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, as defined in § 37-5-12.1 or subdivision 37-5-13(1), whose business or property is
injured by a violation of chapter 37-5 may bring a civil action 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, 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 from manufacturer authorized facilities in this
state, or who is engaged wholly or in part in the business of selling any such merchandise from
manufacturer authorized facilities in this state. The term does not include any person with total
annual gross sales in this state and elsewhere of one hundred million dollars or more of industrial
and construction equipment, attachments, 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 from manufacturer
authorized facilities in this state. The term, dealer, does not include a single-line dealer
or any person with total annual gross sales in this state and elsewhere of one hundred
million dollars or more of industrial and construction equipment, attachments,
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(3);
(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 of industrial and
construction equipment under agreements with that manufacturer and has a total annual
average sales of industrial and construction equipment 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.
An Act to revise certain provisions with regard to the rights of industrial and construction equipment
dealers.
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I certify that the attached Act
originated in the
HOUSE as Bill No. 1227
____________________________
Chief Clerk
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____________________________
Speaker of the House
____________________________
Chief Clerk
____________________________
President of the Senate
____________________________
Secretary of the Senate
House Bill No. 1227
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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