91
st Legislative Session _ 2016
Committee: House Commerce and Energy
Wednesday, February 10, 2016
P - Present
E - Excused
A - Absent
Roll Call
P Beal
P Harrison
P Hawley
P Kirschman
P Novstrup (Al)
P Stalzer
P Steinhauer
P Wiik
P Willadsen
P Wollmann
P Zikmund
P Schoenbeck, Vice-Chair
P Rounds, Chair
OTHERS PRESENT: See Original Minutes
The meeting was called to order by Representative Tim Rounds, Chair.
MOTION: TO APPROVE THE MINUTES OF FEBRUARY 8, 2016
Moved by: Willadsen
Second by: Beal
Action: Prevailed by voice vote.
HB 1121: revise certain provisions concerning the regulation of vehicle dealers.
Presented by: Representative Duvall
Proponents: Senator Peterson (Jim)
Lindsey Riter-Rapp, SD Independent Auto Dealers Association
Dirk Byers, SD Independent Auto Dealers Association
Mike Mehlhaff, Department of Revenue (Handouts: #1)
MOTION: AMEND HB 1121
1121ya
On the printed bill, delete everything after the enacting clause and insert:
" Section 1. That § 32-6B-5.1 be amended to read:
32-6B-5.1. The following persons do not need to be licensed pursuant to this chapter if the
person meets the following conditions:
(1) Any person engaged in the business of manufacturing trailers may display but may not sell
any trailers at an event, if the event lasts three or more days and if the person registers
with and purchases a permit from the Department of Revenue. If purchased in advance
of the event, the person shall pay a fee of two hundred fifty dollars for a ten-day
temporary permit. However, if the permit is purchased at the event, the person shall pay
a fee of five hundred dollars for the temporary permit. Any person found to be in violation
of the provisions of this subdivision shall be denied a temporary permit for a period of one
year from the date of violation;
(2) Any person may sell motorcycles at an event, if the event lasts three or more days and if
the person registers and purchases a permit from the Department of Revenue. Before
issuance of a permit, the person shall provide proof the person is a licensed dealer in the
person's own state and has no outstanding dealer violations. The permit may only be
issued if the new motorcycles being sold are not franchised in this state. If purchased in
advance of the event, the person shall pay a fee of two hundred fifty dollars for a ten-day
temporary permit. However, if the permit is purchased at the event, the person shall pay
a fee of five hundred dollars for the temporary permit. Any person found to be in violation
of the provisions of this subdivision shall be denied a temporary permit for a period of one
year from the date of violation;
(3) Any person may sell trailers at an event, if the event lasts three or more days and if the
person registers and purchases a permit from the Department of Revenue. Before issuance
of a permit, the person shall provide proof the person is a licensed dealer in the person's
own state and has no outstanding dealer violations. The permit may only be issued if the
trailers being sold are not franchised in this state. If purchased in advance of the event, the
person shall pay a fee of two hundred fifty dollars for a ten-day temporary permit.
However, regardless of whether or not there is a franchise in this state, any person may
display a trailer at such an event. However, if the permit is purchased at the event, the
person shall pay a fee of five hundred dollars for the temporary permit. Any person found
to be in violation of the provisions of this subdivision shall be denied a temporary permit
for a period of one year from the date of violation;
(4) Any dealer licensed in another state may sell any vehicle or motorcycle that is not titled
in South Dakota if the vehicle is at least twenty years old and the motorcycle is at least
thirty years old at a public auction on consignment if the title is issued in the name of the
dealer and the dealer purchases a permit from the Department of Revenue. Before
issuance of a permit, the dealer shall provide proof the dealer is a licensed dealer in the
dealer's own state and has no outstanding dealer violations. If purchased in advance of the
auction, the dealer shall pay a fee of two hundred fifty dollars for the permit. However,
if the permit is purchased at or after the auction, the dealer shall pay a fee of five hundred
dollars for the temporary permit. Any dealer found to be in violation of the provisions of
this subdivision shall be denied a temporary permit for a period of one year from the date
of violation; and
(5) Any person engaged in the business of manufacturing or customizing motor vehicles may
display but may not sell any motor vehicle at an event, if the event lasts three or more
days and if the person registers with and purchases a permit from the Department of
Revenue. If purchased in advance of the event, the person shall pay a fee of two hundred
fifty dollars for a ten-day temporary permit. However, if the permit is purchased at the
event, the person shall pay a fee of five hundred dollars for the temporary permit. This
subdivision does not apply to any customized motorcycle being built for and displayed
during a sponsored event where the participants had to qualify through competition. A
permit is required if any customized motorcycle is being displayed outside the sponsored
event. Any person found to be in violation of the provisions of this subdivision shall be
denied a temporary permit for a period of one year from the date of violation;
(6) Any new or used vehicle dealer licensed in South Dakota may sell a vehicle titled in this
state that is at least twenty years old at a public auction on consignment if the vehicle is
titled in the name of the dealer and the dealer obtains a permit from the department. One
permit may be used for multiple vehicles. A permit may not be issued if the dealer has an
outstanding dealer violation. Any dealer found to be in violation of this division shall be
denied a permit for a period of one year from the date of violation. "
Moved by: Wollmann
Second by: Novstrup (Al)
Action: Was not acted on.
MOTION: SUBSTITUTE MOTION AMEND HB 1121
1121fa
On page 1, line 7, of the printed bill, after "displays" delete "a classic" and insert ", at a public
auction on consignment, a".
Moved by: Stalzer
Second by: Willadsen
Action: Prevailed by voice vote.
MOTION: DO PASS HB 1121 AS AMENDED
Moved by: Wollmann
Second by: Zikmund
Action: Prevailed by roll call vote. (13-0-0-0)
Voting Yes: Beal, Harrison, Hawley, Kirschman, Novstrup (Al), Stalzer, Steinhauer, Wiik,
Willadsen, Wollmann, Zikmund, Schoenbeck, Rounds
HB 1152: create the new frontiers program to support innovative research by South Dakota
companies.
Presented by: Representative Mickelson
THE CHAIR DEFERRED HB 1152 UNTIL ANOTHER DAY
HB 1213: create the new frontiers program to support innovative research by South Dakota
companies.
Presented by: Representative Mickelson
Proponents: Pat Costello, Governor's Office of Economic Development (Handouts: #2)
MOTION: DO PASS HB 1213
Moved by: Willadsen
Second by: Zikmund
Action: Prevailed by roll call vote. (13-0-0-0)
Voting Yes: Beal, Harrison, Hawley, Kirschman, Novstrup (Al), Stalzer, Steinhauer, Wiik,
Willadsen, Wollmann, Zikmund, Schoenbeck, Rounds
MOTION: ADJOURN
Moved by: Willadsen
Second by: Wiik
Action: Prevailed by voice vote.
Pam Kean
____________________________
Committee Secretary
Tim Rounds, Chair
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