CHAPTER 209

(HB 1196)

Auction agencies required to disclose damage statements
on motor vehicles.

         ENTITLED, An Act to  require certain auction agencies and dealers to disclose damage statements or damage notations listed on the title.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

     Section  1.  That chapter 32-6B be amended by adding thereto a NEW SECTION to read as follows:

     If any motor vehicle has a title that has been marked by this state or another state or jurisdiction denoting any brand or damage and that motor vehicle is offered for sale by a dealer's car auction agency, the auction agency shall announce at the time of the sale that such brand or damage notation is listed on the title. If the auction agency fails to comply with this section, the purchaser of the motor vehicle may return the motor vehicle to the auction agency within ten days after receiving the title, and the auction agency shall make a full refund to the purchaser.

     Section  2.  That § 32-3-51.18 be amended to read as follows:

     32-3-51.18.   Any vehicle that is required to be titled pursuant to this chapter and is sold or offered for sale by a vehicle dealer or a used vehicle dealer as defined in §   32-6B-1 shall display a sticker, decal, or notice that discloses damage to the vehicle in accordance with the provisions of § §   32-3-51.7, 32-3-51.8, 32-3-51.14, and 32-3-51.15, as determined by the department in rules promulgated pursuant to chapter 1-26. The rules shall also prescribe the format and construction of the sticker, decal, or notice. If the dealer fails to comply with this section, the purchaser of the motor vehicle may return the motor vehicle to the dealer within ten days after receiving the title, and the dealer shall make a full refund to the purchaser.

     Signed February 25, 2004.

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