Current Status Introducing Body:Senate Bill Number:902 Primary Sponsor:Drummond Committee Number:07 Type of Legislation:GB Subject:Private Boat Landing Loan Program Residing Body:Senate Computer Document Number:NO5/7161.BD Introduced Date:Apr 17, 1991 Last History Body:Senate Last History Date:Apr 17, 1991 Last History Type:Introduced, read first time, referred to Committee Scope of Legislation:Statewide All Sponsors:Drummond Land Type of Legislation:General Bill
Bill Body Date Action Description CMN
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902 Senate Apr 17, 1991 Introduced, read first time, 07
referred to Committee
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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:
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.