SB30 Alabama 2014 Session

Summary

Primary Sponsor

Quinton Ross

Democrat

Session

Regular Session 2014

Title

Vessels, liability insurance required prior to registration and licensing, admin. and enforcement, penalties, Secs. 33-5A-1 to 33-5A-22 added

Summary

The bill would require proof of liability insurance before registering or licensing Alabama vessels, with minimum coverage, enforcement, and dealer requirements; non-motorized vessels are exempt.

What This Bill Does

It requires proof of liability insurance before a vessel registered in Alabama can be registered or licensed, with non-motorized vessels exempt. It sets minimum coverage levels of $25,000 per person, $50,000 per accident for multiple people, and $25,000 for property damage, which can be met by a policy, a vessel liability bond, or a cash deposit of at least $50,000. It requires evidence of insurance to be carried on the vessel and allows random verification by the Department of Conservation and Natural Resources, but does not authorize water-stop inspections solely to verify insurance; violations can lead to suspension of registration and reinstatement fees, with tougher penalties for repeat offenses. It also requires vessel dealers and similar businesses to maintain blanket liability insurance for inventory and to provide proof with license applications, with licenses denied if proof is not provided.

Who It Affects

• Vessel owners and operators registered in Alabama: they must obtain and display liability insurance or an acceptable alternative, face potential suspension of vessel registrations for noncompliance, and are subject to reinstatement fees and penalties.
• Vessel dealers and related businesses (dealers, reconditioners, reb builders, wholesalers): they must maintain blanket liability insurance covering inventory and provide proof during license applications, or have their licenses denied.

Key Provisions

• §33-5A-1: Establishes the Mandatory Vessel Liability Insurance Act (short title).
• §33-5A-2: Defines key terms (certificate of insurance, operator, owner, vessel, declarations page, etc.).
• §33-5A-4: Requires proof of liability insurance to operate or register a vessel; allows coverage by policy, vessel liability bond, or cash deposit; sets minimum limits ($25,000 per person, $50,000 per accident, $25,000 property).
• §33-5A-5: Lists exemptions (e.g., vessels owned/operated by the U.S. or state, self-insured vessels, certain dealer/inventory arrangements, out-of-state registrations).
• §33-5A-6: Requires carrying and displaying evidence of insurance on the vessel; specifies acceptable proof (insurance card, declarations page, binder, etc.).
• §33-5A-7 to §33-5A-9: Authorizes random verification by the department, suspends registrations for noncompliance, and sets reinstatement fees and conditions; outlines penalties for violations and repeat offenses.
• §33-5A-22: Requires blanket liability insurance for vessel dealers and related businesses and ties proof to license applications (license denial without proof).
• §33-5A-18: Outlines penalties for violations (felonies and misdemeanors with fines, imprisonment, or both).
• §33-5A-12: Prohibits verification procedures that rely solely on inspecting vessels on the water to confirm insurance.
• Section 3: Effective date—the act becomes law on the first day of the third month after passage.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Vessels