CHAPTER 203
(HB 1166)
Boat damage disclosure.
ENTITLED, An Act to
require damage disclosure statements for certain large boats.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section
1.
That chapter
32-3A
be amended by adding thereto a NEW SECTION to read as
follows:
Upon the sale, assignment, or transfer of a large boat, or if registering a large boat in South
Dakota which is titled in another state or jurisdiction, the seller, assignor, or transferor, or person
wishing to register in South Dakota a large boat which is titled in another state or jurisdiction shall
submit an accurately completed damage disclosure statement when applying for a certificate of title
pursuant to
§
32-3A-20. The completed damage disclosure statement may be on the back of the
certificate of title or on a separate document that has been approved for use by the department. No
certificate of title may be issued by the department unless the damage disclosure statement
accompanies the application. It is a Class 1 misdemeanor to intentionally falsify any information
on the damage disclosure statement. No person is liable to a subsequent owner of a large boat
because a prior owner of the large boat failed to disclose that the large boat had previously been
damaged and repaired. This section applies to any large boat with damage in excess of five
thousand dollars and is six years old or less. If the large boat has incurred damages more than once,
only those damages which occurred at one time would be considered in determining whether the
damages exceeded five thousand dollars.
Section
2.
That chapter
32-3A
be amended by adding thereto a NEW SECTION to read as
follows:
For the purposes of the damage disclosure statement provided by section 1 of this Act, the
term, damage, means damage to the large boat caused by fire, vandalism, collision, weather,
submersion in water, or flood, and does not include normal wear and tear, glass damage,
mechanical repairs, or electrical repairs that have not been caused by fire, vandalism, collision,
weather, submersion in water, or flood.
Section
3.
That chapter
32-3A
be amended by adding thereto a NEW SECTION to read as
follows:
The department shall retain each damage disclosure statement received. The statement shall
become part of the title history available to the public pursuant to
§
32-3A-38.
Section
4.
That chapter
32-3A
be amended by adding thereto a NEW SECTION to read as
follows:
The department shall promulgate rules, pursuant to chapter 1-26, to prescribe the format for
the damage disclosure statement provided by section 1 of this Act. An area for a damage disclosure
statement shall appear on the back of each certificate of title issued by the department. The
department may also approve separate documents on which a damage disclosure statement may
be submitted. The damage disclosure statement form shall indicate whether the large boat has been
damaged such that it cost more than five thousand dollars to repair to its predamaged condition and
any other damage information the department deems appropriate. If a separate document from the
certificate of title contains the damage disclosure statement, the document shall also require the
following information: year, make, model, and hull identification number of the large boat.
Section
5.
That chapter
32-3A
be amended by adding thereto a NEW SECTION to read as
follows:
The dollar amount of damage to a large boat required to be disclosed pursuant to section 1 of
this Act shall include the costs necessary to return the damaged large boat to its predamaged
condition. Such costs include parts, labor, paint, and hull work done on the damaged large boat.
Section
6.
That chapter
32-3A
be amended by adding thereto a NEW SECTION to read as
follows:
Any large boat that is required to be titled pursuant to this chapter and is sold or offered for sale
by a boat dealer as defined in
§
32-3A-2 shall display a sticker, decal, or notice that discloses
damage to the large boat in accordance with the provisions of this Act, as determined by the
department in rules promulgated pursuant to chapter 1-26. The rules shall also prescribe the format
and construction of the sticker, decal, or notice.
Section
7.
That chapter
32-3A
be amended by adding thereto a NEW SECTION to read as
follows:
Each certificate of title issued by the department shall contain the following phrase: South
Dakota state law requires the disclosure of damage on large boats. This information is available
upon written request from the Department of Revenue and Regulation. Each certificate of title shall
also contain on its front a statement as to whether previous damage disclosure statements indicate
the large boat had been damaged at one time in excess of five thousand dollars.
Section
8.
That
§
32-3A-38
be amended to read as follows:
32-3A-38.
The department may upon written request and receipt of a five dollar fee furnish a
person a certified abstract of the title history
which shall include any damage disclosure statement
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
9.
The department shall, in a conspicuous location, place on the first South Dakota title
and all subsequent titles issued for any large boat for which a certificate of title was issued by
another state, the name of the previous state and any brand or notation indicated on the title by that
state.
Signed February 26, 2004.