  ISSUE A CERTIFICATE OF SELF-INSURANCE WHEN HE OR SHE
 IS REASONABLY SATISFIED THAT SUCH PERSON IS POSSESSED AND WILL  CONTINUE
 TO  BE  POSSESSED  OF  THE  FINANCIAL  ABILITY  TO  RESPOND TO JUDGMENTS
 OBTAINED AGAINST SUCH PERSON, ARISING OUT OF THE OWNERSHIP, MAINTENANCE,
 USE OR OPERATION OF ANY SUCH PERSON'S PUBLIC VESSEL. UPON DUE NOTICE AND
 HEARING, THE COMMISSIONER MAY, IN HIS OR HER DISCRETION AND UPON REASON-
 ABLE GROUNDS, CANCEL A CERTIFICATE OF SELF-INSURANCE.
   § 3. This act shall take effect on the ninetieth day  after  it  shall
 have become a law.

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