Amends title 46 of the United States Code regarding liability for the transfer of commercial vessels.
Assigns liability to individuals who transfer title of a commercial vessel or former commercial vessel for recreational use if the transferee lacks applicable insurance at the time of transfer and the vessel sinks.
Specifies that the liability applies to expenses resulting from the sinking of the vessel on navigable waters of the United States.
Exemptions to liability include:
Vessels that are less than 35 feet in length or fewer than 40 years old.
Transfers to individuals who have insurance covering the vessel for a 12-month period starting from the date of transfer, which includes coverage for specified expenses in case of sinking.
Defines key terms such as “commercial vessel,” “covered vessel,” “specified expenses,” and “recreational vessel.”
“Specified expenses” include damages from the sinking, removal of the vessel and debris, pollution clean-up, and repairs to water intake pumps affected by pollution from the sinking.
