(a) As used in this section:

(1)

(A) "Beneficiary" means one (1) individual who is designated to become the owner of a motorboat upon the death of the current owner as indicated on the certificate of number issued under this chapter.

(B) "Beneficiary" does not include a business, firm, partnership, corporation, association, or any other legally-created entity;

(2) "Certificate of number with beneficiary" means a certificate issued for a motorboat under this chapter that indicates the present owner of the motorboat and designates a beneficiary as provided under this section;

(3) "Motorboat" means a boat registered and numbered under this chapter; and

(4)

(A) "Owner" means an individual who holds the certificate of number to a motorboat and can include more than one (1) person but not more than three (3) persons.

(B) "Owner" does not include a business, firm, partnership, corporation, association, or any other legally-created entity.

(b) If the owner or joint owners want to transfer a motorboat upon death by operation of law, the owner or joint owners may request that the Revenue Division of the Department of Finance and Administration issue a certificate of number with beneficiary that includes a directive to the division to transfer the certificate of number upon the death of the owner or upon the death of all joint owners to the beneficiary named on the face of the certificate of number with beneficiary.

(c)

(1) To obtain a certificate of number with beneficiary, the owner of a motorboat shall submit a transfer on death application to the division to request the issuance of a certificate of number with beneficiary or a change to a certificate of number with beneficiary.

(2) The owner shall provide the following information in the application:

(A) Whether the applicant seeks to add, remove, or change a beneficiary;

(B) The full legal name of the beneficiary;

(C) The Social Security number of the beneficiary;

(D) The address of the beneficiary;

(E) The identification number of the motorboat;

(F) The year, make, model, and length of the motorboat;

(G) The printed full legal name of the owner of the motorboat;

(H) The Arkansas driver's license or identification card number for the owner of the motorboat; and

(I) The signature of the owner of the motorboat.

(3) The owner shall include the following with the application:

(A) The certificate of number for the motorboat issued under this chapter;

(B) The certificate of number application fee as provided under § 27-101-306; and

(C) The certificate of number with beneficiary application fee of ten dollars ($10.00).

(4)

(A) The fee remitted under subdivision (c)(3)(C) of this section shall be deposited into the State Central Services Fund for the benefit of the division.

(B) The fee shall be credited as supplemental and in addition to all other funds as may be deposited for the benefit of the division.

(C) The fee shall not be considered or credited to the division as direct revenue.

(d) The division shall not issue a certificate of number with beneficiary to an owner of a motorboat if the owner holds his or her interest in the motorboat as a tenant in common with another person.

(e) The certificate of number with beneficiary issued by the division shall include after the name of the owner the words "transfer on death to" or the abbreviation "TOD" followed by the name of the beneficiary.

(f) During the lifetime of the sole owner or before the death of the last surviving joint owner:

(1) The signature or consent of the beneficiary is not required for any transaction relating to the motorboat for which a certificate of number with beneficiary has been issued; and

(2) The certificate of number with beneficiary is revoked by:

(A) Selling the motorboat with completion of the application for transfer of the certificate of number as provided under § 27-101-309 and transferring to another person; or

(B) Filing an application with the division to remove or change a beneficiary as provided under subsection (c) of this section.

(g) Except as provided in subsection (f) of this section, the designation of the beneficiary in a certificate of number with beneficiary shall not be changed or revoked:

(1) By will or any other instrument;

(2) Because of a change in circumstances; or

(3) In any other manner.

(h) The interest of the beneficiary in a motorboat on the death of the sole owner or on the death of the last surviving joint owner is subject to any contract of sale, assignment, or security interest to which the owner of the motorboat was subject during his or her lifetime.

(i) (1) (A) Upon the death of the owner, the division shall issue a new certificate of number for the motorboat to the surviving owner or, if no surviving owners, to the beneficiary if the surviving owner or beneficiary presents the following:

(i) Proof of death of the owner that includes a death certificate issued by the state or a political subdivision of the state;

(ii) Surrender of the outstanding certificate of number with beneficiary; and

(iii) Application and payment of the certificate of number fee for the motorboat.

(B) A certificate of number issued under this subsection will be subject to any existing security interest.

(2) If the surviving owner or beneficiary chooses, he or she can submit a completed certificate of number with beneficiary application as provided under this section, along with the ten dollar ($10.00) processing fee, at the time of the application for a new certificate under this subsection.

(j) The transfer of a motorboat upon the death of the owner under this section is not testamentary and is not subject to administration under Title 28.

(k) The procedures and fees under § 27-101-304(g)(2) shall apply for obtaining a duplicate certificate with beneficiary.

(l) The division may promulgate rules for the administration of this section.