FOR AN ACT ENTITLED, An Act to revise certain provisions regarding registration, numbering, titling, and taxation of certain boats.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:      Section  1.  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  2.  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  3.  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  4.  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  5.  That § 42-8-2 be amended by adding thereto a NEW SUBDIVISION to read as follows:

     "Department," the Department of Revenue;

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     Section  6.  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  7.  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  8.  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  9.  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  10.  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  11.  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  12.  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  13.  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 subdivisions 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  14.  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  15.  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  16.  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.

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     Section  17.  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  18.  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  19.  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  20.  That § 42-8-85 be amended to read as follows:
     42-8-85.   The secretary of revenue may adopt rules, promulgated pursuant to chapter 1-26,

to establish uniform procedures for the administration of the titling of large boats and registration and numbering of boats , which may be adopted in for the following areas:

             (1)      Application requirements for the registration and titling of boats, assignment of certificate of title, certificate of title for boats previously registered, time limits for making application, duplicate certificates and transfer of certificate, lien recording, assignment of liens, execution of cancellation of liens, delivery of title, abandoned, repossessed , and operation by law; and

             (2)      Issuance, display, inspection, expiration, cancellation , and removal of certificates of number and boat identification tags.

     Violation of a rule adopted pursuant to this section is a Class 2 misdemeanor.
     Section  21.  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  22.  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  23.  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  24.  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  25.  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.

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BILL HISTORY
1/13/98 First read in House and referred to Transportation.   H.J.   29
1/16/98 Scheduled for Committee hearing on this date.
1/16/98 Transportation Deferred to another day, AYES 0, NAYS 0.
1/21/98 Scheduled for Committee hearing on this date.
1/26/98 Scheduled for Committee hearing on this date.
1/26/98 Transportation Do Pass Amended, Passed, AYES 12, NAYS 0.   H.J.   211