PROPOSED RULEMAKING
[58 PA. CODE CH. 93]
Boating
[26 Pa.B. 6093] The Fish and Boat Commission (Commission) proposes to adopt Chapter 93 (relating to registration and numbering). The Commission is publishing these regulations as a notice of proposed rulemaking under the authority of 30 Pa.C.S. (relating to Fish and Boat Code) (code). The proposed regulations deal with boat titling.
A. Effective Date
These proposed regulations will, if approved on final rulemaking, go into effect on June 30, 1997, or upon publication of an order adopting the regulations whichever occurs later.
B. Contact Person
For further information on the proposed changes, contact Laurie E. Shepler, Assistant Counsel, telephone (717) 657-4546, P. O. Box 67000, Harrisburg, PA 17106-7000.
C. Statutory Authority
These regulations are proposed under the statutory authority of section 5325 of the code (relating to rules and regulations).
D. Purpose and Background
On July 2, 1996, Governor Ridge signed Act 1996-73 into law. One section of this act (30 Pa.C.S. § 5325) directs the Commission to promulgate regulations on the titling of boats. This section took effect on September 2, 1996. The remainder of the act, which contains the requirement that boats have certificates of title, takes effect 6 months after the effective date of the regulations. The proposed regulations will have an effective date of June 30, 1997, so that titles will be required and available on or after January 1, 1998.
In drafting the proposed regulations on boat titling, the Commission reviewed parallel Department of Transportation regulations on titles for motor vehicles. The Commission also reviewed model state guidelines on boat titling and regulations and forms used for titling of snowmobiles and all-terrain vehicles.
Prior to consideration of these regulations on final rulemaking (probably at the Spring 1997 meeting), the Commission will seek input from the Boating Advisory Board. In addition to seeking public comment in the normal manner by publishing a notice of proposed rulemaking in the Pennsylvania Bulletin, copies of the proposals will be sent to marine trade and banking associations for specific comment and input. The Commission will attempt to convene a working group meeting with representatives of boat dealers and finance agencies to ensure that maximum input on the proposed regulations is obtained. In order to accomplish this goal during the public comment period, the Commission proposes a 45-day public comment period.
E. Summary of Proposal
Under the newly enacted law (30 Pa.C.S. § 5325), the Commission is required to promulgate rules and regulations on boat titling pertaining to:
(1) Application procedures for certificates of title
(2) Contents of applications
(3) Boats brought into this Commonwealth from outside this Commonwealth
(4) Boats purchased from dealers
(5) Boats sold or transferred privately
(6) Specially constructed or reconstructed boats
(7) Delivery of certificates of title
(8) Duplicate or replacement titles
(9) Transfer of ownership of boats
(10) Transfers to or from manufacturers or dealers
(11) Reposession of boats
(12) Boats which are junked, destroyed, lost, stolen or abandoned
(13) Voluntary titling of boats by owners prior to sale or transfer
(14) Suspension or cancellation of certificates of title
(15) Creation and perfection of security interests in boats
(16) Assignments of security interests
(17) Satisfaction of security interests
(18) Recordkeeping, documentation and information verification
F. Fiscal Impact
Act 1996-73 will result in estimated Boat Fund revenue in the amount of $225,000. It is estimated by the Commission that the costs to implement the boat titling program will be approximately equal to the additional revenues generated. The proposed regulations will have no adverse fiscal impact on the Commonwealth or its political subdivisions. Nor will the proposed regulations impose new costs on the private sector or the general public.
G. Paperwork
The proposed regulations implement a statute that requires some new paperwork. However, the regulations themselves will not increase paperwork and will create no new paperwork requirements.
H. Public Comments
Interested persons are invited to submit written comments, objections or suggestions about the proposed regulations to the Executive Director, Pennsylvania Fish and Boat Commission, P. O. Box 67000, Harrisburg, PA 17106-7000, within 45 days after publication of this notice in the Pennsylvania Bulletin.
PETER A. COLANGELO,
Executive DirectorFiscal Note: 48A-62. No fiscal impact; (8) recommends adoption.
(Editor's Note: The following subchapter is new. It has been printed in regular type to enhance readability.)
Annex A
TITLE 58. RECREATION
PART II. FISH AND BOAT COMMISSION
Subpart C. BOATING
CHAPTER 93. REGISTRATION AND NUMBERING
Subchapter A. REGISTRATION OF BOATS
Subchapter B. TITLING OF BOATS Sec.
93.101. Definitions. 93.102. Application procedure and contents of applications for certificate of title. 93.103. Boats brought into this Commonwealth from outside this Commonwealth. 93.104. Boats purchased from dealers/transfer to or from manufacturer or dealer. 93.105. Boats sold or transferred privately. 93.106. Specially constructed or reconstructed boats. 93.107. Delivery of certificate of title. 93.108. Duplicate/replacement titles. 93.109. Transfer or repossession of boat by operation of law. 93.110. Boats that are junked, destroyed, lost, stolen or abandoned. 93.111. Voluntary titling of boats. 93.112. Suspension, revocation or cancellation of certificate of title. 93.113. Creation and perfection of security interests in boats. 93.114. Assignments of security interests. 93.115. Satisfaction of security interests. 93.116. Exemptions. 93.117. Recordkeeping, documentation and information verification regarding boats. 93.118. Prohibited acts. 93.119. Forms. § 93.101. Definitions.
The following words and terms, when used in this subchapter, have the following meanings, unless the context clearly indicates otherwise:
Dealer--A person who engages in whole or in part in the business of buying, selling or exchanging new and unused boats, or used boats, or both, either outright or on conditional sale, bailment, lease, chattel mortgage, or otherwise, and who has an established place of business for sale, trade and display of boats. The term includes a yacht broker.
Manufacturer--A person engaged in the business of manufacturing or importing new and unused boats, or new and unused outboard motors, for the purpose of sale or trade.
Reconstructed boat--One of the following:
(i) A boat for which a certificate of title (salvage/junk) has been issued, which is thereafter restored to operating condition and which is substantially in conformance with the specifications of the manufacturer.
(ii) A boat that has been materially altered by the removal, addition or substitution of essential parts derived from various other makes or models, or that the Commission has determined is readily recognizable as a boat of a generally recognized make or model.
Specially constructed boat--One of the following:
(i) A boat not originally constructed by a generally recognized manufacturer of boats under a distinctive name and not materially altered from its original construction, but assembled from parts of various boats or kits, or both, and that would be commonly known as a ''homemade'' boat.
(ii) A boat that has been materially altered by the removal, addition or substitution of essential parts derived from various other makes and models and that the Commission determines cannot be readily identified as a boat of a generally recognized make or model.
Use--To operate or navigate a boat. A boat is in use whenever it is upon the water.
§ 93.102. Application procedure and contents of applications for certificates of title.
(a) Boat owners shall apply for a certificate of title on Form REV-336, provided by the Commission. The completed form shall be forwarded to the Commission at the address listed on the application.
(b) The applicant shall provide the following information on the application (REV-336) for a title:
(1) The name, mailing address, residence address, phone number and zip code of the owner. If there are co-owners, the applicants shall provide information relating to both owners and indicate whether the boat is owned as joint tenants with right of survivorship or as tenants in common.
(2) The name and address from whom the boat was purchased.
(3) The state registration number, if any, currently assigned to the boat.
(4) The hull material, such as wood, steel, aluminum, plastic, fiberglass or other.
(5) The full hull identification number (HIN).
(6) The make, model and year built, if known.
(7) The length of the boat to the nearest half-foot.
(8) The type of propulsion, such as, outboard, inboard, sterndrive or unpowered.
(9) The type of fuel, such as, gas, diesel, electric or unpowered.
(10) The complete capacity information.
(11) The primary usage such as, pleasure, rental/livery, manufacturer/dealer/jobber, commercial passenger and the like.
(12) The names and addresses of each lien holder (in the order of priority).
(13) The amount of the lien.
(14) The date of lien encumbrance.
(15) The date the applicant completed the form.
(16) The signature of the owners.
(17) Complete sales and use tax information.
§ 93.103. Boats brought into this Commonwealth from outside this Commonwealth.
(a) When the owner of a boat having a certificate of title from another state brings the boat into this Commonwealth as its state of principal use, the owner shall obtain a Pennsylvania certificate of title for the boat when the boat is registered in this Commonwealth or its ownership is transferred to another person, whichever occurs first.
(b) When the owner of a boat not having a certificate of title from another state brings the boat into this Commonwealth as its state of principal use, the owner shall obtain a Pennsylvania certificate of title when the boat is sold or is otherwise transferred to another owner. This provision does not apply to boats for which a title is not required under section 5322(a) of the code (relating to when certificate of title not required).
§ 93.104. Boats purchased from dealers/transfer to or from manufacturer or dealer.
(a) A dealer may not purchase or acquire a new boat without obtaining from the seller a manufacturer's or importer's certificate of origin when provided by the manufacturer or importer.
(b) When certificates of origin are provided by the manufacturer or importer, a manufacturer or dealer may not transfer ownership of a new boat without supplying the transferee with the certificate of origin signed by the manufacturer's or importer's authorized agent.
(c) A dealer transferring a boat requiring title under this subchapter shall assign ownership to the new owner, in the case of a previously titled boat, by completing the appropriate assignment portion of the certificate of title, or in the case of a new boat, by completing the assignment portion of the certificate of origin.
(d) A dealer shall forward the monies and applications to the Commission within 10 days of transferring ownership.
(e) Except as otherwise provided in this subsection, a dealer buying or acquiring a used boat for resale need not obtain a certificate of title for the used boat if the dealer reports the acquisition to the Commission within 15 days. In lieu of submitting a report of acquisition, the dealer may apply for and obtain a certificate of title as provided in this subchapter. If a dealer buys or acquires a used unnumbered boat that is otherwise required to be titled, the dealer shall apply for a certificate of title in his name within 15 days. If a dealer buys or acquires a new boat for resale, the dealer may, but is not required to, apply for a certificate of title for the boat in his name.
(f) Every dealer shall maintain for 3 years a record of any boat he bought, sold, exchanged or received for sale or exchange. This record shall be open to inspection by Commission representatives during reasonable business hours.
(g) A dealer/lessor who leases a boat for more than 30 consecutive days shall obtain a certificate of title for the boat unless exempt under section 5322(a) of the code (relating to when certificate of title not required). The lessor shall maintain the certificate of title of a leased boat.
§ 93.105. Boats sold or transferred privately.
(a) A person transferring a boat requiring title under this subchapter shall assign ownership to the new owner, in the case of a previously titled boat, by completing the appropriate assignment portion of the certificate of title, or in the case of a new boat, by completing the assignment portion of the certificate of origin.
(b) Moneys and applications shall be forwarded to the Commission within 10 days of transferring ownership.
(c) The lessor shall maintain the certificate of title of a leased boat.
§ 93.106. Specially constructed or reconstructed boats.
(a) The owner of a specially constructed or reconstructed boat shall apply for a certificate of title as required by this subchapter.
(b) The application for certificate of title shall be accompanied by one of the following:
(1) The outstanding certificates of title.
(2) The manufacturer's certificates of origin or certificates of title (salvage/junk), issued for boats, the parts of which were used in construction of the boat, if the boats are no longer operable or able to be registered.
(3) The bills of sale for the major components of the boat for which no other proof of ownership is available.
(c) The certificate of title issued for every specially constructed boat and reconstructed boat, as defined in this subchapter, shall clearly describe the boats by type as follows:
(1) The certificate of title for every specially constructed boat shall describe the make of boat as ''specially constructed.''
(2) The certificate of title for every reconstructed boat shall describe the boat by its original make or trade name but shall be coded to designate it as a reconstructed boat.
§ 93.107. Delivery of certificate of title.
The Commission will mail the original certificate of title to the first lien holder named therein, or if there is none, to the owner named therein. The Commission will retain the data necessary to generate a copy of the certificate of title.
§ 93.108. Duplicate/replacement titles.
(a) If a title is lost, stolen, mutilated, destroyed or becomes illegible, the first lien holder or, if there is none, the owner named on the title, as shown by the Commission's records, may obtain a duplicate/replacement by applying to the Commission. The applicant shall furnish information concerning the original title and the circumstances of its loss, theft, mutilation or destruction. Applications for replacement titles shall be filed within 30 days of the loss, theft, mutilation or destruction. Mutilated or illegible titles shall be returned to the Commission with the application for a duplicate/replacement.
(b) The duplicate/replacement title shall be marked ''duplicate/replacement'' across its face and shall be mailed or delivered to the applicant.
(c) If a lost or stolen original title for which a duplicate/replacement has been issued is recovered, the original shall be surrendered to the Commission for cancellation within 10 days of its recovery.
§ 93.109. Transfer or repossession of boat by operation of law.
(a) If ownership of a boat is transferred by operation of law, such as by inheritance, divorce, order in bankruptcy, insolvency, replevin or execution sale, the transferee, within 30 days after he has acquired the right to possession of the boat by operation of law, shall mail or deliver to the Commission a court order or other document evidencing the transfer by operation of law, together with his application for a new title and the required fee.
(b) If a lien holder repossesses a boat by operation of law and holds it for resale, the lien holder shall secure a new title and shall pay the required fee.
(c) Issuance of a certificate of title does not constitute an adjudication of issues relating to ownership of boats.
§ 93.110. Boats that are junked, destroyed, lost, stolen or abandoned.
(a) Reporting requirements. The destruction, loss, theft or abandonment of a boat titled under this subchapter shall be reported to the Commission within 5 days. The recovery of a boat that is lost, stolen or abandoned shall be reported to the Commission within 5 days of recovery.
(b) Acquiring title to abandoned boats.
(1) Subject to this subsection, a landowner, his lessee or agent may acquire title to any boat abandoned on his land or waters immediately adjacent to it. This subsection applies only to boats that have been abandoned on the property of a person other than the owner of the boat for over 6 months.
(2) A person desiring to obtain a certificate of title for an abandoned boat shall provide written notice to the Commission of intent to obtain title to the boat. The notice shall, at a minimum, set forth the date and place the boat was abandoned, a description of the boat, including the make, model and year, and, if known, the hull identification number, registration number, temporary decal number and other identifying data.
(3) If a boat abandoned on a person's lands or waters has a hull identification number, registration number, temporary decal number or other identifying indicia, the person desiring to acquire title shall include in the written notice filed under paragraph (2) a request that the Commission notify the boat's owner and lien holder, if any, that the boat has been abandoned and that the requester desires to acquire title to it.
(4) Upon receipt of the written request, the Commission will notify the owner and the lien holder by certified mail that someone desires to acquire title to the boat and if ownership is not claimed and the boat removed within 30 days, the Commission may, upon proper application and payment of fees, issue a certificate of title in the name of the person desiring to acquire title. The Commission is not required to send a letter if it cannot identify a boat's owner or lien holder or ascertain an address. If the abandoned boat has a registration number, temporary decal number or other identifying indicia, evidencing that the boat is registered in another state, the Commission will notify the other state and ask it to notify the boat's owner and lien holder by certified mail that someone desires to acquire title to the boat. The other state's notice shall provide that if ownership is not claimed and the boat removed within 30 days, the Commission may, upon proper application and payment of fees, issue a certificate of title in the name of the person desiring to acquire title. The other state is not required to send a letter if it cannot identify a boat's owner or lien holder or ascertain an address. When the other state notifies the owner and lien holder, if known, as provided in this paragraph and advises the Commission that the transfer of title to the requester is unobjectionable to the other state, the Commission may notify the requester to proceed under paragraph (6).
(5) Regardless of whether the abandoned boat has a hull identification number, registration number, temporary decal number or other identifying indicia, the person desiring to acquire title shall place a notice in a newspaper of general circulation published in the county where the boat is located, describing the boat, its location, the date it was abandoned and any identifying number. The person shall state in the notice that if the boat is not claimed and removed within 30 days after publication in the newspaper, he will apply for title to the boat in his name.
(6) After the notices described in paragraphs (4) and (5) have expired, but no earlier than 60 days after the person desiring to obtain title has first notified the Commission, the person may apply to the Commission for a certificate of title to the boat in his name as required by this subchapter and accompanied by the following affidavits: a statement made under penalty of law that the boat has been abandoned for at least 6 months; proof that the applicant provided notice as set forth in paragraphs (2)--(4); and proof that a notice was published in a newspaper as required by paragraph (5). In cases involving boats registered in other states, the Commission may extend the 60-day period to 180 days.
(7) Upon receipt of the material required by this subsection and the payment of fees required by law, the Commission will issue a certificate of title to the boat to the applicant. Issuance of a certificate of title divests any other person of any interest in the boat.
(8) The Commonwealth, its agencies and political subdivisions may acquire title to a boat abandoned on areas under their respective jurisdictions by proceeding in the manner set forth in this subsection.
§ 93.111. Voluntary titling of boats.
An owner of a boat may voluntarily apply for a certificate of title by applying at any time and paying the fees required under section 5327 of the code (relating to fees). Once an owner voluntarily acquires a certificate of title, titling for the boat is thereafter mandatory.
§ 93.112. Suspension, revocation or cancellation of certificate of title.
(a) The Commission will initiate an action to suspend or revoke a certificate of title by filing an order to show cause under 1 Pa. Code § 35.14 (relating to orders to show cause), when authorized by statutory or other authority, or if the Commission determines that the certificate of title was fraudulently procured.
(b) The Commission has the authority to cancel a certificate of title when the Commission determines that one of the following applies:
(1) The certificate of title was erroneously issued.
(2) The boat was junked, destroyed, lost, stolen or abandoned.
(c) Suspension, revocation or cancellation of a certificate of title does not, in itself, affect the validity of a security interest noted on it.
(d) When the Commission suspends, revokes or cancels a certificate of title, the owner or person in possession of the certificate shall, upon receiving notice of the suspension, revocation or cancellation, immediately mail or deliver the certificate of title to the Commission.
(e) The Commission may seize, in accordance with the law, a certificate of title that it has suspended, revoked or canceled.
§ 93.113. Creation and perfection of security interests in boats.
(a) An owner creates a security interest in a boat when he signs a note, agreement or other instrument containing terms that create a security interest. When an owner creates a security interest in a boat:
(1) The owner shall provide lien holder information on the space on the title or on a separate form that the Commission prescribes. The information provided shall include the name and address of the secured party, the amount of the security interest and the date of the security agreement. The owner shall have the title, application and fee delivered to the Commission.
(2) The security interest is perfected as of the time of its creation if delivery and payment to the Commission are completed within 10 days of the date of its creation; otherwise, perfection shall be as of the time of its delivery and payment.
(3) Upon receipt of the title, application and the required filing fee, the Commission will endorse on the existing title or on a new title that it then issues, the name and address of the secured parties, and mail or deliver the title to the secured party.
(b) A security interest in a boat is not valid against creditors of the owner or subsequent transferees or secured parties of the boat until perfected as provided by this subchapter.
(c) The issuance of a title, other than in the case of the initial issuance to a purchaser from a dealer, does not invalidate a previously perfected security interest under 13 Pa.C.S. (relating to Uniform Commercial Code), other than a dealer's security interest in inventory.
§ 93.114. Assignments of security interests.
(a) A secured party may assign, absolutely or otherwise, all or part of his security interest in the boat to a person other than the owner without affecting the interest of the owner or the validity of the security interest.
(b) The assignee shall deliver to the Commission the title, if available, and an assignment by the secured party named in the title in the form the Commission may prescribe, accompanied by the filing fee required by law. The assignee's security interest is perfected as of the time of its creation if delivery and payment to the Commission are completed within 10 days of the date of its creation; otherwise, perfection is as of the time of its delivery and payment.
§ 93.115. Satisfaction of security interests.
Within 10 days of the satisfaction of a security interest in a boat, the secured party shall mail or deliver the title with the release to the owner and notify the Commission of the release of security interest.
§ 93.116. Exemptions.
The provisions of this subchapter relating to procedures for creating, perfecting, assigning and satisfying security interests do not apply to the following:
(1) A lien given by statute or rule of law to a supplier of services or materials for the boat.
(2) A lien given by statute to the United States, the Commonwealth or a political subdivision of this Commonwealth.
(3) A security interest in a boat created by a manufacturer or dealer who holds the boat for sale, but a buyer in the ordinary course of trade from the manufacturer or dealer takes free of the security interest.
(4) A lien arising out of an attachment of a boat.
(5) A security interest claimed on proceeds, if the original security interest did not have to be noted on the title in order to be perfected.
(6) A boat for which a title is not issued under this subchapter.
§ 93.117. Recordkeeping, documentation and information verification regarding boats.
(a) The Commission will maintain a record of any title it issues.
(b) Upon written request specifically identifying a particular boat, the Commission will provide the following information about a boat having a certificate of title:
(1) The name of the owner.
(2) The name and address of a lien holder.
(3) The date the certificate of title was issued.
(4) The make, model and year of the boat.
(c) The Commission will not release the home address of a title holder, except with the consent of the title holder or upon court order or subpoena.
(d) The Commission will not release mailing lists or records of title holders, except to agencies of the Federal, State and local government for official purposes.
(e) Nothing in this section affects the authority of the Commission and other agencies of Federal, State and local government to use information contained in certificates of title for official purposes.
§ 93.118. Prohibited acts.
(a) A person may not sell, assign or transfer a boat titled by the Commonwealth without delivering to the purchaser or transferee a title with an assignment on it showing title in the purchaser or transferee.
(b) A person may not purchase or otherwise acquire a boat required to be titled by the State without obtaining a title for it in his name.
(c) A person may not obtain or attempt to obtain title to a boat under this subchapter through fraudulent means.
§ 93.119. Forms.
(a) The Commission will provide suitable forms of applications, title, notice for security interests, and other notices and forms necessary to carry out this subchapter.
(b) Except as otherwise provided in this subchapter, the forms and notices required in this chapter shall be forwarded to the Pennsylvania Fish and Boat Commission, Boat Registration Section, P. O. 68900, Harrisburg, PA 17106-8900.
[Pa.B. Doc. No. 96-2141. Filed for public inspection December 20, 1996, 9:00 a.m.]
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