An Act to create the used vehicle dealer education program and revise provisions regarding used vehicle licensure requirements.

Be it enacted by the Legislature of the State of South Dakota:

Section 1. That a NEW SECTION be added:

32-6B-90. Used vehicle dealer--License--Education requirement.

An applicant applying for a used vehicle dealer license shall complete a minimum of eight hours of pre-licensing education program courses prior to applying for a license from the department, pursuant to the provisions of this Act.

Section 2. That a NEW SECTION be added:

32-6B-91. Used vehicle dealer--License renewal--Continuing education requirement.

A licensed used vehicle dealer seeking renewal shall complete a minimum of four hours of continuing education program courses each year, pursuant to the provisions of this Act, prior to applying for license renewal. However, an applicant for renewal of a used vehicle dealer license who has met the pre-licensing education requirement under the provisions of this Act within the preceding twelve months is exempt from the continuing education requirement for license renewal.

Section 3. That a NEW SECTION be added:

32-6B-93. Used vehicle dealer--Education requirement--Curriculum.

The South Dakota Independent Automobile Dealers Association, in consultation with the department, shall develop the pre-licensing and continuing education course curricula for the used vehicle dealer education program, that shall include examination of federal and state laws applicable to the motor vehicle industry and federal and state regulations pertaining to used vehicle dealers. The education program courses shall be provided by the South Dakota Independent Automobile Dealers Association in conjunction with the department and may be held in person or taken online.

Section 4. That a NEW SECTION be added:

32-6B-94. Used vehicle dealer--Licensure--Display required.

The department shall issue a certificate to each applicant who successfully completes the pre-licensing education program or continuing education program under this section. The current certificate of completion, or a copy of the certificate, shall be posted conspicuously in the principal of the licensee.

Section 5. That a NEW SECTION be added:

32-6B-95. Used vehicle dealer--License exemptions.

The provisions of §§ 32-6B-90 to 32-6B-94, inclusive, do not apply to:

(1) Motor vehicle rental companies having a national franchise;

(2) National motor vehicle auction companies;

(3) Used car dealerships owned by a franchise motor vehicle dealer; or

(4) Banks, credit unions, and savings and loan associations.

Section 6. That § 32-6B-6 be AMENDED.

32-6B-6. Vehicle sales--License requirement--License application.

Any person selling vehicles pursuant to the requirements of this chapter shall file with the department, upon forms provided by the department, an application including the following:

(1) The name and address of the applicant;

(2) The name of the firm or copartnership, with the names and addresses of all members, if the applicant is a firm or copartnership;

(3) The name of the corporation or limited liability company, with the names and addresses of the principal officers or members, if the applicant is a corporation or limited liability company;

(4) The exact location of the place of business and, if owned by the applicant, when acquired. If the place of business is leased, a true copy of the lease shall accompany the application;

(5) A certification that the location provides an adequately equipped office and is not the residence of the applicant;

(6) A certification that the location affords sufficient space to adequately store all vehicles offered for sale;

(7) A certification that the location is the place where the applicant keeps and maintains books, records, and files necessary to conduct business, which that shall be available at all reasonable hours to inspection by the department;

(8) A consent to allow periodic inspections of the dealership by the department;

(9) A certification that the business of a vehicle dealer is the principal business conducted at the location;

(10) A description of the principal place of business and any supplemental lots;

(11) A statement, if applicable, that the applicant is either franchised by a manufacturer of vehicles, in which case the name of each vehicle that the applicant is franchised to sell shall be included or is a used vehicle dealer;

(12) A list of financial references;

(13) A certification that neither the applicant, nor any other partner, member, officer, or financial supporter, has been convicted of a crime involving vehicle theft or fraud in the last five years;

(14) Such other information as the department may require;

(15) Verification as to the accuracy of the information provided by the applicant;

(16) A certificate that the applicant has obtained a public liability insurance policy of not less than three hundred thousand dollars; and

(17) For any emergency vehicle dealer whose principal place of business is not located in South Dakota, proof the dealer is a licensed dealer in another state and has no outstanding dealer violations; and

(18) A certification that the applicant has completed the education requirements to be licensed as a used vehicle dealer pursuant to the provisions of §§ 32-6B-90 to 32-6B-95, inclusive.