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STATE OF OKLAHOMA
1st Session of the 58th Legislature (2021)
HOUSE BILL 1153 By: Osburn
AS INTRODUCED
An Act relating to motor vehicles; amending 47 O.S.
2011, Section 581, as last amended by Section 3,
Chapter 79, O.S.L. 2019 (47 O.S. Sup p. 2020, Section
581), which relates to definitions ; modifying
definitions; amending 47 O.S. 2011, Section 583, as
last amended by Section 24, Chapter 161, O.S.L. 2020
(47 O.S. Supp. 2020, Section 583), which relates to
required licensure; requiring bond f or certain
dealers; requiring certain service for manufactured
homes in use in the state; requiring certain
transactions go through licensed dealers; amending 47
O.S. 2011, Section 1110, as amended by Section 1,
Chapter 224, O.S.L. 2015 (47 O.S. Supp. 2020 , Section
1110), which relates to perfection of security
interest; requiring certain certificate of title be
surrendered; amending 68 O.S. 2011, Section 2812,
which relates to manufactured homes; clarifying
language; and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 47 O.S. 2011, Section 581, as last
amended by Section 3, Chapter 79, O.S.L. 2019 (47 O.S. Supp. 2020,
Section 581), is amended to read as follows:
Section 581. As used in Section 581 et seq. of this title:
1. "Commission" means the Oklahoma Used Motor Vehicle and Parts
Commission;
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2. "Compensation" means anything of value including money,
merchandise, rebates on purchases, trading stamps or any othe r thing
of value;
3. "Consignment sale" means the sale of used motor vehicles
belonging to another by a used motor vehicle dealer, whether or not
title is transferred from the consignor to the used motor vehicle
dealer;
4. "Factory" means a manufacturer, distributor, factory branch,
distributor branch, factory representative or distributor
representative, which manufactures or distributes vehicle products;
5. "Manufactured home" means a residential dwelling in one or
more sections built in accordance wit h the National Manufactured
Housing Construction and Safety Standards Act of 1974, 42 U.S.C.,
Section 5401, et seq. and rules promulgated pursuant thereto;
6. a. "Manufactured home dealer " means any person who ,:
(1) works for a commission or with intent to make a
profit or gain of money or other thing of value,
sells, offers to sell, or attempts to negotiate a
sale or exchange of interest in, new or used
manufactured homes, or that
(2) is engaged wholly or in part in the business of
selling any new and unu sed, or used, or both new
and used manufactured homes .
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(3) is engaged wholly or in part in the business of
leasing any new and unused , or used, or both new
and used manufactured homes, that are considered
personal property, with an option to purchase or
own in any form at any time after beginning of
the lease term,
A valid franchise letter as proof of authorization to
sell any new manufactured home product line or lines
shall be attached to the application for a dealer
license to sell manufactured homes . "Manufactured
home dealer" shall include a manufactured home
auction. A manufactured home auction shall mean any
person selling more than twenty-five five manufactured
homes in an auction or liquidation format. Only
licensed manufactured home dealers sh all be authorized
to purchase manufactured homes at such auctions.
b. "Manufactured home dealer " shall not include any
person who sells or contracts for the sale of a
personally titled manufactured home or homes which
they have used as their personal resid ence, or any
person acting as an auctioneer who has been engaged by
a seller to direct, conduct, control, or be
responsible for the sale of such manufactured homes as
a part of an auction or liquidation of an estate, or
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any Oklahoma licensed real estate br oker or sales
associate when buying or selling used mobile
manufactured homes which have become real property as
a part of a real estate business. No person shall be
considered a manufactured home dealer as to any
manufactured home purchased or acquired b y the person
for purposes other than resale or lease-purchase in
any form; provided, that the restriction set forth in
this sentence shall not prevent an otherwise qualified
person from utilizing a single manufactured home as a
sales office.
c. A holder of a lien on a personally titled manufactured
home may sell, exchange, or transfer by lease -purchase
the repossessed manufactured home and shall not be
required to be licensed pursuant to this chapter. If
Any person other than a bona fide full -time employee
of the lienholder contracts with a person or company
to sell who participates in the sale of the
repossessed manufactured home and the person or
company is not an employee, officer or principal of
the lienholder, such person or company shall be
licensed as a manufactured home dealer pursuant to
this chapter title.
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d. "Manufactured home dealer " shall not include any
person who sells mobile or manufactured homes located
in a mobile or a restricted manufactured home park or
community dealer;
7. "Manufactured home salesperson" means any person who has
been engaged by a manufactured home dealer or restricted
manufactured home park dealer to buy, sell, exchange, negotiate, or
act as an agent for the purchase, sale, or exchange of an interest
in a manufactured ho me;
8. "Manufactured home installer " means a person who is engaged
in the business of installing or setting up manufactured homes
and/or mobile homes as defined herein;
9. "Manufactured home manufacturer " means a person who
manufactures, assembles, and sells or distributes new manufactured
homes, whether directly or indirectly , to new manufactured home
retailers or a restricted manufactured home park dealer for resale
or use in this state;
10. "Mobile home" means a residential dwelling fabricated in an
off-site manufacturing facility, designed to be a permanent
residence, but which is still transportable, that was built prior to
the enacting of the National Manufactured Housing Construction and
Safety Standards Act of 1974, 42 U.S.C., Section 5401 et seq. ;
11. "Person" means an individual, business, corporation,
partnership, association, limited liability corporation, trust,
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firm, or company or legal entity, but does not include any political
subdivision;
12. "Ready for occupancy" means a mobile or manuf actured home
which is installed and anchored properly by a manufactured home
installer licensed in this state and has utilities connected to
service;
13. "Rebuilder" means a used motor vehicle dealer who is
engaged in the business of rebuilding repairable motor vehicles and
who has paid the fee for and been issued a rebuilder certificate as
provided by Section 591.5 of this title;
14. "Restricted manufactured home park dealer " means any person
operating a mobile or manufactured home park who, for a commis sion
or with intent to make a profit or gain of money or other thing of
value, sells, offers to sell, or attempts to negotiate a sale or
exchange of interest in, new or used manufactured homes, or that is
engaged wholly or in part in the business of sellin g or leasing
manufactured homes which are personal property with an option to
purchase or own in any form at any time after the beginning of the
lease term any new and unused, or used, or both new and use d
manufactured homes;
Provided, every mobile or man ufactured home sold pursuant to a
restricted manufactured home park dealer license shall be located in
the licensed mobile or manufactured home park and ready for
occupancy;
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15. "Retail implement dealer " means a business engaged
primarily in the sale of f arm tractors as defined in Section 1 -118
of this title or implements of husbandry as defined in Section 1 -125
of this title or a combination thereof;
16. "Sale" or "sell" means the act of selling, brokering,
exchanging, exchanging of an interest in, or re nting with the option
of purchasing to purchase or own in any form at any time after the
beginning of the lease term , a new or used manufactured home for
commission, profit, or gain of money or other thing of value;
17. "Used motor vehicle" means any motor vehicle, as that term
is defined in the Oklahoma Vehicle License and Registration Act, but
not including any all -terrain vehicles, utility vehicles, and
motorcycles used exclusively for off -road use which are sold by a
retail implement dealer, which has been sold, bargained, exchanged,
given away or the title thereto transferred from the person who
first took title from the manufacturer, importer, or dealer or agent
of the manufacturer or importer, or so used as to have become what
is commonly known as a "secondhand motor vehicle ". In the event of
transfer, on the statement of origin, from the original franchised
dealer to any other dealer or individual other than a franchised
dealer of the same make of vehicle, the vehicle shall be considered
a used motor vehicle and must be titled in the new owner's name;
18. "Used motor vehicle auction " means any business other than
salvage pools which regularly engages in the sale or trade, or
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negotiates the sale or trade, of used motor vehicles by auction,
whether by open or closed bid or by sale to or purchase by used
motor vehicle dealers or individuals;
19. a. "Used motor vehicle dealer " means any person who, for
a commission or with intent to make a profit or gain
of money or other thing of value, sells, brokers,
exchanges, rents with option to purchase, or offers or
attempts to negotiate a sale or exchange of an
interest in used motor vehicles, or who is engaged
wholly or in part in the business of selling used
motor vehicles, whether or not such motor vehicles ar e
owned by the person.
b. "Used motor vehicle dealer " shall not include:
(1) receivers, trustees, administrators, executors,
guardians, or other persons appointed by or
acting pursuant to the judgment or order of any
court,
(2) public officers while perfor ming their official
duties,
(3) employees of persons enumerated in the definition
of "used motor vehicle dealer " when engaged in
the specific performance of their duties as such
employees,
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(4) mortgagees or secured parties as to sales of
motor vehicles constituting collateral on a
mortgage or security agreement, if the mortgagees
or secured parties shall not realize for their
own account from such sales any monies in excess
of the outstanding balance secured by such
mortgage or security agreement, plus the costs of
collection,
(5) any person acting as an auctioneer who has been
engaged by a seller to direct, conduct, control,
or be responsible for the sale of used motor
vehicles as part of an estate auction or
liquidation,
(6) any person, firm, corporation, or other legal
entity who sells, or contracts for the sale of,
the vehicles of the person, firm, corporation, or
other legal entity when such vehicles are sold in
liquidation, and any person, firm, corporation,
or other legal entity who serves as an agent in
such sale. The exclusion provided in this
paragraph shall not extend to any person, firm,
corporation, or other legal entity whose business
is the purchase, sale, or rental with option to
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purchase, of motor vehicles, or to a location
used for such purposes,
(7) any person acting as an auctioneer who has been
engaged by a seller to direct, conduct, control,
or be responsible for the sale of used motor
vehicles as part of an auction held at a licensed
used motor vehicle dealer location. The
exclusion provided in this division shall not
extend to a person who auctions five or more used
motor vehicles in a nonliquidation sale held at a
licensed used motor vehicle dealer location which
is not regularly used as a vehicle auction, or
(8) any retail implement d ealer that sells all -
terrain vehicles, utility vehicles, and
motorcycles used exclusively for off -road use;
20. "Used motor vehicle salesperson " means a person employed by
a licensed used motor vehicle dealer to sell, broker, exchange, or
negotiate a purchase, sale, or rental with option to purchase, used
motor vehicles or an interest in used motor vehicles. The term
"used motor vehicle salesperson " shall not include any person who:
a. uses the person's own funds for such transactions, or
b. operates independently as a used motor vehicle dealer
using a licensed used motor vehicle dealer's license
number; and
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21. "Wholesale used motor vehicle dealer " means any person who,
for a commission or with intent to make a profit or gain of money or
other thing of value, sells, brokers, exchanges, rents with option
to purchase, or offers or attempts to negotiate a sale or exchange
of interest in used motor vehicles exclusively to used motor vehicle
dealers, or who is engaged in the business of selling used motor
vehicles exclusively to used motor vehicle dealers, whether or not
such motor vehicles are owned by the person.
SECTION 2. AMENDATORY 47 O.S. 2011, Section 583, as last
amended by Section 24, Chapter 161, O.S.L. 2020 (47 O.S. Supp. 20 20,
Section 583), is amended to read as follows:
Section 583. A. 1. It shall be unlawful and constitute a
misdemeanor for any person to engage in business as, or serve in the
capacity of, or act as a used motor vehicle dealer, wholesale used
motor vehicle dealer, manufactured home dealer, restricted
manufactured home park dealer, manufactured home installer, or
manufactured home manufacturer selling directly to a licensed
manufactured home dealer in this state without first obtaining a
license or following other requirements therefor as provided in this
section.
2. a. Any person engaging, acting, or serving in the
capacity of a used motor vehicle dealer, a
manufactured home dealer, restricted manufactured home
park dealer, a manufactured home installer, o r a
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manufactured home manufacturer, or having more than
one place where any such business, or combination of
businesses, is carried on or conducted shall be
required to obtain and hold a current license for each
such business, in which engaged.
b. If after a hearing in accordance with the provisions
of Section 585 of this title, the Oklahoma Used Motor
Vehicle and Parts Commission shall find any person
installing a mobile or manufactured home to be in
violation of any of the provisions of this act, such
person may be subject to an administrative fine of not
more than Five Hundred Dollars ($500.00) for each
violation. Each day a person is in violation of this
act may constitute a separate violation. All
administrative fines collected pursuant to the
provisions of this subparagraph shall be deposited in
the fund established in Section 582 of this title.
Administrative fines imposed pursuant to this
subparagraph may be enforceable in the district courts
of this state.
3. Any person, except persons penalized by administrative fine ,
violating the provisions of this section shall, upon conviction, be
punished by a fine not to exceed Five Hundred Dollars ($500.00). A
second or subsequent conviction shall be punished by a fine not to
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exceed One Thousand Dollars ( $1,000.00); provided that each day such
unlicensed person violates this section shall constitute a separate
offense, and any vehicle involved in a violation of this subsection
shall be considered a separate offense.
B. 1. Applications for licenses requir ed to be obtained under
the provisions of the Oklahoma Used Motor Vehicle and Parts
Commission shall be verified by the oath or affirmation of the
applicant and shall be on forms prescribed by the Commission and
furnished to the applicants, and shall conta in such information as
the Commission deems necessary to enable it to fully determine the
qualifications and eligibility of the several applicants to receive
the license or licenses applied for. The Commission shall require
in the application, or otherwis e, information relating to:
a. the applicant's financial standing,
b. the applicant's business integrity,
c. whether the applicant has an established place of
business and is engaged in the pursuit, avocation, or
business for which a license, or licenses, is applied
for,
d. whether the applicant is able to properly conduct the
business for which a license, or licenses, is applied
for, and
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e. such other pertinent information consistent with the
safeguarding of the public interest and the public
welfare.
2. All applications for license or licenses shall be
accompanied by the appropriate fee or fees in accordance with the
schedule hereinafter provided. In the event any application is
denied and the license applied for is not issued, the entire license
fee shall be returned to the applicant.
3. All bonds and licenses issued under the provisions of this
act shall expire on December 31, following the date of issue and
shall be nontransferable. All applications for renewal of licenses
shall be submitted by Novem ber 1 of each year of expiration, and
licenses for completed renewals received by November 1 shall be
issued by January 10. If applications have not been made for
renewal of licenses, such licenses shall expire on December 31 and
it shall be illegal for a ny person to represent himself or herself
and act as a dealer thereafter. Tag agents shall be notified not to
accept dealers' titles until such time as licenses have been issued.
Beginning January 1, 2016, all licenses shall be issued for a period
of two (2) years and the appropriate fees shall be assessed. The
Commission shall adopt rules necessary to implement the two -year
licensing provisions.
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C. The schedule of license fees to be charged and received by
the Commission for the licenses issued hereund er shall be as
follows:
1. For each used motor vehicle dealer 's license and each
wholesale used motor vehicle dealer 's license, Six Hundred Dollars
($600.00). If a used motor vehicle dealer or a wholesale used motor
vehicle dealer has once been licensed by the Commission in the
classification for which he or she applies for a renewal of the
license, the fee for each subsequent renewal shall be Three Hundred
Dollars ($300.00); provided, if an applicant holds a license to
conduct business as an automotive d ismantler and parts recycler
issued pursuant to Section 591.1 et seq. of this title, the initial
fee shall be Two Hundred Dollars ($200.00) and the renewal fee shall
be Two Hundred Dollars ($200.00). If an applicant is applying
simultaneously for a licens e under this paragraph and a license
under paragraph 1 of Section 591.5 of this title, the initial
application fee shall be Four Hundred Dollars ($400.00). For the
reinstatement of a used motor vehicle dealer 's license after
revocation for cancellation or expiration of insurance pursuant to
subsection F of this section, the fee shall be Two Hundred Dollars
($200.00);
2. For a used motor vehicle dealer 's license, for each place of
business in addition to the principal place of business, Two Hundred
Dollars ($200.00);
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3. For each holder who possesses a valid new motor vehicle
dealer's license from the Oklahoma Motor Vehicle Commission, Two
Hundred Dollars ($200.00) shall be the initial fee for a used motor
vehicle license and the fee for each subsequent ren ewal shall be Two
Hundred Dollars ($200.00);
4. a. For each manufactured home dealer 's license or a
restricted manufactured home park dealer 's license,
Six Hundred Dollars ($600.00), and for each place of
business in addition to the principal place of
business, Four Hundred Dollars ($400.00), and
b. For each renewal of a manufactured home dealer 's
license or a restricted manufactured home park
dealer's license, and renewal for each place of
business in addition to the principal place of
business, Three Hund red Dollars ($300.00);
5. a. For each manufactured home installer 's license, Four
Hundred Dollars ($400.00), and
b. For each renewal of a manufactured home installer 's
license, Four Hundred Dollars ($400.00);
6. a. For each manufactured home manufacturer s elling
directly to a licensed manufactured home dealer in
this state, One Thousand Five Hundred Dollars
($1,500.00), and
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b. For each renewal of a manufactured home manufacturer 's
license, One Thousand Fi ve Hundred Dollars
($1,500.00);
7. Any manufactured home manufacturer who sells a new
manufactured home to be shipped to or sited in the State of Oklahoma
shall pay an installation inspection fee of Seventy -five Dollars
($75.00) for each new single -wide manufactured home and One Hundred
Twenty-five Dollars ($125.00) for each new multi -floor manufactured
home; and
8. A used manufactured home inspection fee of Seventy -five
Dollars ($75.00) shall be paid by the installer at or before the
time of installation of any used manufactured home sited and
installed in the State of Oklahoma.
D. 1. The license issued to each used motor vehicle dealer,
each wholesale used motor vehicle dealer, each restricted
manufactured home park dealer and each manufactured home dealer
shall specify the location of the place of busin ess. If the
business location is changed, the Oklahoma Used Motor Vehicle and
Parts Commission shall be notified immediately of the change and the
Commission may endorse the change of location on the license. The
fee for a change of location shall be One Hundred Dollars ($100.00),
and the fee for a change of name, Twenty -five Dollars ($25.00). The
license of each licensee shall be posted in a conspicuous place in
the place or places of business of the licensee.
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2. The license issued to each manufactured home installer, and
each manufactured home manufacturer shall specify the location of
the place of business. If the business location is changed, the
Oklahoma Used Motor Vehicle and Parts Commission shall be notified
immediately of the change and the Com mission may endorse the change
of location on the license without charge. The license of each
licensee shall be posted in a conspicuous place in the place or
places of business of the licensee.
3. Every manufactured home installer shall have the license
available for inspection at the primary place of business of the
licensee. This license shall be valid for the licensee and all of
the employees of the licensee. Any person who is not an employee of
the licensee must obtain a separate manufactured home i nstaller
license regardless of whether such person is acting in the capacity
of a contractor or subcontractor.
E. 1. a. Each applicant for a used motor vehicle dealer 's
license shall procure and file with the Commission a
good and sufficient bond in the am ount of Twenty-five
Thousand Dollars ($25,000.00). Each new applicant for
a used motor vehicle dealer 's license for the purpose
of conducting a used motor vehicle auction shall
procure and file with the Commission a good and
sufficient bond in the amount of Fifty Thousand
Dollars ($50,000.00). An applicant who intends to
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conduct a used motor vehicle auction who provides
proof that the applicant has check and title insurance
in an amount not less than Fifty Thousand Dollars
($50,000.00) shall only be requi red to have a bond in
the amount of Twenty -five Thousand Dollars
($25,000.00).
b. Each new applicant for a used motor vehicle dealer
license for the purpose of conducting a used motor
vehicle business which will consist primarily of non -
auction consignment sales which are projected to equal
Five Hundred Thousand Dollars ($500,000.00) or more in
gross annual sales shall procure and file with the
Commission a good and sufficient bond in the amount of
Fifty Thousand Dollars ($50,000.00). The Commission
shall prescribe by rule the method of operation of the
non-auction consignment dealer in order to properly
protect the interests of all parties to the
transaction and to provide sanctions against dealers
who fail to comply with the rules.
c. Each applicant for a wholesale used motor vehicle
dealer's license shall procure and file with the
Commission a good and sufficient bond in the amount of
Twenty-five Thousand Dollars ($25,000.00).
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d. Any used motor vehicle dealer who, for the purpose of
being a rebuilder, app lies for a rebuilder
certificate, as provided in Section 591.5 of this
title, whether as a new application or renewal, shall
procure and file with the Commission a good and
sufficient bond in the amount of Fifteen Thousand
Dollars ($15,000.00), in addition to any other bonds
required.
e. Each applicant for a manufactured home dealer 's
license or a restricted manufactured home park
dealer's license shall procure and file with the
Commission a good and sufficient bond in the amount of
Thirty Thousand Dollars ($30,000.00).
f. Each manufactured home manufacturing facility selling
directly to a licensed manufactured home dealer or
restricted manufactured home park dealer in this state
shall procure and file with the Commission a good and
sufficient bond in the am ount of Thirty Thousand
Dollars ($30,000.00). In addition to all other
conditions and requirements set forth herein, the bond
shall require the availability of prompt and full
warranty service by the manufacturer to comply with
all warranties expressed or implied in connection with
each manufactured home which is manufactured for
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resale or use in this state. A manufacturer may not
sell, exchange, or lease -purchase with an option to
own in any form a manufactured home to a person in
this state directly or indirectly through a
distributor or third party who is not a licensed
manufactured home dealer.
g. The bond shall be approved as to form by the Attorney
General and conditioned that the applicant shall not
practice fraud, make any fraudulent representation , or
violate any of the provisions of this act in the
conduct of the business for which the applicant is
licensed. One of the purposes of the bond is to
provide reimbursement for any loss or damage suffered
by any person by reason of issuance of a certifi cate
of title by a used motor vehicle dealer, a wholesale
used motor vehicle dealer, a restricted manufactured
home park dealer or a manufactured home dealer.
2. The bonds as required by this section shall be maintained
throughout the period of licensure. Should the bond be canceled for
any reason, the license shall be revoked as of the date of
cancellation unless a new bond is furnished prior to such date.
F. Any used motor vehicle dealer or wholesale used motor
vehicle dealer is required to furnish and keep in force a minimum of
Twenty-five Thousand Dollars ($25,000.00) of single liability
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insurance coverage on all vehicles offered for sale or used in any
other capacity in demonstrating or utilizing the streets and
roadways in accordance with the financ ial responsibility laws of
this state.
G. Any manufactured home dealer or restricted manufactured home
park dealer is required to furnish and keep in force a minimum of
One Hundred Thousand Dollars ($100,000.00) of garage liability or
general liability wi th products and completed operations insurance
coverage.
H. Any manufactured home installer is required to furnish and
keep in force a minimum of Twenty -five Thousand Dollars ($25,000.00)
of general liability with products and completed operations
insurance coverage.
SECTION 3. AMENDATORY 47 O.S. 2011, Section 1110, as
amended by Section 1, Chapter 224, O.S.L. 2015 (47 O.S. Supp. 2020,
Section 1110), is amended to read as follows:
Section 1110. A. 1. Except for a security inter est in
vehicles held by a dealer for sale or lease, a vehicle registered by
a federally recognized Indian tribe as provided in subsection G of
this section, and a vehicle being registered in this state which was
previously registered in another state and w hich title contains the
name of a secured party on the face of the other state certificate
or title, and except as otherwise provided in subsection B of
Section 1105 of this title, a security interest in a vehicle as to
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which a certificate of title may be properly issued by the Oklahoma
Tax Commission shall be perfected only when a lien entry form, and
the existing certificate of title, if any, or application for a
certificate of title and manufacturer's certificate of origin
containing the name and address of the secured party and the date of
the security agreement and the required fee are delivered to the Tax
Commission or to a motor license agent. As used in this section,
the term "dealer" shall be defined as provided in Section 1 -112 of
this title and the term "security interest" shall be defined as
provided in paragraph (35) of Section 1 -201 of Title 12A of the
Oklahoma Statutes. When a vehicle title is presented to a motor
license agent for transferring or registering and the documents
reflect a lien holder lienholder, the motor license agent shall
perfect the lien pursuant to subsection G of Section 1105 of this
title. For the purposes of this section, the term "vehicle" shall
not include special mobilized machinery, machinery used in highway
construction or road material construction and rubber -tired road
construction vehicles including rubber -tired cranes. The filing and
duration of perfection of a security interest, pursuant to the
provisions of Title 12A of the Oklahoma Statutes, including, but n ot
limited to, Section 1 -9-311 of Title 12A of the Oklahoma Statutes,
shall not be applicable to perfection of security interests in
vehicles as to which a certificate of title may be properly issued
by the Tax Commission, except as to vehicles held by a d ealer for
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sale or lease and except as provided in subsection D of this
section. In all other respects Title 12A of the Oklahoma Statutes
shall be applicable to such security interests in vehicles as to
which a certificate of title may be properly issued b y the Tax
Commission.
2. Whenever a person creates a security interest in a vehicle,
the person shall surrender to the secured party the certificate of
title or the signed application for a new certificate of title, on
the form prescribed by the Tax Commi ssion, and the manufacturer's
certificate of origin. The secured party shall deliver the lien
entry form and the required lien filing fee within twenty -five (25)
days as provided hereafter with certificate of title or the
application for certificate of ti tle and the manufacturer's
certificate of origin to the Tax Commission or to a motor license
agent. If the lien entry form, the lien filing fee and the
certificate of title or application for certificate of title and the
manufacturer's certificate of orig in are delivered to the Tax
Commission or to a motor license agent within twenty -five (25) days
after the date of the lien entry form, perfection of the security
interest shall begin from the date of the execution of the lien
entry form, but otherwise, per fection of the security interest shall
begin from the date of the delivery to the Tax Commission or to a
motor license agent.
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3. a. For each security interest recorded on a certificate
of title, or manufacturer's certificate of origin,
such person shall pa y a fee of Ten Dollars ($10.00),
which shall be in addition to other fees provided for
in the Oklahoma Vehicle License and Registration Act.
Upon the receipt of the lien entry form and the
required fees with either the certificate of title or
an application for certificate of title and
manufacturer's certificate of origin, a motor license
agent shall, by placement of a clearly distinguishing
mark, record the date and number shown in a
conspicuous place, on each of these instruments. Of
the ten-dollar fee, the motor license agent shall
retain Two Dollars ($2.00) for recording the security
interest lien.
b. It shall be unlawful for any person to solicit, accept
or receive any gratuity or compensation for acting as
a messenger and for acting as the agent or
representative of another person in applying for the
recording of a security interest or for the
registration of a motor vehicle and obtaining the
license plates or for the issuance of a certificate of
title therefor unless the Tax Commission has appointed
and approved the person to perform such acts; and
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before acting as a messenger, any such person shall
furnish to the Tax Commission a surety bond in such
amount as the Tax Commission shall determine
appropriate.
4. The certificate of title or the applicat ion for certificate
of title and manufacturer's certificate of origin with the record of
the date of receipt clearly marked thereon shall be returned to the
debtor together with a notice that the debtor is required to
register and pay all additional fees a nd taxes due within thirty
(30) days from the date of purchase of the vehicle.
5. Any person creating a security interest in a vehicle that
has been previously registered in the debtor's name and on which all
taxes due the state have been paid shall surre nder the certificate
of ownership to the secured party. The secured party shall have the
duty to record the security interest as provided in this section and
shall, at the same time, obtain a new certificate of title which
shall show the secured interest on the face of the certificate of
title.
6. The lien entry form with the date and assigned number
thereof clearly marked thereon shall be returned to the secured
party. If the lien entry form is received and authenticated, as
herein provided, by a motor license agent, the agent shall make a
report thereof to the Tax Commission upon the forms and in the
manner as may be prescribed by the Tax Commission.
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7. The Tax Commission shall have the duty to record the lien
upon the face of the certificate of title issued at the time of
registering and paying all fees and taxes due on the vehicle.
B. 1. A secured party shall, within seven (7) business days
after the satisfaction of the security interest, furnish directly or
by mail a release of a security interest to the Tax Commission and
mail a copy thereof to the last -known address of the debtor. If the
security interest has been satisfied by payment from a licensed used
motor vehicle dealer to whom the motor vehicle has been transferred,
the secured party shall also, within seven (7) business days after
such satisfaction, mail an additional copy of the release to the
dealer. If the secured party fails to furnish the release as
required, the secured party shall be liable to the debtor for a
penalty of One Hundre d Dollars ($100.00). Following the seven (7)
business days after satisfaction of the lien and upon receipt by the
lienholder of written communication demanding the release of the
lien, thereafter the penalty shall increase to One Hundred Dollars
($100.00) per day for each additional day beyond seven (7) business
days until accumulating to One Thousand Five Hundred Dollars
($1,500.00) or the value of the vehicle, whichever is less, and, in
addition, any loss caused to the debtor by such failure.
2. Upon release of a security interest the owner may obtain a
new certificate of title omitting reference to the security
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interest, by submitting to the Tax Commission or to a motor license
agent:
a. a release signed by the secured party, an application
for new certificate of title and the proper fees, or
b. by submitting to the Tax Commission or the motor
license agent an affidavit, supported by such
documentation as the Tax Commission may require, by
the owner on a form prescribed by the Tax Commission
stating that the security interest has been satisfied
and stating the reasons why a release cannot be
obtained, an application for a new certificate of
title and the proper fees.
Upon receiving such affidavit that the security interest has been
satisfied, the Tax Comm ission shall issue a new certificate of title
eliminating the satisfied security interest and the name and address
of the secured parties who have been paid and satisfied. The Tax
Commission shall accept a release of a security interest in any form
that identifies the debtor, the secured party, and the vehicle, and
contains the signature of the secured party. The Tax Commission
shall not require any particular form for the release of a security
interest.
The words "security interest" when used in the Okla homa Vehicle
License and Registration Act do not include liens dependent upon
possession.
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C. The Tax Commission shall file and index certificates of
title so that at all times it will be possible to trace a
certificate of title to the vehicle designated t herein, identify the
lien entry form, and the names and addresses of secured parties, or
their assignees, so that all or any part of such information may be
made readily available to those who make legitimate inquiry of the
Tax Commission as to the existen ce or nonexistence of security
interest in the vehicle.
D. 1. Any security interest in a vehicle properly perfected
prior to July 1, 1979, may be continued as to its effectiveness or
duration as provided by Sections 1 -9-501 510 and 1-9-515 of Title
12A of the Oklahoma Statutes, or may be terminated, assigned or
released as provided by Sections 1 -9-512, 1-9-513 and 1-9-514 of
Title 12A of the Oklahoma Statutes, as fully as if this section had
not been enacted, or, at the option of the secured party, may al so
be perfected under this section, and, if so perfected, the time of
perfection under this section shall be the date the security
interest was originally perfected under the prior law.
2. Upon request of the secured party, the debtor or any other
holder of the certificate of title shall surrender the certificate
of title to the secured party and shall do such other acts as may be
required to perfect the security interest under this section.
E. If a manufactured home is permanently affixed to real
estate, the original document an Oklahoma certificate of title may
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be surrendered to the Tax Commission or a motor license agent for
cancellation. When the document of title is surrendered, the owner
shall provide the legal description or the appropriate tract o r
parcel number of the real estate and other information as may be
required on a form provided by the Tax Commission. The Tax
Commission may not cancel a document of title if a lien has been
registered or recorded. The Tax Commission or motor license age nt
shall notify the owner and any lienholder that the title has been
surrendered to the Tax Commission and that the Tax Commission may
not cancel the title until the lien is released. Such notification
shall include a description of the lien and such noti fication to the
owner shall be accompanied by the return of title surrendered.
Permanent attachment to real estate does not affect the validity of
a lien recorded or registered with the Tax Commission before the
document of title is cancelled canceled pursuant to this section.
The rights of a prior lienholder pursuant to a security agreement or
the provisions of a credit transaction and the rights of the state
pursuant to a tax lien are preserved. The Tax Commission or motor
license agent shall forward t he information to the county assessor
of the county where the real estate is located and indicate whether
the original document of title has been canceled. A fee of Five
Dollars ($5.00) shall accompany the application for cancellation of
title. When the fee is paid by a person making an application
directly with the Tax Commission, the fee shall be deposited in the
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Oklahoma Tax Commission Revolving Fund. A fee paid to a motor
license agent shall be retained by the agent. The owner of a
manufactured home, upon which the document of title has been
properly surrendered, may apply to the Tax Commission for issuance
of a new original certificate of title upon submission of:
(1) an 1. An attestation from the homeowner indicating
ownership of the manufactured home and the nonexistence of any
security interest or lien of record in the manufactured home ,; and
(2) a
2. A title opinion by a licensed attorney, determining that the
owner of the manufactured home has marketable title to the real
property upon which the manufactured home is located and that no
documents filed of record in the county clerk's office concerning
the real property contain a mortgage, recorded financial statement,
judgment, or lien of record. Persons or entities to whom the title
opinion is addressed may rely on the title opinion . A security
interest in a manufactured home perfected pursuant to this section
shall have priority over a conflicting interest of a mortgagee or
other lien encumbrancer, or the owner of the real property upon
which the manufactured home became affixed or otherwise permanently
attached. The holder of the security interest in the manufactured
home, upon default, may remove the manufactured home from such real
property. The holder of the security interest in the ma nufactured
home shall reimburse the owner of the real property who is not the
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debtor and who has not otherwise agreed to access the real property
for the cost of repair of any physical injury to the real property,
but shall not be liable for any diminution in value to the real
property caused by the removal of the manufactured home, trespass,
or any other damages caused by the removal. The debtor shall notify
the holder of the security interest in the manufactured home of the
street address, if any, and th e legal description of the real
property upon which the manufactured home is affixed or otherwise
permanently attached and shall sign such other documents, including
any appropriate mortgage, as may reasonably be requested by the
holder of such security in terest.
F. In the case of motor vehicles or trailers, notwithstanding
any other provision of law, a transaction does not create a sale or
security interest merely because it provides that the rental price
is permitted or required to be adjusted under the agreement either
upward or downward by reference to the amount realized upon sale or
other disposition of the motor vehicle or trailer.
G. A security interest in vehicles registered by a federally
recognized Indian tribe shall be deemed valid under Oklaho ma law if
validly perfected under the applicable tribal law and the lien is
noted on the face of the tribal certificate of title.
SECTION 4. AMENDATORY 68 O.S. 2011, Section 2812, is
amended to read as follows:
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Section 2812. A. Subject to the provisions of subsection B of
Section 2813 of this title, a manufactured home which is located on
land owned by the owner of the manufactured home shall be listed and
assessed in the county in which it is located for ad valorem
taxation as is real property pursuant to the provisions of the Ad
Valorem Tax Code. The person owning and residing in such
manufactured home may apply for homestead exemption. The county
assessor shall approve the application of such person if all
requirements of law for such exemption have been met.
B. A manufactured home which is located on land not owned by
the owner of the manufactured home shall be listed and assessed in
the county in which it is located for ad valorem taxation as is
personal property pursuant t o the provisions of the Ad Valorem Tax
Code.
C. Each year that a manufactured home is subject to ad valorem
taxes as provided by law, the county assessor and the county
treasurer shall transmit the information relating to ad valorem tax
payment to the Oklahoma Tax Commission , which shall identify the
manufactured home and record the payment in the computer data system
provided for by Section 1113 of Title 47 of the Oklahoma Statutes.
The county assessor and treasurer of each county shall provide such
information as may be required in order to implement the provisions
of this section.
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SECTION 5. This act shall become effective November 1, 2021.
58-1-5113 JBH 12/21/20