Selling Old Commercial Boats? New Bill Could Stick You With the Bill If It Sinks

The Abandoned Vessel Prevention Act introduces a new rule for folks selling certain commercial boats that are destined for a second life as recreational vessels. Specifically, if you transfer the title of a commercial vessel (think old fishing boats, tugs, etc.) to someone who plans to use it for fun, and that vessel later sinks in U.S. waters, you, the previous owner, could be legally on the hook for the cleanup and damages.

Who Pays the Piper When the Ship Goes Down?

Under this bill, the person transferring the title (the seller or giver) is potentially liable for a range of costs if the vessel sinks. This isn't just pocket change; we're talking about covering damages caused by the sinking, the hefty expense of removing the wreck and any debris, cleaning up pollution spilled from the vessel, and even costs related to shutdowns or repairs if a water intake pump gets fouled by that pollution. Imagine selling an old workhorse boat to someone planning to fix it up for weekend trips – if it goes under later, the financial responsibility could boomerang back to you.

Getting Off the Hook: The Exemptions

There are a couple of key exceptions built into this potential liability. First, this rule doesn't apply to all boats. If the vessel is less than 35 feet long or less than 40 years old, the previous owner isn't liable under this act. Second, there's an insurance escape hatch: if the new owner secures an insurance policy covering these specific potential expenses (damages, removal, cleanup, water intake issues) for at least 12 months starting from the transfer, the previous owner is clear. This puts a spotlight on insurance as a way to manage the risk when transferring older, larger commercial vessels for recreational purposes.

The Bigger Picture: Cleaner Waters, Trickier Sales?

The goal here seems straightforward: prevent abandoned or sunken vessels from becoming environmental hazards and financial burdens on the public. By making the transferor potentially liable, the bill encourages more responsible handling and disposal of aging commercial boats. However, it could also make selling older, larger vessels more complicated or costly, potentially requiring sellers to ensure the buyer gets adequate insurance. The exact definition of 'damages' or 'pollution' isn't spelled out, which might lead to some gray areas or disputes down the line about who owes what if a transferred vessel does unfortunately sink.