S 902 Session 109 (1991-1992)
S 0902 General Bill, By Drummond and Land
A Bill to amend the Code of Laws of South Carolina, 1976, by adding Chapter 24
to Title 50 so as to provide for a private boat landing loan program and a
related report to the General Assembly.
04/17/91 Senate Introduced and read first time SJ-9
04/17/91 Senate Referred to Committee on Fish, Game and Forestry SJ-9
A BILL
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976,
BY ADDING CHAPTER 24 TO TITLE 50 SO AS TO PROVIDE FOR
A PRIVATE BOAT LANDING LOAN PROGRAM AND A
RELATED REPORT TO THE GENERAL ASSEMBLY.
Whereas, it is the intent of this act to develop a program to increase the
accessibility to the state's lakes and waterways by making construction
and improvement funds available on a repayment basis to private boat
landing owners and operators to develop, expand, and improve boating
access facilities to enhance the public's use of the facilities. By
increasing the public's use of private boating access facilities
overcrowding at public facilities will be reduced; and
Whereas, this program would allow the private landing owner and
operator to upgrade his facility and probably would generate additional
revenues for the owner, operator, and community. The average cost of
tow vehicles, boats, motors, and trailers today is approximately forty
thousand dollars. With this amount of money invested in boating
equipment the boater is apprehensive about using boating facilities,
private or public, that are not well maintained and offer up-to-date boat
launching facilities. Now, therefore,
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. The 1976 Code is amended by adding:
"CHAPTER 24
Private Boat Landing Loan Program
Section 50-24-10. As used in this chapter, private boat landing
owner means a profit-oriented business enterprise which owns and
operates, or intends to develop and operate, a boat landing facility
providing launching and other improvements commonly found in a
facility of that type on privately or publicly owned water within this
State.
Section 50-24-20. (A) The South Carolina Wildlife and Marine
Resources Department may make loans to private boat landing owners
for not more than seventy-five percent of the actual direct cost for labor
and materials for new construction or improvements to existing
facilities. Loan funds from the department must be utilized for courtesy
docking facilities, parking, boat ramps, restrooms, and internal and
access roads that are within the immediate area and lead to the
boatramps.
(B) A loan made by the department to a private boat landing
owner may not exceed one hundred thousand dollars or twenty-five
percent of the funds annually budgeted for this purpose.
(C) The department may not make a loan to the owner of a private
boat landing that restricts access or bars the public unless that action is
consistent with general commercial business practices.
(D) A private boat landing owner who purchases facilities
previously developed with a department loan may apply for a new
construction loan from the department.
Section 50-24-30. (A) An application for a loan under this
chapter must be filed with the department and must:
(1) include a feasibility study containing sufficient information
and detail to demonstrate that the project is engineeringly and financially
feasible;
(2) be processed with due diligence, giving consideration to
the needs of the borrower and the interest of the public in preserving the
integrity of the water recreational resources fund;
(3) include evidence of compliance with the state
environmental permits;
(4) include costs incurred by the applicant in processing and
obtaining loan proceeds.
(B) The costs of brokerage fees, planning studies, and other costs
for the preparation of the loan application must be borne by the
applicant.
Section 50-24-40. In processing applications under this chapter, the
department shall give priority to applications from private boat landing
owners and operators who have not received previous loans from the
department. If the department finds a proposed loan project is feasible,
the loan request must be submitted to the Wildlife and Marine Resources
Commission for its advice and consent.
Section 50-24-50. Loans made under this chapter must include, but
are not limited to, the following terms and conditions:
(1) The annual rate of interest charged by the department is six
percent.
(2) The department shall require collateral of one hundred ten
percent of the loan.
(3) The length of a loan may not exceed twenty years and must
not be longer than the length of the borrower's leasehold estate,
including renewal options, if the loan is based upon a leasehold estate
of the borrower.
(4) Loans must amortize the principal over the term of the loan.
However, a loan becomes due and payable in full if the borrower sells
or otherwise transfers the landing developed with departmental funds
unless the transfer is, by reason of the death of the borrower, to the
borrower's heirs or the transfer is to another business entity controlled
by the borrower in a transaction that does not result in a material change
in control or ownership of the landing.
(5) The department's loans must not be subordinated to future
loans obtained by the borrower except for loans acquired for refinancing
previous senior loans.
Section 50-24-60. Loans under this program must be funded by
monies from the water recreational resources fund in Section 12-27-390.
The loans must be repaid to the fund.
Section 50-24-70. Borrowers receiving loans may not charge
unreasonably high launching fees at their facilities. However, they may
charge rates that provide for the servicing of borrowed indebtedness
obtained to develop their facilities, provide for other expenses incurred
in operating the facilities, establish reasonable reserves for repairs,
maintenance, and replacement of the facilities, and provide a reasonable
return on invested capital. The department shall monitor launching fees
of borrowers to ensure that they meet the requirements of this section.
Section 50-24-80. The department may adopt regulations to
implement this chapter including, but not limited to, standards for the
approval of loans. The standards may provide definitions of collateral,
the procedure for the payment of loans, and the form of documents to be
used to evident loans. The regulations must ensure that loans made
under this chapter conform with customary commercial practices."
SECTION 2. The department shall report the following to the
General Assembly before February 2, 1995:
(1) total amount of loans made pursuant to Chapter 24, Title 50
of the 1976 Code in each of the three fiscal years immediately before
that date;
(2) the name of each borrower, location of the landing for which
the loan was made, and amount of the loan;
(3) financial status of each loan;
(4) recommendations concerning this chapter."
SECTION 3. This act takes effect upon approval by the Governor.
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