S 26 — Watercraft Liability Insurance

2025-2026 Bill 26 Text of Previous Version (Jan.(Dec.

29,11, 2025)2024) - South Carolina Legislature Online South Carolina General Assembly126th Session, 2025-2026Bill 26Indicates Matter StrickenIndicates New Matter(Text matches printed bills.

Document has been reformatted to meet World Wide Web specifications.) Committee  Report  January  29,  2025    S.    A bill   TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ADDING SECTION 50-21-107 SO AS TO PROVIDE THAT OWNERS OF WATERCRAFT OF MORE THAN SEVENTY HORSEPOWER MUST CARRY LIABILITY INSURANCE OF AT LEAST FIFTY THOUSAND DOLLARS OF COVERAGE PER OCCURRENCE, TO PROVIDE PENALTIES, AND TO PROVIDE FOR THE COLLECTION OF FINES.

26   Introduced by Senator Hutto   S.

Printed 1/29/25--S.

Read the first time January 14, 2025   ________   The committee on Senate Fish, Game and Forestry To whom was referred a Bill (S.

26) to amend the South Carolina Code of Laws by adding Section 50-21-107 so as to provide that owners of watercraft of more than seventy horsepower must carry liability, etc., respectfully Report:

That they have duly and carefully considered the same, and recommend that the same do pass:

  GEORGE CAMPSEN for Committee.

    statement of estimated fiscal impact Explanation of Fiscal Impact State Expenditure This bill specifies it is unlawful for an owner of a watercraft of more than seventy horsepower, a personal watercraft, or a specialty propcraft titled in South Carolina or documented by the USCG with a hailing port in South Carolina to allow the operation of the watercraft without a liability insurance policy with a minimum of $50,000 combined liability coverage for bodily injury or property damage for any one occurrence.

  Department of Natural Resources.

DNR enforces state and federal laws related to boating and South Carolina's waterways.

Currently, owners of boats are not required to have insurance.

Owners of boats in South Carolina are required to title and register their boats if they have an inboard motor and not already documented by the USCG.

An owner must also title all outboard motors with five horsepower or more.

DNR is currently reviewing this bill.

The fiscal impact of this bill for DNR is pending, contingent upon further response from the agency.

  Department of Insurance.

DOI anticipates that the additional responsibilities as a result of this bill will be managed by existing appropriations and staff.

Therefore, there will be no expenditure impact to the agency.

Judicial.

This bill creates a misdemeanor related to boat insurance and establishes fines.

The fine for the first and second offenses range from $50 to $500.

The penalty for the third and subsequent offenses includes a fine and imprisonment up to one year.

Judicial reports that implementation of this bill may increase caseloads in circuit court.

While the increase in the number of course cases due to this bill is unknown, Judicial anticipates that any increase in caseload can be managed using existing staff and appropriations.

Therefore, this bill will result in no expenditure impact for Judicial.

  State Revenue This bill provides that a person in violation of the specified liability for watercraft is guilty of a misdemeanor and subject to fines.

  DOI currently collects taxes on insurance premiums written on the liability policies of watercraft that are currently voluntary.

The cost of insurance varies on policy limit, type of boat, location of boat, driver history, and other factors.

In addition to these risk characteristics determining policy costs, DOI has also expressed that the impact of this bill on the price of insurance is undetermined.

While this bill will likely increase the total value of premiums of watercraft liability policies collected and therefore increase revenue, DOI has expressed that $50,000 in liability insurance without any other required coverages, such as uninsured boater or permissive use, is relatively low coverage and should be obtained with relatively low premiums.

Therefore, DOI anticipates the amount of insurance premium tax revenue that may be generated beginning in FY 2025-26 as a result of this bill will be positive, but not significant.

  This bill may result in an increase in court fines and fees due to the newly created misdemeanor.

This bill requires all fines prescribed as a result of operating a watercraft that requires liability insurance without coverage must be used by DNR for the purpose of a boater training and safety program.

    Frank A.

Rainwater, Executive Director Revenue and Fiscal Affairs Office   _______                 A bill   TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ADDING SECTION 50-21-107 SO AS TO PROVIDE THAT OWNERS OF WATERCRAFT OF MORE THAN SEVENTY HORSEPOWER MUST CARRY LIABILITY INSURANCE OF AT LEAST FIFTY THOUSAND DOLLARS OF COVERAGE PER OCCURRENCE, TO PROVIDE PENALTIES, AND TO PROVIDE FOR THE COLLECTION OF FINES.

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