Who this applies to
South Dakota does not license general contractors statewide, and so it has no general contractor license bond. What a contractor needs from the state is a contractor's excise tax license, issued by the Department of Revenue [1] [3].
The bond this page covers belongs to one trade. Applicants for an electrical contractor license or a Class B electrician license must execute and deposit an undertaking with the State Electrical Commission [2]. Other contractors are not reached by this section. In a partnership or corporation, the licensed person is exempt from the undertaking and insurance requirements if the employer satisfies them [2].
City and county licensing is separate, but a licensed electrical contractor or Class B electrician does not have to furnish an additional undertaking for a municipal license [2].
What the rule says
SDCL 36-16-20 sets the amount at $10,000 [2], a flat figure, and makes the undertaking a condition of receiving the license: it is deposited before the license is granted [2]. The State Electrical Commission is the obligee [2].
The same section asks for more than the undertaking. It also requires:
- public liability insurance of at least $100,000 [2] per occurrence and $300,000 [2] aggregate;
- property damage cover of at least $25,000 [2] per occurrence, or a $300,000 [2] combined single limit;
- a $50 [2] deposit at execution and at each biennial renewal.
How to comply
The electrical side of licensing runs through the State Electrical Commission and the Department of Labor and Regulation, whose licensing page lists the bond application for these two license types (electrical licensing) [5]. The excise tax license is handled by the Department of Revenue (contractor's excise tax) [1].
- Identify the license. Only an electrical contractor or Class B electrician application calls for the undertaking [2].
- Arrange the undertaking in the sum of $10,000 [2], payable to the State Electrical Commission.
- Line up the insurance at the minimums above, since the same section requires it [2].
- Budget the $50 [2] deposit at execution and again at each biennial renewal; the Commission waives the renewal deposit for electricians who made an initial deposit when its fund exceeds $50,000 [2].
- Separately, hold the excise tax license that every contractor needs from the Department of Revenue [1].
These are the section's terms as written. The Commission and the Department of Labor and Regulation confirm the current forms and any change to them; this page does not decide an individual application.
Related
- Contractor license bond cost calculator: estimate a premium range on the $10,000 [2] undertaking.
- All states' bond requirements: South Dakota's single-trade bond beside every other state.