ENTITLED, An Act to define a final stage manufacturer dealer and to provide for licensing of final
stage manufacturer dealers.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That § 32-6B-1 be amended to read as follows:
32-6B-1. Terms as used in this chapter mean:
(1) "Administrator," the administrator of the dealer licensing and inspection program of the
Department of Revenue;
(2) "Auctioneer," a person who presides over a public auction where following an initial
starting price, bids are taken from two or more people until a final bid or price is
established for a motor vehicle;
(2A) "Authorized emergency vehicle," any vehicle of a fire department and any ambulance and
emergency vehicle of a municipal department or public service corporation that are
designated or authorized by the Department of Public Safety;
(3) "Broker," a person who, for a fee, commission, or other valuable consideration, arranges
or offers to arrange a transaction involving the sale or exchange of vehicles, and who is
not:
(a) A dealer or a bona fide agent or employee of a dealer;
(b) A representative or a bona fide agent or employee of a manufacturer; or
(c) At any point in the transaction the bona fide owner of the vehicle involved in the
transactions;
(4) "Community," the franchisee's area of responsibility as stipulated in the franchise. A
community has a minimum radius of ten miles around an existing dealership;
(5) "Converter," a person who modifies or installs on previously assembled chassis special
bodies or equipment which, when completed, form an integral part of the vehicle and
which constitutes a major manufacturing alteration and who may issue a supplemental or
secondary statement of origin;
(6) "Demonstration," the noncommercial use of a dealer owned vehicle by any employee of
the dealership for any purpose in the ordinary course of business relating to the sale of the
vehicle within the trade or market area of the dealership or demonstration by any
prospective buyer for a period of three days. The term includes vehicles donated by a
dealership to a community or organization and used for a one-day parade or event;
(6A) "Department," the Department of Revenue;
(6B) "Emergency vehicle dealer," any person who converts or manufacturers authorized
emergency vehicles and who, for commission or with intent to make a profit or gain, sells,
exchanges, rents with option to purchase, offers, or attempts to negotiate a sale or
exchange of new, or new and used authorized emergency vehicles, or who is engaged
wholly or in part in the business of selling new, or new and used authorized emergency
vehicles;
(7) "Franchise," a written or oral agreement or contract between a franchisor and franchisee
which fixes the legal rights and liabilities of the parties to such agreement or contract;
(8) "Franchisee," person who receives vehicles from a franchisor under a franchise and who
offers and sells the vehicles to the general public;
(9) "Franchisor," any person engaged in the manufacturing or distribution of vehicles
including any person who acts for the franchisor;
(9A) "Good faith," honesty in fact and the observance of reasonable, nondiscriminatory
commercial standards of fair dealing in the trade, as defined and interpreted in the
Uniform Commercial Code as amended to January 1, 2010;
(10) "In-transit," the noncommercial use of a dealer owned vehicle by any employee of the
dealership for travel to and from any service facility, detail shop, repair shop, gas station,
car wash, dealer auction, another lot owned by the dealer, a supplemental lot, temporary
special events lot, temporary supplemental lot, or any other location to facilitate a dealer
trade;
(10A) "Manufacturer," a person who manufactures or assembles vehicles, including motor
homes, and who issues the original or first manufacturer's statement of origin. The term,
manufacturer, includes a central or principal sales corporation through which it distributes
its products to franchised dealers;
(11) "Motor home," a motor vehicle designed as an integral unit to be used as a conveyance
upon the public highways and for use as a temporary or recreational dwelling and having
at least four of the following permanently installed systems:
(a) Cooking facilities;
(b) Ice box or mechanical refrigerator;
(c) Potable water supply including plumbing and a sink with faucet either self-contained or with connections for an external source, or both;
(d) Self-contained toilet connected to a plumbing system with connection for external
water disposal;
(e) Heating or air conditioning system, or both, separate from the vehicle engine or the
vehicle electrical system;
(f) A one hundred ten--one hundred fifteen volt alternating current electrical system
separate from the vehicle engine electrical system either with its own power supply
or with a connection for an external source, or both, or a liquified petroleum system
and supply;
(12) "Public auction," a business that is open to the public where South Dakota titled motor
vehicles are consigned, displayed, and auctioned to the highest bidder by an auctioneer;
(12A) "Recreational park trailer," a vehicle that is primarily designed to provide temporary
living quarters for recreational, camping, or seasonal use and which:
(a) Is built on a single chassis mounted on wheels;
(b) Has a gross trailer area not exceeding four hundred square feet in the setup mode;
(c) Is certified by the manufacturer as complying with American National Standards
Institute Standard No. A119.5 in effect on January 1, 2008; and
(d) Has at least a seventeen digit identification number and the manufacturer has
designated the vehicle as a recreational park model on the manufacturer statement
of origin;
(13) "Sell-it-yourself lot," any space provided to a person for a fee to display that person's boat
or vehicle for sale;
(14) "Semitrailer," any vehicle of the trailer type, equipped with a kingpin assembly, designed
and used in conjunction with a fifth wheel connecting device on a motor vehicle and
constructed so that some part of its weight and that of its load rests upon or is carried by
another vehicle;
(15) "Supplemental lot," a physically separate location owned and maintained by a licensed
dealer within the same county as the principal place of business;
(16) "Temporary special events lot," a location other than the principal place of business,
supplemental lot, or temporary supplemental lot where a licensed trailer dealer, a licensed
used car dealer selling only truck tractors, travel trailers, or motor homes, or any
combination thereof, or a licensed vehicle dealer selling only truck tractors, travel trailers,
or motor homes, or any combination thereof, may conduct business for a period of time
not to exceed ten consecutive days for a specific purpose such as fairs, auctions, shopping
center sales, or tent sales. A temporary special events lot shall meet all local zoning and
building codes for the type of business being conducted;
(17) "Temporary supplemental lot," a location other than the principal place of business or
supplemental lot but within the same county as the principal place of business, or within
the corporate limits of a municipality which overlaps boundaries of a county, or in an
adjoining county, if the adjoining county has no licensed vehicle dealer selling
automobiles, pick-ups, or passenger vans and the temporary supplemental lot is no more
than ten miles from the principal place of business, where a licensed vehicle dealer or a
licensed used vehicle dealer may conduct business for a period of time not to exceed ten
consecutive days for a specific purpose such as fairs, auto shows, auctions, shopping
center promotions, or tent sales. A temporary supplemental lot shall meet all local zoning
and building codes for the type of business being conducted. If a licensed vehicle dealer
establishes a temporary supplemental lot in a county with a licensed used vehicle dealer,
a licensed used vehicle dealer may establish a temporary supplemental lot in a county with
a licensed vehicle dealer. A licensed vehicle dealer may establish, for manufacturer
sponsored events, a temporary supplemental lot in an adjoining county that has no like
franchised licensed dealer;
(18) "Trailer," any vehicle without motive power designed to be coupled to or drawn by a
motor vehicle and constructed so that no part of its weight or that of its load rests upon
the towing vehicle;
(19) "Trailer dealer," any person who, for commission or with intent to make a profit or gain,
sells, exchanges, rents with option to purchase, offers or attempts to negotiate a sale or
exchange of new or used trailers, semitrailers or travel trailers or who is engaged in the
business of selling new or used trailers, semitrailers or travel trailers whether or not such
vehicles are owned by such person;
(20) "Travel trailer," any trailer or semitrailer which provides as its primary purpose adequate,
comfortable, temporary living quarters while on pleasure excursions or while touring for
business, professional, educational or recreational purposes;
(21) "Used vehicle dealer," any person who, for commission or with intent to make a profit or
gain sells, exchanges, rents with option to purchase, offers or attempts to negotiate a sale
or exchange of used vehicles or who is engaged in the business of selling used vehicles;
or any person who sells five or more used vehicles or offers for sale five or more used
vehicles at the same address or telephone number in any one calendar year;
(22) "Vehicle," any new or used automobile, truck, truck tractor, motorcycle, motor home,
trailer, semitrailer or travel trailer of the type and kind required to be titled and registered
under chapters 32-3 and 32-5, except manufactured homes, mobile homes, mopeds or
snowmobiles;
(23) "Vehicle dealer," any person who, for commission or with intent to make a profit or gain,
sells, exchanges, rents with option to purchase, offers or attempts to negotiate a sale or
exchange of new, or new and used vehicles, or who is engaged wholly or in part in the
business of selling new, or new and used vehicles;
(24) "Final stage manufacturer dealer," any person who assembles or installs on a previously
assembled new motor vehicle chassis cab any special body or equipment that forms an
integral part of the motor vehicle, constitutes a major manufacturing alteration, and
completes the vehicle;
(25) "Chassis cab," any incomplete motor vehicle, with a completed occupant compartment,
that requires only the addition of cargo carrying, work performing, or load bearing
components to perform the vehicle's intended function.
Section 2. That § 32-6B-12 be amended to read as follows:
32-6B-12. Any dealer's license issued under this chapter shall be of the following classes:
(1) "Vehicle dealer's license," a license that permits the licensee to engage in the business of
selling or exchanging new, or new and used, vehicles;
(2) "Used vehicle dealer's license," a license that permits the licensee to engage in the
business of selling or exchanging used vehicles only;
(3) "Motorcycle dealer's license," a license that permits the licensee to engage in the business
of selling or exchanging new or used motorcycles only;
(4) "Trailer dealer's license," a license that permits the licensee to engage in the business of
selling or exchanging trailers, semitrailers, recreational park trailers, or travel trailers only,
new or used;
(5) "Emergency vehicle dealer's license," a license that permits the licensee to engage in the
business of selling or exchanging new or used authorized emergency vehicles; or
(6) "Final stage manufacturer dealer's license," a license that permits the licensee to engage
in the business of selling or exchanging a previously assembled new motor vehicle chassis
cab that has been completed by the final stage manufacturer and to engage in the business
of selling or exchanging used motor vehicles.
A license certificate identifying the class of dealership and containing a distinguishing
identification number of licensee shall be issued by the department if the application is in compliance
with the provisions of this chapter.
Section 3. That § 32-6B-13 be amended to read as follows:
32-6B-13. Upon making initial application for a dealer's license, the applicant shall pay a fee to
the department. The initial fee required for each type of dealer's license is as follows:
(1) Vehicle dealer's license--$300;
(2) Used vehicle dealer's license--$300;
(3) Motorcycle dealer's license--$250;
(4) Trailer dealer's license--$125;
(5) Emergency vehicle dealer's license--$300; or
(6) Final stage manufacturer dealer's license--$300.
All money collected pursuant to this section shall be deposited in the state motor vehicle fund.
Section 4. That § 32-6B-80 be amended to read as follows:
32-6B-80. Except as otherwise provided by §§ 32-6B-79 to 32-6B-83, inclusive, no manufacturer
or franchisor may directly or indirectly:
(1) Own an interest in a vehicle dealer or dealership;
(2) Operate or control a vehicle dealer or dealership; or
(3) Act in the capacity of a vehicle dealer.
This section does not apply to a final stage manufacturer dealer.
An Act to define a final stage manufacturer dealer and to provide for licensing of final stage
manufacturer dealers.
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I certify that the attached Act
originated in the
SENATE as Bill No. 16
____________________________
Secretary of the Senate
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____________________________
President of the Senate
____________________________
Secretary of the Senate
____________________________
Speaker of the House
____________________________
Chief Clerk
Senate Bill No. 16
File No. ____
Chapter No. ______
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Received at this Executive Office
this _____ day of _____________ ,
20____ at ____________ M.
By _________________________
for the Governor
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The attached Act is hereby
approved this ________ day of
______________ , A.D., 20___
____________________________
Governor
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STATE OF SOUTH DAKOTA,
ss.
Office of the Secretary of State
Filed ____________ , 20___
at _________ o'clock __ M.
____________________________
Secretary of State
By _________________________
Asst. Secretary of State
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