Liability for specified expenses resulting from sinking of certain decommissioned commercial vessels

(a) In general Chapter 301 of title 46, United States Code, is amended by adding at the end the following new section: 30107. Liability for specified expenses resulting from sinking of certain decommissioned commercial vessels (a) Liability for transferor Except as provided in subsection (b), any person who transfers title of a covered vessel to another for use as a recreational vessel shall be liable for any specified expenses resulting from the vessel sinking on navigable waters of the United States. (b) Exceptions (1) Vessel length; vessel age Subsection (a) shall not apply to a vessel less than 35 feet in length or fewer than 40 years old. (2) Insurance Subsection (a) shall not apply to a person who transfers title of a covered vessel to a person who, at the time of the transfer, has insurance— (A) applicable to the vessel for the 12-month period beginning on the date of the transfer; and (B) that, in the case the vessel sinks, covers specified expenses. (c) Definitions In this section: (1) Commercial vessel The term commercial vessel has the meaning given such term in section 4462(a)(4) of the Internal Revenue Code of 1986 (26 U.S.C. 4462(a)(4)). (2) Covered vessel The term covered vessel means— (A) commercial vessel; or (B) a recreational vessel that was previously a commercial vessel. (3) Specified expenses The term specified expenses mean, with respect to a sunken vessel— (A) damages attributable to the sinking of the vessel; and (B) expenses relating to— (i) removal of the vessel and any debris; (ii) clean-up of any pollution attributable to the sinking of the vessel; and (iii) any shut down of, or repairs or maintenance to, a water intake pump as a result of pollution attributable to the sinking of the vessel. (4) Recreational vessel The term recreational vessel has the meaning given such term in section 2101 of title 46, United States Code.. (b) Clerical amendment The table of sections for chapter 301 of title 46, United States Code, is amended by adding at the end the following new item: 30107. Liability for specified expenses resulting from sinking of certain decommissioned commercial vessels..