S. 26 would add a new section to South Carolina law requiring owners of certain watercraft to maintain liability insurance before allowing the vessel to be operated on state waters. The requirement applies to watercraft of more than 70 horsepower, personal watercraft, and specialty propcraft titled in South Carolina or documented by the U.S. Coast Guard with a South Carolina hailing port. The policy must provide at least $50,000 in combined liability coverage for bodily injury or property damage arising from a single occurrence.
The bill also requires applicants for title, registration, and renewal to certify that the vessel is insured, allows proof of insurance to be carried electronically, and creates a rebuttable presumption of being uninsured if proof is not presented after an accident. Violations are treated as misdemeanors with escalating fines for repeat offenses, and a third or subsequent offense can include imprisonment of up to one year. Fines collected under the section would be directed to the Department of Natural Resources for boater training and safety programs.
Impact
The bill would create a new insurance mandate in Title 50, Chapter 21 of the South Carolina Code for certain boats and personal watercraft, changing current law under which boat insurance is generally voluntary. It would also add enforcement and penalty provisions, including misdemeanor liability, fines, and possible jail time for repeat violations, while tying fine revenue to boater safety and training. The Department of Natural Resources would gain a role in administering and enforcing the requirement, and the Department of Insurance and the courts could see additional administrative and caseload impacts, though fiscal notes suggest those effects would likely be manageable within existing resources.
Sentiment
The available legislative history suggests generally favorable committee sentiment toward the bill, as the Senate Fish, Game and Forestry Committee reported it favorably and recommended passage. The bill also advanced on Senate second reading by a 24-19 vote, indicating meaningful support but not broad consensus. Fiscal analysis in the bill materials treats the measure as workable and anticipates only modest revenue effects, which may have helped support its consideration.
Contention
The main point of contention is the policy choice to impose mandatory liability insurance on boat owners, which would be a significant change from the current voluntary system. Potential concerns include added costs for owners of higher-horsepower boats and personal watercraft, the burden of certification and enforcement, and whether the misdemeanor penalties are proportionate. Another issue is implementation: the Department of Natural Resources was still reviewing the bill, and the fiscal note indicates the agency impact was not fully resolved at the time of the committee report.
Watercraft: registration; invasive species prevention and remediation watercraft decals; provide for. Amends sec. 80124a of 1994 PA 451 (MCL 324.80124a).