Current Status Introducing Body:Senate Bill Number:294 Primary Sponsor:Reese Committee Number:15 Type of Legislation:GB Subject:Motor vehicles, provisions when sold Residing Body:Senate Current Committee:Transportation Computer Document Number:DKA/4098AL.93 Introduced Date:19930126 Last History Body:Senate Last History Date:19930126 Last History Type:Introduced, read first time, referred to Committee Scope of Legislation:Statewide All Sponsors:Reese Type of Legislation:General Bill
Bill Body Date Action Description CMN Leg Involved
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294 Senate 19930126 Introduced, read first time, 15
referred to Committee
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TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 56-3-225 SO AS TO PROVIDE FOR THE ISSUANCE OF TEMPORARY LICENSE PLATES FOR SOLD MOTOR VEHICLES; TO AMEND SECTION 56-3-2320, AS AMENDED, OF THE 1976 CODE, RELATING TO MOTOR VEHICLE DEALERS' LICENSE PLATES, SO AS TO REQUIRE AT LEAST FIFTEEN SALES BEFORE A DEALER MAY OBTAIN DEALER PLATES; TO AMEND SECTION 56-15-320, RELATING TO APPLICATION FOR DEALER OR WHOLESALER LICENSE, SO AS TO INCREASE THE SURETY BOND; AND TO REPEAL SECTION 56-3-220 RELATING TO DEALER "SOLD" CARDS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. The 1976 Code is amended by adding:
"Section 56-3-225. (A) The South Carolina Department of Highways and Public Transportation may deliver temporary license plates designed by the department to a motor vehicle dealer registered under the provisions of this title who applies for at least twenty-five plates and who encloses with the application a fee of one dollar for each plate for which application is made. The application must be made upon a form prescribed and furnished by the department. A dealer may issue a temporary license plate to an owner of a vehicle, provided that the owner complies with the provisions of this section.
(B) A dealer who has made application for temporary license plates shall maintain a permanent record which must be kept for a period of at least one year from the date of entry of the record. A dealer shall allow full and free access to these records during regular business hours, to authorized representatives of the department and to law enforcement agencies. The record must contain:
(1) all temporary license plates delivered to him;
(2) all temporary license plates issued by him; and
(3) any other information pertaining to the receipt or the issuance of temporary license plates that the department may require.
(C) A dealer may not issue, assign, transfer, or deliver temporary license plates to anyone other than a bona fide purchaser or owner of a vehicle being sold by the dealer, nor shall a dealer issue a temporary license plate without first obtaining from the purchaser or owner a written application for the titling and registration of the purchased vehicle with the prescribed fees. The application and fee must be forwarded immediately by the dealer to the department. A dealer may not issue a temporary license plate to anyone purchasing a vehicle that has unexpired license plates which are being transferred to the newly purchased motor vehicle. A dealer may not lend to anyone or use on a vehicle that he may own a temporary license plate.
(D) A dealer who issues temporary license plates shall insert clearly and indelibly on the face of each temporary license plate the date of issuance and expiration, the make, motor and serial numbers of the vehicle, and other information as the department may require.
(E) If the department finds that the provisions of this section are not being complied with by the dealer, the department may suspend, after a hearing, the right of a dealer to issue temporary license plates.
(F) A person to whom a temporary license plate has been issued shall destroy immediately the temporary plate upon receiving the annual license plate from the department. However, if the annual license plate is not received within thirty days of the issuance of the temporary license plate, the owner shall destroy immediately the temporary license plate upon the expiration of the thirty-day period.
(G) Temporary license plates expire upon the receipt of the annual license plates from the department, or upon the rescission of a contract to purchase a motor vehicle, or upon the expiration of thirty days from the date of issuance, whichever occurs first. No refund, credit, or fees paid by dealers to the department for temporary license plates is allowed, except in the event that the department discontinues the issuance of temporary license plates or unless the dealer discontinues business. In this event, the unissued license plates with the unissued registration certificates must be returned to the department and the dealer may petition for a refund.
(H) A temporary license plate may be used only on the vehicle for which it is issued and may not be transferred, loaned, or assigned to another. In the event a temporary license plate or temporary registration certificate is lost or stolen, the owner shall destroy the remaining plate or certificate. The vehicle for which the lost or stolen registration certificate or license plate has been issued may not be operated on the highways until the annual license plate is received and attached to it.
(I) The department has the power to make regulations necessary for the purpose of carrying out the provisions of this section."
SECTION 2. Section 56-3-2320 of the 1976 Code, as last amended by Act 91 of 1991, is further amended to read:
"Section 56-3-2320. (A) The department may issue to a duly licensed motor vehicle dealer or wholesaler, upon Upon application being made and the required fee being paid to the department, dealer or wholesaler license plates may be issued to a duly licensed motor vehicle dealer. The license plates, notwithstanding any provision of this chapter to the contrary, may be used exclusively on motor vehicles owned by the dealer or wholesaler. Dealer or wholesaler plates may not be used to operate wreckers in use by the dealer or wholesaler, nor to operate vehicles owned by the dealer and wholesaler that are leased or rented by the public. Dealer plates may be used solely to test or demonstrate motor vehicles to be sold by the dealer.
No dealer or wholesaler plates may be issued by the department unless the dealer or wholesaler furnishes proof in a form acceptable to the department that he has a retail business license as required by Chapter 36 of Title 12 or wholesaler's certificate of exemption from the Tax Commission and has made at least ten fifteen sales of motor vehicles in the twelve months preceding his application for a dealer or wholesaler plate. Proof of the fifteen sales must be in the form of monthly gross sales reports. The sales requirement may be waived by the department if the dealer or wholesaler has been licensed for less than one year. A dealer may obtain one additional plate for every fifteen sales upon showing to the department proof in the form of monthly gross sales reports. No dealer license plates may be issued to wholesalers.
The Department shall make a distinction between dealer tags and wholesaler tags. No dealer or wholesaler may be issued more than six plates or the number equal to the average number of employees of the dealership during the preceding year, which ever is greater. For good cause shown, the Department in its discretion may issue extra plates.
The cost of each dealer or wholesaler plate issued is twenty dollars.
(B) For purposes of this section, the testing or demonstration of a truck as defined in Section 56-3-20(10) includes permitting a prospective buyer to use the truck for carrying merchandise or cargo for a period not to exceed more than three days upon the dealer providing the buyer with a special demonstration certificate for this purpose. The form and content of the demonstration certificate must be as prescribed by regulation of the department which shall also shall provide certificates to dealers upon their request. The original certificate must be kept by the buyer in the cab of the truck during the three-day demonstration period, and the dealer shall retain a copy of the certificate and shall also mail a copy of the certificate to the department within twenty-four hours after it is issued to the buyer."
SECTION 3. Section 56-15-320 of the 1976 Code is amended to read:
"Section 56-15-320. (1) (A) Before any a license as a `wholesaler' or `dealer' is issued to an applicant, he must file an application with the department and furnish the information the department may require, including, but not limited to, information adequately identifying by name and address any individual who owns or controls ten percent or more of the interest in the business. The policy of this section is full disclosure.
(2)(B) Each applicant for licensure as a dealer or wholesaler must furnish a surety bond in the penal amount of fifteen twenty-five thousand dollars on a form to be prescribed by the director of the Motor Vehicle Division of the department. The bond must be given to the department and executed by the applicant, as principal, and by a corporate surety company authorized to do business in this State, as surety. The bond must be conditioned upon the applicant or licensee complying with the provisions of the statutes applicable to the license and as indemnification for any loss or damage suffered by an owner of a motor vehicle, or his legal representative, by reason of any fraud practiced or fraudulent representation made in connection with the sale or transfer of a motor vehicle by a licensed dealer or wholesaler or the dealer's or wholesaler's agent acting for the dealer or wholesaler or within the scope of employment of the agent or any loss or damage suffered by reason of the violation by the dealer or wholesaler or his agent, of any of the provisions of this chapter. An owner or his legal representative, who suffers the loss or damage has a right of action against the dealer or wholesaler and against the dealer's or wholesaler's surety upon the bond and may recover damages as provided in this chapter. A new bond or a proper continuation certificate must be delivered to the department annually before the license is renewed. However, regardless of the number of years a bond remains in effect, the aggregate liability of the surety for any and all claims is limited to fifteen twenty-five thousand dollars on each bond and to the amount of the actual loss incurred. The surety has the right to terminate its liability under the bond by giving the department thirty days' written notice of its intent to cancel the bond. The cancellation does not affect any liability incurred or accrued prior to before the cancellation."
SECTION 4. Section 56-3-220 of the 1976 Code is repealed.
SECTION 5. This act takes effect upon approval by the Governor.