Appendix 12.pdf

SCDMV Business Licensing

Appendix #:

Subject:

Functional Requirements: SCDMV Business Licensing

Appendix 12 - Business Licensing Page 1 of 28

Overview General Information – Business Licensing General Features – Business Licensing Business License Business Contract Instructor and Tester Certification Business Permit Background Check Education Provider Curriculum and Student Data

Inspections Inventory Business License Audit

See Appendix 15 for a complete list of all abbreviations and acronyms.

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Overview

The system shall support the following business licensing functions and services:

1. Dealer License – The system shall enable the issuance of business licenses to dealers conducting business and selling vehicles in South Carolina.

2. Driving School License – Driving schools providing driving instruction in South Carolina must be issued a business license by the SCDMV. The system shall support this licensing process.

3. Business Contract (Third-Party Tester) – The system shall manage the issuance and tracking of valid business contracts for third-party testers authorized to conduct commercial driver testing in South Carolina.

4. Instructor and Tester Certification – Instructors and testers affiliated with driving schools or third-party testers must be certified by the SCDMV. The system shall support the certification process.

5. Business Permit – The system shall facilitate the issuance of specialized permits to licensed businesses for performing specific tasks or activities.

6. Background Check – The system shall require all licensed business owners, instructors, and testers to pass a background check as a prerequisite for obtaining or renewing their licenses or certifications.

7. Driving School Curriculum and Student Data – The system shall support the verification of driving school curricula and the tracking of student data to ensure proper issuance of products to customers.

8. Inspections – The system shall track and document inspections of business facilities prior to license issuance, ensuring compliance with state regulations and the safety of South Carolina citizens.

9. Inventory – The system shall track all inventory items issued to business licensees, either for their own use or for distribution to customers.

10. Business License Audit – The system shall support the periodic auditing of licensed businesses to verify compliance with SCDMV policies, procedures, and statutory guidelines.

11. Dealer Assignment – The system shall capture and track vehicle assignments between dealers during trade-ins or transfers before vehicles are titled to customers.

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General Information – Business Licensing

The following background information applies to all business licensing and outlines the types of business rules and actions the system shall support.

2.1 Types of Dealer Licenses

The SCDMV issues various types of licenses for buying, selling, and trading motor vehicles. The type of license depends on the business operations conducted within the state. The system shall support the issuance and management of the following license types:

1. Motor Vehicle Dealer License

2. Motor Vehicle Wholesaler License

3. Motor Vehicle Wholesale Auction License

4. Motorcycle Dealer License

5. Motorcycle Wholesaler License

6. Recreational Vehicle Dealer License

7. Temporary Recreational Vehicle Dealer License

8. Transporter Permit

2.2 Education Providers and Testers

2.2.1 Driving School

A driver training school license is required for businesses engaged in training or educating individuals to drive motor vehicles. The SCDMV licenses the following types of driving schools:

1. Non-Commercial Driving School

2. Commercial Driving School

3. Motorcycle Driving School

2.2.2 Third-Party Tester

The SCDMV contracts with companies and governmental subdivisions to administer road tests on behalf of the SCDMV. Third-party testers must obtain approval from the SCDMV before administering driver tests. The system shall support the following third-party tester categories:

1. Non-Commercial Third-Party Tester

2. Commercial Third-Party Tester

3. Motorcycle Third-Party Tester

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2.2.3 Driving School Instructor

Applicants seeking to instruct at licensed driving schools must obtain a driver training school instructor permit. The system shall support the application and management process for these permits.

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General Features – Business Licensing

The SCDMV aims to enhance the business licensing process by leveraging new technologies and implementing process improvements. The system shall address these enhancements to support the following capabilities:

3.1 Track Business License Eligibility

1. The system shall track the eligibility of business applicants, ensuring compliance with business operation regulations.

2. If a business owner has prior violations that resulted in a business closure and attempts to reopen under a family member's name, the system shall verify the eligibility of all associated individuals, including family members and business operators.

3. Applications flagged for compliance issues shall be sent to an authorized SCDMV employee for review and approval.

4. The system shall allow authorized users to review prior businesses associated with the applicant or any involved operators.

3.2 Ability to Track Third-Party Testers

1. The system shall provide the capability to track third-party testers, including their examiners.

2. Third-party tester and examiner records, and vehicle testing logs shall be maintained in the system, eliminating the current reliance on manual paper records or spreadsheets.

3. The system shall support data exchange with third-party testers via electronic interfaces or secure uploads to the SCDMV website.

3.3 Monitoring Third-Party Testers and Instructors

1. The system shall maintain and track all third-party testers, generating alerts for auditors if pass/fail ratios or other metrics fall outside acceptable norms.

2. The system shall store and display the complete history of companies, instructors, testers, and their performance records if the Third-Party Tester is also a school.

3. Alerts shall be triggered for anomalies such as excessive testing by a tester in a single day or unusual pass/fail ratios, notifying the appropriate SCDMV unit or employee.

4. The system shall trigger alerts when a third-party tester or instructor is convicted of an offense that deems them ineligible to hold a third-party tester license or instructor license.

5. Conduct Random Recalls on applicants tested by a Third-Party Tester.

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3.4 Track Driver Training School (DTS) Records

1. The system shall maintain records from Driver Training Schools (DTS), including student data, training logs, and other relevant documentation, on a periodic basis.

2. Records shall be accessible to authorized users without requiring direct requests to the DTS.

3. The system shall generate an alert to an authorized SCDMV employee when there is no activity for a certain period of time or if a tester has not administered a certain number of tests in a given period.

4. The system shall also have the capability to generate an alert if no progress is being made toward that required number. Example: CDL testers must do at least 10 tests per year.

5. The system shall have the capability to receive records from Driver Training School (DTS) on a periodic basis on the students they are training and testing, their training logs, and other relevant records.

6. The Driver Training School (DTS) may have the capability to upload these using the SCDMV website or send them via an established interface.

3.5 Uniform Look and Feel for All Business Licenses

The system shall ensure all business licenses issued, such as those for dealers and driving schools, adhere to a standardized format with a consistent look and feel.

3.6 Linking Dealer Business Licenses and Dealer License Plates

1. The system shall link dealer license plates (demonstration plates) to active dealer business licenses during issuance and renewal.

2. Inactive business licenses (suspended or canceled) shall automatically trigger the cancellation of associated dealer plates, and appropriate notices shall be sent. Any status changes to business license will be reflected on the issued dealer license plates.

3. The system shall verify that the plates are renewed and if not renewed then automatically generate a renewal notification to the dealer.

3.7 Linking and Tracking Business Licenses and Plates

Vehicles used for training shall be linked to the business license for both the driver training school (DTS) and third-party tester. The system shall verify that the plates are renewed and if not renewed then automatically generate a renewal notification to the driving school and an alert to specified DMV personnel.

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3.8 Automated Alerts for Instructor and Tester Violations

1. The system shall generate alerts to authorized SCDMV employees if an instructor or tester's driver license has reported violations.

2. If driving privileges are withdrawn or otherwise suspended, revoked, canceled, or disqualified, the instructor's or tester’s certification shall also be suspended, and notifications shall be sent to the affected individuals and their employers.

3.9 Yearly Background Checks for Instructors and Testers

1. The system shall mandate annual background checks for instructors, testers, and third-party testers, even if their certifications are valid for multiple years, to account for any violations or felonies committed after initial certification.

2. Alerts shall notify driving schools, third-party testers, and SCDMV employees of any major violations or felony records, prompting a review of the instructor’s, testers, or third-party tester’s eligibility to provide services.

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Business License

4.1 Overview

The system shall support the issuance of business licenses for all dealer license types described in section 2.1 and for both non-commercial and commercial driving schools.

It shall also support various business licensing functionalities as detailed in the subsequent subsections.

4.2 Process Descriptions

4.2.1 Issue New Business License – Dealer

The system shall issue new business licenses to motor vehicle dealers, including all dealer types such as retail, wholesale, auctions, and vehicle categories like new and used automobiles, trucks, motorcycles, RVs, and ATVs.

1. The system shall have the capability to maintain the ERT vendor information within the dealer record for communication purposes with the SCDMV.

2. The system will have the capability to issue the business license as a downloadable PDF document for display at the dealership, after business license approval.

3. Each dealer location shall receive a separate business license.

4.2.2 Issue New Business License – Driving School

The system shall issue new business licenses to driving schools, including both commercial and non-commercial types.

1. Driving schools shall meet compliance requirements, verified through facility inspections by SCDMV inspectors.

2. Vehicles used for instruction shall be titled and registered under the driving school’s name before being assigned for business use. The business may use leased vehicles, if they are registered to business and titled to the lessor.

3. Upon approval, the business license shall be issued as a downloadable PDF document.

4. Multiple physical locations for a driving school shall be captured under one business license.

4.2.3 Maintain Sales Personnel at Dealership

The system shall allow authorized dealership staff to add, modify, or remove sales personnel information linked to the dealership.

1. Information at a minimum shall include the name, driver’s license number, and contact details (email and phone).

2. Sales personnel records shall be linked to the dealership for tracking and management of dealer personnel.

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4.2.4 Renew Business License – Dealer

The system shall process dealer business license renewals. During renewal of a business license the:

1. Business owners must provide background checks and violation records (automated for in-state and manual for out-of-state credentials).

2. Submit supporting documents, such as proof of insurance, surety bond, and sales volume reports.

3. The system shall collect applicable fees.

4. Dealer demonstration plates may also be renewed during the license renewal process.

5. The system shall send renewal completion notifications upon successful renewal.

4.2.5 Renew Business License – Driving School

The system shall process driving school business license renewals. During renewal of a business license the:

1. Business owners must provide background checks, violation records, and supporting documents.

2. The system shall collect applicable fees.

3. Inventory associated with the business license will also be renewed.

4. The system shall send renewal completion notifications upon successful renewal.

4.2.6 Renew Dealer Demonstration Plates

The system shall renew dealer demonstration plates (dealer tags) for dealers with active business licenses. During renewal:

1. Dealers can add or remove plates for renewal during the process.

2. Multiple plates may be renewed in one transaction.

4.2.7 Update or Correct Business License – Dealer

The system shall support updates or corrections to dealer business licenses.

1. Updates may include business name, owner information, addresses, contact details, and assigned sales personnel.

2. If necessary, updated licenses may be sent as PDF or paper documents.

3. If an update requires a facility inspection, an alert shall be generated for an SCDMV inspector.

4. Significant changes, such as ownership changes, may require a new licensing process.

4.2.8 Update or Correct Business License – Driving School

The system shall support updates or corrections to driving school business licenses.

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1. Updates may include business name, owner information, addresses, contact details, and assigned instructors or vehicles.

2. Updated licenses will be sent as PDF or paper documents if required.

3. Facility inspections may be triggered for certain updates.

4. Significant changes, such as ownership changes, may require a new licensing process.

4.2.9 Suspend Business License

The system shall process business license suspensions.

1. Licenses may be suspended for non-compliance or violations identified through customer complaints, audits, or fraud investigations.

2. Suspension notifications will include details and options to request a hearing with the Office of Motor Vehicle Hearing (OMVH). The suspension notification may also include appeals that are filed.

4.2.10 Reinstate Business License

The system shall reinstate business licenses once compliance requirements are met, and applicable fees are paid.

1. The status of the license will be updated to "Active" if it is still valid.

2. If the license has expired, the licensee must renew or reapply.

3. Notifications will inform the licensee of reinstatement, and any additional steps required.

4.2.11 Cancel Business License

The system shall process business license cancellations.

1. Licenses may be canceled due to business closure, lack of compliance (e.g., missing surety bond or insurance), or owner death.

2. Associated employees, such as sales personnel or driving school instructors, will have their statuses updated to "Inactive."

3. Inventory linked to the business will be marked as cancelled upon license cancellation.

4. Cancellation notifications will include the reason for cancellation.

4.2.12 Process Business Closure

The system shall process business closures initiated by the licensee or ordered by courts or law enforcement.

1. The status of the business license will be updated to "Closed," and associated inventory items will be marked as expired or canceled.

2. Employees associated with the business will have their statuses updated to "Inactive."

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4.3 System Features

1. The system shall link all business locations for a single licensee.

2. The system shall track and link driving school locations under a single license.

3. The system shall manage and link dealership sales personnel to their respective dealerships.

4. If sales personnel are listed at multiple dealer locations, the system shall trigger an alert for verification by SCDMV employee.

5. The renewal date for dealer demonstration plates shall not exceed the expiration date of the business license.

6. The system shall identify and monitor dealer plates issued based on business rules, such as sales volume, and generate alerts for any violations.

7. The system shall track and monitor the status of all business licenses (e.g., Active, Expired, Canceled, Suspended) and generate notifications as necessary.

8. Thresholds triggering alerts or workflow items for SCDMV employees shall be configurable in the system.

9. The system shall define which changes can be made to licenses and which require reapplication for a new license.

10. Ownership changes may require a new license or be processed as an update, depending on the extent of the change.

11. The system shall allow electronic entry of PDLAs from the school and generate an alert to the customer that it has been received.

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Business Contract

5.1 Overview

The SCDMV contracts with companies and governmental subdivisions to administer road tests. Third-party testers must be approved by the SCDMV before conducting driver testing.

Individuals working for these contracted businesses who wish to become trainers or testers must meet the qualifications outlined in the SCDMV Third Party Tester Safety Officer procedure manual and complete required training.

The system shall support the creation, maintenance, and renewal of business contracts for third-party testers and other entities as described in the following subsections.

5.2 Process Descriptions

5.2.1 Process New Contract – Third Party Tester

The system shall support the recording and storage of new business contracts for third-party testers, which may include entities such as commercial trucking companies, non-commercial testing companies, and school districts that train and test employees on commercial and non-commercial motor vehicles. Along with commercial third-party testers’ contracts, the system shall support the non-commercial third-party tester contracts.

1. Contracts are valid for a specific period (currently four years).

2. The third party must provide the testing route used for testing as part of the contract.

3. The system shall capture customer information, including demographics, contact details, and the authorized individual for contract-related issues.

4. SCDMV inspectors will inspect the facility and route to ensure compliance with third-party tester requirements.

5. Contracts shall be stored in the contract management system and monitored for compliance with terms and conditions.

5.2.2 Renew Business Contract – Third Party Tester

The system shall support the renewal of business contracts for third-party testers.

1. The renewal process requires submission of updated compliance information and documentation.

2. Renewals shall be valid for a specific period, tracked within the system.

3. If a contract remains expired for a period exceeding the defined threshold, a new contract may be required.

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4. Renewed contracts shall be stored in the contract management system and monitored for compliance.

5.2.3 Update or Correct Business Contract

The system shall allow updates or corrections to business contracts.

1. Updates may be requested by the customer or initiated by SCDMV employee if errors are identified.

2. Editable information shall include business name, ownership, demographic details, and contact information.

3. All updated contract information shall be stored in the contract management system.

4. If updates or corrections require a facility re-inspection, the system shall generate an alert for an SCDMV inspector to follow up.

5. Certain updates, such as changing all ownership details, may require the creation of a new contract.

5.2.4 Issue Third Party Tester Safety Officer License

The system shall issue safety officer licenses to individuals working for third-party testers who meet the qualifications set by the SCDMV.

1. License holders must maintain compliance with ongoing requirements to keep their licenses valid.

2. Failure to meet compliance criteria shall result in license cancellation.

5.3 System Features

1. The system shall extend its contract management and tracking capabilities to monitor other contracts in addition to third-party tester contracts.

2. The system shall ensure that contracted entities maintain unexpired contracts to receive information from the SCDMV.

3. The system shall track violations and compliance issues associated with contracted third-party testers.

4. The system shall generate notifications to renew contracts a specified number of days before expiration, as defined in Appendix 07 – Functional Requirements SCDMV Common Functions, Section15, "Renewal" section.

5. The system shall mark contracts as expired if they are not renewed.

6. Contracts that remain expired beyond a specified period (e.g., two years) shall require a new contract to be created.

7. The system shall actively monitor compliance requirements for Third Party Tester Safety Officers and notify authorized SCDMV employees of violations or non-compliance.

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8. The system shall track and monitor the status of business contracts (e.g., active, expired), with status changes triggering notifications to relevant SCDMV employees and contracted entities.

9. The system shall allow configurable thresholds to trigger workflow items or alerts for SCDMV employees to review and act on business contracts.

10. The system shall provide the capability to define the parameters that will allow the updates that can be made to existing contracts and the updates that will trigger the creation of new contracts.

11. The system shall automatically terminate the ability to test once the contract/license has expired and generate a notification to the business of their contract/license at the time of expiration.

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Instructor and Tester Certification

Certain individuals working for businesses such as driving schools and third-party testers must be certified as instructors and/or testers to perform their roles. The SCDMV must track these instructors and testers and their certifications in the system.

6.1 Process Descriptions

6.1.1 Process Certification for Instructors and Testers

This process manages the certification of instructors and testers employed by driving schools.

1. To be certified, applicants must complete an SCDMV-approved course and pass a test for instructor and/or tester certification.

2. Applicants must provide:

a. A list of driving schools they will serve.

b. A background check (electronic for South Carolina residents or paper-based for out-of-state residents).

c. Proof of required training completion.

3. For instructors, the system shall track the courses they are certified to teach.

4. For testers, the system shall track the types of tests they are certified to administer.

5. Each instructor and tester record shall be linked to the business license of the entity they are associated with.

6. Certified individuals shall receive a certificate in PDF or paper format, delivered via their preferred contact method.

6.1.2 Process Violation on Instructor and Tester

This process handles violations associated with instructors and testers.

1. If a violation is reported on an instructor or tester's driver license, the system shall send an alert to the authorized SCDMV employee for verification.

2. If the instructor's or tester's driving privileges are withdrawn (e.g., suspension, revocation, cancellation, disqualification), their certification shall be suspended.

3. Notifications shall be sent to:

a. The instructor/tester, informing them of the suspension and their ineligibility to provide services.

b. The associated business entity, informing them of the suspension and providing contact information for further details.

4. The system shall automatically terminate the ability to test once the license has expired.

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6.1.3 Update or Correct Instructor or Tester Certification Data

This process allows updates or corrections to instructor and tester certification information.

1. Updates may be requested by the customer or initiated by SCDMV employee.

2. Editable information shall include demographic details, contact information, and other relevant data, with or without supporting documentation.

3. If required, an updated certificate shall be issued as a PDF or paper document and delivered via the customer’s preferred contact method.

6.1.4 Renew Certification for Instructor and Tester

This process manages the renewal of instructor and tester certifications.

1. Prior to renewal, instructors and testers must provide:

a. Application

b. Updated background check information (electronic for in-state and paper-based for out-of-state residents).

c. Proof of completion of refresher training course.

d. Violation information, if applicable.

2. Applicable fees will be collected, and a renewal completion notification will be sent upon successful renewal.

6.2 System Features

1. The system shall track all instructors associated with schools. This shall include instructors engaged in classroom instruction, behind-the-wheel instruction, or both, ensuring they hold a valid instructor permit or temporary permit issued by the

SCDMV.

2. The system shall track all testers associated with Third-Party testing entities, monitoring their activity.

3. The system shall list what an instructor or third-party tester is certified to teach or test for within their profile.

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Business Permit

7.1 Overview

Permits are issued to licensed businesses to authorize them to provide business related special services, such as being a transporter or conduct tradeshows. These permits allow the business entities to perform some additional tasks / functionality which are not listed on the regular business License.

The system shall support all current business permits issued by SCDMV and shall have the capability to add more as per the needs of the agency.

7.2 Process Descriptions

7.2.1 Issue Permit to Business Licensee

In this process a permit is issued to the Business licensee. The system will provide the capability to issue the following two types of permits:

1. Long-term permits which is valid for a period of 1 year to businesses such as transporters.

2. Short-term permits which are valid for a short period (10 days) to businesses such as trade shows, RV.

To be eligible to get these permits, the business must already be a licensed business in South Carolina.

The customer may be sent a permit as a PDF/paper document for their record using their preferred contact method, as necessary.

7.3 System Features

1. Currently, only two types of permits are identified for a business entity, but more could be added later. The system shall provide a capability add more permits in future and provide functionality to issue what permits we currently have.

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Background Check

Background checks are required for customers seeking certain licenses or certifications.

These checks are performed at the time of initial issuance and renewal.

8.1 Process Descriptions

8.1.1 Receive and Process Background Check

This process manages the receipt and processing of background check information.

Background checks are conducted on a periodic basis for the following:

1. Driving school instructors and testers – Annually.

2. Business owners – At the time of renewal.

3. Salespersons working at dealerships – Annually.

Actions based on background check results:

1. If the customer passes the background check:

a. No further action is required for existing licenses.

b. The licensing process for the new applicant proceeds as normal.

c. Suspended credential/license/certification due to prior incomplete checks is reinstated.

2. If the customer fails the background check:

a. The system shall suspend the license or halt the licensing process.

b. Notifications are sent to the individual customer and the associated business entity.

8.2 System Features

1. The system shall interface with background check vendors to send customer data and request background check results.

2. The system shall utilize workflow functionality to allow the authorized SCDMV employee to review background checks and log results.

3. Based on workflow results, the system shall:

a. Send notices to relevant parties.

b. Trigger next steps, such as completing the transaction or declining the application.

4. The system shall track background check requirements for business entities, their owners, and employees.

5. The system shall maintain records of received background checks, including validity periods and expiration dates.

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6. Notifications shall be generated when customers need to submit new background checks before license or certification issuance or renewal.

7. The system shall differentiate between manually entered and electronically received background check data, including scanned documentation.

8. For manually entered background checks, the system may require scanned copies of the background check documentation from the customer.

9. The period of the background requirement shall be configurable to the changing needs of the SCDMV business needs.

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Education Provider Curriculum and Student Data

9.1 Overview

To deliver driving instruction to students, education providers (e.g., driving schools, and other education providers) must have their curriculum approved by the SCDMV. The system shall maintain and track the approved curriculum for each provider.

Additionally, education providers must have the capability to upload or electronically send student data to the SCDMV.

9.2 Process Descriptions

9.2.1 Review and Approve School Curriculum

Education providers, such as driving schools, and alcohol and drug education providers, must submit their curriculum to the SCDMV for approval.

1. Specialized SCDMV employees, experienced in curriculum review, and evaluate each submission.

2. If the curriculum meets state legislative requirements and SCDMV guidelines, it is approved and stored as part of the provider’s business license record.

3. If modifications are required, the education provider is notified and must make the necessary changes before the curriculum is approved.

4. If updates to the curriculum are required due to changes in mandates or technological needs, the provider must resubmit the revised curriculum for SCDMV approval. The system shall track the last revision date of the curriculum and if it needs a revision for any SCDMV policy or legislative changes.

5. Classroom driver training may be provided online by sub providers that are agency approved.

9.2.2 Upload Student Data

Driving schools and third-party testers must upload student records to the SCDMV system via their business profiles.

1. Providers may choose to send the data in real-time through an interface or upload it daily via their online profiles for students they have instructed or tested.

2. The uploaded student data may trigger the licensing process for trained and tested students:

3. If the customer already exists in the SCDMV system, their record is updated with the data received.

4. If the customer does not exist, a new record is created, and the uploaded data is added to it.

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9.3 System Features

1. The system shall track and alert authorized SCDMV employees if an education provider fails to send student data within a configurable timeframe.

2. The system shall alert the appropriate SCDMV employees if trainer and tester are the same.

3. The system shall be able to house curriculums and support the mandated and voluntary changes of the curriculum for providers and sub-providers.

4. The system shall record all applicants’ completion of an education program by a licensed/registered provider.

5. The system shall flag an entity if they are a sub-provider.

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Inspections

10.1 Overview

Facility inspections are required for obtaining a business license or maintaining compliance with SCDMV contracts. Authorized SCDMV inspectors schedule and conduct these inspections. Periodic inspections are also conducted to support audits and address complaints. Businesses performing contracted work for the SCDMV may also be inspected. Inspections are scheduled by SCDMV employee, not the business entity.

Businesses subject to inspections include:

1. Dealerships (all dealer types)

2. Driving Schools

3. Third-Party Testers

10.2 Process Descriptions

10.2.1 Perform Initial Inspection

1. SCDMV inspectors conduct initial inspections for businesses applying for a license or contract with the SCDMV, including dealers, education providers, and third-party testers.

2. The initial inspection is a mandatory step in the business license issuance process.

3. During the inspection, if issues are identified, corrective actions may be recommended, and a follow-up inspection may be scheduled to ensure compliance before the business license or contract is issued.

10.2.2 Perform Periodic Inspections

1. Periodic inspections are conducted for licensed and contracted business entities, including dealers, education providers, and third-party testers.

2. The frequency of inspections depends on mandated requirements, available inspector resources, complaints, and compliance issues associated with the business. This should be configurable.

3. If issues are identified during a periodic inspection, the inspector will send inspection results and related documents to the business unit for further review.

4. The business unit, after further review, may recommend corrective actions, suspend the business license, or terminate the business contract as appropriate.

10.3 System Features

1. The system shall track inspection requirements for each business license type, including initial inspection requirements for business license issuance and periodic requirements for renewal or continued operation.

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2. The system shall support mobile inspections by allowing inspectors to use mobile devices (e.g., tablets) to record and send updates directly to system servers.

3. The system shall enable inspectors to enter inspection results directly into the system.

4. The system shall integrate with the Case Management subsystem to create and manage inspection cases as defined in the SCDMV Blueprint.

5. The system shall support workflow processes for electronically forwarding or retrieving documents needed for inspections.

6. Inspection results shall be processed in real time by the system.

7. The system shall automatically trigger subsequent steps in the business license issuance or compliance processes based on inspection results.

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Inventory

11.1 Overview

Certain inventory items are issued to businesses to support their operations. These include:

1. Dealer License Plates (Demonstration Plates) – Issued to licensed dealers and wholesalers for operational purposes.

2. Plates for Education Providers – Issued to vehicles used exclusively by driving schools and education providers for training and instruction.

3. Temporary Tags – These are issued at the dealership through an external vendor, or directly from the department.

11.2 Process Descriptions

11.2.1 Issue Dealer Demonstration Plates

1. Dealer demonstration plates (dealer tags) are issued to dealerships for operational purposes.

2. First-time dealers receive a minimum set of demonstration plates.

3. Dealers can request additional plates by providing supporting documentation, such as the volume of vehicles sold, and the number of sales personnel employed.

4. Dealer demonstration plates are linked to the dealer’s business license.

5. Demonstration plate expiration aligns with the business license expiration month.

11.2.2 Issue Inventory to Education Providers

1. Inventory items, such as plates for driving school vehicles, are issued to licensed driving school operators.

2. Additional items, such as training manuals, may be shipped directly from a warehouse to the education provider or issued from SCDMV office locations.

3. All inventory issued to education providers is tracked and linked to their business license or contract to monitor compliance and prevent misuse.

11.2.3 Issue Inventory to Business Licensees

1. Temporary tags are issued in bulk to licensed businesses for use on vehicles sold to customers.

2. The system tracks inventory items issued to each business location and ensures proper assignment to the business before use.

3. When a title and registration transaction is processed, the system verifies that the temporary tags assigned to the business were issued to the correct entity.

4. The system prevents inventory items from being issued to customers unless they are properly assigned to the business licensee.

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11.3 System Features

1. Inventory Tracking – The system shall track all inventory items issued, to business licenses and flag any misuse.

2. Validation of Inventory Usage – The system shall identify and report instances where inventory items are used without being properly assigned to a business licensee.

3. Validation of Inventory Status – The system shall track and report all inventory statuses to include issued, damaged, voided, or reprinted.

4. Eligibility Verification – The system shall validate the eligibility of the requestor to receive inventory items.

5. Usage Monitoring – The system shall monitor inventory usage by requestors and recommend adjustments if excessive inventory is requested beyond operational needs.

6. Abnormal Activity Alerts – The system shall flag instances of unusually high or low inventory usage and notify SCDMV employee to investigate potential abnormal activities.

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Business License Audit

12.1 Overview

Periodic or random audits are conducted on business entities licensed by or contracted with the SCDMV. These audits ensure compliance with SCDMV regulations and address customer complaints. Audited entities include:

1. Dealers

2. Driver Education Providers

3. Third-Party Testers

4. Rental Car Companies (including associated EVR vendors performing transactions on their behalf)

Audit capabilities and requirements are detailed in Appendix 07 – Functional Requirements SCDMV Common Functions, Section10.

12.2 Process Descriptions

12.2.1 Perform Audit – Dealer

Dealer audits are tracked as cases in the case management system and include the following types:

1. Initial Inspection:

a. Conducted before the business opens to ensure facility requirements are met.

b. Performed on the dealer’s physical premises.

2. Follow-Up Audit:

a. Conducted 45–90 days after license issuance.

b. Includes a checklist for dealer audits, advanced research on incorrect fees (e.g., Insurance Reserve Fund), and resolution of concerns or mistakes without penalties.

c. A wet signature is captured from the dealer during this process. Additional follow-up audits may result in sanctions for violations.

3. Routine Audits:

a. Occur every 12–18 months and follow the same process as follow-up audits.

b. Conducted on the dealer’s premises.

4. Closeout Audit:

a. Performed before a business is marked as closed in the system.

b. If a dealer is unavailable after multiple visits, a notification is sent to return the license and tags within 30 days or confirm continued operation.

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c. If the dealer surrenders their license, an audit ensures proper return of licenses and tags.

5. Complaint-Based Audit:

a. Triggered by customer complaints.

b. May involve a full audit or a targeted review of specific records.

c. May result in sanction dependent upon audit findings.

12.2.2 Perform Audit – Driving School (Commercial and Non-Commercial)

Audits for driving schools, tracked as cases in the case management system, include:

1. Routine Audit:

a. Conducted annually as mandated by state regulations.

b. Includes inspection of physical facilities, training vehicles, records, and associated third-party testers.

2. Closeout Audit:

a. Similar to routine audits, ensuring all records are reconciled before closing the business.

3. Complaint-Based Audit:

a. Triggered by customer complaints and conducted as needed.

12.2.3 Perform Audit – Third-Party Tester

Audits for third-party testers, both commercial and non-commercial, primarily include:

1. Routine Audit:

a. Conducted as required by state and federal regulations.

b. Includes inspections of physical facilities, vehicles used for training and testing, road test procedures, ELDT training, and student records.

2. Closeout Audit:

a. Ensures reconciliation of all records before closing the business.

12.2.4 Perform Audit – Rental Car

Quarterly audits are performed on rental car companies (e.g., Enterprise Rental Car) and their service providers (e.g., CVR). These unannounced audits include:

1. A two-part process: Quality Assurance and Audit portions.

2. Inspection of secure rooms and inventory, including license plates and decals linked to registrations.

3. Verification of inventory issued to service providers and transactions processed by their employees.

4. Ensuring inventory is securely housed in South Carolina.

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12.3 System Features

1. The system shall provide a consistent audit workflow and case management process for all audits.

2. The system shall utilize standardized auditing capabilities defined in Appendix 07 – Functional Requirements SCDMV Common Functions, Section 10.