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ARTICLE 61:24
VEHICLE DEALER LICENSING
Chapter
61:24:01 Definitions, Repealed.
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61:24:05 License revocation, Repealed.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
(Repealed)
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61:24:01:01 Repealed.
61:24:01:02 Repealed.
61:24:01:03 Temporary closing defined, Repealed.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place of business is closed more than ten continuous days for any purpose Repealed.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
61:24:03:00 Definitions.
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61:24:03:08 Dealer lists, Repealed.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61:24:03:12 Exemption from on-line requirements, Repealed.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 requirementOnline submission of sale information.
61:24:03:15 Temporary closure.
61:24:03:16 Permanent closure requirements.
61:24:03:17 Liquidation upon permanent closure.
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61:24:03:00. Definitions. Terms used in this chapter mean:
(1) "Department," the Department of Revenue;
(2) “Liquidate,” the sale or transfer of motor vehicles out of the licensed dealer's inventory upon
the dealer's permanent closure;
(3) “Permanent closure,” the date when a licensed dealer:
(a) Closes its dealer operations with no intention of recommencing its operations;
(b) Surrenders its dealer license; or
(c) Fails to renew its dealer license within ninety days of expiration; and
(4) “Temporary closure,” the closure of a principal place of business for more than ten
consecutive days, without permanently closing.
Source:
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-7, 32-
7B-8, 32-7B-21.
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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 or 32-7B-21, as applicable.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 show proof of compliance shall 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 If
more than one business occupies the structure comprising the principal place of business, the dealer
must have separate office space from the other business.
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.
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General Authority: SDCL 32-6C-17, 32-7A-14.1, 32-7B-20.
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 licensed dealer licensee
desiring to move the moving its principal place of business to a new location must notify shall
send written notice to the department in writing 30 at least 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 records
specified in SDCL chapters 32-6B 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 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. A licensed dealer shall retain the physical or electronic records specified in SDCL chapters
32-6B, 32-6C, 32-7A, and 32-7B, for a period of five years. The dealer shall maintain a physical
record in its original form for at least twelve months.
A dealer may contract with a titling service and authorize the service to temporarily retain
the records if the contract:
(1) Describes the exact location where the title service is to keep the records;
(2) Specifies the time period, not to exceed four days, in which the records are to be
kept at the title service;
(3) Requires that all title records be available to the state while the records are held at
the title service; and
(4) Identifies the party responsible for lost title documents.
Source: 16 SDR 111, effective January 7, 1990; 24 SDR 180, effective July 1, 1998; 35
SDR 48, effective September 8, 2008.
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General Authority: SDCL 32-6B-60, 32-7B-20.
Law Implemented: SDCL 32-6B-20, 32-6C-6, 32-7A.12 32-7A-12, 32-7B-9, 32-7B-14,
32-7B-17.
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61:24:03:05. Contents of consignment contract. The consignment 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 (, who is the owner);
(2) The name and address of the consignee (, who is 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 price range;
(6) The agreed-upon amount that the ownerconsignor is to pay the dealer or
auctioneerconsignee;
(7) The length of time the vehicle, snowmobile, mobile or manufactured home, or boat will is
to be with the dealer or auctioneerconsignee;
(8) Disclosure by the dealer or auctioneerconsignee that the sale is a consignment sale;
(9) The signature of the ownerconsignor and the dealer or auctioneerconsignee; 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-20.3, 32-6B-37, 32-6C-5.1, 32-7A-
12.2, 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 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,
mobile or 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. Licensed dealers consigning titled units shall
display the Federal Trade Commission Buyer Guide in a vehicle, snowmobile, mobile or
manufactured home, or boat being offered for sale on consignment on the lot. A consignee with
electronic records shall maintain physical documents for the prior twelve months at the consignee'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-20.3, 32-6B-37, 32-6C-6, 32-7A-
12, 32-7A-16, 32-7B-26, 32-7B-28.
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Note: A copy of the FTC Federal Trade Commission Buyer Guide may be obtained from
the Federal Trade Commission at: https://www.ftc.gov/system/files/documents/plain-
language/cfr_buyers_guides_english.pdf1961 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 must
maintainAuctioneers and licensed dealers shall 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. Auctioneers and dealers shall 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-20.3, 32-6B-37, 32-6C-6, 32-7A-12, 32-7B-9.
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61:24:03:10. Dealer surety bond.Upon application for an initial dealer license, a A
licensed dealer shall 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 the 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 is maintained and
continued for the entire license period. At the time of dealer license renewal, the dealer shall verify
on the renewal license notice the dealer's possession of a surety bond, verify that the surety bond
is in effect, and acknowledge that the surety bond will remain in effect for the duration of the
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 requirementsOnline submission of sale information. 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 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. If a title, manufacturer's statement of origin, or
manufacturer's certificate of origin is available at the time of sale, a licensed dealer must submit a
title application through the department's online system within fifteen days from the date of sale.
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, 32-3-69.1, 32-6B-3.1, 32-6C-5.2, 32-7A-17, 32-7B-27.
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61:24:03:15. Temporary closure. A licensed dealer temporarily closing shall display a
conspicuous notice, in view of the public at the principal place of business, which includes a
mailing address and phone number where the owner may be contacted. The dealer shall send to
the department written notice of, and the reason for, the temporary closure, thirty days before
temporary closure. The department may provide written permission for a temporary closure to be
extended no more than twenty additional days due to 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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61:24:03:16. Permanent closure. A dealer that is permanently closing shall:
(1) Notify the department in writing prior to the proposed closure date, if applicable;
(2) Pay, within fourteen days of the closure date, any balance for licenses or use of the
department’s electronic title and registration system;
(3) Complete a permanent closure visit with the department;
(4) Return all department-issued dealer license 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 32-6B-14, 32-6B-21, 32-6C-5, 32-7A-4.2, 32-7B-8.
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61:24:03:17. Liquidation upon permanent closure. The dealer shall,
on the closure date, provide the department a listing of all motor vehicles, mobile homes,
manufactured homes, or snowmobiles in the dealer's inventory containing the make, model, year,
and vehicle identification numbers. The dealer shall liquidate all motor vehicle inventory held for
sale within forty-five days of the closure date.
Dealers liquidating inventory shall use the following liquidation methods:
(1) Sale by auction;
(2) Transfer of title to an individual owner of the dealership's personal name; and
(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 must 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 must pay all appropriate taxes, fees, penalties, and interest based
on the fair market value as determined by SDCL subdivisions 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 to 32-6B-41.6, inclusive, 32-6C-
5, 32-6C-14 to 32-6C-14.4, inclusive, 32-7A-4.2, 32-7B-8.
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CHAPTER 61:24:04 PERMITS Section
61:24:04:01 Design of demonstration/in-transit permit.
61:24:04:02 Repealed.
61:24:04:03 Repealed.
61:24:04:04 Reserved.
61:24:04:05 Design of demonstration/in-transit permit for a boat, trailer, motorcycle, or
snowmobile.
61:24:04:06 Repealed.
61:24:04:07 45-dayForty-five-day sold permit requirements.
61:24:04:08 Special plate order permit, Transferred.
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61:24:04:07. 45-dayForty-five-day sold permit requirements. A licensed dealer shall use
the department's on-line system to generate and issue a 45-day forty-five-day sold permit which
shall that must comply with the following requirements: Be be printed on white paper no larger
than 8-1/2 by 11 inches and no smaller than 4 by 6-1/4 inches and indicate the following:
(1) STATEState of sale;
(2) DEALER LICENSE TYPE and EXPIRATION DATEDealer license type and expiration
date;
(3) DEALER NAME, CITY, AND STATEDealer name, city, and state;
(4) DEALER LICENSE NUMBERDealer license number;
(5) DESCRIPTION OF THE VEHICLEDescription of the motor vehicle, boat, or snowmobile;
(6) YEAR, MAKE, AND VEHICLE IDENTIFICATION NUMBERYear, make, and vehicle
identification number;
(7) DATE SOLD: DAY, MONTH, AND YEARDay, month, and year sold; and the
(8) NAME AND ADDRESS OF THE PERSON WHO PURCHASED THE VEHICLEName
and address of the purchaser.
The print on the permit must be of a size of print that is clearly visible and readable at 50
feet. The permit must be displayed in a manner that allows the print to be clearly visible and legible
to an outside observer at a distance of twenty feet.
If the department’s on-line system is not operational, dealers may use an 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.
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General Authority: SDCL 32-6B-30, 32-6B-60, 32-6C-17, 32-7B-20.
Law Implemented: SDCL 32-6B-60, 32-6B-26, 32-6C-10, 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 an
advertisement presented in a manner that is readily apparent and understood by the person to whom
it is being addressed, considering such factors as the size, color, contrast, and length of the
advertisement, and the time needed to read the advertisement;
(2) "Monroney sticker," the label required in 15 U.S.C. § 1232 (July 6, 2012);
(3) "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, and registration costs;
(4) "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, snowmobile, boat, manufactured home, or mobile home; and
(5) "Supplemental sticker," a label other than the Monroney sticker affixed to a new motor
vehicle displaying the offering price of the motor vehicle.
(6) "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;
(7) "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;
(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(8), 32-7A-4.2(7), 32-7B-17(8).
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61:24:07:08. Advertising at cost or invoice. A dealer may not use the terms "dealer cost,"
"inventory price," "factory invoice," "invoice," "wholesale," “broker,” and or "factory billing" in
advertising or 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-64, 32-6C-14(8), 32-7A-4.2(7), 32-
7B-17(8).
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61:24:07:11. Factory sales -- Wholesale prices. A dealer may not 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 and associated names or trademarks by dealers may 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(8), 32-7A-4.2(7), 32-
7B-17(8).