(1) What are the minimum criteria for a vessel inspection to determine a vessel is seaworthy? For the purpose of this rule, the term "seaworthy" means the vessel and its equipment are physically fit and in full working order; able to encounter and withstand the ordinary perils of the sea during its contemplated use; and suitable for its intended purpose. Current U.S. Coast Guard certificates of inspection are acceptable forms of vessel condition determination. Other vessel inspection disclosure reports must document the condition, valuation, and suitability of the vessel for service. The vessel inspection disclosure report may be prepared for either the owner, lien holder, buyer/transferee, vessel broker, or associated financial and insurance provider(s) for the vessel. Vessel inspections must be prepared by a professional marine surveyor who is a third party to the transaction. The vessel inspection must be completed within thirty days prior to the seller/transferor transferring ownership of the vessel. Before transferring ownership of the vessel, the seller/transferor must provide the department a hard copy of the vessel inspection disclosure report and department-issued Acknowledgement Form with original, notarized signatures of the seller/transferor and the buyer/transferee acknowledging receipt of the vessel inspection disclosure report.

(2) The vessel inspection disclosure report must include the following information, at a minimum if applicable to the vessel:

(a) Cover page describing:

(i) Report title identifying type of survey;

(ii) Date report issued;

(iii) Contact information for surveyor;

(iv) Current photograph of vessel, date and location; and

(v) Official vessel number.

(b) Vessel description:

(i) General description;

(ii) Vessel name;

(iii) Current legal owner;

(iv) Intended use of vessel;

(v) Design; and

(vi) Type of construction.

(c) Vessel particulars:

(i) Builder;

(ii) Displacement;

(iii) Length;

(iv) Breadth;

(v) Draught; and

(vi) Fuel system.

(d) Surveyor's notes and condition rating;

(e) Systems evaluation:

(i) Type of propulsion;

(ii) Auxiliary engines; and

(iii) Electrical systems.

(f) Conditions:

(i) Overall appearance; and

(ii) Hull and superstructure condition.

(g) Surveyor recommendations;

(h) Appraisal of market value;

(i) Replacement value;

(j) Physical suitability of the vessel and its equipment for its intended use; and

(k) Determine whether the cost of repairs required to return the vessel and its equipment to physical suitability for its intended use is likely to exceed the market value of the vessel.