Exempt trailer manufacturers and trailer dealers from certain provisions regarding motor vehicle dealer license requirements.
Summary
SB 107 amends South Dakota’s motor vehicle dealer licensing laws to carve out trailer manufacturers and trailer dealers from certain provisions that otherwise apply to motor vehicle dealers. The bill specifically targets manufacturers and dealers engaged in making, assembling, or selling trailers that are not semitrailers or travel trailers, and it references trailers with a weight of 3,000 pounds or less. In practical terms, the measure narrows the reach of several sections in chapter 32-6B so that these trailer businesses are not subject to the same dealer-franchise rules as other motor vehicle dealers for the covered activities.
At the same time, the bill states that this exemption should not be read to remove the general licensing and other requirements that still apply under the chapter. So SB 107 does not eliminate trailer dealer regulation altogether; rather, it creates a limited exemption from specified dealer-franchise provisions while preserving the broader regulatory framework for licensing and compliance.
Impact
If enacted, SB 107 would amend § 32-6B-56.1 of the South Dakota Codified Laws and reduce the application of several motor vehicle dealer franchise provisions to certain trailer manufacturers and trailer dealers. The affected parties are businesses that manufacture, assemble, or sell qualifying trailers, especially smaller trailers under 3,000 pounds and not classified as semitrailers or travel trailers. The bill would leave intact other licensing and regulatory requirements in chapter 32-6B, so the change is targeted rather than a wholesale deregulation of the trailer industry.
Sentiment
The voting history suggests the bill had meaningful support but also faced some resistance. It received do-pass recommendations in committee and a favorable floor vote in the Senate, but the margin was not overwhelming, indicating that members generally supported the idea of tailoring dealer-law requirements to trailer businesses while some lawmakers remained unconvinced or concerned about the scope of the exemption. No committee transcripts were provided, so the available record shows support in principle but not a strong consensus.
Contention
The main point of contention appears to be whether trailer manufacturers and trailer dealers should be exempted from the same dealer-franchise provisions that govern motor vehicle dealers. Supporters likely view the bill as a narrow, industry-specific fix that better fits the trailer market, while opponents may worry about creating special treatment or weakening consumer and dealer protections. The bill’s limited scope—covering only certain trailers and preserving other licensing requirements—suggests lawmakers were trying to balance regulatory relief with continued oversight.