Indicates Matter Stricken

Indicates New Matter

 

Committee Report

March 19, 2026

 

H. 3856

 

Introduced by Rep. Erickson

 

S. Printed 3/19/26--S.

Read the first time April 9, 2025

 

________

 

The committee on Senate Transportation

To whom was referred a Bill (H. 3856) 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, etc., respectfully

Report:

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, by striking SECTION 12 and inserting:

SECTION X.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 Immigration Citizenship and Naturalization 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 driver's license applicant's authorized period of stay in the United States;  or (2) the expiration date of the driver's license applicant's employment authorization document, provided the driver's license or identification card is valid for no more than eight years. However, a driver's license issued pursuant to this item is valid for at least one year but not more than eight years from the date of its issue. 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 to 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.

 

SECTION X. 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 forty-five sixty days and must be affixed at all times to the rear of the item in an unobscured and secure manner.

 

SECTION X. Section 56-5-2585 of the S.C. Code is repealed.

 

SECTION X. 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.

 

SECTION X. 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.

    (A)(B)(1) Any liens or encumbrances on a motor vehicle or titled mobile home must be noted on the printed title or noted electronically through the Department of Motor Vehicles' Electronic Title and Lien System electronic title system.

       (2) The department shall 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. This The transmittal must be done made electronically for business commercial entities or by paper certificate for nonbusiness entities (persons purchasing vehicles for personal use from persons selling vehicles they have used primarily for personal use). 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 subsequent lien satisfactions may must be electronically transmitted to the department and shall include the name and address of the person satisfying the lien 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. The owner has the option to retain the electronic copy of the title with the department once all liens are satisfied.

    (3) When 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.The lienholder shall have the option to receive a paper certificate of title and to receive notices of subsequent liens and satisfaction of liens by way of the United States Postal Service. Business entities are subject to fees contained in subsection (D).

    (B) The department is authorized to convene a working group chaired by the director of the department or his designee for the purpose of assisting in the development of program specifications governing the transmission of electronic lien information between lienholders and the department, and maximize the use of the program by various lien stakeholders. The working group will be composed of members of the lienholder community, representing applicable industries. The director is authorized to appoint members of the working group to ensure that all stakeholders are represented. The working group will be a standing group convened on a regular basis until all specifications have been developed. The department also is charged with promulgating regulations pursuant to the specifications and standards for lien recording and releasing developed by the working group.

    (C) All entities submitting lien information electronically under this program are required to comply with all regulations.

    (D)(C) The department is authorized to collect a transaction fee from commercial entities who either transmit or retrieve data from the department pursuant to this section for all liens placed or transmitted in the electronic title system. The fee must not exceed five dollars for each transaction and must be agreed to as part of the program specifications developed by the working group. 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.

    (E)(D) Commercial entities and lenders who that either transmit or retrieve data from the department pursuant to this section, notwithstanding Sections 37-2-202 and 37-3-202, may collect transaction fees from owners of the vehicles or mobile homes a transaction fee for all liens placed or transmitted in the electronic title system. The fee must not to exceed a fee of five dollars for each transaction which must be agreed to as part of the program specifications developed by the working group. All feesAny 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.

    (F) All businesses and commercial lienholders who are regularly engaged in the business or practice of selling motor vehicles as dealers licensed under Chapter 15 of this title or in the business or practice of financing motor vehicles shall utilize the electronic lien system to transmit and receive electronic lien information as described by subsection (A). The department shall maintain contact information on its website for service providers providing an electronic interface between the department, lienholders and sellers of motor vehicles. The department may establish procedures to ensure businesses comply with use of the electronic lien system and to deal with valid exceptions as determined by the department.

    (G)(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 departmentDepartment of Motor Vehicles. The department shall must publish forms for the purpose of filing a continuation statement. The lienholder shall may not make application for lien continuation until no 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.

 

SECTION X. Section 56-19-370(B)(4) of the S.C. Code is amended to read:

 

    (4) No dealer may be prosecuted for not properly 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 in a timely manner. 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.

 

SECTION X. 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, he the lienholder shall, within ten days after demand and, in any event, within thirty days, execute a release of his security interest, in the space provided therefor on the certificate or as the Department of Motor Vehicles prescribes, and mail or or electronically deliver the certificate and release to the Department departmentwhich shall file the release and note it upon the record of security interest maintained by the Department pursuant to Section 56-19-660.  The Department shall then mail the certificate to the next lienholder or if no other lienholder, then to the owner.  No charge shall be made by the lienholder for executing such release.

    (2) Upon the satisfaction of a security interest in a vehicle for which the certificate of title is in the possession of a prior lienholder, the lienholder whose security interest is satisfied shall within ten days after demand, and, in any event, within thirty days execute a release in duplicate in the form the Department prescribes and deliver or mail a copy to the owner and a copy to the Department for notation upon the record of security interests maintained by the Department pursuant to Section 56-19-660.

    (3) Upon failure of the lienholder to forward the certificate to the Department as required by this article he shall be guilty of a misdemeanor and upon conviction thereof, shall be fined not more than one hundred dollars or be imprisoned for not more than thirty days.

    (2) If payment for lien satisfaction is received by paper, then the lienholder shall execute the release within ten business days of receipt of payment. If payment for lien satisfaction is received electronically, then the lienholder shall execute the release within three business days of receipt of payment.

    (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.

Amend the bill further, by striking SECTION 13, and inserting:

SECTION 13. 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 not later than March 31, 2027.

Renumber sections to conform.

Amend title to conform.

 

LAWRENCE GROOMS for Committee.

 

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A bill

 

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 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; AND BY AMENDING SECTION 56-37-70, RELATING TO SUSPENSIONS OF LICENSES, SO AS TO DELETE THE TERM "CERTIFIED" AND REPLACE IT WITH THE TERM "NORMAL."

 

Be it enacted by the General Assembly of the State of South Carolina:

 

SECTION 1.  Section 56-1-80(B)(4) of the S.C. Code is amended to read:

 

    (B)(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 an inaccurate blood type information indicated on a person's driver's license or driver's record when the license holder, physician, or medical provider provided the inaccurate blood type information on the forms required pursuant to this section.

SECTION 2.  Section 56-1-3350(A) of the S.C. Code is amended to read:

 

    Section 56-1-3350. (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; and

       (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 itemsubitem (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.

 

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.

 

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) The license plateLicense 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.

 

SECTION 5.  Section 56-3-2320(A)(1) and (2) of the S.C. Code is amended to read:

 

    (A)(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 twentyfifteen 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 twentyfifteen 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 twentyfifteen 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.

 

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 twelvethirty-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 fiftyone hundred and fifty dollars.

 

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 ten 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.

 

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. The annual fee for an instructor permit is twenty dollars, and all Driver instructor permits shall expire on June thirtieth 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.

 

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) issuance of any temporary license plate to a person not authorized to have the plate;

       (5)(4) misuse of dealer, transporter, or wholesale auto auction plate; and

       (6)(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) conviction by the licensee involving acquisition or transfer of a title to a vehicle;

       (10)(9) conviction by the licensee of a criminal offense or judgment in a civil case in which there is fraud connected to the sale or transfer of a vehicle; issuance of any temporary license plate to a person not authorized to have the plate. and

       (11) use of fraudulent methods or practices.

 

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.

 

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.

 

SECTION 12. Section 56-1-15 (C), (D), and (E) of the S.C. Code is amended to read:

 

    (C) The department must randomly test driver's license applicants who successfully complete the driver's license examination pursuant to subsection (A) to ensure that the driver's license instructors are properly certifying that their students have successfully completed a driver's license examination.

    (D)(C) If through testing or other review procedures, the department determines that a contractor is not conforming to the law and regulations applicable to licensing, it may:

       (1) suspend the authority of a particular individual or entity operating under the contract to administer the tests;

       (2) suspend the contract;

       (3) cancel the contract.

    (E) The department must test randomly a driver's license applicant only at the time the applicant is seeking his initial driver's license at the Department of Motor Vehicles.

 

SECTION 13. This act takes effect six months after approval by the Governor.

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