Oklahoma 2022 Regular Session

Oklahoma House Bill HB1153 Compare Versions

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1-An Act
2-ENROLLED HOUSE
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28+ENGROSSED SENATE AMENDMENT
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30+ENGROSSED HOUSE
331 BILL NO. 1153 By: Osburn of the House
432
533 and
634
735 Garvin of the Senate
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937
1038
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1442 An Act relating to motor vehicles; amending 47 O.S.
1543 2011, Section 581, as last amended by Section 3,
1644 Chapter 79, O.S.L. 2019 (47 O.S. Supp. 2020, Section
1745 581), which relates to definitions; modifying
1846 definitions; amending 47 O.S. 2011, Section 583, as
1947 last amended by Section 24, Chapter 161, O.S.L. 2020
2048 (47 O.S. Supp. 2020, Section 583), which relates to
2149 required licensure; requiring bon d for certain
2250 dealers; requiring certain service for manufactured
2351 homes in use in the state; requiring certain
2452 transactions go through licensed dealers; amending 47
25-O.S. 2011, Section 1110, as last amended by Section 1
26-of Enrolled House Bill No. 2056 of the 1st Session of
27-the 58th Oklahoma Legislature, which relates to
28-perfection of security interest; requiring certain
29-certificate of title be surrendered; amending 68 O.S.
30-2011, Section 2812, which relates to manufactured
31-homes; clarifying language; and providing an
32-effective date.
53+O.S. 2011, Section 1110, as amended by Section 1,
54+Chapter 224, O.S.L. 2015 (47 O.S. Supp. 2 020, Section
55+1110), which relates to perfection of security
56+interest; requiring certain certificate of title be
57+surrendered; amending 68 O.S. 2011, Section 2812,
58+which relates to manufactured homes; clarifying
59+language; and providing an effective date.
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37-SUBJECT: Motor vehicles
64+AMENDMENT NO. 1. Page 2, line 23, adding after the comma (,) the
65+word, “or”
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93+Passed the Senate the 14th day of April, 2021.
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97+ Presiding Officer of the Senate
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100+Passed the House of Representatives the ____ day of __________,
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105+ Presiding Officer of the House
106+ of Representatives
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108+ENGR. H. B. NO. 1153 Page 1 1
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133+ENGROSSED HOUSE
134+BILL NO. 1153 By: Osburn of the House
135+
136+ and
137+
138+ Garvin of the Senate
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145+An Act relating to motor vehicles; amending 47 O.S.
146+2011, Section 581, as last amended by Section 3,
147+Chapter 79, O.S.L. 2019 (47 O.S. Supp. 2020, Section
148+581), which relates to definitions; modifying
149+definitions; amending 47 O.S. 2011, Section 583, as
150+last amended by Section 24, Chapter 161, O.S.L. 2020
151+(47 O.S. Supp. 2020, Section 583), which relates to
152+required licensure; requirin g bond for certain
153+dealers; requiring certain service for manufactured
154+homes in use in the state; requiring certain
155+transactions go through licensed dealers; amending 47
156+O.S. 2011, Section 1110, as amended by Section 1,
157+Chapter 224, O.S.L. 2015 (47 O.S. Su pp. 2020, Section
158+1110), which relates to perfection of security
159+interest; requiring certain certificate of title be
160+surrendered; amending 68 O.S. 2011, Section 2812,
161+which relates to manufactured homes; clarifying
162+language; and providing an effective date .
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38166
39167 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
40-
41168 SECTION 1. AMENDATORY 47 O.S. 2011, Section 581, as last
42169 amended by Section 3, Chapter 79, O.S.L. 2019 (47 O.S. Supp. 2020,
43170 Section 581), is amended to read as follows:
44-
45171 Section 581. As used in Section 581 et seq. of this title:
46- ENR. H. B. NO. 1153 Page 2
47172 1. "Commission" means the Oklahoma Used Motor Vehicle and Parts
48173 Commission;
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49199
50200 2. "Compensation" means anything of value including money,
51201 merchandise, rebates on purchases, trading stamps or any oth er thing
52202 of value;
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54203 3. "Consignment sale" means the sale of used motor vehicles
55204 belonging to another by a used motor vehicle dealer, whether or not
56205 title is transferred from the consignor to the used motor vehicle
57206 dealer;
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59207 4. "Factory" means a manufacturer , distributor, factory branch,
60208 distributor branch, factory representative or distributor
61209 representative, which manufactures or distributes vehicle products;
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63210 5. "Manufactured home" means a residential dwelling in one or
64211 more sections built in accordance wi th the National Manufactured
65212 Housing Construction and Safety Standards Act of 1974, 42 U.S.C.,
66213 Section 5401, et seq. and rules promulgated pursuant thereto;
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68214 6. a. "Manufactured home dealer" means any person who ,:
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70215 (1) works for a commission or with intent t o make a
71216 profit or gain of money or other thing of value,
72217 sells, offers to sell, or attempts to negotiate a
73218 sale or exchange of interest in, new or used
74219 manufactured homes, or that
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76220 (2) is engaged wholly or in part in the business of
77221 selling any new and unu sed, or used, or both new
78-and used manufactured homes , or
222+and used manufactured homes ,
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79248
80249 (3) is engaged wholly or in part in the business of
81250 leasing any new and unused, or used, or both new
82251 and used manufactured homes, that are considered
83252 personal property, with an option to purchase or
84253 own in any form at any time after beginning of
85254 the lease term.
86-
87255 A valid franchise letter as proof of authorization to
88256 sell any new manufactured home product line or lines
89257 shall be attached to the application for a dealer
90258 license to sell manufactured homes. " Manufactured
91-home dealer" shall include a manufactured home ENR. H. B. NO. 1153 Page 3
259+home dealer" shall include a manufactured home
92260 auction. A manufactured home auction shall mean any
93261 person selling more than twenty-five five manufactured
94262 homes in an auction or liquidation format. Only
95263 licensed manufactured home dealers shal l be authorized
96264 to purchase manufactured homes at such auctions.
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98265 b. "Manufactured home dealer" shall not include any
99266 person who sells or contracts for the sale of a
100267 personally titled manufactured home or homes which
101268 they have used as their personal residen ce, or any
102269 person acting as an auctioneer who has been engaged by
103270 a seller to direct, conduct, control, or be
104271 responsible for the sale of such manufactured homes as
105272 a part of an auction or liquidation of an estate, or
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106299 any Oklahoma licensed real estate brok er or sales
107300 associate when buying or selling used mobile
108301 manufactured homes which have become real property as
109302 a part of a real estate business. No person shall be
110303 considered a manufactured home dealer as to any
111304 manufactured home purchased or acquired by the person
112305 for purposes other than resale or lease-purchase in
113306 any form; provided, that the restriction set forth in
114307 this sentence shall not prevent an otherwise qualified
115308 person from utilizing a single manufactured home as a
116309 sales office.
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118310 c. A holder of a lien on a personally titled manufactured
119311 home may sell, exchange, or transfer by lease -purchase
120312 the repossessed manufactured home and shall not be
121313 required to be licensed pursuant to this chapter
122314 title. If Any person other than a bona fide full -time
123315 employee of the lienholder contracts with a person or
124316 company to sell who participates in the sale of the
125317 repossessed manufactured home and the person or
126318 company is not an employee, officer or principal of
127319 the lienholder, such person or company shall be
128320 licensed as a manufactured home dealer pursuant to
129321 this chapter title.
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131348 d. "Manufactured home dealer" shall not include any
132349 person who sells mobile or manufactured homes located
133350 in a mobile or a restricted manufactured home park or
134351 community dealer;
135- ENR. H. B. NO. 1153 Page 4
136352 7. "Manufactured home salesperson" means any person who has
137353 been engaged by a manufactured home dealer or restricted
138354 manufactured home park dealer to buy, sell, exchange, negotiate, or
139355 act as an agent for the purchase, sale, or exchange of an interest
140356 in a manufactured home;
141-
142357 8. "Manufactured home installer" means a person who is engaged
143358 in the business of installing or setting up manufactured homes
144359 and/or mobile homes as defined herein;
145-
146360 9. "Manufactured home manufacturer" means a person who
147361 manufactures, assembles, and sells or distributes new manufactured
148362 homes, whether directly or indirectly, to new manufactured home
149363 retailers or a restricted manufactured home park dealer for resale
150364 or use in this state;
151-
152365 10. "Mobile home" means a residential dwelling fabricated in an
153366 off-site manufacturing facility, designed to be a permanent
154367 residence, but which is still transportable, that was built prior to
155368 the enacting of the National Manufactured Housing Construction and
156369 Safety Standards Act of 1974, 42 U.S.C., Section 5401 et seq.;
157-
158370 11. "Person" means an individual, business, corporation,
159371 partnership, association, limited liability corporation, trust,
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160398 firm, or company or legal entity, but does not include any political
161399 subdivision;
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163400 12. "Ready for occupancy" means a mobile or m anufactured home
164401 which is installed and anchored properly by a manufactured home
165402 installer licensed in this state and has utilities connected to
166403 service;
167-
168404 13. "Rebuilder" means a used motor vehicle dealer who is
169405 engaged in the business of rebuilding repair able motor vehicles and
170406 who has paid the fee for and been issued a rebuilder certificate as
171407 provided by Section 591.5 of this title;
172-
173408 14. "Restricted manufactured home park dealer" means any person
174409 operating a mobile or manufactured home park who, for a co mmission
175410 or with intent to make a profit or gain of money or other thing of
176411 value, sells, offers to sell, or attempts to negotiate a sale or
177412 exchange of interest in, new or used manufactured homes, or that is
178413 engaged wholly or in part in the business of se lling or leasing
179414 manufactured homes which are personal property with an option to
180-purchase or own in any form at any time after the beginning of the ENR. H. B. NO. 1153 Page 5
415+purchase or own in any form at any time after the beginning of the
181416 lease term any new and unused, or used, or both new and used
182417 manufactured homes; provided, every mobile or manufactured home sold
183418 pursuant to a restricted manufactured home park dealer license shall
184419 be located in the licensed mobile or manufactured home park and
185420 ready for occupancy. Provided further, manufactured home dealer
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186447 license plates shall not be issued to a restricted manufactured home
187448 park dealer;
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189449 15. "Retail implement dealer" means a business engaged
190450 primarily in the sale of farm tractors as defined in Section 1 -118
191451 of this title or implements of husbandry as defined in Section 1 -125
192452 of this title or a combination thereof;
193-
194453 16. "Sale" or "sell" means the act of selling, brokering,
195454 exchanging, exchanging of an interest in, or renting with the option
196455 of purchasing to purchase or own in any form at any time after the
197456 beginning of the lease term , a new or used manufactured home for
198457 commission, profit, or gain of money or other thing of value;
199-
200458 17. "Used motor vehicle" means any motor vehicle, as that term
201459 is defined in the Oklahoma Vehicle License and Registration Act, but
202460 not including any all -terrain vehicles, utility vehicles, and
203461 motorcycles used exclusively for off -road use which are sold by a
204462 retail implement dealer, which has been sold, bargained, exchanged,
205463 given away or the title thereto transferred from the person who
206464 first took title from the manu facturer, importer, or dealer or agent
207465 of the manufacturer or importer, or so used as to have become what
208466 is commonly known as a "secondhand motor vehicle". In the event of
209467 transfer, on the statement of origin, from the original franchised
210468 dealer to any other dealer or individual other than a franchised
211469 dealer of the same make of vehicle, the vehicle shall be considered
212470 a used motor vehicle and must be titled in the new owner's name;
213471
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214497 18. "Used motor vehicle auction" means any business other than
215498 salvage pools which regularly engages in the sale or trade, or
216499 negotiates the sale or trade, of used motor vehicles by auction,
217500 whether by open or closed bid or by sale to or purchase by used
218501 motor vehicle dealers or individuals;
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220502 19. a. "Used motor vehicle dealer" means any person who, for
221503 a commission or with intent to make a profit or gain
222504 of money or other thing of value, sells, brokers,
223505 exchanges, rents with option to purchase, or offers or
224506 attempts to negotiate a sale or exchange of an
225-interest in used motor vehicles, or who is engaged ENR. H. B. NO. 1153 Page 6
507+interest in used motor ve hicles, or who is engaged
226508 wholly or in part in the business of selling used
227509 motor vehicles, whether or not such motor vehicles are
228510 owned by the person.
229-
230511 b. "Used motor vehicle dealer" shall not include:
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232512 (1) receivers, trustees, administrators, executors,
233513 guardians, or other persons appointed by or
234514 acting pursuant to the judgment or order of any
235515 court,
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237516 (2) public officers while performing their official
238517 duties,
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240518 (3) employees of persons enumerated in the definition
241519 of "used motor vehicle dealer" when engaged i n
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242546 the specific performance of their duties as such
243547 employees,
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245548 (4) mortgagees or secured parties as to sales of
246549 motor vehicles constituting collateral on a
247550 mortgage or security agreement, if the mortgagees
248551 or secured parties shall not realize for their
249552 own account from such sales any monies in excess
250553 of the outstanding balance secured by such
251554 mortgage or security agreement, plus the costs of
252555 collection,
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254556 (5) any person acting as an auctioneer who has been
255557 engaged by a seller to direct, conduct, control,
256558 or be responsible for the sale of used motor
257559 vehicles as part of an estate auction or
258560 liquidation,
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260561 (6) any person, firm, corporation, or other legal
261562 entity who sells, or contracts for the sale of,
262563 the vehicles of the person, firm, corporation, or
263564 other legal entity when such vehicles are sold in
264565 liquidation, and any person, firm, corporation,
265566 or other legal entity who serves as an agent in
266567 such sale. The exclusion provided in this
267568 paragraph shall not extend to any person, firm,
268569 corporation, or other legal entit y whose business
269-is the purchase, sale, or rental with option to ENR. H. B. NO. 1153 Page 7
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596+is the purchase, sale, or rental with option to
270597 purchase, of motor vehicles, or to a location
271598 used for such purposes,
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273599 (7) any person acting as an auctioneer who has been
274600 engaged by a seller to direct, conduct, control,
275601 or be responsible fo r the sale of used motor
276602 vehicles as part of an auction held at a licensed
277603 used motor vehicle dealer location. The
278604 exclusion provided in this division shall not
279605 extend to a person who auctions five or more used
280606 motor vehicles in a nonliquidation sale held at a
281607 licensed used motor vehicle dealer location which
282608 is not regularly used as a vehicle auction, or
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284609 (8) any retail implement dealer that sells all -
285610 terrain vehicles, utility vehicles, and
286611 motorcycles used exclusively for off -road use;
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288612 20. "Used motor vehicle salesperson" means a person employed by
289613 a licensed used motor vehicle dealer to sell, broker, exchange, or
290614 negotiate a purchase, sale, or rental with option to purchase, used
291615 motor vehicles or an interest in used motor vehicles. The term
292616 "used motor vehicle salesperson" shall not include any person who:
617+a. uses the person's own funds for such transactions, or
293618
294-a. uses the person's own funds for such transactions, or
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296644 b. operates independently as a used motor vehicle dealer
297645 using a licensed used motor vehicle dealer's license
298646 number; and
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300647 21. "Wholesale used motor vehicle dealer" means any person who,
301648 for a commission or with intent to make a profit or gain of money or
302649 other thing of value, sells, brokers, exchanges, rents with option
303650 to purchase, or offers or attempts to negotiate a sale or exchange
304651 of interest in used motor vehicles exclusively to used motor vehicle
305652 dealers, or who is engaged in the business of selling used motor
306653 vehicles exclusively to used motor vehicle dealers, whether or not
307654 such motor vehicles are owned by the person.
308-
309655 SECTION 2. AMENDATORY 47 O.S. 2011, Section 583, as last
310656 amended by Section 24, Chapter 161, O.S.L. 2020 (47 O.S. Supp. 2020,
311657 Section 583), is amended to read as follows:
312-
313658 Section 583. A. 1. It shall be unlawful and constitute a
314-misdemeanor for any person to engage in business as, or serve in the ENR. H. B. NO. 1153 Page 8
659+misdemeanor for any person to engage in business as, or serve in the
315660 capacity of, or act as a used motor vehicle dealer, wholesale used
316661 motor vehicle dealer, manufactured home dealer, restricted
317662 manufactured home park dealer, manufactured home installer, or
318663 manufactured home manufacturer selling directly to a licensed
319664 manufactured home dealer in this state without first obtaining a
320665 license or following other requirements therefor as provided in this
321666 section.
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322692
323693 2. a. Any person engaging, acting, or serving in the
324694 capacity of a used motor vehicle dealer, a
325695 manufactured home dealer, restricted manufactured home
326696 park dealer, a manufactured home installer, or a
327697 manufactured home manufacturer, or having more than
328698 one place where any such business, or combination of
329699 businesses, is carried on or conducted shall be
330700 required to obtain and hold a current license for each
331701 such business, in which engaged.
332-
333702 b. If after a hearing in accordance with the provisions
334703 of Section 585 of this title, the Oklahoma Used Motor
335704 Vehicle and Parts Commission shall find any person
336705 installing a mobile or manufactured home to be in
337706 violation of any of the provisions of this act, such
338707 person may be subject to an administrative fine of not
339708 more than Five Hundred Dollars ($500.00) for each
340709 violation. Each day a pe rson is in violation of this
341710 act may constitute a separate violation. All
342711 administrative fines collected pursuant to the
343712 provisions of this subparagraph shall be deposited in
344713 the fund established in Section 582 of this title.
345714 Administrative fines imposed pursuant to this
346715 subparagraph may be enforceable in the district courts
347716 of this state.
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349743 3. Any person, except persons penalized by administrative fine ,
350744 violating the provisions of this section shall, upon conviction, be
351745 punished by a fine not to exceed Fi ve Hundred Dollars ($500.00). A
352746 second or subsequent conviction shall be punished by a fine not to
353747 exceed One Thousand Dollars ($1,000.00); provided that each day such
354748 unlicensed person violates this section shall constitute a separate
355749 offense, and any vehicle involved in a violation of this subsection
356750 shall be considered a separate offense.
357-
358751 B. 1. Applications for licenses required to be obtained under
359-the provisions of the Oklahoma Used Motor Vehicle and Parts ENR. H. B. NO. 1153 Page 9
752+the provisions of the Oklahoma Used Motor Vehicle and Parts
360753 Commission shall be verified by the oath or affirmation of the
361754 applicant and shall be on forms prescribed by the Commission and
362755 furnished to the applicants, and shall contain such information as
363756 the Commission deems necessary to enable it to fully determine the
364757 qualifications and eligibility of the several applicants to receive
365758 the license or licenses applied for. The Commission shall require
366759 in the application, or otherwise, information relating to:
367-
368760 a. the applicant's financial standing,
369-
370761 b. the applicant's business integrity,
371-
372762 c. whether the applicant has an established place of
373763 business and is engaged in the pursuit, avocation, or
374764 business for which a license, or licenses, is applied
375765 for,
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377792 d. whether the applicant is able to properly conduct the
378793 business for which a license, or licenses, is applied
379794 for, and
380-
381795 e. such other pertinent information consistent with the
382796 safeguarding of the public interest and the public
383797 welfare.
384-
385798 2. All applications for license or licenses shall be
386799 accompanied by the appropriate fee or fees in accordance with the
387800 schedule hereinafter provided. In the event any application is
388801 denied and the license applied for is not issued, the entire license
389802 fee shall be returned to the applicant.
390-
391803 3. All bonds and licenses issued under the provisions of this
392804 act shall expire on December 31 , following the date of issue and
393805 shall be nontransferable. All applications for renewal of licenses
394806 shall be submitted by November 1 of each year of expiration, and
395807 licenses for completed renewals received by November 1 shall be
396808 issued by January 10. If applications have not been made for
397809 renewal of licenses, such licenses shall expire on December 31 and
398810 it shall be illegal for any person to represent himself or herself
399811 and act as a dealer thereafter. Tag agents shall be notified not to
400812 accept dealers' titles until such time as licenses have been issued.
401813 Beginning January 1, 2016, all licenses shall be issued for a period
402814 of two (2) years and the appropriate fees shall be assessed. The
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403841 Commission shall adopt rules necessary to implement the two -year
404-licensing provisions. ENR. H. B. NO. 1153 Page 10
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842+licensing provisions.
406843 C. The schedule of license fees to be charged and received by
407844 the Commission for the licenses issued hereunder shall be as
408845 follows:
409-
410846 1. For each used motor vehicle dealer's license and each
411847 wholesale used motor vehicle dealer's license , Six Hundred Dollars
412848 ($600.00). If a used motor vehicle dealer or a wholesale used motor
413849 vehicle dealer has once been licensed by the Commission in the
414850 classification for which he or she applies for a renewal of the
415851 license, the fee for each subsequent r enewal shall be Three Hundred
416852 Dollars ($300.00); provided, if an applicant holds a license to
417853 conduct business as an automotive dismantler and parts recycler
418854 issued pursuant to Section 591.1 et seq. of this title, the initial
419855 fee shall be Two Hundred Dolla rs ($200.00) and the renewal fee shall
420856 be Two Hundred Dollars ($200.00). If an applicant is applying
421857 simultaneously for a license under this paragraph and a license
422858 under paragraph 1 of Section 591.5 of this title, the initial
423859 application fee shall be Fou r Hundred Dollars ($400.00). For the
424860 reinstatement of a used motor vehicle dealer's license after
425861 revocation for cancellation or expiration of insurance pursuant to
426862 subsection F of this section, the fee shall be Two Hundred Dollars
427863 ($200.00);
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429890 2. For a used motor vehicle dealer's license, for each place of
430891 business in addition to the principal place of business, Two Hundred
431892 Dollars ($200.00);
432-
433893 3. For each holder who possesses a valid new motor vehicle
434894 dealer's license from the Oklahoma Motor Vehicle Commis sion, Two
435895 Hundred Dollars ($200.00) shall be the initial fee for a used motor
436896 vehicle license and the fee for each subsequent renewal shall be Two
437897 Hundred Dollars ($200.00);
438-
439898 4. a. For each manufactured home dealer's license or a
440899 restricted manufactured hom e park dealer's license,
441900 Six Hundred Dollars ($600.00), and for each place of
442901 business in addition to the principal place of
443902 business, Four Hundred Dollars ($400.00), and
444-
445903 b. For each renewal of a manufactured home dealer's
446904 license or a restricted manufactu red home park
447905 dealer's license, and renewal for each place of
448906 business in addition to the principal place of
449-business, Three Hundred Dollars ($300.00); ENR. H. B. NO. 1153 Page 11
450-
907+business, Three Hundred Dollars ($300.00);
451908 5. a. For each manufactured home installer's license, Four
452909 Hundred Dollars ($400.00), and
453-
454910 b. For each renewal of a manufactured home installer's
455911 license, Four Hundred Dollars ($400.00);
456-
457912 6. a. For each manufactured home manufacturer selling
458913 directly to a licensed manufactured home dealer in
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459940 this state, One Thousand Five Hundred Dollars
460941 ($1,500.00), and
461-
462942 b. For each renewal of a manufactured home manufacturer's
463943 license, One Thousand Five Hundred Dollars
464944 ($1,500.00);
465-
466945 7. Any manufactured home manufacturer who sells a new
467946 manufactured home to be shipped to or sited in the State of Oklahoma
468947 shall pay an installatio n inspection fee of Seventy -five Dollars
469948 ($75.00) for each new single -wide manufactured home and One Hundred
470949 Twenty-five Dollars ($125.00) for each new multi -floor manufactured
471950 home; and
472-
473951 8. A used manufactured home inspection fee of Seventy -five
474952 Dollars ($75.00) shall be paid by the installer at or before the
475953 time of installation of any used manufactured home sited and
476954 installed in the State of Oklahoma.
477-
478955 D. 1. The license issued to each used motor vehicle dealer,
479956 each wholesale used motor vehicle dealer, each restricted
480957 manufactured home park dealer and each manufactured home dealer
481958 shall specify the location of the place of business. If the
482959 business location is changed, the Oklahoma Used Motor Vehicle and
483960 Parts Commission shall be notified immediately o f the change and the
484961 Commission may endorse the change of location on the license. The
485962 fee for a change of location shall be One Hundred Dollars ($100.00),
486963 and the fee for a change of name, Twenty -five Dollars ($25.00). The
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487990 license of each licensee shall be posted in a conspicuous place in
488991 the place or places of business of the licensee.
489-
490992 2. The license issued to each manufactured home installer , and
491993 each manufactured home manufacturer shall specify the location of
492994 the place of business. If the business location is changed, the
493995 Oklahoma Used Motor Vehicle and Parts Commission shall be notified
494-immediately of the change and the Commission may endorse the change ENR. H. B. NO. 1153 Page 12
996+immediately of the change and the Commission may endorse the change
495997 of location on the license without charge. The license of each
496998 licensee shall be posted in a co nspicuous place in the place or
497999 places of business of the licensee.
498-
4991000 3. Every manufactured home installer shall have the license
5001001 available for inspection at the primary place of business of the
5011002 licensee. This license shall be valid for the licensee and al l of
5021003 the employees of the licensee. Any person who is not an employee of
5031004 the licensee must obtain a separate manufactured home installer
5041005 license regardless of whether such person is acting in the capacity
5051006 of a contractor or subcontractor.
506-
5071007 E. 1. a. Each applicant for a used motor vehicle dealer's
5081008 license shall procure and file with the Commission a
5091009 good and sufficient bond in the amount of Twenty -five
5101010 Thousand Dollars ($25,000.00). Each new applicant for
5111011 a used motor vehicle dealer's license for the purpos e
5121012 of conducting a used motor vehicle auction shall
5131013 procure and file with the Commission a good and
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5141040 sufficient bond in the amount of Fifty Thousand
5151041 Dollars ($50,000.00). An applicant who intends to
5161042 conduct a used motor vehicle auction who provides
5171043 proof that the applicant has check and title insurance
5181044 in an amount not less than Fifty Thousand Dollars
5191045 ($50,000.00) shall only be required to have a bond in
5201046 the amount of Twenty -five Thousand Dollars
5211047 ($25,000.00).
522-
5231048 b. Each new applicant for a used motor vehicle d ealer
5241049 license for the purpose of conducting a used motor
5251050 vehicle business which will consist primarily of non -
5261051 auction consignment sales which are projected to equal
5271052 Five Hundred Thousand Dollars ($500,000.00) or more in
5281053 gross annual sales shall procure and file with the
5291054 Commission a good and sufficient bond in the amount of
5301055 Fifty Thousand Dollars ($50,000.00). The Commission
5311056 shall prescribe by rule the method of operation of the
5321057 non-auction consignment dealer in order to properly
5331058 protect the interests of a ll parties to the
5341059 transaction and to provide sanctions against dealers
5351060 who fail to comply with the rules.
1061+c. Each applicant for a wholesale used motor vehicle
1062+dealer's license shall procure and file with the
5361063
537-c. Each applicant for a wholesale used motor vehicle
538-dealer's license shall procure and file with the ENR. H. B. NO. 1153 Page 13
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5391089 Commission a good and sufficient bond in the amo unt of
5401090 Twenty-five Thousand Dollars ($25,000.00).
541-
5421091 d. Any used motor vehicle dealer who, for the purpose of
5431092 being a rebuilder, applies for a rebuilder
5441093 certificate, as provided in Section 591.5 of this
5451094 title, whether as a new application or renewal, shall
5461095 procure and file with the Commission a good and
5471096 sufficient bond in the amount of Fifteen Thousand
5481097 Dollars ($15,000.00), in addition to any other bonds
5491098 required.
550-
5511099 e. Each applicant for a manufactured home dealer's
5521100 license or a restricted manufactured home park
5531101 dealer's license shall procure and file with the
5541102 Commission a good and sufficient bond in the amount of
5551103 Thirty Thousand Dollars ($30,000.00).
556-
5571104 f. Each manufactured home manufacturing facility selling
5581105 directly to a licensed manufactured home dealer or
5591106 restricted manufactured home park dealer in this state
5601107 shall procure and file with the Commission a good and
5611108 sufficient bond in the amount of Thirty Thousand
5621109 Dollars ($30,000.00). In addition to all other
5631110 conditions and requirements set forth herein, the bond
5641111 shall require the availability of prompt and full
5651112 warranty service by the manufacturer to comply with
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5661139 all warranties expressed or implied in connection with
5671140 each manufactured home which is manufactured for
5681141 resale or use in this state. A manufacturer may n ot
5691142 sell, exchange, or lease -purchase with an option to
5701143 own in any form a manufactured home to a person in
5711144 this state directly or indirectly through a
5721145 distributor or third party who is not a licensed
5731146 manufactured home dealer or a restricted manufactured
5741147 home park dealer.
575-
5761148 g. The bond shall be approved as to form by the Attorney
5771149 General and conditioned that the applicant shall not
5781150 practice fraud, make any fraudulent representation, or
5791151 violate any of the provisions of this act in the
5801152 conduct of the business for which the applicant is
5811153 licensed. One of the purposes of the bond is to
5821154 provide reimbursement for any loss or damage suffered
583-by any person by reason of issuan ce of a certificate ENR. H. B. NO. 1153 Page 14
1155+by any person by reason of issuance of a certificate
5841156 of title by a used motor vehicle dealer, a wholesale
5851157 used motor vehicle deal er, a restricted manufactured
5861158 home park dealer or a manufactured home dealer.
587-
5881159 2. The bonds as required by this section shall be maintained
5891160 throughout the period of licensure. Should the bond be canceled for
5901161 any reason, the license shall be revoked as of the date of
5911162 cancellation unless a new bond is furnished prior to such date.
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5931189 F. Any used motor vehicle dealer or wholesale used motor
5941190 vehicle dealer is required to furnish and keep in force a minimum of
5951191 Twenty-five Thousand Dollars ($25,000.00) of single l iability
5961192 insurance coverage on all vehicles offered for sale or used in any
5971193 other capacity in demonstrating or utilizing the streets and
5981194 roadways in accordance with the financial responsibility laws of
5991195 this state.
600-
6011196 G. Any manufactured home dealer or restri cted manufactured home
6021197 park dealer is required to furnish and keep in force a minimum of
6031198 One Hundred Thousand Dollars ($100,000.00) of garage liability or
6041199 general liability with products and completed operations insurance
6051200 coverage.
606-
6071201 H. Any manufactured hom e installer is required to furnish and
6081202 keep in force a minimum of Twenty -five Thousand Dollars ($25,000.00)
6091203 of general liability with products and completed operations
6101204 insurance coverage.
611-
6121205 SECTION 3. AMENDATORY 47 O.S. 2011, Sectio n 1110, as
613-last amended by Section 1 of Enrolled House Bill No. 2056 of the 1st
614-Session of the 58th Oklahoma Legislature, is amended to read as
615-follows:
616-
1206+amended by Section 1, Chapter 224, O.S.L. 2015 (47 O.S. Supp. 2020,
1207+Section 1110), is amended to read as follows:
6171208 Section 1110. A. 1. Except for a security interest in
6181209 vehicles held by a dealer for sale or lease, a vehicle registered by
6191210 a federally recognized Indian tribe as provided in subsection G of
6201211 this section, and a vehicle being registered in this state which was
6211212 previously registered in another state and which title contains the
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6221239 name of a secured party on the face of the other state ce rtificate
6231240 or title, and except as otherwise provided in subsection B of
6241241 Section 1105 of this title, a security interest in a vehicle as to
6251242 which a certificate of title may be properly issued by the Oklahoma
6261243 Tax Commission shall be perfected only when a lie n entry form, and
6271244 the existing certificate of title, if any, or application for a
628-certificate of title and manufacturer 's certificate of origin ENR. H. B. NO. 1153 Page 15
1245+certificate of title and manufacturer's certificate of origin
6291246 containing the name and address of the secured party and the date of
6301247 the security agreement and the required fee are delivered to the Tax
6311248 Commission or to a motor license agent. As used in this section,
6321249 the term "dealer" shall be defined as provided in Section 1 -112 of
6331250 this title and the term "security interest" shall be defined as
6341251 provided in paragraph (35) of Sec tion 1-201 of Title 12A of the
6351252 Oklahoma Statutes. When a vehicle title is presented to a motor
6361253 license agent for transferring or registering and the documents
637-reflect a lienholder, the motor license agent shall perfect the lien
638-pursuant to subsection G of Section 1105 of this title. For the
639-purposes of this section, the term "vehicle" shall not include
640-special mobilized machine ry, machinery used in highway construction
641-or road material construction and rubber -tired road construction
642-vehicles including rubber -tired cranes. The filing and duration of
643-perfection of a security interest, pursuant to the provisions of
644-Title 12A of the Oklahoma Statutes, including, but not limited to,
645-Section 1-9-311 of Title 12A of the Oklahoma Statutes, shall not be
646-applicable to perfection of security interests in vehicles as to
1254+reflect a lien holder lienholder, the motor license agent shall
1255+perfect the lien pursuant to sub section G of Section 1105 of this
1256+title. For the purposes of this section, the term "vehicle" shall
1257+not include special mobilized machinery, machinery used in highway
1258+construction or road material construction and rubber -tired road
1259+construction vehicles i ncluding rubber-tired cranes. The filing and
1260+duration of perfection of a security interest, pursuant to the
1261+provisions of Title 12A of the Oklahoma Statutes, including, but not
1262+limited to, Section 1 -9-311 of Title 12A of the Oklahoma Statutes,
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1289+shall not be applicable to perfection of security interests in
1290+vehicles as to which a certificate of title may be properly issued
1291+by the Tax Commission, except as to vehicles held by a dealer for
1292+sale or lease and except as provided in subsection D of this
1293+section. In all other respects Title 12A of the Oklahoma Statutes
1294+shall be applicable to such security interests in vehicles as to
6471295 which a certificate of title may be properly issued by the Tax
648-Commission, except as to vehicles held by a dealer for sale or lease
649-and except as provided in subsection D of this section. In all
650-other respects Title 12A of the Oklahoma Statutes shall be
651-applicable to such security interests in vehicles as to which a
652-certificate of title may be properly issued by the Tax Commission.
653-
1296+Commission.
6541297 2. Whenever a person creates a security interest in a vehi cle,
6551298 the person shall surrender to the secured party the certificate of
6561299 title or the signed application for a new certificate of title, on
6571300 the form prescribed by the Tax Commission, and the manufacturer's
6581301 certificate of origin. The secured party shall del iver the lien
6591302 entry form and the required lien filing fee within twenty -five (25)
6601303 days as provided hereafter with certificate of title or the
6611304 application for certificate of title and the manufacturer's
6621305 certificate of origin to the Tax Commission or to a mo tor license
6631306 agent. If the lien entry form, the lien filing fee and the
6641307 certificate of title or application for certificate of title and the
6651308 manufacturer's certificate of origin are delivered to the Tax
6661309 Commission or to a motor license agent within twenty -five (25) days
6671310 after the date of the lien entry form, perfection of the security
6681311 interest shall begin from the date of the execution of the lien
6691312 entry form, but otherwise, perfection of the security interest shall
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6701339 begin from the date of the delivery to the Tax Commission or to a
6711340 motor license agent.
672- ENR. H. B. NO. 1153 Page 16
6731341 3. a. For each security interest recorded on a certificate
6741342 of title, or manufacturer's certificate of origin,
6751343 such person shall pay a fee of Ten Dollars ($10.00),
6761344 which shall be in addition to other fees provide d for
6771345 in the Oklahoma Vehicle License and Registration Act.
6781346 Upon the receipt of the lien entry form and the
6791347 required fees with either the certificate of title or
6801348 an application for certificate of title and
6811349 manufacturer's certificate of origin, a motor lic ense
6821350 agent shall, by placement of a clearly distinguishing
6831351 mark, record the date and number shown in a
6841352 conspicuous place, on each of these instruments. Of
6851353 the ten-dollar fee, the motor license agent shall
6861354 retain Two Dollars ($2.00) for recording the secur ity
6871355 interest lien.
688-
6891356 b. It shall be unlawful for any person to solicit, accept
6901357 or receive any gratuity or compensation for acting as
6911358 a messenger and for acting as the agent or
6921359 representative of another person in applying for the
6931360 recording of a security inter est or for the
6941361 registration of a motor vehicle and obtaining the
6951362 license plates or for the issuance of a certificate of
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6961389 title therefor unless the Tax Commission has appointed
6971390 and approved the person to perform such acts; and
6981391 before acting as a messenger, a ny such person shall
6991392 furnish to the Tax Commission a surety bond in such
7001393 amount as the Tax Commission shall determine
7011394 appropriate.
702-
7031395 4. The certificate of title or the application for certificate
7041396 of title and manufacturer's certificate of origin with the re cord of
7051397 the date of receipt clearly marked thereon shall be returned to the
7061398 debtor together with a notice that the debtor is required to
7071399 register and pay all additional fees and taxes due within thirty
7081400 (30) days from the date of purchase of the vehicle.
709-
7101401 5. Any person creating a security interest in a vehicle that
7111402 has been previously registered in the debtor's name and on which all
7121403 taxes due the state have been paid shall surrender the certificate
7131404 of ownership to the secured party. The secured party shall have the
7141405 duty to record the security interest as provided in this section and
7151406 shall, at the same time, obtain a new certificate of title which
7161407 shall show the secured interest on the face of the certificate of
717-title. ENR. H. B. NO. 1153 Page 17
718-
1408+title.
7191409 6. The lien entry form with the date an d assigned number
7201410 thereof clearly marked thereon shall be returned to the secured
7211411 party. If the lien entry form is received and authenticated, as
7221412 herein provided, by a motor license agent, the agent shall make a
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7231439 report thereof to the Tax Commission upon t he forms and in the
7241440 manner as may be prescribed by the Tax Commission.
725-
7261441 7. The Tax Commission shall have the duty to record the lien
7271442 upon the face of the certificate of title issued at the time of
7281443 registering and paying all fees and taxes due on the vehicl e.
729-
730-8. When there is an active lien from a commercial lender in
731-place on a vehicle, motor license agents shall be prohibited from
732-transferring the certificate of title on that vehicle until the lien
733-is satisfied.
734-
7351444 B. 1. A secured party shall, within seven (7) business days
7361445 after the satisfaction of the security interest, furnish directly or
7371446 by mail a release of a security interest to the Tax Commission and
7381447 mail a copy thereof to the last -known address of the de btor. If the
7391448 security interest has been satisfied by payment from a licensed used
7401449 motor vehicle dealer to whom the motor vehicle has been transferred,
7411450 the secured party shall also, within seven (7) business days after
7421451 such satisfaction, mail an additional copy of the release to the
7431452 dealer. If the secured party fails to furnish the release as
7441453 required, the secured party shall be liable to the debtor for a
7451454 penalty of One Hundred Dollars ($100.00). Following the seven (7)
7461455 business days after satisfaction of the lien and upon receipt by the
7471456 lienholder of written communication demanding the release of the
7481457 lien, thereafter the penalty shall increase to One Hundred Dollars
7491458 ($100.00) per day for each additional day beyond seven (7) business
7501459 days until accumulatin g to One Thousand Five Hundred Dollars
7511460 ($1,500.00) or the value of the vehicle, whichever is less, and, in
7521461 addition, any loss caused to the debtor by such failure.
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7541488 2. Upon release of a security interest the owner may obtain a
7551489 new certificate of title omit ting reference to the security
7561490 interest, by submitting to the Tax Commission or to a motor license
7571491 agent:
758-
7591492 a. a release signed by the secured party, an application
7601493 for new certificate of title and the proper fees, or
761- ENR. H. B. NO. 1153 Page 18
7621494 b. by submitting to the Tax Commission o r the motor
7631495 license agent an affidavit, supported by such
7641496 documentation as the Tax Commission may require, by
7651497 the owner on a form prescribed by the Tax Commission
7661498 stating that the security interest has been satisfied
7671499 and stating the reasons why a release c annot be
7681500 obtained, an application for a new certificate of
7691501 title and the proper fees.
770-
7711502 Upon receiving such affidavit that the security interest has been
7721503 satisfied, the Tax Commission shall issue a new certificate of title
7731504 eliminating the satisfied security interest and the name and address
7741505 of the secured parties who have been paid and satisfied. The Tax
7751506 Commission shall accept a release of a security interest in any form
7761507 that identifies the debtor, the secured party, and the vehicle, and
7771508 contains the signature of the secured party. The Tax Commission
7781509 shall not require any particular form for the release of a security
7791510 interest.
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7811537 The words "security interest" when used in the Oklahoma Vehicle
7821538 License and Registration Act do not include liens dependent upon
7831539 possession.
784-
7851540 C. The Tax Commission shall file and index certificates of
7861541 title so that at all times it will be possible to trace a
7871542 certificate of title to the vehicle designated therein, identify the
7881543 lien entry form, and the names and addresses of secured part ies, or
7891544 their assignees, so that all or any part of such information may be
7901545 made readily available to those who make legitimate inquiry of the
7911546 Tax Commission as to the existence or nonexistence of security
7921547 interest in the vehicle.
793-
7941548 D. 1. Any security inte rest in a vehicle properly perfected
7951549 prior to July 1, 1979, may be continued as to its effectiveness or
796-duration as provided by Sections 1-9-510 and 1-9-515 of Title 12A of
797-the Oklahoma Statutes, or may be terminated, assigned or released as
798-provided by Sections 1 -9-512, 1-9-513 and 1-9-514 of Title 12A of
799-the Oklahoma Statutes, as fully as if this section had not been
800-enacted, or, at the option of the secured party, may also be
801-perfected under this section, and, if so perfected, the time of
1550+duration as provided by Sections 1-9-501 1-9-510 and 1-9-515 of
1551+Title 12A of the Oklahoma Statutes, or may be terminated, assigned
1552+or released as provid ed by Sections 1-9-512, 1-9-513 and 1-9-514 of
1553+Title 12A of the Oklahoma Statutes, as fully as if this section had
1554+not been enacted, or, at the option of the secured party, may also
1555+be perfected under this section, and, if so perfected, the time of
8021556 perfection under this section shall be the date the security
8031557 interest was originally perfected under the prior law.
1558+2. Upon request of the secured party, the debtor or any other
1559+holder of the certificate of title shall surrender the certificate
8041560
805-2. Upon request of the secured party, the debtor or any other
806-holder of the certificate of title shall surrender the certificate ENR. H. B. NO. 1153 Page 19
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8071586 of title to the secured party and shall do such other acts as may be
8081587 required to perfect the security interest under this section.
809-
8101588 E. If a manufactured home is permanently affixed to real
8111589 estate, the original document an Oklahoma certificate of title may
8121590 be surrendered to the Tax Commission or a motor license agent for
8131591 cancellation. When the document of title is surrendered, the owner
8141592 shall provide the legal description or the appropriate tract or
8151593 parcel number of the real estate and other information as may be
8161594 required on a form provided by the Tax Commission. The Tax
8171595 Commission may not cancel a document of title if a lien has been
8181596 registered or recorded. The Tax Commission or motor license agent
8191597 shall notify the owner and any lienholder that the title has been
8201598 surrendered to the Tax Commission and that the Tax Commission may
8211599 not cancel the title until the lien is released. Such notification
8221600 shall include a description of the lien and such notification to the
8231601 owner shall be accompanied by the return of title surrendered .
8241602 Permanent attachment to real estate does not affect the validity of
8251603 a lien recorded or registered with the Tax Commission before the
826-document of title is canceled pursuant to this section. The rights
827-of a prior lienholder pursuant to a security agreement or the
828-provisions of a credit transaction and the rights of the state
1604+document of title is cancelled canceled pursuant to this section.
1605+The rights of a prior lienholder pursuant to a securi ty agreement or
1606+the provisions of a credit transaction and the rights of the state
8291607 pursuant to a tax lien are preserved. The Tax Commission or motor
8301608 license agent shall forward the information to the county assessor
8311609 of the county where the real estate is located and indicate whether
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8321636 the original document of title has been canceled. A fee of Five
8331637 Dollars ($5.00) shall accompany the application for cancellation of
8341638 title. When the fee is paid by a person making an application
8351639 directly with the Tax Commissio n, the fee shall be deposited in the
8361640 Oklahoma Tax Commission Revolving Fund. A fee paid to a motor
8371641 license agent shall be retained by the agent. The owner of a
838-manufactured home upon which the document of title has been properly
839-surrendered, may apply to the Tax Commission for issuance of a new
840-original certificate of title upon submission of:
841-
842-1. An attestation from the homeowner indicating ownership of
843-the manufactured home and th e nonexistence of any security interest
844-or lien of record in the manufactured home ; and
845-
1642+manufactured home, upon which the document of title has been
1643+properly surrendered, may apply t o the Tax Commission for issuance
1644+of a new original certificate of title upon submission of:
1645+(1) an 1. An attestation from the homeowner indicating
1646+ownership of the manufactured home and the nonexistence of any
1647+security interest or lien of record in the manufactured home,; and
1648+(2) a
8461649 2. A title opinion by a licensed attorney, determining that the
8471650 owner of the manufactured home has marketable title to the real
8481651 property upon which the manufactured home is located and that no
8491652 documents filed of record in th e county clerk's office concerning
8501653 the real property contain a mortgage, recorded financial statement,
851-judgment, or lien of record. Persons or entities to whom the title ENR. H. B. NO. 1153 Page 20
1654+judgment, or lien of record. Persons or entities to whom the title
8521655 opinion is addressed may rely on the title opinion . A security
8531656 interest in a manufac tured home perfected pursuant to this section
8541657 shall have priority over a conflicting interest of a mortgagee or
8551658 other lien encumbrancer, or the owner of the real property upon
8561659 which the manufactured home became affixed or otherwise permanently
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8571686 attached. The holder of the security interest in the manufactured
8581687 home, upon default, may remove the manufactured home from such real
8591688 property. The holder of the security interest in the manufactured
8601689 home shall reimburse the owner of the real property who is not the
8611690 debtor and who has not otherwise agreed to access the real property
8621691 for the cost of repair of any physical injury to the real property,
8631692 but shall not be liable for any diminution in value to the real
8641693 property caused by the removal of the manufactured home , trespass,
8651694 or any other damages caused by the removal. The debtor shall notify
8661695 the holder of the security interest in the manufactured home of the
8671696 street address, if any, and the legal description of the real
8681697 property upon which the manufactured home is affixed or otherwise
8691698 permanently attached and shall sign such other documents, including
8701699 any appropriate mortgage, as may reasonably be requested by the
8711700 holder of such security interest.
872-
8731701 F. In the case of motor vehicles or trailers, notwithstanding
8741702 any other provision of law, a transaction does not create a sale or
8751703 security interest merely because it provides that the rental price
8761704 is permitted or required to be adjusted under the agreement either
8771705 upward or downward by reference to the amount realized upon sale or
8781706 other disposition of the motor vehicle or trailer.
879-
8801707 G. A security interest in vehicles registered by a federally
8811708 recognized Indian tribe shall be deemed valid under Oklahoma law if
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8821735 validly perfected under the applicable tribal law and the lien is
8831736 noted on the face of the tribal certificate of title.
884-
8851737 SECTION 4. AMENDATORY 68 O.S. 2011, Section 2812, is
8861738 amended to read as follows:
887-
8881739 Section 2812. A. Subject to the provisions of subsection B of
8891740 Section 2813 of this title, a ma nufactured home which is located on
8901741 land owned by the owner of the manufactured home shall be listed and
8911742 assessed in the county in which it is located for ad valorem
8921743 taxation as is real property pursuant to the provisions of the Ad
8931744 Valorem Tax Code. The p erson owning and residing in such
8941745 manufactured home may apply for homestead exemption. The county
8951746 assessor shall approve the application of such person if all
896-requirements of law for such exem ption have been met. ENR. H. B. NO. 1153 Page 21
897-
1747+requirements of law for such exemption have been met.
8981748 B. A manufactured home which is located o n land not owned by
8991749 the owner of the manufactured home shall be listed and assessed in
9001750 the county in which it is located for ad valorem taxation as is
9011751 personal property pursuant to the provisions of the Ad Valorem Tax
9021752 Code.
903-
9041753 C. Each year that a manufacture d home is subject to ad valorem
9051754 taxes as provided by law, the county assessor and the county
9061755 treasurer shall transmit the information relating to ad valorem tax
9071756 payment to the Oklahoma Tax Commission , which shall identify the
9081757 manufactured home and record t he payment in the computer data system
9091758 provided for by Section 1113 of Title 47 of the Oklahoma Statutes.
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9101785 The county assessor and treasurer of each county shall provide such
9111786 information as may be required in order to implement the provisions
9121787 of this section.
913-
9141788 SECTION 5. This act shall become effective November 1, 2021.
915- ENR. H. B. NO. 1153 Page 22
916-Passed the House of Representatives the 28th day of April, 2021.
1789+Passed the House of Representatives the 1st day of March, 2021.
9171790
9181791
9191792
9201793
9211794 Presiding Officer of the House
9221795 of Representatives
9231796
9241797
925-Passed the Senate the 14th day of April, 2021.
1798+Passed the Senate the ___ day of __________, 2021.
9261799
9271800
9281801
9291802
9301803 Presiding Officer of the Senate
9311804
9321805
9331806
934-OFFICE OF THE GOVERNOR
935-Received by the Office of the Governor this ____________________
936-day of ___________________, 20_______, at _______ o'clock _____ __ M.
937-By: _________________________________
938-Approved by the Governor of the State of Oklahoma this _________
939-day of ___________________, 20_______, at _______ o'clock _______ M.
940-
941-
942- _________________________________
943- Governor of the State of Oklahoma
944-
945-OFFICE OF THE SECRETARY OF STATE
946-Received by the Office of the Secretary of State this __________
947-day of ___________________, 20_______, at _______ o'clock _______ M.
948-By: _________________________________
949-