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COMMITTEE REPORT
March 6, 2002
H. 4641
S. Printed 3/6/02--H.
Read the first time February 5, 2002.
To whom was referred a Bill (H. 4641) to amend Chapter 15, Title 56, Code of Laws of South Carolina, 1976, relating to the regulation of motor vehicle manufacturers, distributors, and dealers, etc., respectfully
That they have duly and carefully considered the same and recommend that the same do pass with amendment:
Amend the bill, as and if amended, Section 56-15-410(B), as contained in SECTION 1, by deleting lines 1 and 2 on page 2, and inserting:
/ continuing education courses within a year of renewing his license. /
Amend the bill further, Section 56-15-410(C), as contained in SECTION 1, by striking lines 5 and 6 on page 2, and inserting:
/ continuing education courses within a year of renewing his license . /
Amend the bill further Section 1, page 3, by striking the / " / on line 27, and inserting after line 28:
/ Section 56-15-430. The provisions contained in Sections 56-15-410 and 56-15-420 shall not apply to a franchised automobile dealer or a nonfranchised automobile dealer owned by a franchised automobile dealer. /
Renumber sections to conform.
Amend title to conform.
HARRY F. CATO for Committee.
TO AMEND CHAPTER 15, TITLE 56, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE REGULATION OF MOTOR VEHICLE MANUFACTURERS, DISTRIBUTORS, AND DEALERS, BY ADDING ARTICLE 4 SO AS TO REQUIRE NONFRANCHISE AUTOMOBILE DEALERS TO COMPLETE CERTAIN PRE-LICENSING AND CONTINUING EDUCATION COURSES BEFORE BEING ISSUED A DEALER'S LICENSE OR HAVING A DEALER'S LICENSE RENEWED, AND TO PROVIDE FOR THE CREATION, MEMBERSHIP, AND PURPOSE OF THE SOUTH CAROLINA INDEPENDENT EDUCATION ADVISORY BOARD, WHICH SHALL ASSIST WITH THE CONTINUING EDUCATION REQUIREMENTS OF NONFRANCHISE AUTOMOBILE DEALERS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Chapter 15, Title 56 of the 1976 Code is amended by adding:
Section 56-15-410. (A) An applicant for an initial nonfranchise automobile dealer license must successfully complete at least eight hours of pre-licensing education courses before he may be issued a license.
(B) A nonfranchise automobile dealer with less than ten years of continuous licensure must complete at least six hours of continuing education courses a year before his license may be renewed.
(C) A nonfranchise automobile dealer with at least ten years of continuous licensure must complete at least three hours of continuing education courses a year before his license may be renewed.
(D) A nonfranchise automobile dealer must be assessed one hundred dollars by the Department of Public Safety at the time he is licensed or renews his license which shall offset the costs for the administration of the nonfranchise automobile dealer pre-licensing and continuing education program. This fee must be placed by the Comptroller General in a special account to be used by the Department of Public Safety to defray the expenses of the Division of Motor Vehicles to administer this program.
(E) A nonfranchise automobile dealer whose primary business objective is the rebuilding of salvage motor vehicles, as regulated by Title 56, is exempt from the requirements of this article.
(F) A nonfranchise automobile dealer whose primary business objective and substantial business activity is the rental of motor vehicles, as regulated by Title 56, is exempt from the requirements of this article.
Section 56-15-420. (A) There is created the South Carolina Independent Education Advisory Board within the Division of Motor Vehicles which consists of nine members. All members must be residents of this State. One member must be from the general public. One member must be engaged in consumer lending for automobile purchases. One member must represent an entity that provides continuing education for independent automobile dealers. Four members must be licensed nonfranchise automobile dealers with at least three years of business experience. One member must be a county auditor who shall serve as a nonvoting member. The Director of the Department of Public Safety or his designee shall serve as an ex officio nonvoting member of the board.
(B) The members of the board, excluding the Director of the Department of Public Safety, may be nominated by an individual, group, or association and must be appointed by the Governor.
(C) The term of each member of the board, excluding the Director of the Department of Public Safety, is three years and until his successor is appointed and qualified. In the event of a vacancy, the Governor shall appoint a person to fill the vacancy, and the person appointed shall serve for the remainder of the unexpired term.
(D) Upon expiration of their terms, members of the board shall continue to hold office until appointment and qualification of their successors. A person shall not serve as a member of the board for more than two consecutive terms. The Governor, after giving notice and opportunity for a hearing, may remove from office a member of the board for:
(1) inability to perform or neglecting to perform the duties required of members;
(2) incompetence; or
(3) dishonest conduct.
(E) The members of the board shall annually elect a chairman, vice chairman, and other officers the board determines necessary from among the members to preside at board meetings.
(F) The board shall meet at least once each calendar quarter, or as often as is necessary, and remain in session as long as the chairman considers it necessary to give full consideration to the business before the board. A quorum of the board is four members.
(G) Members to the board are entitled to per diem, subsistence, and mileage as provided by law for state boards, committees, and commissions.
(H) The board shall approve pre-licensing and continuing education curriculum, courses, and instructors, and ensure that nonfranchise automobile dealers comply with the pre-licensing and continuing education requirements contained in this article."
SECTION 2. This act takes effect January 1, 2003.
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