CHAPTER 32-6C

REGULATION OF SNOWMOBILE DEALERS

32-6C-1    "Snowmobile dealer" defined.

32-6C-2    License required--Exceptions--Violation as misdemeanor.

32-6C-3    Application required--Contents.

32-6C-4    Bond required--Amount--Term--Continuation certificate--Notification of payment or cancellation--Additional bond.

32-6C-4.1    Increase in dealer bond amount--Implementation.

32-6C-5    Dealer license--Fee--Renewal--Disposition of fees.

32-6C-5.1    Sale on consignment--Contract required--Form.

32-6C-5.2    Sale on consignment prohibited for snowmobile without statement of origin.

32-6C-6    Books, records, and files to be kept--Inspection.

32-6C-6.1    Offer to sell, sale, or exchange of snowmobile without certificate of title allowed under specified circumstances.

32-6C-6.2    Agreement that dealer will satisfy lien by paying lienholder--Trade of snowmobile or consignment agreement--Theft.

32-6C-6.3    Time period to satisfy lien after receipt of funds--Offering snowmobile for sale prior to tender to lienholder.

32-6C-7    Issuance of dealer plates--Fees--Disposition of fees--Numbering of plates.

32-6C-7.1    Mailing fees.

32-6C-8    Use of dealer plates--Display--Transfer of plates--Violation as misdemeanor.

32-6C-9    Use of vehicles bearing dealer's demonstration permits--Time limitation--Issuance of permits for unauthorized purposes prohibited--Violation as misdemeanor.

32-6C-10    Temporary license permit--Restrictions on use--Renewal or alteration prohibited--Violation as misdemeanor.

32-6C-11    Dealer inspectors.

32-6C-12    Investigation of dealers.

32-6C-13    32-6C-13. Repealed by SL 2005, ch 162, § 18.

32-6C-14    Grounds for denial of license or application of provisions of §§ .1 to 32-6C-41.6, inclusive.

32-6C-14.1    Cease and desist order for specified violations--Period of effectiveness.

32-6C-14.2    Hearing on question of whether violations occurred--Procedures.

32-6C-14.3    Finality of cease and desist order.

32-6C-14.4    Order to pay fine or suspend or revoke license upon failure to comply with cease and desist order--Deposit of monetary penalties.

32-6C-14.5    Hearing to contest order to pay fine or suspend or revoke license--Procedures.

32-6C-14.6    Finality of order to pay fine or suspend or revoke license.

32-6C-15    32-6C-15, 32-6C-16. Repealed by SL 2005, ch 162, §§ 19, 20.

32-6C-17    Adoption of rules--Administration by local officials.

32-6C-1. "Snowmobile dealer" defined.

For the purposes of this chapter, a "snowmobile dealer" means any person who, for commission or with intent to make a profit or gain, sells, exchanges, rents with option to purchase, offers or attempts to negotiate a sale or exchange of new or used snowmobiles, or who is engaged wholly or in part in the business of selling new or used snowmobiles.

Source: SL 1987, ch 223, § 1.

32-6C-2. License required--Exceptions--Violation as misdemeanor.

No person may engage in the business of selling, or may offer to sell, display, act as a broker, or advertise the sale of new or used snowmobiles, without a license. Any violation of this section is a Class 2 misdemeanor. Any subsequent violation that occurs within two years from any violation of this section is a Class 1 misdemeanor. The licensing requirements of this section do not apply to any regulated lenders as that term is defined in § 54-3-14, any insurance company authorized to do business in this state, or any financing institution as defined in and licensed pursuant to chapter 54-4 that acquires snowmobiles as an incident to its regular business.

Source: SL 1987, ch 223, § 2; SL 2014, ch 137, § 6.

32-6C-3. Application required--Contents.

Any person selling snowmobiles pursuant to the requirements of this chapter shall file with the Department of Revenue, upon forms provided by the department, an application including the following information:

(1)    The name and address of the applicant;

(2)    The name of the partnership, with the names and addresses of all partners;

(3)    The name of the corporation or limited liability company, with the names and addresses of the principal officers or members, if the applicant is a corporation or limited liability company;

(4)    The exact location of the place of business and, if owned by the applicant, when acquired. If the place of business is leased, a copy of the lease shall accompany the application;

(5)    A certification that the location is the place where the applicant keeps and maintain books, records, and files necessary to conduct business, which shall be available at all reasonable hours to inspection by the department;

(6)    A statement that the applicant is either franchised by a manufacturer of snowmobiles, in which case the name of each snowmobile that the applicant is franchised to sell shall be included, or is a used snowmobile dealer, or both;

(7)    A certification that neither the applicant, nor any other partner, member, or officer has been convicted of a crime involving vehicle theft or fraud in the last five years;

(8)    Such other information as the department may require.

Source: SL 1987, ch 223, § 3; SL 2004, ch 17, § 93; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011; SL 2014, ch 139, § 6.

32-6C-4. Bond required--Amount--Term--Continuation certificate--Notification of payment or cancellation--Additional bond.

Before any license may be issued, the applicant shall deliver to the department, a surety bond in the amount of five thousand dollars, executed by the applicant as principal and by a surety company qualified to do business in the state as surety. The bond shall be to the department and in favor of any customer who suffers any loss that may be occasioned by reason of the failure of title or by reason of any fraudulent misrepresentation or breach of warranty as to freedom from liens. The bond shall be for the license period, and a new bond or a proper continuation certificate shall be delivered to the department at the beginning of each license period. Any surety company that pays a claim against the bond of a licensee shall notify the department, in writing, that it has paid such a claim and shall state the reason and the amount of the claim. Any surety company that cancels the bond of a licensee shall notify the department, in writing, of the cancellation, giving the reason for that cancellation. If a claim is made to the department against the bond, which claim is based upon a final judgment of a court record of this state, the dealer shall execute an additional bond for the amount necessary to maintain such security at the original level.

Source: SL 1987, ch 223, § 4; SL 2004, ch 207, § 2.

32-6C-4.1. Increase in dealer bond amount--Implementation.

To implement any increase in the amount of a dealer bond, a dealer, upon renewal of a bond or upon annual renewal of a dealer license, whichever comes first, shall deliver to the department an original bond or a bond rider that is issued by the surety company showing the new bond amount.

Source: SL 2004, ch 207, § 6.

32-6C-5. Dealer license--Fee--Renewal--Disposition of fees.

Upon making initial application for a dealer's license, the applicant shall pay a fee of one hundred fifty dollars to the department. A renewal application shall be submitted to the department annually, unless the license has been revoked prior to the expiration date, along with a renewal fee of one hundred twenty-five dollars, prior to the expiration of the old license. The renewal application shall contain the same information as is required in § 32-6C-3. Any application for renewal made after the expiration date shall be accompanied by an initial license fee. Any licensee who does not file an application and renewal fee with the department prior to the expiration date shall cease to engage in business as a dealer on the license expiration date. All money collected pursuant to this section shall be deposited in the state motor vehicle fund.

Source: SL 1987, ch 223, § 5; SL 2008, ch 155, § 5; SL 2020, ch 137, § 2.

32-6C-5.1. Sale on consignment--Contract required--Form.

Any snowmobile dealer or public auction may sell, or offer to sell, new or used snowmobiles on consignment. For the purposes of this chapter, consignment means the delivery of a snowmobile by the owner into the possession of another without transfer of title for the purpose of sale or where there is any condition that the purchaser does not have an absolute obligation to pay for the snowmobile or has a right to return the snowmobile to the seller. Any snowmobile dealer or public auction who sells, or offers to sell, a South Dakota titled snowmobile or a used snowmobile titled in a bordering state on consignment shall enter into a contract with the consignor. If the snowmobile owner's state does not issue titles for the consigned snowmobile, the owner must provide a current state registration and accompanying affidavit stating that their home state does not issue titles for the snowmobile being consigned. A bill of sale, the registration, and affidavit of statement must be in the possession of the consignment selling dealer or public auction along with the proper consignment contract. The department shall prescribe the form of the contract.

Source: SL 2005, ch 163, § 1; SL 2018, ch 184, § 4.

32-6C-5.2. Sale on consignment prohibited for snowmobile without statement of origin.

No person may sell or offer to sell a snowmobile, to which a manufacturer's statement of origin has not been transferred, on consignment.

Source: SL 2005, ch 163, § 2.

32-6C-6. Books, records, and files to be kept--Inspection.

A dealer licensed under the provisions of this chapter shall keep books, records, or files for five years in the form prescribed by the department, and include the following in the dealer's books, records, or files:

(1)    A record of the purchase, sale, or exchange, of any snowmobile;

(2)    A description of each snowmobile purchased, sold, or exchanged, together with the name and address of the owner or other person from whom the snowmobile was purchased or received and to whom it was sold or delivered. The description must include the snowmobile identification number and manufacturer's make and model; and

(3)    A certificate of title from the previous owner of any snowmobile not purchased from the manufacturer, from the time the snowmobile is delivered to the dealer until it has been disposed of by the dealer.

The books, records, and files shall, at all times during business hours of the day, be subject to inspection by the secretary of revenue.

Source: SL 1987, ch 223, § 6; SL 2005, ch 159, § 6; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011; SL 2021, ch 130, § 7.

32-6C-6.1. Offer to sell, sale, or exchange of snowmobile without certificate of title allowed under specified circumstances.

A dealer may offer for sale, sell, or exchange a snowmobile without a certificate of title if the dealer complies with the following applicable provisions:

(1)    The dealer has a record of purchase, sale, or exchange of a snowmobile to include the satisfaction of any outstanding liens or encumbrances and a secured power of attorney;

(2)    If the snowmobile is encumbered by a lien noted on the title, the dealer shows that payment has been tendered to the lienholder for the amount of the lien, except a lien that is the result of dealer inventory financing; or

(3)    If the dealer is required by law to obtain title prior to offering the snowmobile for sale and the dealer has applied for title through the electronic on-line title system and has submitted the documents to the department.

This section does not relieve a dealer from the provisions of § 32-3-7.

Source: SL 2005, ch 159, § 7.

32-6C-6.2. Agreement that dealer will satisfy lien by paying lienholder--Trade of snowmobile or consignment agreement--Theft.

If a person trades in a snowmobile to a dealer or enters into a consignment agreement with a dealer whereby the dealer will sell the snowmobile and the snowmobile has a lien noted on the title, the dealer and person may agree that the dealer shall satisfy the lien amount by paying the lienholder who is noted on the title. Failure to satisfy a lien pursuant to this section constitutes theft pursuant to chapter 22-30A. The degree of theft is determined by the amount of the unsatisfied lien. Multiple violations of this section occurring within any thirty-day period may be aggregated in amount to determine the degree of theft.

Source: SL 2005, ch 159, § 8.

32-6C-6.3. Time period to satisfy lien after receipt of funds--Offering snowmobile for sale prior to tender to lienholder.

If a dealer enters into an agreement pursuant to § 32-6C-6.1, the dealer shall satisfy the lien within ten business days after the receipt of funds. No dealer may offer the snowmobile for sale until payment has been tendered to the lienholder, except on a consigned snowmobile, whereby the dealer shall comply with the terms of the consignment agreement.

Source: SL 2005, ch 159, § 9.

32-6C-7. Issuance of dealer plates--Fees--Disposition of fees--Numbering of plates.

The department shall issue license plates of a durable material to licensed dealers upon application and payment of ten dollars for each set desired. Two dollars of each fee collected for each set of dealer license plates shall be credited to the motor vehicle fund and the remaining eight dollars shall be credited to the snowmobile trails fund. The license plates shall bear a prefix of the letters "SD" and contain a distinguishing identification number of the licensee.

Source: SL 1987, ch 223, § 7.

32-6C-7.1. Mailing fees.

In addition to the license fees assessed in § 32-6C-7, the department shall collect from the dealer one dollar and fifty cents per decal if a decal is sent to the dealer through the mail. If the dealer requests that the decal be express mailed, the dealer must pay the actual costs of postage and handling.

Source: SL 2010, ch 157, § 2; SL 2023, ch 98, § 4, eff. Mar. 14, 2023.

32-6C-8. Use of dealer plates--Display--Transfer of plates--Violation as misdemeanor.

Any new snowmobile or used snowmobile owned by a licensed dealer, bearing dealer's "SD" license plates issued pursuant to § 32-6C-7 may be operated in this state. One license plate shall be displayed on each side of the snowmobile. The "SD" license plate is transferable by the dealer from one snowmobile owned by him to another snowmobile owned by him. Any violation of this section is a Class 1 misdemeanor.

Source: SL 1987, ch 223, § 8.

32-6C-9. Use of vehicles bearing dealer's demonstration permits--Time limitation--Issuance of permits for unauthorized purposes prohibited--Violation as misdemeanor.

Any new or used snowmobile owned by a licensed dealer, bearing dealer's demonstration permits, may be operated in this state for demonstration purposes only. Such snowmobiles may be operated by any prospective buyer for a period not to exceed three days. No dealer may issue a dealer's demonstration permit to any snowmobile for any other purpose. Any violation of this section is a Class 1 misdemeanor.

Source: SL 1987, ch 223, § 9.

32-6C-10. Temporary license permit--Restrictions on use--Renewal or alteration prohibited--Violation as misdemeanor.

If a snowmobile is sold by a licensed dealer, the dealer may provide a temporary forty-five day license permit which is a permit to operate the snowmobile in this state for a period of forty-five days after the date of sale or until the time the purchaser receives the regular license decals from the county treasurer, whichever occurs first. No dealer may use the permit upon any snowmobile owned by the dealer or for any purpose other than for snowmobiles sold by the dealer. No person may renew the temporary license permit nor change or alter the date or other information on the permit. A violation of this section is a Class 1 misdemeanor.

Source: SL 1987, ch 223, § 10; SL 1997, ch 186, § 1; SL 1999, ch 157, § 1; SL 2015, ch 156, § 17.

32-6C-11. Dealer inspectors.

The department may appoint dealer inspectors to enforce the provisions of this chapter. The inspectors may enter property pursuant to § 32-6C-12 and sign complaints against persons found in violation of this chapter.

Source: SL 1990, ch 246, § 1.

32-6C-12. Investigation of dealers.

The department may investigate any dealer licensed under this chapter for the purpose of ascertaining any violation of this chapter or chapter 32-20A and chapters 32-3 to 32-5, inclusive. The investigation shall include an inspection of the principal place of business, supplemental lots, and any books, records, or files required by the department. An examination of titles and vehicles owned or offered for sale by the dealer shall also be conducted.

Source: SL 1990, ch 246, § 2; SL 2005, ch 160, § 2.