Assembly Bill A3559

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3559
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 28, 2025
                                ___________
 
 Introduced  by  M. of A. SIMPSON, BENDETT, DeSTEFANO, GIBBS -- read once
   and referred to the Committee on Insurance
 
 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] THEY  INTEND
 to  operate on the navigable waters of the state to notify the inspector
 of such intention 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] THEIR office. A temporary permit to operate such
 vessel  pending inspection may be issued by the inspector, if [he finds]
 THEY FIND through documentary 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.
                                                            LBD03747-01-5
              

 A. 3559                             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 THEIR DISCRETION, UPON
 THE APPLICATION OF AN OWNER OF A  PUBLIC  VESSEL  TO  HAVE  SUCH  PUBLIC
 VESSEL  CERTIFIED,  ISSUE  A CERTIFICATE OF SELF-INSURANCE WHEN THEY ARE
 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 HEAR-
 ING, THE COMMISSIONER MAY,  IN  THEIR  DISCRETION  AND  UPON  REASONABLE
 GROUNDS, CANCEL A CERTIFICATE OF SELF-INSURANCE.
   §  3.  This  act shall take effect on the ninetieth day after it shall
 have become a law.