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ARTICLE 61:24
VEHICLE DEALER LICENSING
Chapter
61:24:01 Definitions.
61:24:02 License procedures.
61:24:03 Conduct of business.
61:24:04 Permits.
61:24:05 License revocation, Repealed.
61:24:06 Dealer bond pool.
61:24:07 Incentive advertising.
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CHAPTER 61:24:01
DEFINITIONS
Section
61:24:01:01 Repealed.
61:24:01:02 Repealed.
61:24:01:03 Temporary closing defined, Repealed.
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61:24:01:03. Temporary closing defined. Temporary closing means that the principal
place of business is closed more than ten continuous days for any purpose Repealed.
Source: 16 SDR 111, effective January 7, 1990; 24 SDR 180, effective July 1, 1998.
General Authority: SDCL 32-6B-60, 32-7B-20.
Law Implemented: SDCL 32-6B-60, 32-7B-21.
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CHAPTER 61:24:03
CONDUCT OF BUSINESS
Section
61:24:03:01 Maintenance of principal place of business.
61:24:03:02 Notice of change in principal place of business.
61:24:03:03 Record keeping requirements.
61:24:03:04 Inspection after receipt of information questioning compliance.
61:24:03:05 Contents of consignment contract.
61:24:03:06 Records to be made available prior to consignment sale.
61:24:03:07 Records to be maintained for five years.
61:24:03:08 Dealer lists, Repealed.
61:24:03:09 Dealer insurance requirement.
61:24:03:10 Dealer surety bond.
61:24:03:11 Access fee.
61:24:03:12 Exemption from on-line requirements, Repealed.
61:24:03:13 Billing requirements.
61:24:03:14 Filing requirement.
61:24:03:15 Definitions.
61:24:03:16 Temporary closure.
61:24:03:17 Permanent closure requirements.
61:24:03:18 Payment upon permanent closure.
61:24:03:19 Liquidation upon permanent closure.
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61:24:03:01. Maintenance of principal place of business. A dealer licensed by the department
shall at all times maintain a principal place of business as defined in SDCL 32-6B-2, 32-7A-2, and
32-7B-21. To be considered to maintain a principal place of business, the licensed dealer The
principal place of business must be open for business on a continuing basis with normal business
hours posted in a conspicuous place in view of the public. The dealer shall list the telephone
number of the business in the white pages, the yellow pages, or other similar printed or electronic
published telephone directory.
A telephone number in the name of the business must be listed in either the white or yellow
pages. A telephone answering machine may be used to increase accessibility.
The dealer must shall show proof of compliance provide the department with proof, by
means of photographs, letters, and affidavits, that the principal place of business complies with all
state and local zoning, building codes, and land use ordinances by means of photographs, letters,
and affidavits.
The principal place of business must have separate office space for conducting business if
more than one business occupies the structure.
A business temporarily closed must conspicuously display notification in public view at the
established place of business. Written notice must be sent to the department 30 days in advance of
temporary closing. An address or telephone number where the owner may be contacted must be
included in the notice.
Source: 16 SDR 111, effective January 7, 1990; 24 SDR 180, effective July 1, 1998; 35
SDR 48, effective September 8, 2008.
General Authority: SDCL 32-6B-60, 32-6C-17, 32-7A-14.1, 32-7B-20.
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Law Implemented: SDCL 32-6B-2, 32-6B-60, 32-6C-3, 32-7A-2, 32-7B-21, 32-7B-22.
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61:24:03:02. Notice of change in principal place of business. A dealer licensee desiring
to move the principal place of business to a new location must notify send written notice to the
department in writing 30 thirty days in advance of the proposed move. The new principal place of
business shall be inspected by the department pursuant to § 61:24:02:02.
Source: 16 SDR 111, effective January 7, 1990; 24 SDR 180, effective July 1, 1998.
General Authority: SDCL 32-6B-60, 32-6C-17, 32-7A-14.1, 32-7B-20.
Law Implemented: SDCL 32-6B-2, 32-6B-18, 32-6C-3, 32-7A-2, 32-7B-22.
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61:24:03:03. Record keeping requirements. A licensed dealer must keep the physical or
electronic records specified in SDCL chapters 32-6B, 32-6C, 32-7A, and 32-7B in the office of
the dealer's principal place of business, unless a contract is entered into between a titling service
and a licensed dealer. The contract must state the terms of the agreement and must include: (1) The
exact location of where the titling service will keep the records; (2) Define a reasonable time
period, not to exceed 4 four days, that the records will be kept at the title service; (3) Require that
all title records be available to the state while the records are held at the title service; and
(4) Identify the responsible party for the lost title documents between the title service and the
dealer.
Any record subject to inspection, pursuant to law must be maintained by the dealer for five
years. The dealer must maintain physical records specified in SDCL chapters 32-6B, 32-6C, 32-
7A, and 32-7B for the past twelve months at the dealer’s principal place of business.
Source: 16 SDR 111, effective January 7, 1990; 24 SDR 180, effective July 1, 1998; 35
SDR 48, effective September 8, 2008.
General Authority: SDCL 32-6B-60, 32-6C-17, 32-7A-14.1, 32-7B-20.
Law Implemented: SDCL 32-6B-20, 32-6C-6, 32-7A,12, 32-7B-9, 32-7B-14, 32-7B-17.
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61:24:03:04. Inspection after receipt of information questioning compliance. In
addition to routine periodic inspections, upon receipt of information from a law enforcement
officer, a person who has transacted business with the licensed dealer, or another reliable source
that the dealer may be in violation of a law or rule, the department may conduct an inspection for
the purpose of ascertaining if the licensed dealer is in violation. If the department determines that
a dealer is in violation, the department may proceed under law.
Source: 16 SDR 111, effective January 7, 1990; 24 SDR 180, effective July 1, 1998; 35
SDR 48, effective September 8, 2008
General Authority: SDCL 32-6B-60, 32-6C-17, 32-7A-14.1, 32-7B-20.
Law Implemented: SDCL 32-6B-39, 32-6B-41, 32-6C-12, 32-6C-14, 32-7A-4.6, 32-7A-
19, 32-7B-14, 32-07B-15, 32-7B-17.
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61:24:03:05. Contents of consignment contract. The contract required by SDCL chapters
32-6B, 32-6C, and 32-7B, and a contract for assignment sale under SDCL chapter 32-7A, must
contain, at a minimum, the following information:
(1) The name and address of the consignor (the owner);
(2) The name and address of the consignee (the dealer or auctioneer);
(3) The title number, the year, the make, and the serial number or hull identification number
of the vehicle, mobile or manufactured home, or boat;
(4) If applicable, the completed odometer disclosure;
(5) The agreed upon price or range;
(6) The agreed-upon amount that the owner is to pay the dealer or auctioneer;
(7) The length of time the vehicle, mobile or manufactured home, or boat will be with the
dealer or auctioneer;
(8) Disclosure by the dealer or auctioneer that the sale is a consignment sale;
(9) The signature of the owner and the dealer or auctioneer; and
(10) If applicable, the lienholder's information.
Source: 24 SDR 31, effective September 17, 1997; 24 SDR 180, effective July 1, 1998; 35
SDR 48, effective September 8, 2008; SL 2015, ch 157, § 22, effective July 1, 2015.
General Authority: SDCL 32-6B-60, 32-6C-17, 32-7A-14.1, 32-7B-20.
Law Implemented: SDCL 32-6B-3, 32-6B-20, 32-6B-37, 32-6C-5.1, 32-7A-12, 32-7A-16,
32-7B-26.
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61:24:03:06. Records to be made available prior to consignment sale. Prior to a
consignment sale, the following physical or electronic documents must be available at the
dealership or auction for inspection by the department at all times after the vehicle, snowmobile,
manufactured home, or boat is delivered to the consignee for sale:
(1) The South Dakota title in the name of the consignor;
(2) A completed and signed consignment sales contract containing the information required
in § 61:24:03:05;
(3) If applicable and not included in the contract, the vehicle's odometer reading certified
by the owner; and
(4) A seller's permit.
A Federal Trade Commission (FTC) Buyer Guide must be displayed in a vehicle being
offered for sale on consignment on the dealer lot. Physical documents for the past twelve months
must be maintained at the dealer’s principal place of business.
Source: 24 SDR 31, effective September 17, 1997; 24 SDR 180, effective July 1, 1998; 35
SDR 48, effective September 8, 2008; SL 2015, ch 157, § 23, effective July 1, 2015.
General Authority: SDCL 32-6B-60, 32-6C-17, 32-7A-14.1, 32-7B-20.
Law Implemented: SDCL 32-6B-3.2, 32-6B-20, 32-6B-37, 32-6C-6, 32-7A-12, 32-7A-12,
32-7A-16, 32-7B-26, 32-7B-28.
Note: A copy of the FTC Buyer Guide may be obtained from the Federal Trade
Commission at: https://www.ftc.gov/system/files/documents/plain-
language/cfr_buyers_guides_english.pdf, 1961 Stout Street, Suite 1523, Denver, CO 80294.
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61:24:03:07. Records to be maintained for five years. A dealer or auctioneer Dealers and
auctioneers must maintain keep physical or electronic records, and documents, and including
contracts for consignment sales maintained and available for inspection by the department for five
years following the sale. Dealers and auctioneers must keep and maintain physical records for the
past twelve months at the dealer’s or auctioneer’s principal place of business.
Source: 24 SDR 31, effective September 17, 1997; 24 SDR 180, effective July 1, 1998.
General Authority: SDCL 32-6B-60, 32-6C-17, 32-7A-14.1, 32-7B-20.
Law Implemented: SDCL 32-6B-20, 32-6B-37, 32-6C-6, 32-7A-12, 32-7B-9.
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61:24:03:09. Dealer insurance requirement. Upon application for an initial dealer license,
the dealer shall furnish a copy of the liability insurance policy before issuance of the license. The
dealer shall certify that the insurance shall be continued and maintained for the entire license
period.
Upon renewal of a dealer license, the dealer shall verify the possession of a liability
insurance policy at time of renewal. The dealer shall verify on the renewal license notice that an
insurance policy is in effect and that the insurance shall be continued and maintained for the entire
license period.
The liability policy must be made available for inspection at the dealer's place of business at
any time upon request by an inspector or enforcement officer.
Source: 24 SDR 180, effective July 1, 1998.
General Authority: SDCL 32-6B-6(16), 32-6B-62 32-6B-60.
Law Implemented: SDCL 32-6B-6(16), 32-6B-62 32-6B-41(13).
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61:24:03:10. Dealer surety bond. Upon application for an initial dealer license, a A dealer
shall must furnish the an original surety bond when applying for an initial dealer license before
issuance of a the license may be issued.
The original surety bond must be of a continuous nature unless it is continuously maintained
until revoked or canceled by the surety company,. at which time the The surety company shall
notify the department of such revocation or cancellation by certified mail.
Upon renewal of a dealer license, the dealer shall verify possession of a surety bond on the
renewal license notice that is sent out by the department. The dealer shall verify on the renewal
license notice that a surety bond is in effect and that the surety bond must be maintained and
continued for the entire license period.
The surety bond must be made available for inspection at the dealer's principal place of
business at any time upon request by an inspector or enforcement officer.
Source: 24 SDR 180, effective July 1, 1998.
General Authority: SDCL 32-6B-7, 32-6B-60, 32-6C-4, 32-6C-17, 32-7A-5, 32-7A-14.1,
32-7B-20.
Law Implemented: SDCL 32-6B-7, 32-6C-4, 32-7A-5, 32-7B-6
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61:24:03:14. Filing requirements. A dealer has fifteen days from the date of sale of any
motor vehicle or boat to a South Dakota resident to submit the application through the on-line
system, if title or MSO/MCO is available. If a title, MSO, or MCO is available at the time of sale,
a dealer must submit a title application through the department’s online system within fifteen days
from the date of sale. If a title is not available within the fifteen days the dealer shall complete a
report of sale on-line. Entry of the application through the on-line computer system must be made
by the dealer immediately following receipt of the title. Failure to submit the application or file
the report of sale within the fifteen days constitutes a dealer violation.
Source: 35 SDR 48, effective September 8, 2008.
General Authority: SDCL 32-3-57, 32-6B-60, 32-6C-17, 32-7A-14.1, 32-7B-20
Law Implemented: SDCL 32-3-57, 32-6B-3.1, 32-6C-5.2, 32-7A-17, 32-7B-27.
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61:24:03:15. Definitions. Terms used in the following sections mean: (1) “Closure date,” means the date when a licensed motor vehicle dealer closes their
dealer operations; the date when a licensed motor vehicle dealer surrenders their dealer license; or,
when a licensed motor vehicle dealer fails to renew their dealer license within ninety days of
expiration, the licensed motor vehicle dealer’s expiration date.
(2) “Liquidate,” means the sale or transfer of motor vehicles out of the motor vehicle
dealer’s inventory upon the dealer’s permanent closure.
(3)_ “Temporary closing,” means the closure of a principal place of business for more
than ten consecutive days.
(4) “Permanent closure,” means when a motor vehicle dealer permanently closes their
dealer operations, surrenders their dealer license, or fails to renew their dealer license within ninety
days of expiration.
Source: 18 SDR 203, effective July 1, 1992.
General Authority: SDCL 32-6B-60, 32-6C-17, 32-7A-14.1, 32-7B-20.
Law Implemented: SDCL 32-6B-2, 32-6B-14, 32-6C-3, 32-6C-5, 32-7A-2, 32-7A-2, 32-
7A-7, 32-7B-8, 32-7B-21.
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61:24:03:16. Temporary closure. A dealer temporarily closing must display a
conspicuous notice in view of the public at the principal place of business that includes a mailing
address and phone number where the owner may be contacted. The dealer must send written notice
of temporary closure including the reason for closure to the department thirty days before
temporary closure. The department may provide written permission for a temporary closure to be
extended more than ten days, but no more than thirty days, due to exceptional circumstances
beyond the dealer’s control.
Source:
General Authority: SDCL 32-6B-60, 32-6C-17, 32-7A-14.1, 32-7B-20.
Law Implemented: SDCL 32-6B-2, 32-6C-3, 32-7A-2, 32-7A-3.2, 32-7B-21.
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61:24:03:17. Permanent closure. A dealer that is permanently closing shall perform the
following:
(1) Notify the department in writing of the date of permanent closure or fail to timely renew;
(2) Pay all outstanding balances including any balance for licenses or use of the department’s
electronic title and registration system within fourteen days of permanent closure;
(3) Complete a permanent closure visit with the department;
(4) Return any dealer issued plates to the department; and
(5) Liquidate all remaining dealer inventory within forty-five days of permanent closure.
Source:
General Authority: SDCL 32-6B-60, 32-6C-17, 32-7A-14.1, 32-7B-20.
Law Implemented: SDCL 32-1-9, 32-6B-14, 32-6B-21, 32-6B-60, 32-6C-5, 32-6C-17, 32-
7A-4.2, 32-7A-14.1, 32-7B-8, 32-7B-20.
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61:24:03:18. Payment upon permanent closure. The dealer shall pay all outstanding
balances on the department’s dealer portal within fourteen days after the closure date.
Source:
General Authority: SDCL 32-6B-60, 32-6C-17, 32-7A-14.1, 32-7B-20.
Law Implemented: SDCL 32-1-9, 32-6B-14, 32-6B-15, 32-6C-5, 32-7A-7, 32-7B-8.
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61:24:03:19. Liquidation upon permanent closure. The dealer shall, on the closure date,
provide the department a listing of all motor vehicles in the dealer’s inventory including the make,
model, year, and vehicle identification number for each motor vehicle. The dealer shall cause all
motor vehicle inventory held for sale to be liquidated within forty-five days of the closure date.
Dealers liquidating inventory must use one of the following liquidation methods:
(1) sell by auction,
(2) transfer title to the dealer’s personal name; or
(3) any other method approved in writing by the department.
If the dealer transfers any inventory to the dealer’s personal name within forty-five days of
the closure date, the dealer shall pay all appropriate taxes, fees, penalties, and interest based on the
invoice price.
If the dealer transfers any inventory to the dealer’s personal name more than forty-five days
after the closure date, the dealer shall pay all appropriate taxes, fees, penalties, and interest based
on the fair market value as determined by SDCL §§ 32-3A-53(4) and 32-5B-4(4).
Source:
General Authority: SDCL 32-6B-60, 32-6C-17, 32-7A-14.1, 32-7B-20.
Law Implemented: SDCL 32-6B-14, 32-6B-21, 32-6B-41 through 32-6B-41.7, inclusive,
32-6B-60, 32-6C-5, 32-6C-14 through 32-6C-14.4, inclusive, 32-6C-17, 32-7A-4.2, 32-7A-14.1,
32-7B-8, 32-7B-20.
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61:24:04:07. 45-day sold permit requirements. A licensed dealer shall must use the
department’s on-line system to generate and issue a 45-day sold permit which shall must comply
with the following requirements: Be be printed on white paper no larger than 8-1/2 by 11 and no
smaller than 4 by 6-1/4 inches and indicate the following: (1) STATE; (2) DEALER LICENSE
TYPE and EXPIRATION DATE; (3) DEALER NAME, CITY, AND STATE; (4) DEALER
LICENSE NUMBER; (5) DESCRIPTION OF THE VEHICLE; (6) YEAR, MAKE, AND
VEHICLE IDENTIFICATION NUMBER; (7) DATE SOLD: DAY, MONTH, AND YEAR; and
the (8) NAME AND ADDRESS OF THE PERSON WHO PURCHASED THE VEHICLE. The
print on the permit must be of a size of print that is clearly visible and readable at 50 feet.
If the department’s on-line system is not operational, dealers may use the orange five-day
sold permit provided by the department.
Source: 35 SDR 48, effective September 8, 2008; SL 2015, ch 156, § 19, effective July 1,
2015.
General Authority: SDCL 32-6B-60, 32-7B-20.
Law Implemented: SDCL 32-6B-60, 32-7B-20.
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61:24:07:01. Definitions. Terms used in this chapter mean:
(1) "Clear and conspicuous," presentation of a statement, representation, or term in a manner
that is readily apparent and understood by the person to whom it is being addressed, considering
such factors as size, color, contrast, length, and time needed to read the advertisement;
(2) "Rebate," the payment of money by the manufacturer or dealer to a consumer or to a
third party on behalf of a consumer on the condition that the consumer purchase or lease a motor
vehicle;
(3) "Warranty advertisement," any advertisement in which a warranty or guaranty of a
motor vehicle or any of its parts is offered in connection with the sale of the motor vehicle;
(4) "Supplemental sticker," a label other than the Monroney sticker affixed to a new motor
vehicle displaying the offering price of the motor vehicle;
(5) "Monroney sticker," the label required by § 3 of the Automobile Information Disclosure
Act, 15 U.S.C.S. § 1232 (1982);
(6) "Offering price," the full price at which a dealer will sell a motor vehicle, including any
rebates and document fees, but not including taxes, license fees, documentary fees, and registration
costs;
(7) "Taxes, license fees, and registration costs," the taxes, charges, and fees payable to or
collected on behalf of governmental agencies which are necessary for the transfer of an interest in
a motor vehicle or for the use of a motor vehicle;
(8) "Bait and switch," an alluring but insincere offer to sell a product, the primary purpose
of which is to obtain leads to persons interested in buying the advertised product in order to sell
the person some other product at a higher price or on a basis of more advantageous to the
advertiser.
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Source: 18 SDR 203, effective July 1, 1992.
General Authority: SDCL 32-6B-63, 32-6C-17, 32-7A-14.1, 32-7B-20.
Law Implemented: SDCL 32-6B-63, 32-6B-64, 32-6C-14, 32-7A-4.2, 32-7B-17.
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61:24:07:08. Advertising at cost or invoice. A dealer may shall not use the terms "dealer cost,"
"inventory price," "factory invoice," "invoice," "wholesale," “broker” and or "factory billing" in
advertising, including in any publicly displayed business name or trademark associated with the
sale or availability of any vehicles, vehicle goods, or vehicle services.
Source: 18 SDR 203, effective July 1, 1992.
General Authority: SDCL 32-6B-63, 32-6C-17, 32-7A-14.1, 32-7B-20.
Law Implemented: SDCL 32-6B-4.1, 32-6B-63, 32-6B-63, 32-6C-14, 32-7A-4.2, 32-7B-
17.
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61:24:07:11. Factory sales -- Wholesale prices. A dealer may not shall advertise the sale of
motor vehicles in a manner that conveys or implies to the public that the vehicles are being offered
for sale by the a manufacturer, wholesaler, broker, or distributor of the vehicles. Advertisements
Dealer advertisements, including any associated names or trademarks, by dealers may must not
contain the terms "factory sale," "wholesale," "broker," "wholesale price," or any similar terms
which indicate indicating sales other than retail sales.
Source: 18 SDR 203, effective July 1, 1992.
General Authority: SDCL 32-6B-63.
Law Implemented: SDCL 32-6B-4.1, 32-6B-63, 32-6B-64, 32-6C-14, 32-7A-4.2, 32-7B-
17.