This bill holds the sellers of old commercial vessels liable for cleanup and damage costs if the vessel sinks after being converted for recreational use and the buyer lacks proper insurance. The law applies only to vessels at least 35 feet long and 40 years old. A seller is exempt from liability if the buyer has insurance covering the vessel and potential sinking costs for at least 12 months after the transfer. The bill targets the growing problem of abandoned or derelict vessels, which can pollute waterways and disrupt water supply systems, by creating financial incentives for sellers to ensure buyers have adequate insurance before transferring ownership. The legislation was introduced by Representatives John Duarte and Jim Costa of California in March 2025 and was referred to the House Transportation and Infrastructure Committee.
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