Insurance required for certain vessel owners

(a) This section shall apply to: (1) All owners of vessels originally manufactured with a length of twenty-six feet or more that are: (A) Required to be registered pursuant to section 200-31(a); or (B) Operated in state ocean waters with a valid documentation number from the United States Coast Guard; and (2) Owners of vessels originally manufactured with a length of less than twenty-six feet who were or are the registered owner of a grounded vessel located anywhere in the State or state ocean waters. (b) All owners of vessels subject to this section pursuant to subsection (a) shall obtain insurance coverage with a limit of not less than $100,000 per occurrence, in a form and content to ensure that removal and salvage of a grounded vessel are covered; provided that the vessel owner may provide alternative proof of insurance, approved by the department, to comply with this section. (c) The board of land and natural resources may grant an exemption from the marine insurance coverage requirement of this section for a transient vessel not moored in a state small boat harbor, offshore mooring area, or other facility under the jurisdiction of the department; provided that the board finds that there is good cause and that there are extraordinary circumstances necessitating the exemption. (d) The department shall adopt rules pursuant to chapter 91 to carry out the purposes of this section. (e) For the purposes of this section: "Grounded vessel" means a vessel that made contact with the bed of a body of water and cannot move from the position under its own power. "Transient vessel" means any vessel visiting the State for a period of less than ninety days.