S 294 Session 110 (1993-1994)
S 0294 General Bill, By Reese
A Bill 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.
01/26/93 Senate Introduced and read first time SJ-27
01/26/93 Senate Referred to Committee on Transportation SJ-28
A BILL
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.
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