Committee: House Transportation
MOTION:
TO APPROVE THE MINUTES OF JANUARY 21, 1998
Moved by:
Representative Schrempp
Second by:
Representative Wetz
Action:
Prevailed by voice vote.
HB 1140:
to require boats registered by the Department of Revenue to be titled at
the time of registration.
Proponents:
R. Van Johnson, lobbyist, SD Automobile Dealers Association, Sioux Falls
Opponents:
None.
Presented by:
Representative Bill Napoli, prime sponsor, Rapid City
MOTION:
AMEND HB 1140
"
Section
1.
For the purposes of this Act, a boat dealer is any person who, for commission or with
intent to make a profit or gain, sells, exchanges, rents, or leases with option to purchase, offers or
attempts to negotiate a sale or exchange of new or used boats as defined in chapter 42-8, or who is
engaged wholly or in part in the business of selling new or used boats.
Section
2.
No person may engage in the business of selling, or may offer to sell, display, act as
a broker, or advertise the sale of new or used boats, without a license as provided in this Act. Any
violation of this section is a Class 1 misdemeanor.
Section
3.
Any dealer's license issued under this Act shall be of the following classification:
Section
4.
Any person selling boats pursuant to the requirements of this Act shall file with the
Department of Revenue, upon forms provided by the department, an application including the
following information:
Section 6. Before any license may be issued, the applicant shall deliver to the department, a surety bond in the amount of ten thousand dollars, executed by the applicant as principal and by a surety company qualified to do business in the state as surety. If the applicant has multiple dealer
licenses, one bond will cover all dealer licenses. The bond shall be of the amount to cover bonding
requirements under each license. The bond shall be to the department and in favor of any customer
who suffers any loss that may be occasioned by reason of the failure of title or by reason of any
fraudulent misrepresentation or breach of warranty as to freedom from liens. The bond shall be for
the license period, and a new bond or a proper continuation certificate shall be delivered to the
department prior to the bond's expiration. Any surety company that pays a claim against the bond
of a licensee shall notify the department, in writing, that it has paid such a claim and shall state the
reason and the amount of the claim. Any surety company that cancels the bond of a licensee shall
notify the department, in writing, of such cancellation, giving the reason for that cancellation. If a
claim is made to the department against the bond, which claim is based upon a final judgment of a
court of record of this state, the dealer shall execute an additional bond for the amount necessary to
maintain such security at the original level.
Section
7.
No dealer's license may be issued to a person who desires to sell or offer for sale new
boats, until the applicant furnishes proof, satisfactory to the department that the person has a bona
fide contract or franchise in effect in this state with the manufacturer of the boat, or boats, the person
proposes to deal in.
Section
8.
Each license may be issued for a multiple year period. The application for license and
all applicable fees are due prior to the issuance of the initial license. The initial fee for a license shall
be two hundred dollars, and a renewal license shall be one hundred dollars. All licenses shall be
reviewed annually by the department. The department shall mail to the licensee at the last known
address a renewal notice. The department shall establish by rules promulgated pursuant to chapter
1-26 the review date, if other than October first to December thirty-first, inclusive. If the licensee
fails to return the renewal notice or to pay the applicable fees, the department shall cancel and revoke
the license pursuant to the provisions of sections 16 and 17 of this Act.
Section
9.
Any dealer licensed under the provisions of this Act, shall keep books, records, or
files, in such form as prescribed or approved by the department. The licensee shall keep a record of
the purchase, sale or exchange, of any boat, a description of the boat together with the name and
address of the owner or other person from whom the boat was purchased or received, and to whom
it was sold or delivered for a period of five years. The description shall include the boat serial
number, manufacturer's make and model. The dealer shall also have in possession a certificate of title
from the previous owner of any boat not purchased from the manufacturer from the time the boat is
delivered to the dealer until it has been disposed of by the dealer. Such record shall be opened to
inspection by any law enforcement law officer or department inspector.
Section
10.
The department shall issue boat dealer license plates made of a durable material to
licensed dealers upon application and payment of twenty dollars for each set desired. The fees
collected shall be deposited in the state motor vehicle fund.
Section 11. Any new boat or used boat owned by a licensed dealer, bearing dealer license plates issued pursuant to section 10 of this Act may be operated in this state. The license plate shall be displayed on or carried in the boat. The license plate is transferable by the dealer from one boat owned by the dealer to another boat owned by the dealer. Any violation of this section is a Class 1 misdemeanor.
Section
13.
If a boat is sold by a licensed dealer, the dealer may provide a temporary thirty-day
license permit which is a permit to operate the boat in this state for a period of thirty days after the
date of sale or until the time the purchaser receives the regular license decals from the county
treasurer, whichever occurs first.
Section
14.
The department may appoint dealer inspectors to enforce the provisions of this Act.
The inspectors may enter property pursuant to section 15 of this Act and sign complaints against
persons found in violation of this chapter.
Section
15.
In each calendar year, the department may make at least one investigation of dealers
licensed under this Act for the purpose of ascertaining any violation of this Act, chapters 32-3- to
32-5B, inclusive, or chapter 42-8. The investigation shall include an inspection of the principal place
of business, supplemental lots, and any books, records, or files required by the department. An
examination of titles and vehicles owned or offered for sale by the dealer shall also be conducted.
Section
16.
If, prior to an inspection, a dealer refuses to allow the inspection, no inspection need
be made. If, during the course of an inspection, a dealer refuses to allow the inspection to continue,
the inspection shall cease. In either case, however, the department may initiate revocation
proceedings against the dealer's license.
Section
17.
The department may deny any application, or suspend or revoke any license issued
under the provisions of this Act, for the violation of any of the following provisions:
Section
19.
The department shall, in accordance with chapter 1-26 and at the time and place fixed
pursuant to section 18 of this Act, hear and determine the matter on its merits. If the department finds
the existence of any cause for suspension or revocation as set forth in section 17 of this Act, it shall
suspend or revoke the license. A copy of the order shall be served upon the licensee in the manner
provided by chapter 1-26. Upon suspension or revocation, the licensee shall immediately surrender
the license certificate to a representative of the department serving the written order upon the
licensee.
Section
20.
The secretary of revenue may adopt rules pursuant to chapter 1-26 as may be
necessary to ensure and obtain uniformity in the issuance, design, and use of dealer licenses, the
inspection of dealers, and the use of dealer plates, demonstration permits, and temporary licenses
as provided by this Act. All local officials charged with the administration of the provisions of this
Act are governed in their official acts by the rules promulgated by the secretary.
Section
21.
For purposes of this chapter, the term, principal place of business, means an enclosed
commercial structure located within the State of South Dakota, easily accessible and open to the
public at all reasonable times, with an improved display area immediately adjoining the building that
is large enough to display five or more boats of the type the dealer is licensed to sell. It is the
location at which the business of a vehicle dealer may be lawfully carried on in accordance with all
applicable building codes, zoning, and other land use ordinances and in which building the public
may contact the vehicle dealer or the dealer's salesperson. It is the location where the books, records,
and files necessary to conduct the business of the boat dealer are kept and maintained. In no event
may rooms in a hotel, motel, apartment house, or any part of any single or multiple unit dwelling
house be considered a principal place of business unless the entire ground floor of such facility is
devoted principally to and occupied for commercial purposes. Any dealer licensed under this chapter
shall maintain and continuously occupy a principal place of business.
Section
22.
If the licensee desires to move from the principal place of business occupied at the
time the license was granted to a new location within the county, the licensee shall secure written
permission from the department to do so. The licensee is required to furnish proof to the department
that the new location constitutes a principal place of business as defined in this Act.
Section 23. Any person licensed under this Act, who sells boats at locations other than the principal place of business, shall obtain a supplemental license for each auxiliary or supplemental lot not contiguous to the location for which the original license is issued. If the license is granted, the licensee may be permitted to use unimproved lots and premises for sale, storage, and display of
vehicles. Supplemental lots and premises shall be located and within the county of the principal
place of business of the applicant and shall meet local zoning codes or ordinances.
Section
24.
If the applicant sets up a principal place of business in more than one county of this
state, the applicant shall secure a separate license for each county. No license for any additional
county may be issued until the department is furnished with proof that the applicant has a principal
place of business in such county and has otherwise complied with this Act.
Section
25.
Any out-of-state boat dealer may display, but may not sell, boats and trailers at an
event, if the event lasts three or more days and if the person registers with and purchases a permit
from the Department of Revenue at least five days before the event. The person shall pay a fee of
two hundred dollars for a ten-day temporary permit. In order to qualify as an event, the event shall
be an organized, sponsored event with no less than three licensed boat dealers displaying boats.
Section
26.
Any boat dealer or public auction may sell, or offer to sell, new, or used boats on
consignment. For the purposes of this chapter, consignment means the delivery of a boat by the
owner into the possession of another without transfer of title for the purpose of sale or where there
is any condition that the purchaser does not have an absolute obligation to pay for the boat or has
a right to return the boat to the seller. Any boat dealer or public auction who sells, or offers to sell,
South Dakota titled boats on consignment shall enter into a contract with the consignor. The
department shall prescribe the form of the contract.
Section
27.
No person may sell or offer to sell a boat, to which a manufacturer's statement of
origin has not been transferred, on consignment.
Section
28.
Before a South Dakota titled boat may be sold by a consignee or at a public auction
pursuant to this Act, the consignee or auctioneer shall have in possession a South Dakota title for
the boat. A violation of this section is a Class 2 misdemeanor.
Section
29.
A consignee or an auctioneer may not sell a boat that has a certificate of title with
a lien on it for less than the full amount of the lien, without the advance written consent of the lien
holder. A consignee or an auctioneer may not release the proceeds from the sale of a boat with a lien
on the title until the lienholder signs a release of the lien. A violation of this section is a Class 2
misdemeanor.
Section
30.
For the purposes of this Act, a temporary boat show lot is any location other than the
principal place of business or supplemental lot where a licensed boat dealer may conduct business
for a period of time not to exceed ten consecutive days for a specific purpose such as fairs, shopping
center sales, or boat shows. A temporary boat show lot shall meet all local zoning and building codes
for the type of business being conducted.
"
"
Section 1. That
§
32-22-8.1
be amended to read as follows:
32-22-8.1.
Unless otherwise signed, any motor vehicle may travel upon any segment of the
national system of interstate and defense highways and the state trunk highway system if the vehicle
is operated within the following length limitation:
hand holds, flexible fender extensions
,
and mud flaps.
Load overhang and retractable extensions on
any vehicle may not extend more than four feet beyond the rear bumper, bed, or body nor more than
three feet beyond the front bumper, bed, or body of the vehicle carried thereon. Retractable
extensions shall be retracted if not being used to support overhanging load.
If a vehicle exceeds the
length limitations of this section, the driver of the vehicle is guilty of a Class 2 misdemeanor.
"
"
Section
31.
That
§
10-60-5
be amended to read as follows:
10-60-5.
On used large boats, the county treasurer shall, for the purpose of this chapter, use the
most generally used and approved nationally recognized dealers' guide provided by the secretary of
revenue.
For those cases of large boats
If the large boat is
not covered by the provided
dealer guides
dealers' guide
, the county treasurer shall seek assistance from the
Department of Revenue
department
.
The secretary of revenue shall file notice of approved national dealer or appraisal guides with
the secretary of state indicating the effective date of such approval. Such filing is not subject to
chapter 1-26.
Section
32.
That
§
10-60-6
be amended to read as follows:
10-60-6.
The new owner of a large boat shall present to the county treasurer in the county of the
owner's residence the manufacturer's statement of origin or assigned certificate of title if a title has
been previously issued for the large boat, an application for title and registration and a bill of sale
containing a complete description of the large boat, the purchaser's name and address, the previous
owner's name and address, the full purchase price as defined by this chapter and how computed, the
trade-in allowance and description of the trade, if any, and any other relevant information the
Department of Revenue
department
may require. If a person intentionally falsifies information on
the certificate, the person is guilty of a Class 6 felony.
Section
33.
That
§
10-60-7
be amended to read as follows:
10-60-7.
The
excise
tax levied by this chapter shall be paid to the county treasurer in the county
of the new owner's residence when the owner applies for title and registers the large boat.
Section
34.
That
§
10-60-8
be amended to read as follows:
10-60-8.
If any large boat has been subjected previously to a sales tax, use tax, excise tax, or
similar tax by this or any other state or its political subdivision, no tax is owed to this state if the tax
has been paid by the applicant to this or any other state. If the amount of tax levied and paid is the
same or more than the amount of tax levied by this chapter, no tax or refund is due under this
chapter. The county treasurer shall require of
all applicants
each applicant
making application for
registration of a large boat in this state
an affidavit of a licensed dealer,
to furnish a
bill of sale,
receipt or other tangible evidence that the amount of tax has been paid by the current applicant. If
sufficient proof is not furnished, the county treasurer shall collect the tax levied by this chapter on
the retail value of the large boat listed in a nationally recognized
boat
dealers'
guide. The value shall
be the retail value of the large boat on the day it entered the state.
Section
35.
That
§
42-8-2 be amended by adding thereto a NEW SUBDIVISION to read as
follows:
"Department," the Department of Revenue;
Section
36.
That
§
42-8-5
be amended to read as follows:
42-8-5.
A boat requiring numbering by this state shall be registered with the
Department of
Revenue
department
for either a one-year period or a three-year period.
The application shall be
accompanied by a fee to be set by rules promulgated by the Game, Fish and Parks Commission
pursuant to chapter 1-26.
The
new
owner of the boat shall present
to the county treasurer of his
county, or, in the case of a nonresident of this state, the treasurer of any county, application for the
registration of the boat, certificate of title or registration if the boat has not been titled previously or
other acceptable ownership document previously issued for the boat if the boat is used or a
manufacturer's statement of origin if the boat is new, and purchase agreement or a bill of sale. The
application form shall be furnished by the Department of Revenue. The application shall be signed
by the owner of the boat. The application shall be accompanied by a fee to be set by rules
promulgated by the Game, Fish and Parks Commission pursuant to chapter 1-26. The owner of a
boat which has not been previously registered in South Dakota shall furnish proof that an excise,
sales, use or a similar tax has been paid before the boat is registered. The owner may submit a copy
of an invoice showing that tax was included in the sale price of the boat as proof that the tax
obligation has been met in South Dakota or any other jurisdiction
a manufacturer's statement of
origin or assigned certificate of title if a title has been previously issued for the large boat, or if no
title is required, the ownership document issued by that jurisdiction; a bill of sale containing a
complete description of the large boat; the purchaser's name and address; the previous owner's name
and address; the full purchase price as defined by this chapter and how computed; the trade-in
allowance and description of the trade, if any; and any other relevant information the department
may require to the county treasurer in the county of the owner's residence or if the new owner is a
nonresident to any county treasurer. If a person intentionally falsifies information on the certificate,
the person is guilty of a Class 6 felony
.
Section
37.
That
§
42-8-6
be amended to read as follows:
42-8-6.
Upon receipt of an application under
§
42-8-5 in approved form, the county treasurer
shall enter the application upon the records of its office and issue to the applicant a registration
stating the number awarded to the boat and two validation decals. The registration shall state the
name and address of the owner. The owner shall attach to each side of the bow of the boat the boat
number assigned and validation decal as prescribed by rules of the
Department of Revenue so they
department so the boat number and validation decal
are clearly visible. Failure to properly attach and
display a boat number or validation decal as provided by this section is a Class 2 misdemeanor.
Section
38.
That
§
42-8-8.1
be amended to read as follows:
42-8-8.1.
The department
of game, fish and parks
shall issue boat license tags of a durable
material to boat manufacturers and dealers upon application and payment of fifteen dollars for each
set of boat license tags desired. Each set of boat license tags shall be valid until December thirty-one
next following the date of issuance.
Section
39.
That
§
42-8-8.4
be amended to read as follows:
42-8-8.4.
When
If
a new or used boat is sold by a boat manufacturer or boat dealer, the boat
manufacturer or boat dealer may provide a temporary tag permit to operate the boat in this state for
thirty days after the date of sale of the boat or until the time the purchaser receives
his
the
licenses
from the county treasurer, whichever occurs first. The temporary boat license tags shall be displayed
as required by
§
42-8-6 and rules promulgated, pursuant to chapter 1-26, by the
Department of
Revenue
department
.
Section
40.
That
§
42-8-12
be repealed.
42-8-12.
The owner shall furnish the department of revenue notice of the transfer of all or any
part of his interest other than the creation of a security interest in a boat numbered in this state
pursuant to
§
§
42-8-5 to 42-8-10, inclusive, or of the destruction or abandonment of the boat,
within fifteen days thereof. The transfer, destruction, or abandonment terminates the certificate of
number for the boat, except that in the case of a transfer of a part interest which does not affect the
owner's right to operate the boat, the transfer does not terminate the certificate of number. A
violation of this section is a petty offense.
Section
41.
That
§
42-8-16
be amended to read as follows:
42-8-16.
Every
Each
registration and validation decal shall expire on December thirty-first of
the terminal year for the period issued. Validation decals may be purchased as early as December
first for the following year. The registration may be renewed by the owner and new validation decals
obtained as provided in
§
42-8-5.
Section
42.
That
§
42-8-18
be amended to read as follows:
42-8-18.
The
Department of Revenue
department
may upon written request and receipt of a two
dollar fee furnish a person a certified abstract regarding registration information of any boat
registered under the provisions of this chapter. The fee shall be deposited in the state motor vehicle
fund. Governmental entities and their subdivisions are exempt from this fee requirement.
Section
43.
That
§
42-8-21
be amended to read as follows:
42-8-21.
Any
certified
law enforcement officer
may board any boat to determine if that boat and
its occupants are in compliance with all state and federal laws
of this state or its subdivision may
enforce the provisions of this chapter and in the exercise thereof has the authority to stop and board
any boat subject to this chapter
.
Section
44.
That
§
42-8-72
be amended to read as follows:
42-8-72.
Every
Each
owner of a large boat subject to titling under
§
§
42-8-71 to 42-8-74,
inclusive, and
§
§
42-8-76 to 42-8-84, inclusive, shall apply to the county treasurer for issuance of
a certificate of title for the large boat within thirty days after acquisition. The application shall be on
forms the department prescribes, and accompanied by the certificate of title or other acceptable
ownership document previously issued for the boat if the boat is used or the manufacturer's statement
of origin if the boat is new, a bill of sale and the required fee. The application shall contain the date
of sale and purchase price of the large boat or the fair market value if no sale immediately preceded
the transfer, and any additional information the
Department of Revenue
department
requires. If the
application is made for a large boat last previously registered or titled in another state or foreign
country,
it
the application
shall contain this information and any other information the department
requires.
Section
45.
That
§
42-8-74
be amended to read as follows:
42-8-74.
Any boat dealer or motor vehicle dealer licensed pursuant to chapter 32-6B transferring
a large boat requiring titling under
§
§
42-8-71 to 42-8-74, inclusive, and
§
§
42-8-76 to 42-8-84,
inclusive, shall assign the title to the new owner, or
in the case of
if
a new large boat, the boat dealer
shall assign the
manufacturer's
certificate of origin to the new owner. Within thirty days the applicant
shall forward all title fees and applications to the county treasurer.
Section
46.
That
§
42-8-78
be amended to read as follows:
42-8-78.
No manufacturer or boat dealer may transfer ownership of a new large boat without
supplying the transferee with the manufacturer's or importer's certificate of origin signed by the
manufacturer's or importer's authorized agent. The certificate shall contain information the
Department of Revenue
department
requires. No boat dealer may purchase or acquire a new large
boat without obtaining from the seller a manufacturer's statement of origin. Any person who does
not comply with this section is guilty of a Class 2 misdemeanor.
Section
47.
That
§
42-8-80
be amended to read as follows:
42-8-80.
A dealer shall maintain for three years a record of any large boat bought, sold,
exchanged
,
or received for sale or exchange. This record shall be open to inspection by
Department
of Revenue
department
representatives during reasonable business hours.
Section
48.
That
§
42-8-83
be amended to read as follows:
42-8-83.
The department
of revenue
shall prescribe and provide suitable forms for applications,
certificate of title, notices of security interests, and all other notices and forms necessary to
implement
§
§
42-8-71 to 42-8-74, inclusive
,
and
§
§
42-8-76 to 42-8-84.
Section
49.
That
§
42-8-84
be amended to read as follows:
42-8-84.
The owner of a large boat not yet subject to the titling requirements of
§
§
42-8-71 to
42-8-74, inclusive and
§
§
42-8-76 to 42-8-84, inclusive, may apply to the county treasurer of the
owner's residence for a certificate of title for the large boat.
The application shall be accompanied
by proof of ownership and a certificate issued by the secretary of state that there are or are not liens
of record encumbering the large boat.
If there are one or more liens on the large boat, the department
shall note the liens on the certificate of title in order of their priority and shall deliver or mail the
certificate of title to the owner or as otherwise directed by the owners.
Upon issuance of the certificate of title for the large boat, the large boat shall thereafter be
subject to the requirements of
§
§
42-8-71 to 42-8-74, inclusive, and
§
§
42-8-76 to 42-8-84, inclusive,
as though the boat was required to be titled.
The owner shall present the certificate of title to the county register of deeds when a release
statement is filed and a new or endorsed certificate shall be issued to the owner.
Section 50. That § 42-8-85 be amended to read as follows:
Section
51.
That
§
42-8-88
be amended to read as follows:
42-8-88.
Any person who is an owner of a boat who is required to apply for title or registration,
or both, and whose legal residence or chief place of business is outside the state, shall submit an
application, a copy of a valid title if from a title issuing state from another jurisdiction or other form
of ownership acceptable to the department and payment of all applicable fees to the county treasurer.
Upon receipt of such information, the county treasurer shall issue a nonnegotiable interstate title. A
nonnegotiable title is not a valid legal document for any purpose or transaction except to make
application for yearly South Dakota registration. The nonnegotiable title is valid as long as title
ownership remains the same.
A violation
Failure to apply for a title as provided by this section
is a
Class 2 misdemeanor.
Section
52.
That
§
42-8-90
be amended to read as follows:
42-8-90.
The
Department of Revenue
department
may upon written request and receipt of a five
dollar fee furnish a person a certified abstract of the title history of any boat registered under the
provisions of this chapter. The abstract may include all documents filed with the department to
establish the title history of the boat. The fee shall be deposited in the state motor vehicle fund.
Governmental entities and their subdivisions are exempt from this fee requirement.
Section
53.
That
§
42-8-91
be amended to read as follows:
42-8-91.
A person, in possession of a title either in his name or assigned to
him
the person
or a
bill of sale which lists
him
the person
as a purchaser of the boat, may procure from any county
treasurer a temporary permit which allows use of the boat in South Dakota waters. The title or bill
of sale shall be available for inspection by any
peace
law enforcement
officer if the boat is being
used. The permit may be purchased for any period from five to fifteen consecutive days at a fee of
one dollar per day for each day the permit is required. The minimum permit fee is five dollars. The
fee is payable to the county treasurer at the time of purchase. All permit fees shall be forwarded
monthly by the county treasurer to the
Department of Revenue
department
. The fee shall be
deposited in the state motor vehicle fund. Only one permit may be issued yearly for each boat.
Section
54.
That
§
42-8-92
be amended to read as follows:
42-8-92.
If ownership of a large boat is being transferred, the application for certificate of title
shall be filed within thirty days after the date of assignment or acquisition of the large boat.
However, a boat dealer need not apply for a certificate of title on any large boat held in stock or
acquired for stock purposes unless otherwise required under this chapter. Upon transfer of
such a
the
large boat, the boat dealer shall give the transferee a reassignment of the certificate of title or the
manufacturer's statement of origin.
Section
55.
That
§
42-8-101
be amended to read as follows:
42-8-101.
If the secretary finds that an applicant for a certificate of title or registration of a boat
is not entitled thereto, under the provisions of this chapter or the chapter which imposes tax on boats,
he
the secretary
may refuse to issue a certificate or to register such vehicles, and may for a like
reason, and after notice and hearing, revoke title, license and registration already acquired. The
notice shall be served in person or by registered or certified mail.
"
Jenelle Busse