With the passage of SB 321, South Carolina RV dealers will need to increase their surety bond coverage after the new law takes effect on January 1, 2018. It also creates a new licensing procedure for RV dealers in the state.
South Carolina RV dealers sell more than five recreational vehicles�motorhomes, travel trailers, fifth-wheel campers, and folding (pop-up) campers�per year and must be licensed through the state Department of Motor Vehicles after SB 321’s effective date. They will also be required to post a $30,000 surety bond to become licensed. Under current law, RV dealers are licensed as travel trailer dealers and post $15,000 surety bonds when applying for licensure.
The new licensing process introduced by SB 321 requires South Carolina RV dealers to submit an application to the DMV that includes the following information:
- Names and addresses of any individuals owning or controlling 10 percent or more of the interest in the business
- $30,000 surety bond
- Any other information required by the DMV
The license expires on the last day of the month twelve months after it was issued�for example, a license issued�on January 1 would expire the following year on January 31. RV dealers must notify the DMV of changes to information on their licensing applications within 30 days, and must notify the DMV within 10 days if they cease operations as RV dealers. They must also keep records of every RV transaction for four years from the transaction date.
South Carolina RV dealers’ places of business must adhere to certain standards detailed in SB 321:
- Permanent, enclosed building with at least 96 square feet of floor space
- Display a permanent sign identifying the business in letters at least six inches high, visible from the nearest road
- Reasonable area or lot to display RVs
South Carolina RV dealer license applicants should note that the new surety bond amount does not apply to RV wholesalers; they still need a $15,000 bond.
Ready to get a South Carolina surety bond? Get in touch with Single Source Insurance today.