S.D. Codified Laws § 32-7B-7
Proof of contract or franchise
No dealer's license may be issued to a person who desires to sell or offer for sale new boats, until the applicant furnishes proof, satisfactory to the department that the person has a bona fide contract or franchise in effect in this state with the manufacturer of the boat or boats.
Source: SL 1998, ch 185, § 7.