South Carolina General Assembly
110th Session, 1993-1994

Bill 3793


Indicates Matter Stricken
Indicates New Matter


                    Current Status

Introducing Body:               House
Bill Number:                    3793
Primary Sponsor:                Snow
Committee Number:               20
Type of Legislation:            GB
Subject:                        Watercraft and outboard
                                motors
Residing Body:                  House
Current Committee:              Agriculture, Natural
                                Resources, and Environmental
                                Affairs
Computer Document Number:       NO5/7061BD.93
Introduced Date:                19930330
Last History Body:              House
Last History Date:              19930330
Last History Type:              Introduced, read first time,
                                referred to Committee
Scope of Legislation:           Statewide
All Sponsors:                   Snow
Type of Legislation:            General Bill



History


Bill  Body    Date          Action Description              CMN  Leg Involved
____  ______  ____________  ______________________________  ___  ____________

3793  House   19930330      Introduced, read first time,    20
                            referred to Committee

View additional legislative information at the LPITS web site.


(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

A BILL

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 50-21-345 SO AS TO PROVIDE CIRCUMSTANCES UNDER WHICH TEMPORARY CERTIFICATES OF NUMBER MAY BE ISSUED FOR WATERCRAFT AND BY ADDING SECTION 50-23-65 SO AS TO PROVIDE CIRCUMSTANCES UNDER WHICH A MARINE DEALER PERMIT IS INVALID; TO AMEND SECTION 50-21-10, RELATING TO DEFINITIONS PERTAINING TO EQUIPMENT AND THE OPERATION OF WATERCRAFT, SO AS TO PROVIDE ADDITIONAL DEFINITIONS; TO AMEND SECTION 50-21-150, RELATING TO PENALTIES PERTAINING TO THE OPERATION OF WATERCRAFT, SO AS TO REVISE THE PENALTIES; TO AMEND SECTION 50-21-320, RELATING TO THE NUMBERING OF VESSELS, SO AS TO REVISE THE EXEMPTION FOR WATERCRAFT WITH A TEMPORARY CERTIFICATE OF NUMBER; TO AMEND SECTION 50-21-370, RELATING TO THE TERM AND RENEWAL OF CERTIFICATES OF NUMBER, SO AS TO PROVIDE FOR THE ISSUANCE OF A CERTIFICATE OF NUMBER FOR DEMONSTRATION AND TESTING PURPOSES AND TO PERSONS REPAIRING WATERCRAFT OR OUTBOARD MOTORS AND PROVIDE A PENALTY FOR LATE RENEWAL; TO AMEND SECTION 50-21-380, RELATING TO THE TRANSFER OF REGISTRATION OF WATERCRAFT, SO AS TO REVISE THE MONETARY AND TIME REQUIREMENTS FOR TRANSFER AND PROVIDE FOR USE OF A TEMPORARY CERTIFICATE OF NUMBER; TO AMEND SECTION 50-21-390, RELATING TO THE TRANSFER, DESTRUCTION, ABANDONMENT, OR DOCUMENTATION OF A VESSEL, SO AS TO DELETE THE REFERENCES TO DESTRUCTION, ABANDONMENT, AND SECURITY INTEREST, CHANGE REFERENCES FROM DIVISION TO DEPARTMENT, AND REQUIRE NOTIFICATION IF A WATERCRAFT IS ABANDONED, JUNKED, DESTROYED, OR USED IN ANOTHER WATERCRAFT; TO AMEND SECTION 50-23-10, RELATING TO DEFINITIONS PERTAINING TO THE TITLING OF WATERCRAFT AND OUTBOARD MOTORS, SO AS TO REVISE THE DEFINITION OF "DEALER'S PERMIT" AND PROVIDE ADDITIONAL DEFINITIONS; TO AMEND SECTION 50-23-60, RELATING TO APPLICATIONS FOR CERTIFICATES OF TITLE FOR WATERCRAFT AND OUTBOARD MOTORS, SO AS TO REVISE REQUIREMENTS FOR TITLING, CHANGE REFERENCES FROM DIVISION TO DEPARTMENT, AND PROVIDE EXCEPTIONS FOR PERMITTED MARINE DEALERS; TO AMEND SECTION 50-23-170, RELATING TO WATERCRAFT AND OUTBOARD MOTOR SERIAL NUMBERS, SO AS TO PROVIDE REQUIREMENTS FOR HULL IDENTIFICATION OR SERIAL NUMBERS AND PROVIDE FOR AUTHORIZATION BY THE COMMANDANT OF THE UNITED STATES COAST GUARD; TO AMEND SECTION 50-23-190, RELATING TO UNLAWFUL ACTS PERTAINING TO WATERCRAFT, SO AS TO INCLUDE IN CERTAIN PROHIBITIONS POSSESSION AS WELL AS OPERATION OF WATERCRAFT ON THE WATERS OF THIS STATE; TO AMEND SECTION 50-23-200, RELATING TO UNLAWFUL ACTS PERTAINING TO CERTIFICATES OF TITLE AND SERIAL NUMBERS FOR WATERCRAFT, SO AS TO DELETE THE PROHIBITION ON THE USE OF FALSE INFORMATION IN A CERTIFICATE OR BILL OF SALE AND PROVIDE REQUIREMENTS FOR HULL IDENTIFICATION NUMBERS; TO AMEND SECTION 50-23-205, RELATING TO SEIZURE AND DISPOSAL OF WATERCRAFT, SO AS TO PROVIDE NOTIFICATION REQUIREMENTS UPON SEIZURE WHEN THE OWNER IS DETERMINED AND PROVIDE FOR FORFEITURE; TO AMEND SECTION 50-23-270, RELATING TO THE REQUIREMENTS APPLICABLE TO VESSELS AND OUTBOARD MOTORS, SO AS TO REVISE THE PROHIBITION ON MAKING FALSE STATEMENTS ON DOCUMENTS SUBMITTED TO THE WILDLIFE AND MARINE RESOURCES DEPARTMENT AND REVISE PENALTIES; AND TO AMEND SECTION 50-23-280, RELATING TO PENALTIES PERTAINING TO WATERCRAFT AND OUTBOARD MOTORS, SO AS TO PROVIDE PENALTIES FOR DEALERS AND PERSONS WHO SUBMIT FRAUDULENT CHECKS TO THE DEPARTMENT.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1. The 1976 Code is amended by adding:

"Section 50-21-345. (A) The department may issue temporary certificates of number to permit the use of watercraft while applications for certificates of number are processed. Temporary certificates apply to new watercraft not previously owned or transfers of watercraft with valid certificates of number. A temporary certificate is valid for not more than sixty days from the date of purchase of the watercraft. A temporary certificate is invalid when the certificate of number is issued.

(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 as temporary proof of ownership.

(C) A temporary certificate of number must not be issued for a watercraft without a hull 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.

Section 50-23-65. 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 or social security number;

(3) South Carolina tax number;

(4) ownership;

(5) business."

SECTION 2. Section 50-21-10 of the 1976 Code is amended to read:

"Section 50-21-10. As used in this chapter unless the context clearly requires a different meaning:

(1) `Vessel' means every description of watercraft, other than a seaplane on the water, used or capable of being used as a means of transportation on water.

(2) `Boat' means any a vessel:

(a) manufactured or used primarily for noncommercial use; or

(b) leased, rented, or chartered to another for the renters' noncommercial use; or

(c) engaged in the carrying of six or fewer passengers.

(3) `Motor boat' means any a vessel equipped with propulsion machinery of any type whether or not such the machinery is the principal source of propulsion.

(4) `Associated equipment' does not include radio equipment and means:

(a) Any a system, part, or component of a boat as originally manufactured or any a similar part or component manufactured or sold for replacement, repair, or improvement of such the system, part, or component;

(b) Any an accessory or equipment for, or appurtenance to, a boat and;

(c) Any a marine safety article, accessory, or equipment intended for use by a person on board a boat; but

(d) Excluding radio equipment.

(5) `Owner' means a person, other than a lienholder, who claims lawful possession of a vessel by virtue of legal title or equitable interest therein in it which entitles him to such possession.

(6) `Waters of the State' means any waters within the territorial limits of the State.

(7) `Person' means an individual, a partnership, a firm, a corporation, an association, or other legal entity.

(8) `Operator' means the person who operates or has charge or command of the navigation or use of a vessel.

(9) `Passenger' means every person carried on board a vessel other than:

(a) the owner or his representative;

(b) the operator;

(c) bona fide members of the crew engaged in the business of the vessel who have contributed no consideration for their carriage and who are paid for their services; or

(d) Any a guest on board a vessel which is being used exclusively for pleasure purposes who has not contributed any consideration, directly, or indirectly, for his carriage.

(10) `Undocumented vessel' means a vessel which does not have and is not required to have a valid marine document issued by the United States Coast Guard or federal agency successor thereto to it.

(11) `Use' means operate, navigate, or employ.

(12) `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 person from 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 one hundred dollars.

(13) `Boat livery' means a business which holds any a vessel for renting, leasing, or charting.

(14) `Marine manufacturer' means a person engaged in the manufacturing of watercraft or outboard motors for sale or trade.

(15) `Marine dealer' means a person who buys, sells, exchanges, or services watercraft or outboard motors new or used on outright or conditional sale, bailment, lease, chattel mortgage, or otherwise, has an established place of business for the sale, trade, and display of the watercraft or outboard motors, or both, and is permitted by the department.

(16) `Certificate of number' means registration card.

(17) `Temporary certificate of number' is a department designated copy of a watercraft application.

(18) `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.

(19) `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."

SECTION 3. Section 50-21-150 of the 1976 Code is amended to read:

"Section 50-21-150. (1)(A) Any A person who violates any a provision of Section 50-21-110 or the implementing regulations is guilty of a misdemeanor and, upon conviction, must be fined not less than fifty dollars nor more than two hundred dollars or be imprisoned for not more than thirty days for each violation.

(2)(B) Any A person violating any provision of who violates this chapter or any regulations adopted promulgated by the Division of Boating department pursuant to it where the penalty is not specified shall be deemed is guilty of a misdemeanor and, upon conviction shall, must be fined not less than twenty-five nor more than one two hundred dollars or be imprisoned for not more than thirty days for each violation."

SECTION 4. Section 50-21-320 of the 1976 Code is amended to read:

"Section 50-21-320. (1)(A) A vessel shall is not be required to be numbered under this chapter if it is:

(a)(1) covered by a certificate of number in full force and effect which has been issued to it pursuant to federal law or a federally approved numbering system of another state; provided, that such. However, this vessel shall must not be used on the waters of this State for a period in excess of more than ninety consecutive days.;

(b)(2) from a country other than the United States and temporarily using the waters of this State.;

(c)(3) a vessel whose owner is the United States except recreational type vessels.;

(d)(4) a vessel whose owner is the United States, a state, or political subdivision thereto to a state used for governmental purposes and which is clearly identifiable as such.;

(e)(5) a vessel's lifeboat, if the boat is used solely for lifesaving purposes.;

(f)(6) a vessel belonging to a class of boats which has been exempted from numbering by the division after the agency has found that the federal government has exempted such the vessel or class of vessels from their numbering provisions or as otherwise permitted by the federal government.;

(g)(7) documented by the United States Coast Guard or a federal agency successor thereto. to it;

(h)(8) when operating temporarily by virtue of visible evidence that a recent application for a using a watercraft under authority of a valid temporary certificate of number has been submitted. issued by the department or its agent;

(i)(9) sailboats and paddle boats when no propulsion machinery of any description is installed in or attached to the boat.

(2)(B) Nothing in this chapter prohibits the numbering of any an undocumented vessel hereunder upon request by the owner even though such the vessel is exempt from the numbering requirements of this chapter."

SECTION 5. Section 50-21-370 of the 1976 Code is amended to read:

"Section 50-21-370. (A) Every Except as otherwise provided, a certificate of number awarded pursuant to this chapter shall continue continues in full force and effect for a period of three years unless sooner terminated or discontinued in accordance with the provisions of this chapter. Certificates of number may be renewed by the owner in the same manner provided for in the initial securing of such the certificates. The division shall fix a day and month of the year on which certificates of number due to expire during the calendar year shall lapse and no longer be of any force and are not in effect unless renewed pursuant to this chapter.

(B) The department may issue a certificate of number for demonstration and testing purposes to a permitted marine dealer or marine manufacturer. The certificate of number is valid from the date of issue to December thirty-first each year or a change in business ownership, change of business name, relocation of the business, or termination of the business, whichever occurs first. The registration card must be marked clearly `dealer' or `manufacturer'.

(C) 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.

(D) The department may issue a certificate of number to a person engaged primarily in the business of repairing watercraft or outboard motors. The certificate of number must be issued upon payment of a ten-dollar fee and expires December thirty-first each year."

SECTION 6. Section 50-21-380 of the 1976 Code is amended to read:

"Section 50-21-380. (A) When Upon the transfer of ownership of a motorboat changes watercraft, the purchaser shall file an application for transfer of a registration, together with the payment of a fee card at a cost of three dollars, and a certificate of transfer must be awarded. Such The application for transfer must be made by the purchaser within twenty thirty days from date of purchase. The purchaser may operate the motorboat watercraft for a period of thirty not more than sixty days while the transfer of registration is being completed and may prove his ownership by producing the bill of sale or copy during the thirty-day period on a temporary certificate of number.

(B) The provisions of this section requiring a fee for the transfer charge do not apply to any watercraft owned by volunteer rescue squads used exclusively for the purposes of the squads."

SECTION 7. Section 50-21-390 of the 1976 Code is amended to read:

"Section 50-21-390. (1)(A) The owner shall furnish the Division department written notice of the transfer of all or any part of his interest other than the creation of a security interest in a vessel numbered in this State pursuant to this section, or the destruction, abandonment or documentation of such the vessel within fifteen days thereof of the transfer or documentation. Such The transfer, destruction, abandonment or documentation shall terminate terminates the certificate of number for such the vessel except that in the case of. However, for a transfer of a part interest which does not affect the owner's right to operate such the vessel, such the transfer shall does not terminate the certificate of number.

(2)(B) No further registration shall be is allowed an owner who does not comply with this section.

(3)(C) The certificate of number is invalid when the person whose name appears on the certificate involuntarily loses his interest in the numbered vessel by legal process.

(D) The owner shall notify the department in writing within ten days if a registered watercraft is abandoned, junked, destroyed, or used in the manufacturing or remanufacturing of another watercraft."

SECTION 8. Section 50-23-10 of the 1976 Code is amended to read:

"Section 50-23-10. As used in this chapter, unless the context clearly requires a different meaning:

(a)(1) `Vessel' means every description of watercraft other than seaplane used or capable of being used as a means of transportation on water.

(b)(2) `Outboard motor' means any a completely self-contained propulsion system, excluding the fuel supply, which is used to propel a watercraft and which is detachable from such the watercraft as a unit. No outboard motor of less than five horsepower or its equivalent shall be is required to be titled under the provisions of this chapter.

(c)(3) `Security interest' means an interest which is reserved or created by an agreement, and which secures payment or performance of an obligation, and is valid against third parties generally.

(d)(4) `Owner' means a person, other than a lienholder, having the property in or title to a watercraft or outboard motor. The term It includes a person entitled to the use or possession of a watercraft or outboard motor, subject to an interest in another person, reserved or created by agreement and securing payment or performance of an obligation, but the term. It excludes a lessee under a lease not intended as security or a vendor under a conditional sales contract.

(e)(5) `Lienholder' means a person holding a security interest.

(f)(6) `Person' means an individual, a partnership, a firm, a corporation, an association, or other entity.

(g)(7) `Division' means the Division of Boating of the South Carolina Wildlife and Marine Resources Department, the state agency designated to issue certificates of title for watercraft or outboard motors, and its duly authorized representatives.

(h)(8) `Manufacturer' means any a person engaged in the business of manufacturing new and unused watercraft, or new and unused outboard motors, for the purpose of sale or trade.

(i)(9) `Marine dealer' means a person who engages primarily or secondarily in the business of buying, selling, exchanging, or servicing watercraft or outboard motors new or used on outright or conditional sale, bailment, lease, chattel mortgage, or otherwise, and who has an established place of business for the sale, trade, and display of such the watercraft or outboard motors, or both. A marine dealer shall must have a proper business license for each facility not under the same roof and shall sell a minimum of ten watercraft or outboard motors each calendar year to renew his permit. Exclusions must be for sale at organized marine dealer association boat shows. Each dealer shall make application apply to the department annually for a dealer's permit with a fee of ten dollars for each facility on forms prescribed by the department. A permit is valid for the calendar year and must be displayed in a prominent place for public view. Renewal applications must be received by December fifteenth each year. Permitted marine dealers are eligible for demonstration numbers. A marine dealer licensed under this section shall consent to public or random inspections of his or its business as provided in Section 50-23-185. A dealer refusing the inspections forfeits his license immediately and permanently.

(j)(10) `Marina' means a facility which provides mooring or dry storage for watercraft on a leased or rental basis.

(k)(11) `Boat livery' means a business which holds a vessel for renting, leasing, or chartering.

(l)(12) `Dealer's permit' means is a certificate issued by the department to recognize a properly licensed marine business and to extend the privilege of using marine dealer registration numbers on boats or motors for demonstration or testing purposes and assignment on appropriate documents. Any Abuse of these privileges may result results in termination of the dealer's 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.

(13) `Hull identification number' means the number manufacturers are required to affix permanently as prescribed by statute on watercraft manufactured after November 1, 1972, which consists of a format that identifies the manufacturer, the serial number, date of certification, date of manufacture, model year, and other criteria considered appropriate by the United States Coast Guard.

(14) `Serial number' means the identifying manufacturer's number affixed to watercraft before November 2, 1972, and to outboard motors before, on, and after that date. The serial number in the hull identification number is the five characters allowed for a manufacturer to identify the hull in the manufacturing process."

SECTION 9. Section 50-23-60 of the 1976 Code is amended to read:

"Section 50-23-60. (A) Every owner of a watercraft or outboard motor subject to titling required to be titled under the provisions of this chapter shall make application apply to the Division department within thirty days of the purchase date for the issuance of a certificate of title for such the watercraft or outboard motor accompanied by the required fee and upon on the appropriate form or forms prescribed and furnished by the Division department. The application shall must be signed by the owner and shall be sworn to before a notary public or other officer empowered to administer oaths. Every application for a certificate of the title shall must contain:

(1) the purchaser's name, residence and mail address of the owner street and mailing addresses, and social security number;

(2) for watercraft, a description of such the watercraft including its make, model, year, length, the principal material used in construction, builder's hull number, hereinafter defined in Section 50-23-170, and the manufacturer's engine serial number if an inboard; for an outboard motor, its make, model, year, horsepower, and manufacturer's serial number;

(3) the date of purchase 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 any persons having any a security interest therein in the order of their priority; and

(4) Such further information as may reasonably be required by the Division 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 make application apply to the department for a new title in the name of the purchaser before delivering the watercraft or outboard motor to the purchaser. The application must contain the name and address of any a lienholder holding a security interest created or reserved at the time of sale and the date of his security agreement. It must be signed by the dealer showing the assigned dealer identification numbers, as well as by the owner, and the dealer shall mail or deliver the application to the department within twenty 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 certificate required by Section 50-23-110 is held by the dealer.

(C) If a dealer buys or acquires a used watercraft or outboard motor for the purpose of resale and such 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 Division department at that time. Upon transferring the watercraft or outboard motor to another person, other than by creation of a security interest, he shall within twenty thirty days of sale execute the assignment and warranty of title by a dealer, showing the name and address of the transferee and any a lienholder and the date of his security agreement, in the spaces provided, on the certificate to the Division department with the transferee's application for a new certificate.

(D) In the event If application for certificate of title is made for a watercraft or outboard motor last previously registered in another state or foreign country, the application shall must contain or be accompanied by:

(1) Any the certificate of title issued by the other state or foreign country;

(2) Any other information or documents the Division 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) In the event if the state or foreign country in which the watercraft or outboard motor was last previously registered does not issue certificates of title, a proper bill of sale or sworn statement of ownership, or any evidence of ownership as may be required by the law of the state or foreign country from which the watercraft or outboard motor was brought into this State, plus any other information or documents the Division 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 twenty thirty days is subject to a late penalty of ten fifteen dollars for the twenty-first day through the thirtieth day and fifteen dollars for the thirty-first day and thereafter."

SECTION 10. Section 50-23-170 of the 1976 Code is amended to read:

"Section 50-23-170. (A) If a watercraft contains a permanent identification number placed on it by the manufacturer, the manufacturer's serial number must be used as the builder's hull number. If there is no manufacturer's serial number, or if the manufacturer's serial number has been removed or obliterated, or if the watercraft is homemade, the department, upon application, shall assign a permanent identification number which must be used as the builder's hull number for the watercraft, and. This assigned number must be affixed permanently to or imprinted by the applicant, at the place and in the manner designated by the department, upon the watercraft for which the builder's hull number is assigned. `Homemade watercraft or outboard motor' means any a watercraft or outboard motor which is built by an individual for personal use from raw materials which does not require the assignment of a federal hull identification number or serial number by a manufacturer pursuant to federal law. An individual may build or furnish raw materials to a builder under a contract to build a homemade watercraft or outboard motor to desired specifications. A copy of the contract, specifications, and bill of sale for raw materials must accompany registration and title application. The person furnishing materials under a contract may be considered the builder. A rebuilt or reconstituted watercraft or outboard motor in no event may must not be construed to be homemade. Every homemade watercraft must be certified as meeting safety standards of the United States Coast Guard before it can be sold by the builder. Certification must be furnished to the purchaser and a copy accompany applications for transfer to the department.

(B) Every outboard motor must have a permanent identification number placed on it in at least two locations by the manufacturer. This number must be used as the serial number. If there is no manufacturer's serial number, or if the manufacturer's serial number has been removed for a valid reason or obliterated, the department, upon a prescribed application, may assign a serial number for the outboard motor, and. This assigned serial number must be affixed permanently to or imprinted by the applicant, at the place and in the manner designated by the department, upon the outboard motor for which such the serial number is assigned.

(C) No newly manufactured watercraft or outboard motor may be sold or offered for sale by any a person in this State unless the watercraft or outboard motor has a hull identification number or serial number permanently affixed and the number also must be affixed permanently in a hidden place.

(D) Manufacturer's serial numbers or hull identification numbers for watercraft must be clearly imprinted clearly in the stern transom knee or other essential hull member near the stern by stamping, impressing, or marking with pressure, or in the case of for an inboard watercraft on the main inside beam. In lieu of imprinting, the manufacturer's serial number or hull identification number may be displayed on a plate in a permanent manner. In addition to being permanent, the number must be accessible. Hull identification or serial numbers must be installed according to United States Coast Guard regulations. If the serial number or hull identification number is displayed in a location other than on or near the stern transom, the department must be notified by the manufacturer as to the location.

(E) No person may destroy, remove, alter, cover, or deface the manufacturer's serial number or hull identification number or part of it, or plate bearing such serial the number, or any a serial number or hull identification number of part of it assigned by the department, on any or be in possession of an affected watercraft or outboard motor unless authorized in writing by the department and the Commandant of the United States Coast Guard."

SECTION 11. Section 50-23-190 of the 1976 Code is amended to read:

"Section 50-23-190. No person may:

(a)(1) be in possession of or operate in 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;

(b)(2) be in possession of or operate in 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;

(c)(3) 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 certificate, assigned to the purchaser or transferee as required by this chapter; or

(d)(4) 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;

(e)(5) 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."

SECTION 12. Section 50-23-200 of the 1976 Code is amended to read:

"Section 50-23-200. No person shall may:

(a)(1) alter, forge, or counterfeit any a certificate of title or manufacturer's or importer's certificate to a watercraft, or to an outboard motor;

(b)(2) alter or falsify an assignment of a certificate of title, or an assignment or cancellation of a security interest on a certificate of title to a watercraft, or to an outboard motor;

(c)(3) hold or use a certificate of title to a watercraft, or to an outboard motor, nor hold or use any an assignment or cancellation of a security interest on a certificate of title to a watercraft, or to an outboard motor, knowing it to have been altered, forged, counterfeited, or falsified;

(d) Use a false or fictitious name or address, or make any material false statement, or conceal any material fact, in an application for a certificate of title, or in a bill of sale or sworn statement of ownership;

(e)(4) have possession of, buy, receive, sell or offer for sale, or otherwise dispose of a watercraft, or an outboard motor, knowing or having reason to believe that the watercraft or outboard motor has been stolen; and. No person may procure or attempt to procure a certificate of title to a watercraft, or an outboard motor, or pass or attempt to pass a certificate of title or any an assignment to a watercraft, or an outboard motor, knowing or having reason to believe that the watercraft, or the outboard motor has been stolen;

(f)(5) have possession of, buy, receive, sell or offer for sale, or otherwise dispose of in this State a watercraft, or an outboard motor, on which a manufacturer's hull identification number or part of it or assigned serial number has been destroyed, removed, covered, altered, or defaced, knowing or having reason to believe of the destruction, removal, covering, alteration, or defacement of the manufacturer's hull identification number or part of it or assigned serial number; or

(g)(6) destroy, remove, cover, alter, or deface the manufacturer's hull identification number or part of it or assigned serial number on any a watercraft, or on any an outboard or inboard motor."

SECTION 13. Section 50-23-205 of the 1976 Code is amended to read:

"Section 50-23-205. (A) A stolen or abandoned, junked, adrift, destroyed, or salvaged watercraft or outboard motor, a watercraft or outboard motor for which the true owner may is not be determined, or a watercraft or outboard motor on which the manufacturer's or assigned serial number has been destroyed, removed, covered, altered, or defaced may be seized.

(B) Upon seizure of the watercraft or outboard motor, the department shall notify a person claiming an interest in it, and the person has the right to prove his interest before the circuit court in the county where the property was located seized. If no action is filed within sixty days of notification, the department may retain the property for official use or transfer the property to another public entity for official use, sell the property at public auction, or, in the event that if the watercraft or outboard motor is determined to be unsafe, destroy it. The proceeds derived from the sale must be deposited in the Boating Operating Fund of the department for administration of the program.

(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. Failure to remove the watercraft or outboard motor by the date designated forfeits the equipment to the department to be used or disposed of according to this section."

SECTION 14. Section 50-23-270 of the 1976 Code is amended to read:

"Section 50-23-270. A sale, purchase, or transfer of a vessel or outboard motor is subject to the provisions of this chapter. All other owners are required to obtain title certificates at the time when their vessel registration becomes due for renewal or execute an affidavit properly notarized that he is the true owner of the vessel or outboard motor. Any A person making a false statement in the an application or affidavit for registration, new, transfer, or renewal, a hull identification or serial number, a bill of sale, or other document submitted to the department is guilty of a misdemeanor and, upon conviction, must be fined not less than one hundred dollars fifty nor more than two hundred dollars or imprisoned for not more than thirty days."

SECTION 15. Section 50-23-280 of the 1976 Code is amended to read:

"Section 50-23-280. (A) A person violating the provisions of this chapter is guilty of a misdemeanor and, upon conviction, must be fined not less than fifty dollars nor more than two hundred dollars or imprisoned for not less than ten days nor more than thirty days.

(B) A person convicted of violating Section 50-23-200 is guilty of a misdemeanor and, upon conviction, must be fined not less than two hundred dollars nor more than one thousand dollars or imprisoned for not less than thirty days nor more than one year, or both.

(C) A dealer violating this chapter is guilty of a misdemeanor and, upon conviction, must be fined not less than fifty dollars for the first offense, not less than one hundred dollars for the second offense, and not less than two hundred dollars or imprisoned not less than thirty days for the third and subsequent offenses. For the third and subsequent offenses, the dealer's permit must be suspended for ninety days.

(D) A person who submits a fraudulent check to the department for fees or is convicted of violating this chapter must be denied future dealer permits or certificates of number by the department."

SECTION 16. This act takes effect upon approval by the Governor.

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