CHAPTER 50-12
AIRCRAFT DEALERS
50-12-1 50-12-1. Repealed by SL 2019, ch 203, § 69.
50-12-2 Aircraft dealer's license--Application--Contents.
50-12-3 Issuance of license--Display--Violation as misdemeanor.
50-12-3.1 Place of business--Branch office or subagency.
50-12-4 Dealer's license as applicable to aircraft in stock.
50-12-5 Permissible uses of dealer's certificate--Violation as misdemeanor.
50-12-6 50-12-6. Repealed by SL 2019, ch 203, § 70.
50-12-7 Transfer of aircraft to new owner--Delivery of certificate to department--Violation as misdemeanor--Civil penalty.
50-12-8 Dealer's commercial use stamp--Fee--Permissible uses under stamp--Violation as misdemeanor--Expiration of stamp.
50-12-9 Registration of aircraft under §§ 50-11-12 and 50-11-19.
50-12-10 Display of certificate and stamp--Possession of aircraft--Violation as misdemeanor.
50-12-11 50-12-11. Repealed by SL 2019, ch 203, § 71.
50-12-12 Fee for dealer's license--Fee for additional dealer's certificates--Fee for additional commercial use stamps--Receipt for and disposition of fees.
50-12-13 Expiration of license and commercial use stamp.
50-12-14 Dealer's license--Renewal--Requirements--Appeal--Fees.
50-12-15 50-12-15. Repealed by SL 2019, ch 203, § 72.
50-12-16 Refusal, suspension, or revocation of dealer's license--Grounds.
50-12-17 Hearing on revocation, suspension, or nonrenewal--Notice of hearing--Appeal.
50-12-18 Return of fees upon refusal to issue license--Statement of reasons for refusal--Appeal.
50-12-19 50-12-19. Repealed by SL 2019, ch 203, § 73.
50-12-20 Promulgation of rules.
50-12-21 50-12-21. Repealed by SL 1983, ch 15, § 207.
50-12-22 Inspection of dealer's records.
50-12-2. Aircraft dealer's license--Application--Contents.
Any person desiring to sell or solicit as a dealer the sale of aircraft within South Dakota shall apply for an aircraft dealer's license to the department. For the original application, the person shall possess one or more aircraft under normal registration. The application shall be made in writing on a form furnished by the department and shall contain the following information:
(1) The name and physical address of the aircraft dealer;
(2) The physical address of each owner, director, or principal officer of such aircraft dealer. If the applicant is a foreign corporation, the application shall designate the state of incorporation, and the post office address of the registered office and registered agent of such corporation in South Dakota. Evidence shall be furnished showing that the foreign corporation has been granted authority to do business in South Dakota by the secretary of state. If the applicant is a foreign person or partnership, the application shall set forth the permanent business address in the foreign state; and
(3) Whether the applicant has previously been an aircraft dealer in South Dakota, and if so, the number of aircraft the applicant has sold within a period of twenty-four months preceding the date of the application.
Source: SDC 1939, § 2.0702 as enacted by SL 1966, ch 1, § 9; SL 1980, ch 330, § 2; SL 2010, ch 227, § 84; SL 2014, ch 222, § 96; SL 2020, ch 203, § 20.
50-12-3. Issuance of license--Display--Violation as misdemeanor.
Upon determining that the applicant is entitled to a license, the department shall assign to the applicant a distinctive aircraft dealer license number, and issue the applicant the required number of dealer's certificates bearing the license number. Each licensed dealer shall display the license in a conspicuous place in the dealer's established place of business. Failure to display the license is a Class 2 misdemeanor.
Source: SDC 1939, § 2.0703 as enacted by SL 1966, ch 1, § 9; SL 1983, ch 15, § 203; SL 2010, ch 227, § 85; SL 2014, ch 222, § 97.
50-12-3.1. Place of business--Branch office or subagency.
An aircraft dealer's place of business shall have a business name, and the telephone listing shall indicate the business is an aircraft-related place of business. The structure of an aircraft dealer's place of business shall be used primarily as a place of business for the sale or commercial use of aircraft.
A licensed aircraft dealer may maintain a branch office or subagency in more than one location in this state, if the dealer obtains a separate license for each location. Each application for a branch office or subagency at any location other than the principal place of business shall be submitted in accordance with § 50-12-2.
Source: SL 2019, ch 203, § 44.
50-12-4. Dealer's license as applicable to aircraft in stock.
During such times as any aircraft is held by a licensed dealer for sale, exchange, delivery, test, or demonstration purposes, and solely as stock in trade of the dealer's business, an aircraft dealer's certificate may be used in said aircraft in lieu of any registration certificate, or sales, excise or other state tax as required by the laws of this state.
Source: SDC 1939, § 2.0704 as enacted by SL 1966, ch 1, § 9.
50-12-5. Permissible uses of dealer's certificate--Violation as misdemeanor.
A dealer's certificate issued under this chapter may be used only by a licensed aircraft dealer for aircraft owned or controlled by the dealer for the purposes of sale, resale, or flight instruction without charge. Use of a certificate for any purpose other than as permitted under this section is a Class 2 misdemeanor.
Source: SDC 1939, § 2.0704 as enacted by SL 1966, ch 1, § 9; SL 1983, ch 15, § 204; SL 2010, ch 227, § 86; SL 2019, ch 203, § 45.
50-12-7. Transfer of aircraft to new owner--Delivery of certificate to department--Violation as misdemeanor--Civil penalty.
Upon the sale of any aircraft bearing an aircraft dealer's certificate, the dealer shall comply with §§ 50-11-22 and 50-11-23. If possession of an aircraft is transferred to a new owner, the dealer shall deliver the aircraft dealer's certificate and sales affidavit to the department. The department shall hold the certificate until an application is received from the dealer for transfer to another aircraft. Any person who makes a false statement of a material fact on a sales affidavit under this section is guilty of a Class 1 misdemeanor. Failure to report aircraft purchases and sales as required under this chapter is punishable by a civil penalty equal to the annual registration fee as provided in § 50-11-12. A civil penalty imposed under this section shall be deposited into the aeronautics fund.
Source: SDC 1939, § 2.0704 as enacted by SL 1966, ch 1, § 9; SL 1993, ch 349, § 2; SL 2010, ch 227, § 87; SL 2019, ch 203, § 46.
50-12-8. Dealer's commercial use stamp--Fee--Permissible uses under stamp--Violation as misdemeanor--Expiration of stamp.
Upon application in writing on a form furnished by the department and the payment of a fee of one hundred dollars for each aircraft to be so used, the department shall furnish a dealer with a commercial use stamp upon which is printed the federal aircraft registration number (N, X, etc.). The stamp shall be affixed to the aircraft dealer's certificate as directed by the department. The stamp authorizes the aircraft to be used for aviation commercial purposes, but not for spraying, dusting, fertilizing, seeding, or defoliating. Use of the aircraft for prohibited purposes is a Class 2 misdemeanor.
The commercial use stamp shall expire twenty-four months following its issuance or at the expiration of the dealer certificate to which it is affixed, whichever occurs first.
Source: SDC 1939, § 2.0705 as enacted by SL 1966, ch 1, § 9; SL 1980, ch 330, § 4; SL 1983, ch 15, § 205; SL 1993, ch 349, § 3; SL 2010, ch 227, § 88.
50-12-9. Registration of aircraft under §§ 50-11-12 and 50-11-19.
Any aircraft subject to registration under an aircraft dealer's certificate for a period exceeding twenty-four months shall be registered in accordance with §§ 50-11-12 and 50-11-19.
Source: SDC 1939, § 2.0705 as enacted by SL 1966, ch 1, § 9; SL 1980, ch 330, § 5; SL 2010, ch 227, § 89; SL 2019, ch 203, § 47.
50-12-10. Display of certificate and stamp--Possession of aircraft--Violation as misdemeanor.
The aircraft dealer's certificate and commercial use stamp shall at all times be conspicuously carried and displayed in the aircraft subject to such certificate and commercial use stamp. The aircraft if so licensed shall remain in the possession of or under the control of the licensed aircraft dealer. A violation of this section is a Class 2 misdemeanor.
Source: SDC 1939, § 2.0705 as enacted by SL 1966, ch 1, § 9; SL 1983, ch 15, § 206; SL 2010, ch 227, § 90.
50-12-12. Fee for dealer's license--Fee for additional dealer's certificates--Fee for additional commercial use stamps--Receipt for and disposition of fees.
The fee for an aircraft dealer's license is two hundred dollars for two calendar years or any fraction thereof. The fee shall accompany the application for the issuance or renewal of an aircraft dealer's license.
The fee for additional aircraft dealer's certificates is five dollars each. The fee for each additional commercial use stamp is one hundred dollars.
The Department of Transportation shall issue an appropriate receipt for all fees collected to the person paying it, and shall remit all fees to the state treasurer to be credited to the aeronautics fund of the state.
Source: SDC 1939, § 2.0707 as enacted by SL 1966, ch 1, § 9; SL 1980, ch 330, § 7; SL 1984, ch 311, § 3.
50-12-13. Expiration of license and commercial use stamp.
The aircraft dealer's license as provided by § 50-12-3 expires on the thirty-first day of January of the second year next succeeding the calendar year in which it was issued. The commercial use stamps as provided by § 50-12-8 expire twenty-four months after they are issued, if a valid dealer's license is in effect. The commercial use stamp expires automatically if the aircraft dealer's license expires or the aircraft dealer no longer holds a valid aircraft dealer's license.
Source: SDC 1939, § 2.0707 as enacted by SL 1966, ch 1, § 9; SL 1980, ch 330, § 8; SL 2010, ch 227, § 92; SL 2019, ch 203, § 48.
50-12-14. Dealer's license--Renewal--Requirements--Appeal--Fees.
Each licensed dealer on or before February first of the second year shall apply for the renewal of the dealer's license. The dealer shall verify having sold or brokered at least six aircraft within the past twenty-four calendar months. However, any dealer not meeting the requirements of this section may appeal to the commission for renewal of a dealer's license if the dealer can demonstrate reasonable cause for not meeting those requirements. The fee for the renewal of a license is the same as that required for an original license. Upon failure to apply for the renewal of the license, and to pay the renewal fee on or before the first day of February of the second year, an additional fee of ten dollars per month, or any fraction thereof, is required before the license shall be issued.
A former dealer may make an application for an original aircraft dealer's license after thirty-six months from the expiration date of the dealer's license.
Source: SDC 1939, § 2.0708 as enacted by SL 1966, ch 1, § 9; SL 1980, ch 330, § 9; SL 1993, ch 349, § 4; SL 2010, ch 227, § 93; SL 2020, ch 203, § 21.
50-12-16. Refusal, suspension, or revocation of dealer's license--Grounds.
The department may refuse to issue or renew, or may suspend or revoke, an aircraft dealer's license if the department has reasonable grounds to believe that the dealer has:
(1) Forged or altered any federal certificate, permit, rating, or license, relating to ownership or airworthiness of an aircraft;
(2) Sold or disposed of an aircraft which the dealer knows or has reason to know has been stolen or appropriated without the consent of the true owner;
(3) Willfully misrepresented any material fact in the application for an aircraft dealer's license;
(4) Willfully withheld or caused to be withheld from a purchaser any document required by the laws of this state, including an affidavit to the effect that there are no liens, mortgages, or encumbrances of any kind on the aircraft other than those noted thereon, if the document or affidavit has been requested by the purchaser;
(5) Used an aircraft dealer's certificate or a commercial use stamp for any purpose other than those permitted by this chapter, or used any such certificate or commercial use stamp after it has expired;
(6) Failed to keep and make available for inspection by the department a proper record of all aircraft bought and sold;
(7) Willfully refused to apply for or pay the fee for a renewal license after an issued dealer's license has expired;
(8) Failed to maintain an established place of business as required by this chapter;
(9) Maintained a branch office or subagency for the sale or soliciting of sales of aircraft without applying for and receiving a license for such branch office or subagency;
(10) Been refused a license, or had a license revoked by the licensing agencies for aircraft in this or any other state;
(11) Failed to register on or prior to certificate or commercial use stamp expiration date;
(12) Failed to renew license as required;
(13) Failed to notify the department upon sale of aircraft;
(14) Failed to promptly notify the department of an aircraft and place it on a certificate or use stamp or both; or
(15) Any other violation of this chapter or chapter 50-11 referenced in this chapter.
Source: SDC 1939, § 2.0710 as enacted by SL 1966, ch 1, § 9; SL 1980, ch 330, § 10; SL 1983, ch 354, § 1; SL 1993, ch 349, § 5; SL 2010, ch 227, § 95; SL 2014, ch 222, § 100.
50-12-17. Hearing on revocation, suspension, or nonrenewal--Notice of hearing--Appeal.
No license may be revoked or suspended, nor may the renewal of any license be refused until after a hearing by the commission, of which the licensee has ten days' notice of the time and place of the hearing. If any license is revoked or suspended, or its renewal is refused, the person affected by the order may appeal the decision as provided in chapter 1-26.
Source: SDC 1939, § 2.0710 as enacted by SL 1966, ch 1, § 9; SL 1983, ch 354, § 2; SL 2014, ch 222, § 101.
50-12-18. Return of fees upon refusal to issue license--Statement of reasons for refusal--Appeal.
If the department refuses to issue a license upon an original application, the department shall remit to the applicant all fees accompanying the application. Refusal may be on any of the grounds as set forth in § 50-12-16. The department shall set forth the reasons for the refusal to issue the license. The applicant may appeal the decision in pursuance to chapter 1-26.
Source: SDC 1939, § 2.0711 as enacted by SL 1966, ch 1, § 9; SL 2010, ch 227, § 96.
50-12-20. Promulgation of rules.
The commission may promulgate all necessary rules pursuant to chapter 1-26 for the purpose of carrying out the purposes and intent of this chapter.
Source: SDC 1939, § 2.0713 as enacted by SL 1966, ch 1, § 9; SL 2010, ch 227, § 98.
50-12-22. Inspection of dealer's records.
The department may inspect the pertinent books, letters, records, and contracts of any licensed aircraft dealer periodically or relating to specific complaints made against a dealer and which may be in violation of provisions of this chapter.
Source: SL 1993, ch 349, § 6; SL 2014, ch 222, § 103.
