An Act to prohibit payment or rebate of insurance deductibles by contractors providing motor vehicle repair services.

Be it enacted by the Legislature of the State of South Dakota:

Section 1. That a NEW SECTION be added to chapter 37-24:

No contractor in this state providing motor vehicle repair, auto body repair, or collision repair services to any person may:

(1) Advertise, promise to provide, or offer any coupon, credit, or rebate to pay all or part of an applicable insurance deductible; or

(2) Pay or rebate all or part of an applicable insurance deductible.

If a contractor violates this section, any contract between the contractor and the person to whom the offer was made, or for whom payment was made, is null and void.

For purposes of this section, "contractor" means a garage, repair shop, or body shop.