South Carolina General Assembly
117th Session, 2007-2008

Download This Version in Microsoft Word format

Bill 4764

Indicates Matter Stricken
Indicates New Matter


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

Indicates Matter Stricken

Indicates New Matter

AMENDED

April 30, 2008

H. 4764

Introduced by Reps. Witherspoon and Branham

S. Printed 4/30/08--H.

Read the first time February 27, 2008.

            

A BILL

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 REVISE A REFERENCE; 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 CONDITIONAL TITLE; 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.

Amend Title To Conform

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

SECTION    1.    Section 49-3-50(c) of the 1976 Code is amended to read:

"(c)    Water navigation facilities for recreational and commercial needs."

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)    '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. '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:.

(a)    manufactured or used for recreational or commercial use;

(b)    leased, rented, or chartered for recreational or commercial use; or

(c)    used to carry any passengers either for recreational or commercial purposes.

(3)    'Boat livery' means a business, which holds a vessel for rent, lease, or charter. '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.

(5)(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, and or builder's certification.

(6)(7)    'Dealer's permit' means a certificate issued by the department to a marine business to extend the privilege of using marine dealer registration 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. 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. A dealer permit is valid only for the calendar year and it must be displayed prominently to the public. Applications for renewals must be received by December fifteenth each year. 'Demonstration numbers' means a temporary certificate of numbers issued to a permitted marine dealer or to a manufacturer for the purpose of demonstrating new and used boats or for any other legal purposes by a permitted marine dealer employee. The demonstration numbers must not be permanently attached to the vessel. The demonstration numbers must be attached to removal plates or placards for temporary display during any legal use. Demonstration numbers must be used only on boats, motors, or watercraft owned by the permitted dealer, or on customer boats, motors, or watercraft when servicing or testing. Permitted dealers or manufacturers are limited to nine sets of dealer numbers. Temporary certificate of numbers is a temporary registration assigned to a vessel to allow permitted marine dealers to operate a vessel for any legal use permitted.

(7)(8)    'Demonstration numbers' means a temporary certificate of numbers number issued to a permitted marine dealer dealers or manufacturer manufacturers for the purpose of operating dealer owned demonstrating watercraft held for sale, or used on watercraft that are placed with the dealer for repair which are being repaired or tested or used by an established customer whose boat is being repaired. The demonstration numbers must not be permanently attached to the vessel. The dealer numbers must be on board the watercraft at all times during operating to identify that the dealer truly is licensed and operating legally. The dealer numbers may be used for any legal purpose. Each dealer will be allowed to purchase nine demonstration numbers.

(8)(9)    'Department' means the South Carolina Department of Natural Resources.

(9)(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.

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

(11)(12)    '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 the watercraft or outboard motors, or both. A marine dealer 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 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 a business that engages in buying or selling, exchanging, brokering, manufacturing, or servicing watercraft or outboard motors for watercraft.

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

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

(14)    'No Wake-Idle Speed' means a regulated boating restricted area established to protect for the safety of the public and property. '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, or 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 completely self-contained combustion engine or electric propulsion system, excluding the fuel supply 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)    'Passenger' means every person carried on board a vessel other than:

(a)    the owner or his representative;

(b)    the operator;

(c)    bona fide member of the crew engaged in the business of the vessel who has contributed no consideration for their carriage and who is paid for his services; or

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

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

(21)(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 five hundred dollars the minimum amount set by the United States Coast Guard for reportable accidents.

(22)(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.

(23)(22)    'Temporary certificate of number' is a temporary registration assigned to a vessel to allow operation for a limited purpose.

(24)(23)    '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 to it. '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.

(25)(24)    'Use' means operate, navigate, or employ.

(26)(25)    'Vessel' means every description of watercraft, other than a seaplane regulated by the federal government, on the water, used or capable of being used as a means of transportation on water.

(27)(26)    'Water device' means a motorboat, boat, personal watercraft or vessel, water skis, an aquaplane, surfboard, or other similar device.

(28)(27)    'Waters of the State' means waters within the territorial limits of the State but not private lakes or ponds.

(29)(28)    'Water craft' means any motorboat, boat, personal watercraft or vessel. It does not include water skis, aquaplanes, surfboards, rowboats, canoes, kayaks, or other similar hand-propelled devices. '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."

SECTION    3.    Section 50-21-30(1) of the 1976 Code is amended to read:

"(1)    The provisions of this chapter Title 50, and of other applicable laws of this State shall govern the operation, equipment, titling, numbering, and all other matters relating thereto whenever any vessel shall be operated on for watercraft and water devices using or held for use on the waters of this State or when any activity regulated by this chapter shall take place thereon; but nothing in this chapter shall may be construed to prevent the adoption of any ordinance or local law relating to operation and equipment of vessels the provisions of which are identical to the provisions of this chapter, amendments thereto, or regulations issued thereunder watercraft; provided, that such the ordinances or local laws shall be operative only so long as and to the extent that they continue to be are identical to provisions of this chapter, amendments thereto, or regulations issued thereunder."

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."

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."

SECTION    6.    Section 50-23-20 of the 1976 Code is amended to read:

"Section 50-23-20.    Every owner of a Any watercraft or outboard motor, or both, held or principally used in this State shall make application to must be titled by the department for a certificate of title for the watercraft and a separate certificate of title for the outboard motor. 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."

SECTION    7.    Section 50-23-30 of the 1976 Code is amended to read:

"Section 50-23-30.    This chapter does not apply to a watercraft which has a valid marine document issued by the Bureau of Customs of the United States Government or a federal agency successor, windsurfers, and watercraft propelled exclusively by human power with oars, paddles, or similar devices. Watercraft documented by the United States Coast Guard or its predecessor or successor agency and water skis, aquaplanes, surfboard, windsurfers, and similar devices, and those watercraft propelled exclusively by human power are not required to be titled."

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."

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 owner of 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 purchase date of acquisition for a certificate of title for the watercraft or outboard motor accompanied by the required fee and on the appropriate forms prescribed and furnished required by the department. The application must be signed by the owner person who acquires the watercraft or outboard motor and must shall contain:

(1)    the purchaser's applicant's name, street and mailing addresses, and social security number 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, builder's hull number, defined in Section 50-23-170, 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 purchase 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 apply to the department 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 must shall contain the name and address of a lienholder holding a security interest created or reserved at the time of sale and the date of his the security agreement. It must be signed by the dealer showing the assigned dealer identification numbers permit number, as well as by the owner, and the dealer shall mail or deliver 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 certificate required by Section 50-23-110 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, he shall 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 previously registered owned in another state or foreign country, the application must 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 previously registered owned does not issue certificates of title, 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 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."

SECTION    10.    Section 50-23-70 of the 1976 Code is amended to read:

"Section 50-23-70.    (A)    A fee of ten dollars shall accompany each an application for a certificate of title, as required by the provisions of this chapter, with the exception of those applications for duplicates of certificates of title which must be accompanied by a fee of five dollars. Any watercraft which is propelled by hand with oar, paddle, or similar device shall not require a certificate of title unless the owner requests such a certificate. 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 motorboats watercraft owned by volunteer rescue squads used exclusively for the purpose of the squads."

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, or year model, registration number, and manufacturer's serial number or, if none, the builder's hull number assigned to the watercraft by the department, length, and the principal material used in construction;"

SECTION    12.    Section 50-23-110 of the 1976 Code is amended to read:

"Section 50-23-110.    (a)    No dealer shall purchase or acquire a new watercraft or outboard motor without obtaining from the seller thereof a manufacturer's or importer's certificate 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 for purposes of display and resale without delivering to such the dealer a manufacturer's or importer's certificate statement of origin.

(c)    The manufacturer's or importer's certificate statement of origin must be a uniform or standardized form prescribed by the department and must contain:

(1)    for a watercraft, the a description of watercraft or outboard motor, including its trade name, if any, make, year of manufacture, series or model year, body type, and manufacturer's serial 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 or 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 certificate 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."

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. In the event 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 five 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. Such This application for certificate of title shall must be filed within twenty thirty days after the delivery to him of the watercraft or outboard motor.

(c)    Upon request of the owner or transferee, a lienholder in possession of the certificate of title shall, unless the transfer was a breach of his security agreement, either deliver the certificate to the transferee for delivery to the department, or mail or deliver it directly to the department. The delivery of the certificate does not affect the rights of the lienholder under his security agreement.

(d)    If a lien or encumbrance is first created at the time of transfer of ownership, the certificate shall be retained by or delivered to the person who becomes the lienholder."

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 certificate 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."

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 thereon on it by the department. All such liens, mortgages, and encumbrances shall 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 such 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 over his notarized signature. Prior to delivering the certificate to the owner Within thirty days of discharging the lien, the holder shall present it to the department for the purpose of having the department note the cancellation of his lien on the face of the certificate of title and upon the titling records of 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 his the security agreement, and the required fee. It is perfected as of the time of its creation if the delivery is completed within twenty 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."

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 of this in the State, having knowledge of a stolen or converted watercraft or outboard motor, shall immediately shall furnish the department with full information concerning such 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 thereof of it, including the make of the stolen or converted watercraft or outboard motor and its manufacturer's hull number or assigned serial number, and shall file the same in the numerical order of the manufacturer's hull number or assigned 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 shall immediately shall notify the department, who shall remove the record of the theft or conversion from its file in writing.

(d)    Law enforcement agencies shall notify the department of recovery of any stolen watercraft or outboard motor immediately."

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 certificate statement of origin assigned to the purchaser or transferee as required by this chapter;

(4)(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

(5)(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."

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 certificate to statement of origin for a watercraft or to for an outboard motor;"

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."

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. 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 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."

SECTION    21.    Section 50-23-270 of the 1976 Code is amended to read:

"Section 50-23-270.    A sale, purchase, or transfer of a vessel watercraft or outboard motor is subject to this chapter. All other owners are required to obtain title certificates 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. A person making a false statement in 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 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 two five hundred dollars or imprisoned not more than thirty days."

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 fifty twenty-five nor more than two five hundred dollars or imprisoned not less than ten nor more than thirty days, or both.

(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 nor more than one thousand dollars or imprisoned 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 twenty-five dollars for the first offense, not less than one hundred dollars for the a second offense within two years. and not less than two hundred dollars or imprisoned not less than thirty days for the third and subsequent offenses. For the third 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.

(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    23.    Section 50-23-290 of the 1976 Code is amended to read:

Section 50-23-290.    (A)    If an applicant for a watercraft title or outboard motor 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 to the applicant a conditional title which reflects on the face of it that it is conditional and that it does not warrant ownership against the true owner. The conditional title may not be issued unless the department:

(1)    determines that the watercraft or outboard motor has not been reported as stolen in this State as required by this chapter or in another state;

(2)    determines that no active liens exist on the watercraft or outboard motor or that the existence of liens is unlikely; and

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

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

(B)    The applicant shall cause to be published in a newspaper of general circulation in the county where the last titled owner of the watercraft or outboard motor is known to have lived a notice in the following form:

A.        TO: (Name of last titled owner) and all persons claiming an interest in (description including make, model, year, horsepower, and hull identification or serial number if available). Please take notice that (Name of applicant) shall apply to the South Carolina Department of Natural Resources for a title to that certain (watercraft or outboard motor) described as follows: (Description including make, model, horsepower, year, and hull identification or serial number if available) no later than ten (10) 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 (watercraft/outboard motor) you are advised to contact the South Carolina Department of Natural Resources immediately.

B.        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 watercraft or outboard motor and published in the county of the applicant's residence for the prescribed period.

C.        Upon receipt of proof of publication (Certification from newspaper with copy of advertisement and dates) 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 watercraft or outboard motor 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 watercraft or outboard motor for seven years.

E.        A person claiming an interest in the watercraft or outboard motor may bring an action within seven years to set the conditional title aside and for the return of the watercraft or outboard motor. Seven years after issuance of the conditional title it is incontestable and a new nonconditional title may be issued upon application and payment of the appropriate fee.

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."

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 or a federally approved numbering system of another state. However, this vessel must not be held or used on the waters of in this State for more than sixty thirty consecutive days;

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

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

(4)    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;

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

(6)    a vessel's tender;

(7)    boats designed, constructed, and used for racing;

(8)    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;

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

(8)(10)    used under authority of a valid temporary certificate of number issued by the department or its agent; or

(9)(11)    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."

SECTION    25.    Section 50-23-345 of the 1976 Code is amended to read:

"Section 50-23-345.    (A)    The department may issue temporary certificates of 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 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 along with the temporary proof certificate of ownership number.

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

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 due to expire during the calendar year lapse 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 thirty-dollar fee and expires December thirty-first each year. 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."

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."

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 card 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."

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 fifteen thirty days if his address no longer conforms to the address appearing on the certificate and shall, as part of such the notification, shall furnish the department with his new address."

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.

SECTION    31.    This act takes effect six months after approval by the Governor.

----XX----

This web page was last updated on Monday, June 22, 2009 at 2:57 P.M.