State of South Dakota
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EIGHTY-SEVENTH SESSION
LEGISLATIVE ASSEMBLY, 2012
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913T0562
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HOUSE BILL NO. 1227
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Introduced by: Representatives Abdallah, Blake, Bolin, Conzet, Cronin, Deelstra, Dennert,
Gibson, Hansen (Jon), Hoffman, Hunhoff (Bernie), Lucas, Rausch, Scott,
Turbiville, White, and Wick and Senators Brown, Bradford, Krebs,
Lederman, Maher, Nelson (Tom), Novstrup (Al), Olson (Russell), Peters,
Rave, and Schlekeway
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FOR AN ACT ENTITLED, An Act to revise certain provisions with regard to the rights of
industrial and construction equipment dealers.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That chapter 37-5 be amended by adding thereto a NEW SECTION to read as
follows:
Any dealer whose business or property is injured by a violation of chapter 37-5 may bring
a civil action, without having to prove irreparable injury, to recover all court costs and
reasonable attorney's fees in addition to all other remedies of law.
Section 2. That § 37-5-11 be amended to read as follows:
37-5-11. Any provision in any agreement evidenced by a franchise agreement, sales
agreement, security agreement, or other form of agreement or arrangement of like effect
between any wholesaler, manufacturer,
or distributor of farm machinery or implements
, or
distributor of industrial or construction equipment and a retail dealer restricting jurisdiction or
venue to a forum outside this state or requiring the application of the laws of another state to
disputes arising under the agreement is void as a matter of public policy.
Section 3. That § 37-5-12.1 be amended to read as follows:
37-5-12.1. For the purposes of §§ 37-5-1 to 37-5-12, inclusive, the term, dealer, means any
person, or the person's successor who, for commission or with intent to make a profit or gain,
sells, exchanges, rents, leases with the option to purchase, or offers or attempts to negotiate a
sale or exchange any merchandise as defined by this chapter, or who is engaged wholly or in
part in the business of selling any such merchandise primarily in this state. The term does not
include any person with annual gross sales of one hundred million dollars or more of industrial
and construction equipment, replacement parts, and service related to the equipment, from any
one manufacturer or supplier of such equipment.
Section 4. That § 37-5-13 be amended to read as follows:
37-5-13. Terms used in §§ 37-5-13 to 37-5-15, inclusive, mean:
(1) "Dealer," any person who receives machinery from a manufacturer under a dealership
contract and who offers and sells the machinery to the general public primarily in this
state. The term, dealer, does not include a single-line dealer or any person with
annual gross sales of one hundred million dollars or more of industrial and
construction equipment, replacement parts, and service related to the equipment,
from any one manufacturer or supplier of such equipment;
(2) "Dealership contract," a written agreement or contract between a manufacturer and
dealer which fixes the legal rights and liabilities of the parties to such agreement or
contract;
(3) "Machinery," any farm vehicle as defined by § 32-3-2.4 or any off-road vehicle as
defined by subdivision 32-3-1(15)
or merchandise as defined in subdivision 37-5-
12.2(5);
(4) "Manufacturer," any person engaged in the manufacturing or distribution of
machinery including any person who acts for the manufacturer;
(5) "Single-line dealer," any person that has purchased seventy-five percent or more of
the dealer's total new product inventory from a single manufacturer under agreements
with that manufacturer and has a total annual average sales volume for the three
previous years with that single manufacturer in excess of fifty million dollars for the
territory for which that dealer is responsible.