80th Legislative Session _ 2005

Committee: House Transportation
Monday, January 31, 2005

                                            P - Present
                                            E - Excused
                                            A - Absent

Roll Call
E    Hackl
P    Hanks
P    Koistinen
P    Krebs
P    Lange
P    McLaughlin
P    Street
P    Turbiville
P    Valandra
P    Vehle
P    Willadsen
P    Fryslie, Vice-Chair
P    Pederson (Gordon), Chair

OTHERS PRESENT: See Original Minutes

The meeting was called to order by Chair Pederson

MOTION:     TO APPROVE THE MINUTES OF WEDNESDAY, JANUARY 26, 2005

Moved by:    Turbiville
Second by:    Vehle
Action:    Prevailed by voice vote.

         HB 1111: revise certain provisions regarding the records required to be kept by vehicle dealers and used vehicle dealers and to require that certain liens be paid by a dealer before a vehicle is offered for sale, sold, or exchanged.

Presented by:    Representative Shantel Krebs
Proponents:    Debra Hillmer, Department of Revenue and Regulation

        Roger Tellinghuisen, SD Auto Dealers
        Senator William Napoli
        Jerry Vogeler, SD Manufactured Housing Assn. and SD Ind. Auto Dealers Assn.

MOTION:     AMEND HB 1111

1111fa
     On page 3 of the printed bill, delete lines 6 to 11 , inclusive, and insert:

"

     A dealer may offer for sale, sell, or exchange a vehicle without a certificate of title if all of the following applicable provisions are met:

             (1)    The dealer has a record of purchase, sale, or exchange of a vehicle to include the satisfaction of any outstanding liens or encumbrances and a secured power of attorney;

             (2)    If the vehicle is encumbered by a lien noted on the title, the dealer shall show that payment has been tendered to the lienholder for the amount of the lien, except a lien that is the result of dealer inventory financing; or

             (3)    If the dealer is required by law to obtain title prior to offering the vehicle for sale, the dealer shall apply for title through the electronic on-line title system and submit the documents to the department.".

     On page 3 , line 23, after " lienholder " insert ", except on a consigned vehicle, whereby the dealer shall comply with the terms of the consignment agreement".

     On page 3 , after line 23, insert:

"      Section 6. That § 32-6B-20 be amended to read as follows:

     32-6B-20.   Each dealer licensed under the provisions of this chapter, shall keep books, records, or files, in such form as prescribed or approved by the department . The dealer shall keep a record of the purchase, sale, or exchange, of any vehicle, a description of the vehicle, together with the name and address of the owner or other person from whom the vehicle was purchased or received, and to whom it was sold or delivered. The description shall include the vehicle identification number, manufacturer's make and model, and odometer mileage. The dealer shall also possess a certificate of title from the previous owner of any vehicle not purchased from the manufacturer, from the time the vehicle is delivered to the dealer until it has been disposed of by the dealer. However, for any vehicle with a manufacturer's weight of sixteen thousand pounds or greater, if a copy of the front and back of any certificate of title which has been assigned to the dealer is kept at the location where the vehicle is being offered for sale, the certificate of title for the vehicle may be kept at another South Dakota dealership owned by the same dealer or kept by a lending institution. Prior to keeping any certificate of title at another dealership or at a lending institution, the dealer shall notify the department in writing where the certificate of title is to be kept. Such record shall be open to inspection by any peace officer or department dealer inspector , including the following:

             (1)    A record of the purchase, sale, or exchange, of any vehicle;

             (2)    A description of each vehicle purchased, sold, or exchanged, together with the name and address of the owner or other person from whom the vehicle was purchased or received and to whom it was sold or delivered. The description shall include the vehicle identification number, manufacturer's make and model, and odometer mileage; and

             (3)    A certificate of title from the previous owner of any vehicle not purchased from the manufacturer, from the time the vehicle is delivered to the dealer until it has been disposed of by the dealer.

     The books and records and other papers and documents shall, at all times during business hours of the day, be subject to inspection by the secretary of revenue and regulation or the secretary's duly authorized agents and employees .

     Section 7. That chapter 32-6C be amended by adding thereto a NEW SECTION to read as follows:

     A dealer may offer for sale, sell or exchange a snowmobile without a certificate of title if all of the following applicable provisions are met:

             (1)    The dealer has a record of purchase, sale or exchange of a snowmobile to include the satisfaction of any outstanding liens or encumbrances and a secured power of attorney;

             (2)    If the snowmobile is encumbered by a lien noted on the title, the dealer must show that payment has been tendered to the lienholder for the amount of the lien, except a lien that is the result of dealer inventory financing; or

             (3)    If the dealer is required by law to obtain title prior to offering the snowmobile for sale; the dealer shall apply for title through the electronic on-line title system and submit the documents to the department.

     This section does not relieve a dealer from the provisions of § 32-3-7.
     Section 8. That chapter 32-6C be amended by adding thereto a NEW SECTION to read as follows:

     If a person trades in a snowmobile to a dealer or enters into a consignment agreement with a dealer whereby the dealer will sell the snowmobile and the snowmobile has a lien noted on the title, the dealer and person may agree that the dealer shall satisfy the lien amount by paying the lienholder who is noted on the title.

     Section 9. That chapter 32-6C be amended by adding thereto a NEW SECTION to read as follows:

     If a dealer enters into an agreement pursuant to section 8 of this Act, the dealer shall satisfy the lien within ten business days after the receipt of funds. The dealer may not offer the snowmobile for sale until payment has been tendered to the lienholder, except on a consigned snowmobile, whereby the dealer shall comply with the terms of the consignment agreement.

     Section 10. That § 32-7A-12 be amended to read as follows:

     32-7A-12.   Every Any dealer or manufacturer licensed under the provisions of this chapter, shall keep a record, in such form as may be prescribed by the Department of Revenue and Regulation . The licensee shall keep a record of the purchase, sale or exchange, or receipt for the purpose of sale, of any mobile home or manufactured home. The licensee shall also keep a record of a description of the home together with the name and address of the seller, the purchaser, or other person from whom it was received or to whom it was delivered , including the following:

             (1)    A record of the purchase, sale, or exchange, of any vehicle;

             (2)    A description of each vehicle purchased, sold, or exchanged, together with the name and address of the owner or other person from whom the vehicle was purchased or received and to whom it was sold or delivered. The description shall include the vehicle identification number, manufacturer's make and model, and odometer mileage; and

             (3)    A certificate of title from the previous owner of any vehicle not purchased from the manufacturer, from the time the vehicle is delivered to the dealer until it has been disposed of by the dealer.

     The books and records and other papers and documents shall, at all times during business hours of the day, be subject to inspection by the secretary of revenue and regulation or the secretary's duly authorized agents and employees .

     Section 11. That chapter 32-7A be amended by adding thereto a NEW SECTION to read as follows:

     A dealer may offer for sale, sell or exchange a snowmobile without a certificate of title if all of the following applicable provisions are met:
             (1)    The dealer has a record of purchase, sale or exchange of a mobile or manufactured home to include the satisfaction of any outstanding liens or encumbrances and a secured power of attorney;

             (2)    If the mobile or manufactured home is encumbered by a lien noted on the title, the dealer must show that payment has been tendered to the lienholder for the amount of the lien, except a lien that is the result of dealer inventory financing; or

             (3)    If the dealer is required by law to obtain title prior to offering the mobile or manufactured home for sale; the dealer shall apply for title through the electronic on-line title system and submit the documents to the department.

     This section does not relieve a dealer from the provisions of § 32-3-7.
     Section 12. That chapter 32-7A be amended by adding thereto a NEW SECTION to read as follows:

     If a person trades in a mobile or manufactured home to a dealer or enters into a consignment agreement with a dealer whereby the dealer will sell the mobile or manufactured home and the mobile or manufactured home has a lien noted on the title, the dealer and person may agree that the dealer shall satisfy the lien amount by paying the lienholder who is noted on the title.

     Section 13. That chapter 32-7A be amended by adding thereto a NEW SECTION to read as follows:

     If a dealer enters into an agreement pursuant to section 8 of this Act, the dealer shall satisfy the lien within ten business days after the receipt of funds. The dealer may not offer the snowmobile for sale until payment has been tendered to the lienholder, except on a consigned snowmobile, whereby the dealer shall comply with the terms of the consignment agreement.

     Section 14. That § 32-7B-9 be amended to read as follows:

     32-7B-9.   Any dealer licensed under the provisions of this chapter, 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 , including the following:

             (1)    A record of the purchase, sale, or exchange, of any vehicle;

             (2)    A description of each vehicle purchased, sold, or exchanged, together with the name and address of the owner or other person from whom the vehicle was purchased or received and to whom it was sold or delivered. The description shall include the vehicle identification number, manufacturer's make and model, and odometer mileage; and

             (3)    A certificate of title from the previous owner of any vehicle not purchased from the manufacturer, from the time the vehicle is delivered to the dealer until it has been disposed of by the dealer.

     The books and records and other papers and documents shall, at all times during business hours of the day, be subject to inspection by the secretary of revenue and regulation or the secretary's duly authorized agents and employees .

     Section 15. That chapter 32-7B be amended by adding thereto a NEW SECTION to read as follows:

     A dealer may offer for sale, sell, or exchange a boat without a certificate of title if all of the following applicable provisions are met:

             (1)    The dealer has a record of purchase, sale or exchange of a boat to include the satisfaction of any outstanding liens or encumbrances and a secured power of attorney;

             (2)    If the boat is encumbered by a lien noted on the title, the dealer must show that payment has been tendered to the lienholder for the amount of the lien, except a lien that is the result of dealer inventory financing; or

             (3)    If the dealer is required by law to obtain title prior to offering the boat for sale; the dealer shall apply for title through the electronic on-line title system and submit the documents to the department.

     This section does not relieve a dealer from the provisions of § 32-3-7.
     Section 16. That chapter 32-7B be amended by adding thereto a NEW SECTION to read as follows:

     If a person trades in a boat to a dealer or enters into a consignment agreement with a dealer whereby the dealer will sell the boat and the boat has a lien noted on the title, the dealer and person may agree that the dealer shall satisfy the lien amount by paying the lienholder who is noted on the title.
     Section 17. That chapter 32-7B be amended by adding thereto a NEW SECTION to read as follows:

     If a dealer enters into an agreement pursuant to section 16 of this Act, the dealer shall satisfy the lien within ten business days after the receipt of funds. The dealer may not offer the boat for sale until payment has been tendered to the lienholder, except on a consigned boat, whereby the dealer shall comply with the terms of the consignment agreement."

Moved by:    Krebs
Second by:    Lange
Action:    Was not acted on.

The Chair deferred HB 1111 until Wednesday, February 2, 2005.

         HB 1119: revise certain provisions related to the sale of out-of-state motor vehicles.

Presented by:    Representative Roger Hunt
Proponents:    Jerry Vogeler, SD Ind. Auto Dealers Assn.
        Roger Tellinghuisen, SD Auto Dealers

MOTION:     AMEND HB 1119

1119ta
     On the printed bill, delete everything after the enacting clause and insert:

"      Section 1. That § 32-5-27 be amended to read as follows:

     32-5-27.   Any dealer, person, firm, or corporation, which brings into the state or purchases any used or secondhand out-of-state motor vehicles not currently licensed in this state for the purpose of sale or resale, except as a trade-in on a new motor vehicle or another used motor vehicle or , a used motor vehicle purchased by a dealer and sold to another dealer, vehicles receiving a junking certificate or , motor vehicles with a gross vehicle weight rating of over twenty-six thousand pounds , or a semitrailer with a manufacturer's shipping weight of nine thousand pounds or more, shall, within thirty days from the date of purchase or entry of the motor vehicle into the limits of this state, or from the date of purchase at a dealer's car auction agency, title the motor vehicle pursuant to chapter 32-3 and pay the excise tax pursuant to chapter 32-5B but is not required to license the vehicle. Any licensed motor vehicle dealer titling a motor vehicle pursuant to this section is exempt from paying the excise tax imposed by §   32-5B-1 on such vehicle. A vehicle titled by a licensed motor vehicle dealer pursuant to this section shall be issued a title indicating that no excise tax has been paid. Upon transfer of the title to a subsequent purchaser of the motor vehicle, the excise tax shall be paid by the purchaser or by any other person as defined by subdivision 2-14-2(18), on behalf of and as the agent for the purchaser. A violation of this section is a Class 2 misdemeanor.

     The provisions of this section do not apply to any motor vehicle titled and licensed in another jurisdiction which is sold in this state through a dealer's car auction agency licensed under the provisions of chapter 32-6B.

     Section 2. That § 32-3-51.8 be amended to read as follows:

     32-3-51.8.   Upon the sale, transfer, or trade-in of a motor vehicle, or if licensing a motor vehicle in South Dakota which is titled in another state or jurisdiction, the seller, transferor, trader, or person wishing to license in South Dakota the motor vehicle which is titled in another state or jurisdiction Upon the sale, transfer, trade-in, or titling of a motor vehicle, the seller, transferor, trader, or person wishing to title in South Dakota shall submit an accurately completed damage disclosure statement when applying for a certificate of title pursuant to § 32-3-18 . 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. Except as otherwise provided by this section, 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 or dealer is liable to a subsequent owner of a vehicle because a prior owner of the vehicle failed to disclose that the vehicle had previously been damaged and repaired. This section does not apply to any motor vehicles vehicle more than six model years old or with a gross vehicle weight rating of more than sixteen thousand pounds and does not apply if a rebuilt title or junking certificate is sought.

     This section does apply applies to all other motor vehicles, but only damage in excess of five thousand dollars shall be disclosed in the statement. If the motor vehicle has incurred damages more than once, only those damages which that occurred at one time would be are considered in determining whether the damages exceeded five thousand dollars.

     Section 3. That § 32-5B-13 be repealed:

     32-5B-13.   Following a retail sale of a motor vehicle licensed pursuant to § 32-5-27 to an out-of-state resident who has not purchased the vehicle for the purpose of resale, the seller of the vehicle upon application to the county treasurer shall receive a refund of the excise tax imposed by § 32-5B-1. The seller shall present the county treasurer with a copy of the retail sale order, a receipt for the payment of the excise tax, motor vehicle title, and an affidavit stating the documents are valid before the county treasurer makes such refund. "


Moved by:    Koistinen
Second by:    Willadsen
Action:    Prevailed by voice vote.

Gavel was turned over to Vice-Chair Fryslie.


MOTION:     DO PASS HB 1119 AS AMENDED

Moved by:    Koistinen
Second by:    McLaughlin
Action:    Prevailed by roll call vote.(11-0-2-0)

Voting Yes:    Hanks, Koistinen, Krebs, Lange, McLaughlin, Street, Turbiville, Valandra, Vehle, Willadsen, Fryslie

Excused:    Hackl, Pederson (Gordon)

         HB 1151: revise certain provisions regarding the right-of-way at certain intersections.

Presented by:    Representative Roger Hunt

Gavel was returned to Chair Pederson.

The Chair deferred HB 1151 until Wednesday, February 2, 2005.

MOTION:     ADJOURN

Moved by:    Turbiville
Second by:    Vehle
Action:    Prevailed by voice vote.

Lois Henry

____________________________

Committee Secretary
Gordon R. Pederson, Chair

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