South Carolina General Assembly
116th Session, 2005-2006

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Bill 3726


Indicates Matter Stricken
Indicates New Matter


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A BILL

TO AMEND TITLE 50, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO FISH, GAME, AND WATERCRAFT, SO AS TO ENACT "CHANDLER'S LAW" BY ADDING CHAPTER 26 SO AS TO PROVIDE FOR THE REGULATION, REGISTRATION, AND TITLING OF ALL-TERRAIN VEHICLES BY THE DEPARTMENT OF NATURAL RESOURCES, INCLUDING THE REQUIREMENT THAT A PERSON UNDER SIXTEEN MUST COMPLETE A DRIVING SAFETY COURSE BEFORE HE MAY OPERATE AN ALL-TERRAIN VEHICLE AND TO PROVIDE PENALTIES FOR CERTAIN VIOLATIONS.

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

SECTION    1.    Title 50 of the 1976 Code is amended by adding:

"CHAPTER 26

All-terrain Vehicles

Section 50-26-5.    This chapter may be cited as 'Chandler's Law'.

Section 50-26-10.    For the purposes of this chapter 'all-terrain vehicle' or 'ATV' means a motorized vehicle designed primarily for off-road travel on low-pressure tires which has a saddle seat and three or more wheels and handle bars for steering but does not include lawn tractors or any vehicle that is required to be licensed or titled for highway use.

Section 50-26-15.    An all-terrain vehicle not previously required to be titled or registered for which a title and registration is required by this chapter must be titled and registered.     An owner of an all-terrain vehicle must secure a title and registration for the all-terrain vehicle within one year from the effective date of this chapter.

Section 50-26-20.    A sale, purchase, or transfer of an all-terrain vehicle is subject to the provisions of this chapter. All owners are required to obtain title certificates and registrations by an affidavit properly notarized that he is the true owner of the all-terrain vehicle. A person making a false statement in a document submitted to the department is guilty of a misdemeanor and, upon conviction, must be fined not less than fifty nor more than two hundred dollars or imprisoned not more than thirty days.

Section 50-26-30.    An all-terrain vehicle in this State must be titled with the Department of Natural Resources and must be issued a registration identification number. The department may utilize the services of any other agency to assist in titling and registration.

Section 50-26-35.    (A)    A person who acquires an all-terrain vehicle under this chapter shall apply to the department within thirty days of the purchase date for a certificate of title and registration number for the all-terrain vehicle accompanied by the required fee and on the appropriate forms prescribed and furnished by the department. The application must be signed by the person acquiring the vehicle and must contain:

(1)    the purchaser's name, street, and mailing addresses;

(2)    a description of the all-terrain vehicle, including its make, model, year, and manufacturer's serial number;

(3)    the date of acquisition by the applicant, the name and address of the person from whom the all-terrain vehicle was acquired, and the names and addresses of persons having a security interest in the order of their priority; and

(4)    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 all-terrain vehicle.

(B)    Every dealer selling or exchanging an all-terrain vehicle shall apply to the department for a new title in the name of the purchaser at no additional cost to the purchaser. The application must contain the name and address of any 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, as well as by the owner, and the dealer shall mail or deliver the application to the department within thirty days of the sale. However, dealers are not required to obtain titles for new all-terrain vehicles 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 this chapter is held by the dealer.

(C)    If a dealer acquires a used all-terrain vehicle for resale and the all-terrain vehicle is already covered by a certificate of title which is surrendered to him by the owner or lienholder at the time of delivery, the dealer need not send the certificate to the department at that time. Upon transferring the all-terrain vehicle to another person, the dealer within thirty days of sale shall execute the assignment and warranty of title, showing the name and address of the transferee and any lienholder and the date of the 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 an all-terrain vehicle previously titled, registered, or licensed in another state or foreign country, the application must contain or be accompanied by:

(1)    the certificate of title, registration, or license issued by the other state or foreign country;

(2)    other information or documents the department reasonably requires to establish the ownership of the all-terrain vehicle and the existence or nonexistence of security interests in it; or

(3)    if the state or foreign country from which the all-terrain vehicle is being transferred from does not issue certificates of title, registration, or license, a proper 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 all-terrain vehicle was brought into this State, plus other information or documents the department reasonably requires to establish the ownership of the all-terrain vehicle and the existence or nonexistence of security interests in it.

(E)    An application presented after thirty days is subject to a late penalty of fifteen dollars; an application submitted after sixty days is subject to a late penalty of thirty dollars.

Section 50-26-40.    (A)    Registration numbers must be affixed to the all-terrain vehicle and must be displayed so that the number is visible. It is unlawful to operate or for the owner to permit the operation of an all-terrain vehicle within this State which is not titled or on which the registration is not properly displayed.

(B)    A person violating the provisions of this section is guilty of a misdemeanor and, upon conviction, must be punished as provided in Section 50-25-200.

Section 50-26-45.    (A)    The fee for a certificate of title and registration is thirty dollars except those for duplicates of certificates or replacement registrations which is ten dollars.

(B)    There is no fee for all-terrain vehicles owned by any type or form of government.

Section 50-26-50.    A person may not sell or otherwise dispose of an all-terrain vehicle without delivering to the purchaser a certificate of title with an assignment on it as is necessary to show title in the purchaser; nor may a person purchase or otherwise acquire an all-terrain vehicle without obtaining a certificate of title for it in his name.

Section 50-26-55.    (A)    Except as otherwise provided, registrations are valid for three years unless sooner terminated or discontinued in accordance with this chapter. The department shall fix a day and month of the year on which registrations expire for those ATV's purchased before the effective date of this chapter.

(B)    The owner of an all-terrain vehicle shall make application to the department for renewal of the registration accompanied by a renewal fee of thirty dollars. Renewal documents must be attached to the registration as specified by the department.

(C)    A renewal application for registration, presented after thirty days from its expiration date, is subject to a late penalty of fifteen dollars.

(D)(1)    It is unlawful to make false application for an exemption or to use an all-terrain vehicle for purposes other than as listed under an exemption provided for in this section.

(2)    A person violating the provisions of this subsection is guilty of a misdemeanor and, upon conviction, must be punished as provided in Section 50-25-200.

Section 50-26-60.    (A)    Each certificate of title issued by the department shall contain:

(1)    the date issued;

(2)    the name and address of the owner;

(3)    the names and addresses of any lienholders as furnished in the order of priority as shown;

(4)    the title number assigned to the all-terrain vehicle;

(5)    a description of the all-terrain vehicle including its make, model, year of manufacture, or year model, and manufacturer's serial number or a serial number assigned to the all-terrain vehicle by the department;

(6)    on the reverse side of the certificate, spaces for assignment of title by the owner or by the dealer and for a warranty that the signer is the owner and that there are no mortgages, liens, or encumbrances on the all-terrain vehicle except as are noted on the face of the certificate of title; and

(7)    any other data the department prescribes.

(B)    When satisfied that the application is in proper form, the department shall issue a certificate of title to the all-terrain vehicle. A certificate of title issued by the department is prima facie evidence of the facts appearing on it.

Section 50-26-70.    (A)    A dealer may not purchase or acquire a new all-terrain vehicle without obtaining from the seller a manufacturer's or importer's certificate.

(B)    A manufacturer, importer, dealer, or other person may not sell or otherwise dispose of a new all-terrain vehicle to a dealer for purposes of display or resale without delivering to the dealer a manufacturer's or importer's certificate.

(C)    The manufacturer's or importer's certificate shall contain:

(1)    a description of all-terrain vehicle, including its trade name, if any, year of manufacture, series or model, and manufacturer's serial number;

(2)    certification of date of transfer of all-terrain vehicle and name and address of transferee;

(3)    certification that this was a transfer of all-terrain vehicle in ordinary trade and commerce;

(4)    the signature and address of a representative of the transferor;

(5)    on the reverse side of each manufacturer's or importer's certificate an assignment form, including the name and address of the transferee, a certification that the all-terrain vehicle 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.

Section 50-26-75.    (A)    At the time of delivery of the all-terrain vehicle the owner 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 the owner shall make application for a duplicate title within thirty days.

(B)    The transferee or purchaser shall obtain a new certificate of title and registration upon the form or forms prescribed and furnished by the department. The application for certificate of title and registration must be filed within thirty days after the purchase date.

(C)    If a lien or encumbrance is created at the time of transfer, the certificate of title must be retained by the lienholder.

Section 50-26-80.    (A)    When ownership of an all-terrain vehicle 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, except as provided in subsection (B), promptly shall mail or deliver to the department the last certificate of title, if available, or the manufacturer's or importer's certificate, or, if that is not possible, satisfactory proof of the transfer of ownership, and his application for a new certificate of title and registration accompanied by the required fee, and upon the appropriate forms prescribed and furnished by the department.

(B)    When ownership of an all-terrain vehicle is terminated in accordance with the terms of a security agreement by a lienholder named in the certificate of title, the transferee promptly shall mail or deliver to the department the last certificate of title, his application for a new title accompanied by the required fee and upon the forms prescribed and furnished by the department, and an affidavit by the lienholder or his authorized representative, setting forth the facts entitling him to possession and ownership of the all-terrain vehicle, together with a copy of the journal entry, court order, or instrument upon which the claim of possession and ownership is founded. If the lienholder cannot produce this proof of ownership, he may submit that evidence as he has with his application to the department, and the department, if it finds the evidence to be satisfactory proof of ownership, shall issue a new certificate of title.

(C)    If a lienholder succeeds to the interest of an owner in an all-terrain vehicle and holds the vehicle for resale, the lienholder need not secure a new certificate of title, but upon transfer the leinholder promptly shall deliver to the transferee or to the department the certificate, affidavit, and those other documents as the department may require. A lienholder holding a vehicle for resale cannot operate or allow the operation of the vehicle.

Section 50-26-85.    (A)    A person who comes into possession of an abandoned, junked, destroyed, or salvaged all-terrain vehicle shall notify the department in writing of possession within thirty days of acquiring possession. A person in possession may not sell an all-terrain vehicle under this chapter without first obtaining a title. If a security interest has been perfected, the person in possession shall notify the lienholder by certified mail, giving thirty days for response. The person in possession who lays claim to an all-terrain vehicle is required to submit an affidavit to the department setting forth the circumstances under which he came into possession of the all-terrain vehicle and other information as the department requires. An owner who abandons or junks an all-terrain vehicle shall notify the department immediately in writing and deliver to it any title or, if the title is lost or destroyed, a sworn statement of that fact within thirty days of the abandonment. A person in possession of an abandoned or junked all-terrain vehicle whose owner:

(1)    of record has complied with this subsection may make application to the department on forms prescribed by the department for titles and transfer of ownership and after satisfying any security interest, if any, and proof of payment of taxes a title must be issued to the person;

(2)    of record has not complied with this subsection shall contact the owner to get proper titles, duplicate title application, and bills of sale as necessary to transfer ownership after satisfying a security interest. The person in possession shall make application to the department within thirty days with appropriate documents;

(3)    failed to comply with this subsection and cannot be located shall send a certified letter, to the owner's last known address, and advertise three times, seven days apart, in a newspaper of local circulation in the county where the all-terrain vehicle was found giving a description including the make, model, and year. The application for title must be accompanied by the newspaper certification of the advertisement and the dates printed, copies of the advertisement, and certified letter;

(B)    A person in possession of an abandoned, junked, or salvaged all-terrain vehicle who fails to comply with this section is guilty of a misdemeanor and, upon conviction, must be punished as provided in Section 50-25-200.

Section 50-26-90.    (A)    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 the certificate of title by the department. All these liens, mortgages, and encumbrances must be valid as against the creditors of the owner of an all-terrain vehicle, whether armed with process or not, and against subsequent purchasers of the all-terrain vehicle, or against holders of subsequent liens, mortgages, or encumbrances upon the all-terrain vehicle.

(B)    When a lien is discharged, the holder shall note that fact on the face of the certificate of title over his notarized signature. Before delivering the certificate to the owner, the holder must notify the department in writing to cancel the lien. If the lienholder does not notify the department and the transferee can satisfy the department the lien is no longer valid the department shall issue a new certificate of title without noting the existence of the lien.

(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 his 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.

Section 50-26-95.    (A)    If a certificate of title or registration is lost, stolen, mutilated, or destroyed or becomes illegible, the first lienholder or, if none, the owner or legal representative of the owner of record may obtain a duplicate by application to the department, furnishing that information concerning the original certificate and the circumstances of its loss, mutilation, or destruction as may be required by the department.

(B)    The duplicate certificate of title must be a certified copy plainly marked 'duplicate' across its face. It must be mailed to the first lienholder named in it or, if none, to the owner.

(C)    In case an original certificate of title or registration is mutilated or rendered illegible, the mutilated or illegible certificate must be returned to the department with the application for a duplicate.

(D)    If a lost or stolen original certificate of title or registration for which a duplicate has been issued is recovered, it must be surrendered within thirty days to the department for cancellation.

Section 50-26-100.        When an all-terrain vehicle is scrapped, dismantled, destroyed, or changed in a manner that it loses its character as an all-terrain vehicle, or changed in a manner that it is not the all-terrain vehicle described in the certificate of title, whoever is named as owner in the last certificate of title promptly shall cause the certificate to be mailed or delivered to the department. The department then shall cancel the certificate.

Section 50-26-105.        (A)    An all-terrain vehicle must have a permanent identification number placed on it 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 all-terrain vehicle. This assigned serial number must be affixed permanently to the ATV at the place and in the manner designated by the department.

(B)    A person may not destroy, remove, alter, cover, or deface the manufacturer's serial number or part of it, or plate bearing the number, or a serial number or part of it assigned by the department or be in possession of an all-terrain vehicle upon which the serial number has been removed, altered, or destroyed unless authorized in writing by the department.

Section 50-26-110.        (A)    A peace officer or insurer having knowledge of a stolen or converted all-terrain vehicle, immediately shall furnish the department with full information concerning the theft or conversion.

(B)    The owner or insurer immediately shall notify the department if the all-terrain vehicle is recovered.

Section 50-26-120.        (A)    It is unlawful to:

(1)    be in possession of or operate an all-terrain vehicle for which a certificate of title is required unless a certificate of title has been issued;

(2)    be in possession of or operate an all-terrain vehicle for which a certificate of title is required for which the certificate of title has been voided;

(3)    sell, transfer, or otherwise dispose of an all-terrain vehicle without delivering to the purchaser or transferee a certificate of title or a manufacturer's or importer's certificate;

(4)    fail to surrender to the department a certificate of title upon cancellation of the title by the department.

(B)    A person violating the provisions of this section is guilty of a misdemeanor and, upon conviction, must be punished as provided in Section 50-25-200.

Section 50-26-125.        (A)    It is unlawful to:

(1)    be in possession of or operate an all-terrain vehicle for which a certificate of title is required unless the registration identification number has been attached as required;

(2)    be in possession of or operate an all-terrain vehicle for which a certificate of title is required for which the registration has been canceled;

(3)    sell, transfer, or otherwise dispose of an all-terrain vehicle without delivering to the purchaser or transferee the registration as required by this chapter;

(4)    fail to surrender to the department a registration upon cancellation of the title by the department.

(B)    A person violating the provisions of this section is guilty of a misdemeanor and, upon conviction, must be punished as provided in Section 50-25-200.

Section 50-26-130.        (A)    A person may not:

(1)    alter, forge, or counterfeit a certificate of title, registration, or manufacturer's or importer's certificate to an all-terrain vehicle;

(2)    alter or falsify an assignment of a certificate of title, registration, or an assignment or cancellation of a security interest on a certificate of title to an all-terrain vehicle;

(3)    hold or use a certificate of title or registration to an all-terrain vehicle or hold or use an assignment or cancellation of a security interest on a certificate of title or registration to an all-terrain vehicle knowing it to have been altered, forged, counterfeited, or falsified;

(4)    have possession of, buy, receive, sell or offer for sale, or otherwise dispose of an all-terrain vehicle knowing or having reason to believe the all-terrain vehicle has been stolen. A person may not procure or attempt to procure a certificate of title to an all-terrain vehicle or pass or attempt to pass a certificate of title or registration, or an assignment to an all-terrain vehicle knowing or having reason to believe the all-terrain vehicle has been stolen;

(5)    have possession of, buy, receive, sell or offer for sale, or otherwise dispose of an all-terrain vehicle on which a manufacturer's 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 or assigned serial number; or

(6)    destroy, remove, cover, alter, or deface the manufacturer's or assigned serial number on an all-terrain vehicle.

(B)    A person violating the provisions of this section is guilty of a misdemeanor and, upon conviction, must be punished as provided in Section 50-25-200.

Section 50-26-135.        (A)    A stolen or abandoned, junked, destroyed, or salvaged all-terrain vehicle, an all-terrain vehicle for which the true owner is not determined, or an all-terrain vehicle 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 all-terrain vehicle, the department shall notify a person claiming an interest in it, and the person has the right to prove his interest before the Administrative Law Division. If action is not 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, if the all-terrain vehicle is determined to be unsafe, destroy it.

(C)    If the department determines the owner of a seized all-terrain vehicle and related equipment, it shall notify the owner by certified mail. Failure to remove the all-terrain vehicle by the date designated forfeits the equipment to the department to be used or disposed of according to this section.

Section 50-26-140.        (A)    The department has the authority to suspend or revoke a certificate of title or registration to an all-terrain vehicle, upon reasonable notice and hearing, when authorized by another provision of law or if the department finds the:

(1)    certificate of title was fraudulently procured or erroneously issued;

(2)    all-terrain vehicle, has been scrapped, dismantled, or destroyed, or transferred and registered in another state; or

(3)    applicant failed to remit funds for the title certificate or registration.

(B)    Suspension or revocation of a certificate of title does not, in itself, affect the validity of a security interest noted on it.

(C)    When the department suspends or revokes a certificate of title, the owner or person in possession of it, immediately upon receiving notice of the suspension or revocation, shall mail or deliver the certificate of title and registration to the department.

(D)    The department may seize a certificate of title or registration that has been suspended or revoked.

Section 50-26-155.        (A)    If an applicant for an all-terrain vehicle title is not able to produce a perfected chain of title from the last owner of record or from the manufacturer, the department may issue a conditional title. The conditional title may not be issued unless the department determines that:

(1)    the all-terrain vehicle has not been reported as stolen as required by this chapter or in another state;

(2)    no active liens exist on the all-terrain vehicle or that the existence of liens is unlikely; and either

(3)    the last titled owner cannot be found or the probability of finding the owner is remote; or

(4)    the necessary paperwork to perfect the title has been lost, stolen, or destroyed and reasonably cannot be found or duplicated.

(B)(1)    The applicant shall cause to be published in a newspaper of general circulation in the county where the last owner of record had a mailing address a notice in the following form:

'TO: (Name of last titled owner) and all persons claiming an interest in (description including make, model, year, and serial number). Please take notice that (Name of applicant) shall apply to the South Carolina Department of Natural Resources for a title to that certain (all-terrain vehicle) described as follows: (Description including make, model, year, and serial number) no later than thirty days from the last publication of this notice. This is the (first, second, or third) of three notices to be published weekly for three weeks. If you wish to claim an interest in this (all-terrain vehicle) you are advised to contact the South Carolina Department of Natural Resources immediately.'

(2)    If there is no record of a previous titled owner or he cannot be determined the notice may be addressed to all persons claiming an interest in the all-terrain vehicle and published in the county of the applicant's residence for the prescribed period.

(C)    Upon receipt of proof of publication and having received no claims from interested parties upon determination of the department that the above conditions exist, the department may issue a conditional title to the all-terrain vehicle upon receipt of payment of appropriate taxes, fees, and application.

(D)    The conditional nature of the title must be reflected clearly on the face of the title and upon any subsequent titles issued on the all-terrain vehicle for three years.

(E)    A person claiming an interest in the all-terrain vehicle may bring an action within three years to set the conditional title aside and for the return of the all-terrain vehicle. Three years after issuance of the conditional title it is incontestable and a new title may be issued upon application and payment of the appropriate fee.

Section 50-26-160.        A holder of a certificate of title 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.

Section 50-26-165.        All fees and fines collected under the provisions of this chapter must be deposited in the State Treasury for the benefit of and to be used by the department. The department may use up to fifty per cent of the annual revenue for administration of this chapter. The balance must be used by the department for protection and management of fish and wildlife and may be carried forward from year to year.

Section 50-26-170.        The department shall implement an ATV safety course of training for ATV operators and may certify any other course operated for ATV operation to include skills demonstration and safety knowledge.

Section 50-26-180.        All-terrain vehicles titled under this chapter are exempt from ad valorem property taxes.

Section 50-26-190.        (A)    The following restrictions apply to operation of ATV's on those lands open to the public. It is unlawful to operate an ATV on lands open to the public except in compliance with the local regulations for ATV operation.

(B)    It is unlawful for a person under the age of sixteen to operate an all-terrain vehicle on lands open to the public within this State unless that person is wearing a safety helmet and has completed an ATV driving safety course certified by the department.

(C)    It is unlawful to allow a person under the age of sixteen to operate an all-terrain vehicle on lands open to the public within this State except in compliance with subsection (B).

(D)    A person operating an ATV on lands open to the public must comply with any local rules and restrictions and must always operate the ATV with lights on.

(E)    It is unlawful to cross an unbridged stream except at a designated ford or crossing. Riding in any water bodies or water courses is unlawful.

(F)    An ATV must be equipped with operating head and tail lamps, an effective muffler system in good working condition, an effective spark arrester in good working condition, and a good brake system in good operating condition.

(G)    It is unlawful to operate an ATV while under the influence of alcohol or any controlled substance.

(H)    It is unlawful to operate an ATV in a reckless manner,

( I)    It is unlawful to operate an ATV in a manner that damages flora or fauna, roads, trails, firebreaks, signs, gates, guardrails, bridges, fencing, or other public property.

(J)    A person violating the provisions of this section is guilty of a misdemeanor and, upon conviction, must be punished as provided in Section 50-25-200.

Section 50-26-195.    No governmental entity and no property owner is liable for injuries or damage resulting from ATV operation on lands open to the public for ATV operation. The State is absolutely immune from liability for any injury or damage as a result of operating an ATV on any lands at any time.

Section 50-26-200.    (A)    A person violating this chapter, unless otherwise specified, 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.

(B)    A dealer violating this chapter is guilty of a misdemeanor and, upon conviction, must be fined not less than one hundred dollars nor more than five hundred dollars for the first offense and not less than two hundred dollars nor more than one thousand for the second offense or imprisoned not less than thirty days.

(C)    A person who submits a fraudulent check to the department for fees or is convicted of violating this chapter must be fined not less than two hundred nor more than five hundred dollars."

SECTION    2.    This act takes effect upon approval by the Governor.

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