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H. 3856
STATUS INFORMATION
General Bill
Sponsors: Rep. Erickson
Document Path: LC-0146CM25.docx
Introduced in the House on January 30, 2025
Introduced in the Senate on April 9, 2025
Last Amended on March 26, 2026
Currently residing in the House
Summary: Department of Motor Vehicles
HISTORY OF LEGISLATIVE ACTIONS
| Date | Body | Action Description with journal page number |
|---|---|---|
| 1/30/2025 | House | Introduced and read first time (House Journal-page 41) |
| 1/30/2025 | House | Referred to Committee on Education and Public Works (House Journal-page 41) |
| 4/2/2025 | House | Committee report: Favorable with amendment Education and Public Works (House Journal-page 2) |
| 4/4/2025 | Scrivener's error corrected | |
| 4/8/2025 | House | Amended (House Journal-page 10) |
| 4/8/2025 | House | Read second time (House Journal-page 10) |
| 4/8/2025 | House | Roll call Yeas-97 Nays-0 (House Journal-page 13) |
| 4/9/2025 | House | Read third time and sent to Senate (House Journal-page 19) |
| 4/9/2025 | Senate | Introduced and read first time (Senate Journal-page 4) |
| 4/9/2025 | Senate | Referred to Committee on Transportation (Senate Journal-page 4) |
| 4/9/2025 | Scrivener's error corrected | |
| 4/30/2025 | Scrivener's error corrected | |
| 3/19/2026 | Senate | Committee report: Favorable with amendment Transportation (Senate Journal-page 7) |
| 3/26/2026 | Senate | Committee Amendment Adopted (Senate Journal-page 29) |
| 3/26/2026 | Senate | Amended (Senate Journal-page 29) |
| 3/26/2026 | Senate | Read second time (Senate Journal-page 29) |
| 3/26/2026 | Senate | Roll call Ayes-37 Nays-0 (Senate Journal-page 29) |
| 3/31/2026 | Senate | Read third time and returned to House with amendments (Senate Journal-page 23) |
| 4/1/2026 | House | Concurred in Senate amendment and enrolled (House Journal-page 28) |
| 4/1/2026 | House | Roll call Yeas-110 Nays-0 (House Journal-page 29) |
| 4/1/2026 | Ratified R 123 | |
| 4/6/2026 | Signed By Governor |
View the latest legislative information at the website
VERSIONS OF THIS BILL
1/30/2025
4/2/2025
4/4/2025
4/8/2025
4/9/2025
4/30/2025
3/19/2026
3/26/2026
(R123, H3856)
AN ACT TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING SECTION 56-1-80, RELATING TO APPLICATIONS FOR LICENSES OR PERMITS, SO AS TO DELETE THE TERM "BLOOD TYPE" AND REPLACE IT WITH THE TERM "INFORMATION"; BY AMENDING SECTION 56-1-3350, RELATING TO ISSUANCE OF SPECIAL IDENTIFICATION CARDS AND VETERAN DESIGNATIONS ON DRIVERS' LICENSES, SO AS TO PROVIDE DOCUMENTATION THAT MUST BE SUBMITTED ON APPLICATIONS FOR A PERSON'S BLOOD TYPE TO APPEAR ON A SPECIAL IDENTIFICATION CARD, AND TO PROVIDE A CAUSE OF ACTION BASED ON INACCURATE INFORMATION CONTAINED ON IDENTIFICATION CARDS OR DRIVERS' RECORDS; BY AMENDING SECTION 56-3-20, RELATING TO DEFINITIONS, SO AS TO DEFINE THE TERM "RENTAL TRAILER"; BY AMENDING SECTION 56-3-785, RELATING TO ISSUANCE OF PERMANENT LICENSE PLATES TO CERTAIN OWNERS OF TRAILERS AND SEMITRAILERS, SO AS TO PROVIDE FOR THE ISSUANCE OF LICENSE PLATES TO OWNERS OF RENTAL TRAILERS, AND TO MAKE TECHNICAL CHANGES; BY AMENDING SECTION 56-3-2320, RELATING TO DEALER AND WHOLESALER LICENSE PLATES, SO AS TO REVISE THE NUMBER OF MOTOR VEHICLE SALES THAT MUST BE MADE BEFORE DEALER PLATES MAY BE ISSUED; BY AMENDING SECTION 56-15-560, RELATING TO APPLICATIONS FOR WHOLESALE MOTOR VEHICLE AUCTION LICENSES AND FEES, SO AS TO REVISE EXPIRATION DATES FOR THE LICENSES AND INCREASE THE LICENSE FEES; BY AMENDING SECTION 56-19-10, RELATING TO DEFINITIONS, SO AS TO REVISE THE DEFINITION OF THE TERM "BUS"; BY AMENDING SECTION 56-23-85, RELATING TO DRIVER INSTRUCTOR PERMITS, SO AS TO REVISE THE EXPIRATION DATES FOR THE PERMITS AND PROVIDE A SCHEDULE OF FEES; BY AMENDING SECTION 56-37-30, RELATING TO ESTABLISHMENT OF THE POINTS SYSTEM FOR EVALUATING PERFORMANCE RECORDS OF DEALERS, SO AS TO ELIMINATE CERTAIN CONDUCT THAT RESULTS IN POINT VIOLATIONS AND ADD ADDITIONAL CONDUCT THAT RESULTS IN POINT VIOLATIONS; BY AMENDING SECTION 56-37-70, RELATING TO SUSPENSIONS OF LICENSES, SO AS TO PROVIDE THE DEPARTMENT OF MOTOR VEHICLES MAY NOTIFY CERTAIN PERSONS BY CERTIFIED MAIL OR ELECTRONIC TRACKING; BY AMENDING SECTION 56-3-1010, RELATING TO TERMS AND THEIR DEFINITIONS ASSOCIATED WITH CORPORATE-OWNED FLEET MOTOR VEHICLES, SO AS TO REVISE THE DEFINITION OF THE TERM "FLEET"; BY AMENDING SECTION 56-1-40, RELATING TO PERSONS WHO MAY NOT BE LICENSED OR HAVE THEIR LICENSES RENEWED, SO AS TO MAKE TECHNICAL CHANGES, TO PROVIDE THIS PROVISION APPLIES TO THE ISSUANCE OF IDENTIFICATION CARDS, TO ESTABLISH THE MAXIMUM PERIOD DRIVERS' LICENSES AND IDENTIFICATION CARDS ARE VALID, TO PROVIDE A FEE FOR IDENTIFICATION CARDS, AND TO PROVIDE THE DEPARTMENT OF MOTOR VEHICLES CERTAIN DISCRETION WHEN GRANTING EXTENSIONS TO DRIVERS' LICENSES AND IDENTIFICATION CARDS; BY AMENDING SECTION 56-3-210, RELATING TO THE ISSUANCE OF TEMPORARY LICENSE PLATES, SO AS TO INCREASE THE MAXIMUM PERIOD THE LICENSE PLATES ARE VALID; BY REPEALING SECTION 56-5-2585 RELATING TO EXEMPTING PURPLE HEART RECIPIENTS FROM PAYING PARKING METER FEES; BY AMENDING SECTION 56-19-10, RELATING TO PROTECTION OF TITLES TO AND INTERESTS IN MOTOR VEHICLES, SO AS TO PROVIDE ADDITIONAL TERMS AND THEIR DEFINITIONS; BY AMENDING SECTION 56-19-265, RELATING TO LIENS OR ENCUMBRANCES RECORDED ON MOTOR VEHICLES OR MOBILE HOMES, SO AS TO REQUIRE CERTAIN ENTITIES TO UTILIZE THE DEPARTMENT OF MOTOR VEHICLE'S ELECTRONIC TITLE SYSTEM, AND TO REVISE THE PROVISIONS THAT ESTABLISH THE PROCEDURES TO TRANSFER VEHICLE OWNERSHIP, APPLY FOR AND THE RELEASE OF LIENS, AND PERFORM OTHER ACTIVITIES NECESSARY TO TITLE CERTAIN VEHICLES; TO AMEND SECTION 56-19-370, RELATING TO PROCEDURES FOR THE VOLUNTARY TRANSFER OF CERTAIN VEHICLES BY DEALERS, SO AS TO REVISE THE CONDITIONS THAT ALLOW THE PROSECUTION OF DEALERS FOR IMPROPERLY TITLING OR REGISTERING VEHICLES; AND BY AMENDING SECTION 56-19-680, RELATING TO THE SATISFACTION OF SECURITY INTERESTS IN VEHICLES FOR WHICH CERTIFICATES OF TITLES ARE IN THE POSSESSION OF LIENHOLDERS, SO AS TO REVISE THE PROCEDURES WHEREBY LIENHOLDERS' INTERESTS ARE RELEASED, AND TO PROVIDE A PENALTY FOR THE FAILURE OF LIENHOLDERS TO FORWARD CERTAIN CERTIFICATES OF TITLE TO THE DEPARTMENT OF MOTOR VEHICLES.
Be it enacted by the General Assembly of the State of South Carolina:
Applications for drivers' licenses or permits
SECTION 1. Section 56-1-80(B)(4) of the S.C. Code is amended to read:
(4) No cause of action may arise nor may liability be imposed against any person, government entity, or government entity officer, agent, or employee arising from any action taken by any person in reliance upon inaccurate information indicated on a person's driver's license or driver's record when the license holder, physician, or medical provider provided the inaccurate information on the forms required pursuant to this section.
Designations on drivers' licenses
SECTION 2. Section 56-1-3350(A) of the S.C. Code is amended to read:
(A) Upon application by a person five years of age or older, who is a resident of South Carolina, the department shall issue a special identification card provided that the:
(1) application is made on a form approved and furnished by the department;
(2) applicant presents to the person issuing the identification card a birth certificate or other evidence acceptable to the department of his name and date of birth;
(3) applicant, who wishes to obtain a special identification card that indicates the applicant is autistic, complies with subsections (A)(1) and (A)(2) and provides documentation that he is autistic from a physician licensed in this State, as defined in Chapter 47, Title 40. The special identification requested must be indicated by a symbol designated by the department on the person's special identification card;
(4) applicant, who wishes to obtain a special identification card that voluntarily discloses their blood type, complies with subsections (A)(1) and (A)(2) and provides documentation on a form prescribed by the department and includes a certification from a physician or medical provider. Blood type must be indicated by a symbol designated by the department on the identification card and contained in the driver's record. The department may use the same symbol used to indicate voluntary disclosure of a permanent medical condition;
(5) applicant, who wishes to obtain a special identification card that indicates the applicant has voluntarily disclosed a permanent medical condition, complies with subsection (A)(1) and (A)(2), and provides documentation of the medical condition from a physician licensed in this State, as defined in Chapter 47, Title 40. The record of an identification card holder may not contain more than three permanent medical conditions unless subitem (A)(3) applies. The information contained on a special identification card and in the special identification card holder's department records pertaining to his autism, as provided for in subitem (3), blood type as provided for in subitem (4), or his permanent medical condition, as provided for in this item, may not be sold, is exempt from disclosure pursuant to Chapter 4, Title 30, the South Carolina Freedom of Information Act, and may be released upon request only to:
(a) law enforcement, emergency medical services, and hospital personnel;
(b) the medical advisory board pursuant to Section 56-1-221;
(c) permitted entities pursuant to the Driver Privacy Protection Act, 18 U.S.C.A. 2721; and
(d) the person to whom the records of the permanent medical condition applies;
(6) no cause of action may arise nor may liability be imposed against any person, government entity, or government entity officer, agent, or employee arising from any action taken by any person in reliance upon inaccurate information indicated on a person's identification card or driver's record when the card holder, physician, or medical provider provided inaccurate information on the forms required pursuant to this section.
Definitions
SECTION 3. Section 56-3-20 of the S.C. Code is amended by adding:
(32) "Rental trailer" means a utility trailer that is registered to a company or business actively engaged in the practice of renting utility trailers. The term "rental trailer" shall not include trailers or semitrailers rented or leased to any person for use by such lessee in the furtherance of or as an incident to any commercial or industrial enterprise in interstate commerce or for the use in connection with any business or occupation carried on in interstate commerce by the lessee.
Issuance of license plates
SECTION 4. Section 56-3-785 of the S.C. Code is amended to read:
Section 56-3-785. (A) Upon proper application, the Department of Motor Vehicles may issue a registration and license plate on a permanent basis for semitrailers, regular trailers, rental trailers, and utility trailers.
(B) The fee for the license is seventy-five dollars for each semitrailer, regular trailer, rental trailer, and utility trailer, and is not transferable. The fee must be paid in one sum. After the initial issuance of the license the owner shall remit annually to the department on a form furnished by the department a report of the units still in use and units which must be deleted and return the licenses issued to the units no longer in use. Failure to furnish required forms by the due date established by the department results in a fine not to exceed fifty dollars. A permanent license may be purchased for chassis, specially constructed to transport international shipping containers, without being required to furnish a South Carolina address if the chassis is not for domicile.
(C) License plates for semitrailers, regular trailers and utility trailers must be the same size of regular license plates and design as specified by the department. The size and design of rental trailer license plates issued pursuant to this section shall be determined by the department.
Dealer and wholesale dealer license plates
SECTION 5. Section 56-3-2320(A)(1) and (2) of the S.C. Code is amended to read:
(1) Upon application being made and the required fee being paid to the Department of Motor Vehicles, the department may issue dealer license plates to a licensed motor vehicle dealer. The license plates, notwithstanding other provisions of this chapter to the contrary, may be used exclusively on motor vehicles owned by, assigned, or loaned for test driving purposes to the dealer when operated on the highways of this State by the dealer, its corporate officers, its employees, a prospective purchaser of the motor vehicle, or a person whose vehicle is being serviced or repaired by the dealer. The use by a prospective purchaser is limited to seven days, and the dealer shall provide the prospective purchaser with a dated demonstration certificate. A dealer license plate may be used by a person whose vehicle is being serviced or repaired by the dealership, provided that the vehicle displaying the license plate is part of a manufacturer program and given to the person by the dealer at no charge to the consumer. The use of a dealer license plate by the consumer for service and repair is limited to thirty days. The demonstration certificate for a prospective customer must be approved by the department. Dealer plates must not be used to operate wreckers or service vehicles in use by the dealer nor to operate vehicles owned by the dealer that are leased or rented by the public. No dealer plates may be issued by the department unless the dealer furnishes proof in a form acceptable to the department that he has a retail business license as required by Chapter 36, Title 12 and has made at least fifteen sales of motor vehicles in the twelve months preceding his application for a dealer plate. The sales requirement may be waived by the department if the dealer has been licensed for less than one year. For purposes of this section, the transfer of ownership of a motor vehicle between the same individual or corporation more than one time is considered as only one sale. Multiple transfer of motor vehicles between licensed dealers for the purpose of meeting eligibility requirements for motor vehicle dealer plates is prohibited.
(2) A dealer may be issued two plates for the first fifteen vehicles sold during the preceding year and one additional plate for each fifteen vehicles sold beyond the initial fifteen during the preceding year. A dealer participating in a manufacturer program may be issued two additional plates for each fifteen vehicles sold beyond the initial fifteen during the preceding year. For good cause shown, the department in its discretion may issue extra plates. If the dealer has been licensed less than one year, the department shall issue a number of license plates based on an estimated number of sales for the coming year. The department may increase or decrease the number of plates issued based on actual sales made.
Wholesale motor vehicle auctions
SECTION 6. Section 56-15-560 of the S.C. Code is amended to read:
Section 56-15-560. Before engaging in business as a wholesale motor vehicle auction in this State, an application must be filed with the Department of Motor Vehicles furnishing the information it requires including, but not limited to, information adequately identifying by name and address individuals who own or control ten percent or more of the interest of the applicant. Each license issued expires thirty-six months from the month of issuance and must be displayed prominently at the established place of business. The license applies to only one place of business of the applicant and is not transferable to another person or place of business. The fee for the license is one hundred and fifty dollars.
Definitions
SECTION 7. Section 56-19-10(3) of the S.C. Code is amended to read:
(3) "Bus" means every motor vehicle designed for carrying more than sixteen passengers and used for the transportation of persons and every motor vehicle, other than a taxicab, designed and used for the transportation of persons for compensation.
Driver instructor permits
SECTION 8. Section 56-23-85 of the S.C. Code is amended to read:
Section 56-23-85. A person connected with driver training schools or private, parochial, or public high schools shall not engage in either classroom only instruction, or behind the wheel only instruction, or both, unless the person has obtained and holds a valid driver instructor permit or temporary driver instructor permit issued by the Department of Motor Vehicles.
Appropriate examination for an instructor permit must be at the discretion of the department. Driver instructor permits shall expire on the date of license expiration of the respective driver training school for which the driver instructor is permitted. Fees for driver instructor permits shall be according to the following schedule: the fee for each driver instructor permit issued with a validity period of one to twelve months shall be twenty dollars, the fee for each driver instructor permit issued with a validity period of thirteen to twenty-four months shall be forty dollars, the fee for each driver instructor permit issued with a validity period of twenty-five to thirty-six months shall be sixty dollars, and the fee for each driver instructor permit issued with a validity period of thirty-seven to forty-eight months shall be eighty dollars. Public and private high school instructors are not required to pay a fee for a permit. The proceeds from the sale of instructor permits must be deposited in the state general fund.
Points system
SECTION 9. Section 56-37-30 (B), (C), and (D) of the S.C. Code is amended to read:
(B) For multiple record errors over a six-month period of time, the department may impose a two-point violation against a dealer license for the following:
(1) errors or omissions on transactions regarding incoming or outgoing documents;
(2) incorrect acquisition or sale dates;
(3) incorrect vehicle identification numbers;
(4) incorrect make, model, or type of body;
(5) incorrect incoming or outgoing odometer reading;
(6) incorrect name and address of the person a vehicle was acquired from or transferred to;
(7) inability to provide an account for a dealer, transporter, or wholesale auto auction plate; or
(8) issuance of a second temporary plate to a purchaser without prior authorization by the department.
(C) The following are four-point violations:
(1) dealer selling at address different than indicated on dealer application and license;
(2) failure to deliver a title to a buyer or the department within forty-five days of the date of sale;
(3) reasonable records request unavailable upon the demand of the department;
(4) misuse of dealer, transporter, or wholesale auto auction plate; and
(5) operating or allowing the operation of a vehicle with a suspended dealer plate.
(D) The following are six-point violations:
(1) selling out-of-trust or breach-of-trust;
(2) possession of an open title;
(3) altering or changing documents to avoid or delay registration;
(4) maintaining or producing fraudulent records;
(5) licensure as a wholesaler dealer only, but selling vehicles retail;
(6) having a volume of sales that do not warrant the number of license plates issued;
(7) dealer or auction facilitating a wholesaler selling retail;
(8) failure to remit any state-owed fees within the time period prescribed by law to the department; and
(9) issuance of any temporary license plate to a person not authorized to have the plate.
Suspension of licenses
SECTION 10. Section 56-37-70(C) of the S.C. Code is amended to read:
(C) The department must suspend the license of any dealer for three years upon the third accumulation of twelve points within a three-year period. Dealers may not reapply for any kind of dealer license for three years after the last issued points. Should the provisions of this subsection apply, then the department may deny applications for any type of dealer license when the applicant is a member of the immediate family of the suspended dealer. The department shall notify the licensee or applicant by certified mail or certified mail with electronic tracking at the mailing address provided in his application of its intention to suspend his license at least thirty days in advance and shall provide the licensee an opportunity for a contested case hearing before the Office of Motor Vehicle Hearings pursuant to its rules of procedure and the Administrative Procedures Act of this State. A licensee desiring a contested case hearing must request the hearing in writing within thirty days of receiving notice of the proposed suspension of his dealer's or wholesaler's license. Should the dealer not request a contested case hearing from the Office of Motor Vehicle Hearings within thirty days of receiving notice of the proposed suspension, then the suspension of the dealer license must go into effect. If the dealer requests a contested case hearing from the Office of Motor Vehicle Hearings within thirty days of receiving notice of the proposed suspension, then the dealer may continue to operate until the Office of Motor Vehicle Hearings makes a final ruling in the contested case. Upon the suspension of a license, the licensee shall immediately return to the department the license and all dealer license plates.
Definitions
SECTION 11. Section 56-3-1010(1) of the S.C. Code is amended to read:
(1) "Fleet" means fifty or more marked private passenger motor vehicles or property carrying vehicles with empty weight of not more than twenty-two thousand pounds and a gross vehicle weight of not more than twenty-six thousand pounds, owned or long-term leased by a corporation or other legal entity, and registered in this State pursuant to this article. A rental company as defined in Section 56-31-20 is not required to have marked vehicles as a part of the "fleet" definition.
Issuance and renewal of licenses
SECTION 12.A. Section 56-1-40(7) of the S.C. Code is amended to read:
(7) who is not a resident of South Carolina. For purposes of determining eligibility to obtain or renew a South Carolina driver's license, the term "resident of South Carolina" shall expressly include all persons authorized by the United States Department of Justice, the United States Citizenship and Immigration Service, or the United States Department of State to live, work, or study in the United States on a temporary or permanent basis who present documents indicating their intent to live, work, or study in South Carolina. These persons and their dependents are eligible to obtain a motor vehicle driver's license or identification card or have one renewed pursuant to this provision. A driver's license or identification card issued pursuant to this item to a person who is not a lawful permanent resident of the United States shall expire on the later of: (1) the expiration date of the applicant's authorized period of stay in the United States; or (2) the expiration date of the applicant's employment authorization document, provided the driver's license or identification card is valid for no more than eight years. Under this provision, a driver's license valid for not more than four years must be issued upon payment of a fee of twelve dollars and fifty cents. A driver's license that is valid for more than four years must be issued upon payment of a fee of twenty-five dollars. The fee for an identification card is pursuant to Section 56-1-3350. In addition, a person pending adjustment of status who presents appropriate documentation in the discretion of the Department of Motor Vehicles shall be granted a one-year extension of his driver's license or identification card, which is renewable annually;
B. This section is effective on August 6, 2026.
Vehicle registration
SECTION 13. Section 56-3-210(L) of the S.C. Code is amended to read:
(L) All temporary license plates must be valid for no more than sixty days and must be affixed at all times to the rear of the item in an unobscured and secure manner.
Repeal
SECTION 14. Section 56-5-2585 of the S.C. Code is repealed.
Definitions
SECTION 15. Section 56-19-10 of the S.C. Code is amended by adding:
(51) "Electronic" means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities.
(52) "Physical odometer document" means a physical document as defined in the United States Code of Federal Regulations, Title 49, Part 580, containing an odometer disclosure statement printed on paper by a secure printing process or other secure process by any jurisdiction in compliance. Physical odometer documents, for the purposes of this section, are limited to certificates of title, secure powers of attorney, and reassignment documents. The term does not include any other form or document, even if the document contains a space for an odometer reading.
Electronic title system
SECTION 16. Section 56-19-265 of the S.C. Code is amended to read:
Section 56-19-265. (A) All commercial entities located in this State that are engaged in vehicle titling must utilize the Department of Motor Vehicle's electronic title system. The electronic title system must be funded exclusively through transaction fees paid by commercial entities engaged in vehicle titling. The system must enable all commercial entities including, but not limited to, dealers, lenders, and auctions, to:
(1) transfer vehicle ownership;
(2) apply for and release liens; and
(3) perform any other components necessary to perform vehicle titling.
(B)(1) Any liens or encumbrances on a motor vehicle or titled mobile home must be noted on the title or noted electronically through the electronic title system.
(2) The department must electronically transmit a motor vehicle title or titled mobile home title and the lien to the first lienholder and notify the first lienholder of additional liens. The transmittal must be made electronically for commercial entities. Paper certificates of title may be used or requested for casual sales of automobiles between individuals, or as otherwise directed by department policy. Lien recordings and lien satisfactions must be electronically transmitted to the department pursuant to department policy. Electronic transmission of liens and lien satisfaction does not require a certificate of title until the last lien is satisfied and a clear certificate of title is issued to the owner of the motor vehicle or mobile home.
(3) If a motor vehicle or mobile home is subject to an electronic lien, then the certificate of title for the motor vehicle or mobile home is considered to be physically held by the lienholder for purposes of compliance with state or federal odometer disclosure requirements, and a duly certified copy of the department's electronic record of the lien is admissible in any civil, criminal, or administrative proceeding in this State as evidence of the existence of the lien. The department must electronically transmit to the lienholder a certificate of title and notice of subsequent liens and satisfactions of liens.
(C) The department is authorized to collect a transaction fee from commercial entities for all liens placed or transmitted in the electronic title system. The fee must not exceed five dollars for each transaction. These fees must be placed by the State Treasurer into the State Highway Fund as established by Section 57-11-20, to be distributed as provided in Section 11-43-167.
(D) Commercial entities and lenders that either transmit or retrieve data from the department pursuant to this section, notwithstanding Sections 37-2-202 and 37-3-202, may collect from owners of vehicles or mobile homes a transaction fee for all liens placed or transmitted in the electronic title system. The fee must not exceed five dollars for each transaction. Any fee charged by the department or its third-party contractors to any party as to a titled motor vehicle, motor home, or mobile home for purposes of transmittal or retrieval of this data is an "official fee" as referenced in Sections 37-2-202 and 37-3-202.
(E) Any lien upon a vehicle titled by the State, except upon vehicles defined as motor homes, mobile homes, special mobile equipment, or commercial trucks, shall be deemed effective for a period of twelve years from the date the lien was perfected. The effectiveness of the lien lapses at the end of this twelve-year period unless a continuation statement is filed pursuant to this subsection by the entity existing on the current title as lienholder using the application process acceptable by the department. The department must publish forms for the purpose of filing a continuation statement. The lienholder may make application for lien continuation not more than six months prior to lien expiration. Upon a timely filing of a continuation statement in accordance with this subsection, the lien will be effective for a period of two additional years from the date of the filing of the continuation statement. The responsibility of lien continuation lies with the lender. The twelve-year effective lien period refers to the age of the lien, not the age of the vehicle.
Volunteer transfer of vehicles
SECTION 17. Section 56-19-370(B)(4) of the S.C. Code is amended to read:
(4) A dealer may not be prosecuted for improperly titling or registering a vehicle within forty-five days if the department has placed the title in suspended status or if a financial institution has not released the lien pursuant to Section 56-19-680.
Satisfaction of security interest in a vehicle
SECTION 18. Section 56-19-680 of the S.C. Code is amended to read:
Section 56-19-680. (1) Upon the satisfaction of a security interest in a vehicle for which the certificate of title is in the possession of the lienholder, the lienholder shall execute a release of his security interest as the Department of Motor Vehicles prescribes, and mail or electronically deliver the certificate and release to the department.
(2) If payment for lien satisfaction is received by paper, then the lienholder shall execute the release within ten business days, excluding federal and state holidays, after confirmation that the funds are good and that the lien is fully satisfied. If payment for lien satisfaction is received electronically, then the lienholder shall execute the release within three business days, excluding federal and state holidays, after confirmation that the funds are good and that the lien is fully satisfied.
(3) If the payment is deemed to be cleared by the department, then the department shall electronically transmit the certificate of title to the next lienholder or, if there is no other lienholder, then to the owner. The department shall file the release and note it upon the record of security interest maintained by the department pursuant to Section 56-19-660. The certificate of title shall remain in electronic format unless the owner requests a paper certificate of title pursuant to Section 56-19-265. No charge shall be made by the lienholder for executing such release.
(4) Failure of the lienholder to forward the certificate of title to the department as required by this article is a misdemeanor punishable by a fine of not more than one hundred dollars or imprisonment of not more than thirty days.
Time effective
SECTION 19. This act takes effect six months after approval by the Governor. The South Carolina Department of Motor Vehicles shall contract with a third party to implement an electronic title system as described in Section 56-19-265, which shall be operational no later than March 31, 2027.
Ratified the 1st day of April, 2026.
Approved the _____________ day of _________________________________________2026.
This web page was last updated on April 1, 2026 at 6:56 PM