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A344, R388, H4764
STATUS INFORMATION
General Bill
Sponsors: Reps. Witherspoon and Branham
Document Path: l:\council\bills\gjk\20419sd08.doc
Introduced in the House on February 27, 2008
Introduced in the Senate on May 1, 2008
Last Amended on April 30, 2008
Passed by the General Assembly on June 5, 2008
Governor's Action: June 11, 2008, Signed
Summary: Department of Natural Resources
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number
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2/27/2008 House Introduced and read first time HJ-13
2/27/2008 House Referred to Committee on Agriculture, Natural Resources
and Environmental Affairs HJ-16
4/22/2008 House Committee report: Favorable with amendment Agriculture,
Natural Resources and Environmental Affairs HJ-6
4/24/2008 House Debate adjourned until Wednesday, April 30, 2008 HJ-72
4/24/2008 Scrivener's error corrected
4/30/2008 House Amended HJ-27
4/30/2008 House Read second time HJ-38
5/1/2008 House Read third time and sent to Senate HJ-127
5/1/2008 Senate Introduced and read first time SJ-9
5/1/2008 Senate Referred to Committee on Fish, Game and Forestry SJ-9
5/1/2008 Scrivener's error corrected
5/22/2008 Senate Committee report: Favorable with amendment Fish, Game
and Forestry SJ-25
5/27/2008 Senate Committee Amendment Adopted SJ-19
5/27/2008 Senate Read second time SJ-19
5/28/2008 Senate Read third time and returned to House with amendments
SJ-30
6/5/2008 House Concurred in Senate amendment and enrolled HJ-55
6/5/2008 Ratified R 388
6/11/2008 Signed By Governor
6/30/2008 Copies available
6/30/2008 Effective date 12/11/08
7/11/2008 Act No. 344
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
2/27/2008
4/22/2008
4/24/2008
4/30/2008
5/1/2008
5/22/2008
5/27/2008
(A344, R388, H4764)
AN ACT TO AMEND SECTION 49-3-50, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO MATTERS TO BE CONSIDERED BY THE DEPARTMENT OF NATURAL RESOURCES IN REGARD TO WATER RESOURCES PLANNING AND COORDINATING, SO AS TO REVISE THESE CONSIDERATIONS; TO AMEND SECTION 50-21-10, RELATING TO DEFINITIONS IN REGARD TO EQUIPMENT AND OPERATION OF WATERCRAFT, SO AS TO REVISE CERTAIN DEFINITIONS; TO AMEND SECTION 50-21-30, RELATING TO THE SCOPE OF CERTAIN PROVISIONS OF LAW RELATING TO THE OPERATION OF VESSELS ON THE WATERS OF THIS STATE, SO AS TO CHANGE CERTAIN REFERENCES AND FURTHER PROVIDE FOR THE SCOPE OF THESE PROVISIONS; BY ADDING SECTION 50-23-10 SO AS TO PROVIDE FOR THE ISSUANCE, TERMS, AND CONDITIONS OF MARINE DEALERS' PERMITS; BY ADDING SECTION 50-23-11 SO AS TO PROVIDE FOR THE USE OF DEALER DEMONSTRATION NUMBERS AND CONDITIONS RELATED TO THEIR USE; TO AMEND SECTION 50-23-20, RELATING TO CERTIFICATES OF TITLE REQUIRED FOR WATERCRAFT AND OUTBOARD MOTORS, SO AS TO REQUIRE THE OWNER OF A WATERCRAFT OR OUTBOARD MOTOR TO NOTIFY THE DEPARTMENT WITHIN THIRTY DAYS OF ITS TRANSFER; TO AMEND SECTION 50-23-30, RELATING TO EXEMPTIONS FROM THE TITLING REQUIREMENTS OF WATERCRAFT AND OUTBOARD MOTORS, SO AS TO FURTHER PROVIDE FOR WATERCRAFT AND OTHER DEVICES WHICH ARE NOT REQUIRED TO BE TITLED; BY ADDING SECTION 50-23-55 SO AS TO PROVIDE FOR THE ISSUANCE OF CERTIFICATES OF TITLE TO A WATERCRAFT OR OUTBOARD MOTOR AND PROVIDE FOR THE MANNER OF THEIR USE AND ISSUANCE; TO AMEND SECTION 50-23-60, AS AMENDED, RELATING TO APPLICATIONS FOR A CERTIFICATE OF TITLE FOR A WATERCRAFT OR OUTBOARD MOTOR, SO AS TO FURTHER PROVIDE FOR THE CONTENTS OF THE APPLICATIONS; TO AMEND SECTION 50-23-70, RELATING TO AN APPLICATION FOR A WATERCRAFT CERTIFICATE OF TITLE, SO AS TO AUTHORIZE THE DEPARTMENT TO ISSUE A DUPLICATE AND PROVIDE A FEE FOR PROVIDING THE CERTIFICATE AND A DUPLICATE; TO AMEND SECTION 50-23-90, RELATING TO THE CONTENTS OF CERTIFICATES OF TITLE, SO AS TO FURTHER PROVIDE FOR THESE CONTENTS; TO AMEND SECTION 50-23-110, RELATING TO A MANUFACTURER OR IMPORTER'S CERTIFICATE OF ORIGIN, SO AS TO REVISE THE TERM "CERTIFICATE OF ORIGIN" TO "STATEMENT OF ORIGIN" AND FURTHER PROVIDE FOR WHEN THE STATEMENTS OF ORIGIN MUST BE PROVIDED; TO AMEND SECTION 50-23-120, RELATING TO THE ASSIGNMENT AND WARRANTY OF TITLE TO WATERCRAFT OR OUTBOARD MOTORS, SO AS TO REVISE THE TIME WITHIN WHICH A TITLE OR DUPLICATE TITLE MUST BE APPLIED FOR AND TO DELETE CERTAIN PROVISIONS RELATING TO THE RIGHTS AND DUTIES OF A LIENHOLDER; TO AMEND SECTION 50-23-130, RELATING TO TRANSFER OF OWNERSHIP OF A WATERCRAFT ON AN OUTBOARD MOTOR BY OPERATION OF LAW, SO AS TO REVISE A REFERENCE; TO AMEND SECTION 50-23-140, RELATING TO THE PRIORITY AND VALIDITY OF LIENS AND OTHER ENCUMBRANCES ON WATERCRAFT, SO AS TO PROVIDE FOR SPECIFIC CIRCUMSTANCES UNDER WHICH THE DEPARTMENT MUST ISSUE A TITLE CLEAR OF A LIEN AND TO REVISE THE TIME IN WHICH A SECURITY INTEREST IS PERFECTED; TO AMEND SECTION 50-23-180, RELATING TO A REPORT OF STOLEN WATERCRAFT AND OUTBOARD MOTORS TO THE DEPARTMENT, SO AS TO PROVIDE THAT LAW ENFORCEMENT AGENCIES SHALL NOTIFY THE DEPARTMENT IMMEDIATELY OF THE RECOVERY OF ANY STOLEN WATERCRAFT OR OUTBOARD MOTOR AND TO PROVIDE FOR OTHER PROCEDURAL REQUIREMENTS OF THIS SECTION; TO AMEND SECTION 50-23-190, RELATING TO UNLAWFUL ACTS AND OTHER MATTERS RELATING TO THE POSSESSION, OPERATION, OR TRANSFER OF A WATERCRAFT OR AN OUTBOARD MOTOR, SO AS TO PROVIDE FOR OTHER PROHIBITED ACTS; TO AMEND SECTION 50-23-200, RELATING TO UNLAWFUL ACTS IN REGARD TO WATERCRAFT AND OUTBOARD MOTORS, SO AS TO REVISE A REFERENCE; BY ADDING SECTION 50-23-201 SO AS TO PROVIDE THAT IT IS UNLAWFUL FOR ANY PERSON TO ATTEMPT TO OBTAIN A CERTIFICATE OF TITLE, CERTIFICATE OF NUMBER OR DECALS BY FRAUD OR MISREPRESENTATION OR TO OBTAIN A CERTIFICATE OF TITLE OR CERTIFICATE OF NUMBER OR DECALS BY FRAUD OR MISREPRESENTATION, AND TO PROVIDE PENALTIES FOR VIOLATION; TO AMEND SECTION 50-23-205, RELATING TO SEIZURE OF WATERCRAFT, SO AS TO REQUIRE CERTAIN NOTICE TO HOLDERS OF A PERFECTED SECURITY INTEREST BEFORE THE WATERCRAFT MAY BE USED OR DISPOSED OF ACCORDING TO LAW; TO AMEND SECTION 50-23-270, RELATING TO WHEN BOAT TITLING PROVISIONS APPLY, SO AS TO FURTHER PROVIDE FOR THIS APPLICABILITY AND REVISE WHEN CERTAIN PENALTY PROVISIONS APPLY; TO AMEND SECTION 50-23-280, RELATING TO PENALTIES FOR VIOLATING CERTAIN WATERCRAFT PROVISIONS, SO AS TO REVISE A SPECIFIC PENALTY PROVISION; TO AMEND SECTION 50-23-290, RELATING TO CONDITIONAL TITLES, SO AS TO FURTHER PROVIDE FOR THE CIRCUMSTANCES UNDER WHICH THE DEPARTMENT MAY ISSUE A TITLE WHEN A PERSON COMES INTO POSSESSION OF A WATERCRAFT WITHOUT PROPER PROOF OF OWNERSHIP; TO AMEND SECTION 50-23-320, RELATING TO EXCEPTIONS TO THE REQUIREMENT THAT VESSELS BE NUMBERED, SO AS TO REVISE THE CIRCUMSTANCES WHEN A VESSEL IS NOT REQUIRED TO BE NUMBERED; TO AMEND SECTION 50-23-345, RELATING TO TEMPORARY CERTIFICATES OF BOAT NUMBER, SO AS TO FURTHER PROVIDE FOR WHEN THE DEPARTMENT MAY ISSUE TEMPORARY CERTIFICATES; TO AMEND SECTION 50-23-370, RELATING TO TERMS AND RENEWAL OF CERTIFICATES OF BOAT NUMBER ISSUED BY THE DEPARTMENT, SO AS TO FURTHER PROVIDE FOR THEIR EXPIRATION AND RENEWAL AND THE CIRCUMSTANCES WHEN THESE CERTIFICATES MAY BE ISSUED; BY ADDING SECTION 50-23-375 SO AS TO PROVIDE THAT IT IS UNLAWFUL TO DISPLAY A REGISTRATION NUMBER OR VALIDATION DECAL OR AN OUTBOARD MOTOR TITLE DECAL ON ANY WATERCRAFT OR OUTBOARD MOTOR EXCEPT ON THOSE FOR WHICH IT WAS ISSUED; TO AMEND SECTION 50-23-380, RELATING TO TRANSFER OF REGISTRATION UPON CHANGE OF OWNERSHIP, SO AS TO REVISE A REFERENCE; TO AMEND SECTION 50-23-400, RELATING TO NOTICE OF CHANGE OF ADDRESS OF A HOLDER OF A CERTIFICATE OF BOAT NUMBER, SO AS TO REVISE THE TIME WITHIN WHICH THIS NOTICE MUST BE PROVIDED; TO REPEAL SECTION 50-21-35 RELATING TO THE USE OF DEALER DEMONSTRATION NUMBERS FOR WATERCRAFT, SECTION 50-21-60 RELATING TO PERSONNEL, EXPENSES AND SALARIES OF DEPARTMENT EMPLOYEES, SECTIONS 50-23-15, 50-23-40, 50-23-50, 50-23-65, 50-23-100, AND 50-23-160 ALL RELATING TO CERTIFICATES OF TITLE OR MARINE DEALER PERMITS, AND SECTION 50-23-135 RELATING TO NOTICE OF POSSESSION OF AN ABANDONED OR JUNKED WATERCRAFT.
Be it enacted by the General Assembly of the State of South Carolina:
Consideration revised
SECTION 1. Section 49-3-50(c) of the 1976 Code is amended to read:
"(c) Water navigation for recreational and commercial needs."
Definitions revised
SECTION 2. Section 50-21-10 of the 1976 Code is amended to read:
"Section 50-21-10. As used in this title unless the context clearly requires a different meaning:
(1) 'Abandon' or 'abandoned' means any watercraft that has been moored, stranded, wrecked, sinking, or sunk, and has been left unattended for longer than forty-five days. A watercraft is not abandoned if it is legally moored or is on private property.
(2) 'Boat' means a vessel.
(3) 'Associated equipment' does not include radio equipment and means:
(a) a system, part, or component of a boat as originally manufactured or a similar part or component manufactured or sold for replacement, repair, or improvement of the system, part, or component;
(b) an accessory or equipment for, or appurtenance to, a boat;
(c) a marine safety article, accessory, or equipment intended for use by a person on board a boat.
(4) 'Boat livery' means a business that holds watercraft for rent, lease, or charter.
(5) 'Certificate of number' means the registration.
(6) 'Certificate of origin' means a document establishing the initial chain of ownership, such as manufacturer's certificate of origin or statement of origin, importer's certificate of origin, or builder's certification.
(7) 'Dealer's permit' means a certificate issued by the department to a marine business to extend the privilege of using marine dealer demonstration numbers on boats or motors for demonstration or testing purposes and assignment on appropriate documents. Abuse of these privileges results in termination of the dealer's permit.
(8) 'Demonstration numbers' means a temporary certificate of number issued to permitted marine dealers or manufacturers for the purpose of demonstrating watercraft held for sale, or used on watercraft which are being repaired or tested or used by an established customer whose boat is being repaired.
(9) 'Department' means the South Carolina Department of Natural Resources.
(10) 'Hull identification number' means the letter and number combination required by the United States Coast Guard or its successor agency on all watercraft manufactured after November 1, 1972.
(11) 'Marina' means a facility which provides mooring or dry storage for watercraft.
(12) 'Marine dealer' means a business that engages in buying or selling, exchanging, brokering, manufacturing, or servicing watercraft or outboard motors for watercraft.
(13) 'Marine manufacturer' means a person engaged in the manufacturing of watercraft or outboard motors for sale or trade.
(14) 'No Wake-Idle Speed' means a regulated boating area established for the safety of the public. 'No Wake-Idle Speed' means that a vessel cannot proceed at a speed greater than that speed which is necessary to maintain steerageway.
(15) 'Operate' means to navigate, steer, drive, or be in control. It also includes the manipulation of moving water skis, a moving aquaplane, a moving surfboard, or similar moving device.
(16) 'Operator' means the person who operates or has charge or command of the navigation or use of a vessel or watercraft.
(17) 'Outboard motor' means a combustion engine or electric propulsion system, which is used to propel a watercraft and which is detachable from the watercraft as a unit. No outboard motor of less than five horsepower or its equivalent is required to be titled under this chapter.
(18) 'Owner' means a person, other than a lienholder, who claims lawful possession of a vessel or outboard motor by virtue of legal title or equitable interest in it which entitled him to possession.
(19) 'Person' means an individual, a partnership, a firm, a corporation, an association, or other legal entity.
(20) 'Reportable boating accident' means an accident, collision, or other casualty involving a vessel subject to this chapter which results in loss of life, injury which results in loss of consciousness, necessity for medical treatment, necessity to carry a person from the scene, disability which prevents the discharge of normal duties beyond the day of casualty, or actual physical damage to property including vessels in excess of the minimum amount set by the United States Coast Guard for reportable accidents.
(21) 'Serial number' means the identifying manufacturer's number affixed to a watercraft before November 2, 1972, and to outboard motors before, on, and after that date. The serial number of watercraft manufactured after November 1, 1972, is part of the hull identification number.
(22) 'Temporary certificate of number' is a temporary registration assigned to a vessel to allow operation for a limited purpose.
(23) 'Tender' means a small watercraft attendant to a larger vessel that meets United States Coast Guard requirements and is used solely for ferrying supplies or passengers and crew between its parent vessel and shore.
(24) 'Use' means operate, navigate, or employ.
(25) 'Vessel' means every description of watercraft, other than a seaplane regulated by the federal government, used or capable of being used as a means of transportation on water.
(26) 'Water device' means a motorboat, boat, personal watercraft or vessel, water skis, an aquaplane, surfboard, or other similar device.
(27) 'Waters of the State' means waters within the territorial limits of the State but not private lakes or ponds.
(28) 'Watercraft' means any thing used or capable of being used as a means of transportation on the water but does not include: a seaplane regulated by the federal government, water skis, aquaplanes, surfboards, windsurfers, tubes, rafts, and similar devices or any thing that does not meet construction or operational requirements of the state or federal government for watercraft."
Watercraft laws and ordinances
SECTION 3. Section 50-21-30(1) of the 1976 Code is amended to read:
"(1) The provisions of Title 50 and other applicable laws of this State shall govern the operation, equipment, titling, numbering, and all other matters relating thereto for watercraft and water devices using or held for use on the waters of this State; but nothing in this chapter may be construed to prevent the adoption of any ordinance or local law relating to operation and equipment of watercraft; provided, that the ordinances or local laws shall be operative only so long as and to the extent that they are identical to provisions of this chapter, amendments thereto, or regulations issued thereunder."
Marine dealer's permits
SECTION 4. Article 1, Chapter 23, Title 50 of the 1976 Code is amended by adding:
"Section 50-23-10. Each entity desiring to be a marine dealer shall apply for a permit each year. A permit is valid from January first to December thirty-first. The permit cost is ten dollars. Applications for renewals must be received by December fifteenth each year. A marine dealer shall have an established place of business with a street address separate from a residence. A marine dealer shall have a valid business license and permit for each separate facility. A facility is separate if it is not within the same compound or has a separate street address. Marine dealers who sell new or used watercraft shall sell a minimum of ten watercraft or outboard motors a year in order to renew the permit. A dealer who fails to meet minimum requirements each year may request in writing a review of the permit and sales. After review of the dealer's records and after good cause has been shown by the dealer for not meeting the minimum requirements, the department may renew the permit for the calendar year. Permitted marine dealers may apply for demonstration numbers. Marine dealers permitted under this article consent to inspections of the business and its records during regular business hours by department personnel and other law enforcement officers. A dealer who fails to cooperate with department inspections forfeits his permit. A marine dealer permit is invalid when a change is made to one or more of the following:
(1) location address;
(2) federal employer identification number;
(3) South Carolina tax number;
(4) ownership; or
(5) business name."
Dealer demonstration numbers
SECTION 5. Article 1, Chapter 23, Title 50 of the 1976 Code is amended by adding:
"Section 50-23-11. (A) Dealer demonstration numbers are limited to watercraft that are:
(1) held for sale by the dealership or assigned to the dealership, including customer watercraft in for service and watercraft being ferried by the dealership;
(2) being operated for limited demonstration rides by prospective buyers;
(3) being operated for purposes of buyer demonstration by owners, employees, or corporate officers of the dealership;
(4) being tested for service by the dealership;
(5) being temporarily operated by an established customer whose boat is being repaired; and
(6) valid from the date of issue until December thirty-first inclusive of each year.
(B) The demonstration numbers must not be permanently attached to the vessel but must be on board at all times. Marine dealers who sell watercraft are allowed nine demonstration numbers. Marine dealers who only service watercraft or outboard motors are allowed one demonstration number.
If a dealer allows the operation of a watercraft with demonstration numbers, the dealer shall execute a form identifying the date and time, the specific watercraft, the dealer's permit number, the demonstration number, the purpose for which the watercraft is being operated and if for a prospective sale, the form must include the name of the prospective buyer, the date, the specific watercraft, the dealer's permit number, and the demonstration number. The form and the dealer demonstration number must be on board during operation but need not be attached. Operations with dealer demonstration numbers are limited to seventy-two consecutive hours. This form is not required of owners, employees, or corporate officers who carry dealer identification and who are authorized to use demonstration numbers as provided herein.
(C) All owners, employees, or corporate officers authorized to demonstrate dealer watercraft using demonstration numbers must be listed on the dealer permit application form. The list must be updated as employees are added or deleted within thirty days of a change. Owners, employees, or officers not listed may not use demonstration numbers.
(D) It is unlawful to misuse dealer demonstration numbers or allow dealer demonstration numbers to be misused. A person convicted of misusing or allowing the misuse of dealer demonstration numbers is guilty of a misdemeanor and, upon conviction, for a first offense must be fined not more than five hundred dollars. For a second offense within three years of the first conviction, the offender must be fined at least two hundred dollars but not more than five hundred dollars. The dealer demonstration numbers are suspended for one year and must be surrendered to the department."
Watercraft titles
SECTION 6. Section 50-23-20 of the 1976 Code is amended to read:
"Section 50-23-20. Any watercraft or outboard motor, or both, held or principally used in this State must be titled by the department. An owner of a watercraft or outboard motor titled in this State must notify the department within thirty days if ownership is transferred to another person, entity, or transferred out of state or otherwise disposed."
Exceptions to titling
SECTION 7. Section 50-23-30 of the 1976 Code is amended to read:
"Section 50-23-30. Watercraft documented by the United States Coast Guard or its predecessor or successor agency and water skis, aquaplanes, surfboards, windsurfers, and similar devices, and those watercraft propelled exclusively by human power are not required to be titled."
Evidence of ownership
SECTION 8. Article 1, Chapter 23, Title 50 of the 1976 Code is amended by adding:
"Section 50-23-55. (A) A certificate of title to a watercraft or outboard motor is prima facie evidence of ownership of a watercraft or outboard motor. All watercraft and outboard motors subject to the titling requirements of this chapter must be titled.
(B) No person may acquire a watercraft or outboard motor, subject to the titling requirements of this chapter, without obtaining a certificate of title or in the case of a new watercraft or outboard motor a manufacturer's or importer's statement of origin reflecting the person acquiring the watercraft or outboard motor as the original purchaser as provided in this chapter. In the case of watercraft or outboard motors from other jurisdictions that do not require titling, a bill of sale and proof of registration may be substituted for the title.
(C) No person may dispose of a watercraft or outboard motor subject to the titling provisions of this chapter without transferring to the person acquiring the watercraft or outboard motor a certificate of title reflecting the transfer of the watercraft or outboard motor. In the case of new watercraft, a manufacturer's statement of origin must be delivered to the purchaser. In the case of watercraft or outboard motors from other states or foreign jurisdictions, which do not title such watercraft or outboard motors, a bill of sale and proof of registration may be substituted."
Application
SECTION 9. Section 50-23-60 of the 1976 Code, as last amended by Act 91 of 2007, is further amended to read:
"Section 50-23-60. (A) Every person who acquires a watercraft or outboard motor required to be titled under this chapter shall apply to the department within thirty days of the date of acquisition for a certificate of title for the watercraft or outboard motor accompanied by the required fee and on forms required by the department. The application must be signed by the person who acquires the watercraft or outboard motor and shall contain:
(1) the applicant's name, domiciled address including the county, date of birth, and the county where the watercraft is principally located, state issued identification number, and state of issue;
(2) for watercraft, a description of the watercraft, including its make, model, model year, length, the principal material used in construction, hull number, and the manufacturer's engine serial number if an inboard; for an outboard motor, its make, model, model year, or year of manufacture, and horsepower, and manufacturer's serial number;
(3) the date of acquisition by the applicant, the name and address of the person from whom the watercraft or outboard motor was acquired, and the names and addresses of persons having a security interest in the order of their priority;
(4) a bill of sale; and
(5) further information reasonably required by the department to enable it to determine whether the owner is entitled to a certificate of title and the existence or nonexistence of security interests in the watercraft or outboard motor.
(B) Every dealer selling or exchanging a watercraft or outboard motor subject to titling under this chapter shall complete the application for a new title in the name of the purchaser before delivering the watercraft or outboard motor to the purchaser. The application shall contain the name and address of a lienholder and the date of the security agreement. It must be signed by the dealer showing the assigned dealer permit number, as well as by the owner, and the dealer shall submit the application to the department within thirty days of the sale. However, permitted marine dealers are not required to obtain titles for new vessels and outboard motors held in their inventory for sale until they are sold or exchanged as long as a proper manufacturer's or importer's statement of origin is held by the dealer. The fees for title and registration may not exceed those required by this article and if requested must be itemized on the bill of sale to the new owner. This does not prohibit a dealer from charging an administrative fee for processing title and registration.
(C) If a dealer buys or acquires a used watercraft or outboard motor for resale and the watercraft or outboard motor is already covered by a certificate of title which is surrendered to him by the owner or lienholder at the time of delivery of the watercraft or outboard motor, the dealer need not send the certificate to the department at that time. Upon transferring the watercraft or outboard motor to another person, other than by creation of a security interest, within thirty days of sale he shall execute the assignment and warranty of title by a dealer, showing the name and address of the transferee and a lienholder and the date of his security agreement, in the spaces provided, on the certificate to the department with the transferee's application for a new certificate.
(D) If application for certificate of title is made for a watercraft or outboard motor last owned in another state or foreign country, the application shall contain or be accompanied by:
(1) the certificate of title issued by the other state or foreign country if any;
(2) other information or documents the department reasonably requires to establish the ownership of the watercraft or outboard motor and the existence or nonexistence of security interests in it; or
(3) if the state or foreign country in which the watercraft or outboard motor was last owned does not issue certificates of title, a bill of sale or sworn statement of ownership or evidence of ownership required by the law of the state or foreign country from which the watercraft or outboard motor was brought into this State, and proof of registration plus other information or documents the department reasonably requires to establish the ownership of the watercraft or outboard motor and the existence or nonexistence of security interests in it.
(E) An application except those from permitted marine dealers presented after thirty days is subject to a late penalty of fifteen dollars.
(F) An application presented after sixty days is subject to a late penalty of thirty dollars."
Fee
SECTION 10. Section 50-23-70 of the 1976 Code is amended to read:
"Section 50-23-70. (A) The fee for a certificate of title for a watercraft is ten dollars, and the fee for a certificate of title for an outboard motor is ten dollars.
(B) If a certificate of number or decals are lost, destroyed, or become illegible, the department may issue a duplicate.
(C) The fee for providing a duplicate document or decal is five dollars.
(D) The provisions of this section requiring a fee do not apply to the watercraft owned by volunteer rescue squads used exclusively for the purpose of the squads."
Contents
SECTION 11. Section 50-23-90(a)(5) of the 1976 Code is amended to read:
"(5) A description of the watercraft or outboard motor including its make, model, model year, or year of manufacture, horsepower, registration number, and manufacturer's serial number or, hull number assigned to the watercraft by the department, length, and the principal material used in construction;"
Statement of origin
SECTION 12. Section 50-23-110 of the 1976 Code is amended to read:
"Section 50-23-110. (a) No dealer shall acquire a new watercraft or outboard motor without obtaining from the seller a manufacturer's or importer's statement of origin.
(b) No manufacturer, importer, dealer, or other person shall sell or otherwise dispose of a new watercraft or outboard motor to a dealer without delivering to the dealer a manufacturer's or importer's statement of origin.
(c) The manufacturer's or importer's statement of origin must be a uniform or standardized form prescribed by the department and must contain:
(1) for a watercraft, the description of watercraft including its make, year of manufacture, or model year, and manufacturer's hull identification number, length, and construction, for an outboard motor the description including its make, model, year of manufacture, or model year, manufacturer's serial number, and horsepower;
(2) certification of date of transfer of watercraft or outboard motor, and name and address of transferee;
(3) certification that this was a transfer of watercraft or outboard motor in ordinary trade and commerce;
(4) the signature and address of a representative of the transferor; and
(5) on the reverse side of each manufacturer's or importer's statement of origin an assignment form, including the name and address of the transferee, a certification that the watercraft or outboard motor is new, and a warranty that the title at the time of delivery is subject only to liens and encumbrances set forth and described in full in the assignment."
Time revised
SECTION 13. Section 50-23-120 of the 1976 Code is amended to read:
"Section 50-23-120. (a) The owner at the time of delivery of the watercraft or outboard motor shall execute the assignment and warranty of title to the transferee in the space provided on the back of the certificate of title. If the title is voided, due to a change, cancellation of an assignment on a title due to error, or failure of a purchase to materialize the owner, shall make application for a duplicate title within thirty days.
(b) The transferee or purchaser shall obtain a new certificate of title by application to the department accompanied by the required fee and upon the form or forms prescribed and furnished by the department. This application for certificate of title must be filed within thirty days after the delivery to him of the watercraft or outboard motor."
Reference revised
SECTION 14. Section 50-23-130(a) of the 1976 Code is amended to read:
"(a) If the ownership of a watercraft or outboard motor is transferred by operation of law, such as by inheritance, devise or bequest, order in bankruptcy, insolvency, replevin, or execution sale, or satisfaction of mechanic's lien, or repossession upon default in performance of the terms of a security agreement, the transferee shall, except as provided in subsection (b), promptly mail or deliver to the department the last certificate of title, if available, or the manufacturer's or importer's statement of origin, or, if that is not possible, satisfactory proof of the transfer of ownership, and his application for a new certificate of title accompanied by the required fee, and upon the appropriate form or forms prescribed and furnished by the department."
Liens
SECTION 15. Section 50-23-140 of the 1976 Code is amended to read:
"Section 50-23-140. (a) If a lien or encumbrance is first created at the time of transfer, the certificate of title must be retained by or delivered to the lienholder. All liens, mortgages, and encumbrances noted upon a certificate of title take priority according to the order of time in which they are noted on it by the department. All such liens, mortgages, and encumbrances must be valid as against the creditors of the owner of a watercraft or outboard motor, whether armed with process or not, and against subsequent purchasers of any such watercraft or outboard motor, or against holders of subsequent liens, mortgages, or encumbrances upon the watercraft or outboard motor.
(b) When a lien is discharged, the holder shall note that fact on the face of the certificate of title. Within thirty days of discharging the lien, the holder shall present it to the department.
(c) A security interest is perfected by the delivery to the department of the existing certificate of title, if any, an application for a certificate of title containing the name and address of the lienholder and the date of the security agreement, and the required fee. It is perfected as of the time of its creation if the delivery is completed within thirty days of its creation, otherwise, as of the time of the delivery.
(d) If the person acquires a watercraft or outboard motor and the title shows an outstanding lien and neither the department nor the transferee can verify the existence of the lien, the transferee may provide proof of an attempt to notify the lienholder of record of the transfer and the attempt to verify the existence of the lien by certified mail and if the lienholder of record does not respond within thirty days of the attempted notice, the lien is unenforceable and the department shall issue a title clear of the lien.
(e) If an owner of a watercraft or outboard motor attempts to verify the existence of a lien and neither the owner nor the department can verify the existence, the owner may provide proof of an attempt to notify the lienholder of record to verify the existence of the lien by certified mail and if the lienholder of record does not respond within thirty days of the attempted notice, the lien is unenforceable and the department shall issue a title clear of the lien."
Lost or stolen watercraft
SECTION 16. Section 50-23-180 of the 1976 Code is amended to read:
"Section 50-23-180. (a) Every law enforcement agency, peace officer, owner, or insurer in the State, having knowledge of a stolen or converted watercraft or outboard motor, immediately shall furnish the department with full information concerning the theft or conversion.
(b) The department, whenever it receives a report of the theft or conversion of a watercraft or outboard motor, shall make a record of it, including the make of the stolen or converted watercraft or outboard motor and its hull number or serial number, and shall file the same in the numerical order of the hull number or serial number with the index records of the watercraft or outboard motors of such make. The department shall prepare a report listing watercraft and outboard motors stolen and recovered as disclosed by the reports submitted to it, to be distributed as it deems advisable.
(c) In the event of the recovery of a stolen or converted watercraft or outboard motor, the owner or insurer immediately shall notify the department in writing.
(d) Law enforcement agencies shall notify the department of recovery of any stolen watercraft or outboard motor immediately."
Other acts prohibited
SECTION 17. Section 50-23-190 of the 1976 Code is amended to read:
"Section 50-23-190. No person may:
(1) be in possession of or operate on the waters of this State a watercraft or an outboard motor for which a certificate of title is required unless a certificate of title has been issued to the owner;
(2) be in possession of or operate on the waters of this State a watercraft or an outboard motor for which a certificate of title is required upon which the certificate of title has been canceled;
(3) be in possession of or operate on the waters of this State a sailboat or outboard motor required to be titled without properly displaying the title decal;
(4) sell, transfer, or otherwise dispose of a watercraft or an outboard motor without delivering to the purchaser or transferee a certificate of title or a manufacturer's or importer's statement of origin assigned to the purchaser or transferee as required by this chapter;
(5) fail to surrender to the department a certificate of title upon cancellation of the title by the department for a valid reason set forth in this chapter or regulations adopted pursuant to it; or
(6) dispose of a rejected or defective watercraft hull or outboard motor in the manufacturing process except by upgrading the hull to meet United States Coast Guard requirements or destroying the hull or outboard motor."
Reference revised
SECTION 18. Section 50-23-200(1) of the 1976 Code is amended to read:
"(1) alter, forge, or counterfeit a certificate of title or manufacturer's or importer's statement of origin for a watercraft or for an outboard motor;"
Fraud or mispresentation
SECTION 19. Article 1, Chapter 23, Title 50 of the 1976 Code is amended by adding:
"Section 50-23-201. (A) Any person or entity that attempts to obtain a certificate of title, certificate of number or decals by fraud or misrepresentation or who obtains a certificate of title or certificate of number or decals by fraud or misrepresentation is guilty of a misdemeanor and, upon conviction, must be fined five hundred dollars or imprisoned not more than thirty days, or both.
(B) Any certificate or decal obtained by fraud or misrepresentation is void."
Notification required
SECTION 20. Section 50-23-205(C) of the 1976 Code is amended to read:
"(C) When the department determines the owner of a seized watercraft or outboard motor and related marine equipment, it shall notify the owner by certified mail of the procedure, the location, and the fact that he has not less than thirty days from the date of the certified letter to remove the equipment from the department's storage facility. If a security interest has been perfected, the department must notify the lienholder by certified mail allowing thirty days to respond. Failure to respond within thirty days or remove the watercraft or outboard motor by the date designated forfeits the equipment to the department to be used or disposed of according to law."
Elements and penalties revised
SECTION 21. Section 50-23-270 of the 1976 Code is amended to read:
"Section 50-23-270. A transfer of a watercraft or outboard motor is subject to this chapter. A person making a false statement in a document or other submission to the department is guilty of a misdemeanor and, upon conviction, must be fined not less than fifty nor more than five hundred dollars or imprisoned not more than thirty days."
Penalties revised
SECTION 22. Section 50-23-280 of the 1976 Code is amended to read:
"Section 50-23-280. (A) Unless otherwise specified, a person violating this chapter is guilty of a misdemeanor and, upon conviction, must be fined not less than twenty-five nor more than five hundred dollars or imprisoned not more than thirty days, or both.
(B) A dealer violating this chapter is guilty of a misdemeanor and, upon conviction, must be fined not less than twenty-five dollars for the first offense, and not less than one hundred dollars for a second offense within two years. For the second and subsequent offenses, the dealer's permit must be suspended for ninety days. Any demonstration numbers must be surrendered to the department. A dealer who submits a fraudulent document or payment to the department must be suspended for ninety days."
Titles
SECTION 23. Section 50-23-290 of the 1976 Code is amended to read:
"Section 50-23-290. Any person coming into possession of a watercraft or outboard motor without proper proof of ownership must apply to the department for a title using the form prescribed by the department. The application must be supported by an affidavit setting forth the circumstances under which the watercraft or outboard motor was acquired. The applicant must attempt to notify the last known titled or registered owner and any lienholder of record by certified mail of the application. The applicant must provide the department with proof of mailing.
The applicant must publish an advertisement in a newspaper of general circulation in the county of residence of the last known owner of record for three successive issues. If there is no prior owner of record, the advertisement must be published in the county where acquired. The advertisement must be as prescribed by the department in the application. Proof of advertising must be submitted to the department.
Thirty days after the date of the last advertisement if no claim of interest or ownership is made and the item has not been reported stolen, the department shall issue a clear title. If the item is reported stolen, the department shall dispose of the item according to law.
If there is a claim of interest adverse to the applicant, the department shall not issue a title until the issue is resolved. The parties may apply to a court of competent jurisdiction for resolution."
Numbering not required
SECTION 24. Section 50-23-320 of the 1976 Code is amended to read:
"Section 50-23-320. (A) A vessel is not required to be numbered under this chapter if it is:
(1) covered by a certificate of number in effect which has been issued to it pursuant to federal law;
(2) a federally approved numbering system of another state. However, this vessel must not be held or used in this State for more than sixty consecutive days;
(3) from a country other than the United States and temporarily using the waters of this State;
(4) a vessel whose owner is the United States except recreational-type vessels;
(5) a vessel whose owner is the United States, a state, or political subdivision to a state used for governmental purposes and which is clearly identifiable as such;
(6) a vessel's lifeboat if the boat is used solely for lifesaving purposes;
(7) a vessel's tender;
(8) boats designed, constructed, and used for racing;
(9) a vessel belonging to a class of boats which has been exempted from numbering by the department after the department has found that the federal government has exempted the vessel or class of vessels from their numbering provisions or as otherwise permitted by the federal government;
(10) documented by the United States Coast Guard or a federal agency successor to it;
(11) used under authority of a valid temporary certificate of number issued by the department or its agent; or
(12) a sailboat or paddle boat when no propulsion machinery of any description is installed in or attached to the boat.
(B) Nothing in this chapter prohibits the numbering of an undocumented vessel upon request by the owner even though the vessel is exempt from the numbering requirements of this chapter."
Temporary certificates of number
SECTION 25. Section 50-23-345 of the 1976 Code is amended to read:
"Section 50-23-345. (A) A transferee shall utilize the temporary certificate of number on the department's application form as a temporary certificate of number to permit the use of watercraft while applications for certificates of number are processed. Temporary certificates of number apply to new and previously owned watercraft. A temporary certificate is valid for not more than sixty days from the date of purchase.
(B) When using a recently purchased watercraft under authority of a temporary certificate of number, the operator shall carry a copy of the bill of sale on board along with the temporary certificate of number.
(C) A temporary certificate of number must not be issued for a watercraft not having a hull or manufacturer's identification number.
(D) Duplicate or updated temporary certificates of number or updated bills of sale are prohibited.
(E) The number assigned to a temporary certificate of number must not be displayed on the watercraft.
(F) A transferee may operate a newly acquired outboard motor for sixty days while application for title is pending provided the bill of sale is in possession while operating the motor."
Expiration and renewal
SECTION 26. Section 50-23-370 of the 1976 Code is amended to read:
"Section 50-23-370. (A) Except as otherwise provided, a certificate of number awarded pursuant to this chapter continues in effect for three years unless sooner terminated or discontinued in accordance with this chapter. Certificates of number may be renewed by the owner in the same manner provided for in the initial securing of the certificates. The department shall fix a day and month of the year on which certificates of number expire unless renewed pursuant to this chapter.
(B) A renewal application for a certificate of number, except those from marine dealers, presented after thirty days from its expiration date is subject to a late penalty of fifteen dollars.
A renewal application for a certificate of number presented after sixty days from its expiration date is subject to a late penalty of thirty dollars."
Unlawful to display
SECTION 27. Article 3, Chapter 23, Title 50 of the 1976 Code is amended by adding:
"Section 50-23-375. It is unlawful to display a registration number or a validation decal or an outboard motor title decal or sailboat title decal on any watercraft or outboard motor except on the watercraft or outboard motor for which it was issued."
Reference revised
SECTION 28. Section 50-23-380(A) of the 1976 Code is amended to read:
"(A) Upon the transfer of ownership of a watercraft, the purchaser shall file an application for transfer of a registration at a cost of six dollars. The application for transfer must be made by the purchaser within thirty days from date of purchase. The purchaser may operate the watercraft for not more than sixty days on a temporary certificate of number."
Time revised
SECTION 29. Section 50-23-400 of the 1976 Code is amended to read:
"Section 50-23-400. Any holder of a certificate of number shall notify the department in writing within thirty days if his address no longer conforms to the address appearing on the certificate and, as part of the notification, shall furnish the department with his new address."
Repeal
SECTION 30. Sections 50-21-35, 50-21-60, 50-23-15, 50-23-40, 50-23-50, 50-23-65, 50-23-100, 50-23-135, and 50-23-160 of the 1976 Code are repealed.
Time effective
SECTION 31. This act takes effect six months after approval by the Governor.
Ratified the 5th day of June, 2008.
Approved the 11th day of June, 2008.
This web page was last updated on Monday, October 10, 2011 at 1:39 P.M.