Indicates Matter Stricken

Indicates New Matter

Committee Report

April 18, 2024

S. 1114

Introduced by Senators Bennett, Hutto, Shealy, Cromer, Kimbrell and Garrett

S. Printed 04/18/24--S.                                                                          [SEC 4/19/2024 2:05 PM]

Read the first time February 28, 2024

________

The committee on Senate Finance

To whom was referred a Bill (S. 1114) to amend the South Carolina Code of Laws by amending Article 1 of Chapter 23, Title 50, Section 50-23-345 and Section 50-23-375, all relating to the titling of watercraft, etc., respectfully

Report:

That they have duly and carefully considered the same, and recommend that the same do pass with amendment:

    Amend the bill, as and if amended, SECTION 1, by striking Section 50-23-11(F) and inserting:

    (F) Manufacturer demonstration numbers are limited to watercraft that are being operated for the purpose of testing.  Manufacturer demonstration numbers are valid from the date of issue until December thirty-first inclusive of each year.

    (G) A person does not violate the provisions of Section 50-23-190 relating to possessing or operating a watercraft without a proof of title if the person possesses appropriate demonstration numbers for the watercraft.

Amend the bill further, by striking SECTIONS 5, 6, 7, 8. and 9 and inserting:

SECTION X. Chapter 23, Title 50 of the S.C. Code is amended by adding:

Article 5

Registering of Watercraft and Outboard Motors

    Section 50-23-510. Any watercraft or outboard motor, or both, held or principally used in this State must be registered with the department. An owner of a watercraft or outboard motor registered 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.  Watercraft documented by the United States Coast Guard or its predecessor or successor agency and water skis, aquaplanes, surfboards, windsurfers, and similar devices, and those watercraft propelled exclusively by human power are not required to be registered.

    Section 50-23-520. (A) Every person who acquires a watercraft or outboard motor required to be registered under this article shall register the watercraft or outboard motor with the department within thirty days of the date of acquisition.  The registration must be completed on forms required by the department.  The fee for registration is ten dollars.  The registration must be signed by the person who acquires the watercraft or outboard motor and shall contain:

       (1) the applicant's name, 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, hull number, and the manufacturer's engine serial number if an inboard;  for an outboard motor, its make, model, or year of manufacture, and horsepower, and manufacturer's serial number;

       (3) the date of 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 for the watercraft;

       (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.

    (B) Every dealer selling or exchanging a watercraft or outboard motor subject to registration under this article shall complete the registration in the name of the purchaser at the time of delivery of the watercraft or outboard motor to the purchaser. The registration shall contain the name and address of a lienholder and the date of the security agreement. It must be signed by the dealer showing the assigned dealer permit number, as well as by the owner, and the dealer shall submit the application to the department within thirty days of the sale. However, permitted marine dealers are not required to obtain registrations for new or used 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 statement of origin or title is held by the dealer. The fees for 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 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 registration the watercraft or outboard motor, the dealer need not send the registration until the watercraft or outboard motor is transferred.

    (D) A registration, except those from permitted marine dealers, submitted after thirty days is subject to a late penalty of fifteen dollars.  An registration submitted after sixty days is subject to a late penalty of thirty dollars.

    (E) The provisions of this section requiring a fee do not apply to the watercraft and outboard motors owned by volunteer rescue squads used exclusively for the purpose of the squads.

    Section 50-23-530. (A) The department shall file each registration which is received by it, provided it is accompanied by the required fee and complies in all other respects with this article.

    (B) The department shall maintain a record of all registrations:

       (1) under a distinctive number assigned to each watercraft and outboard motor;

       (2) under the identification number awarded to a watercraft in accordance with the registration and numbering act of the state in which it is registered.  If the State requires outboard motors to be registered separately, the department shall keep the motor registration numbers in its titling records;

       (3) alphabetically, under the name of the owner; and

       (4) in the discretion of the department, in any other method it determines.

    (C) All records of the department relating to the registration of watercraft or outboard motors are public records.

    (D) Each registration shall contain:

       (1) the date issued;

       (2) the name and address of the owner;

       (3) the names and addresses of any lienholders;