An Act
ENROLLED HOUSE
BILL NO. 3002 By: Munson, Lepak, and Ranson
of the House
and
Taylor of the Senate
An Act relating to professions and occupations;
amending 2 O.S. 2021, Section 11 -98, which relates to
the Oklahoma Scrap Metal Dealers Ac t; modifying
application for license; defining terms; amending 37A
O.S. 2021, Section 2 -146, which relates to the
Oklahoma Alcoholic Beverage Control Act; modifying
disqualifying factors for licensure; amending 47 O.S.
2021, Section 565, which relates to motor vehicle
dealers; modifying application for license; defin ing
terms; amending 47 O.S. 2021, Section 584, which
relates to used motor vehicle dealers; modifyi ng
basis for denial, revocation or suspension of
license; defining terms; amending 63 O.S. 20 21,
Section 1-1454, which relates to the Oklahoma Medical
Micropigmentation Regulation Act; modifying
qualifications for certification; defining terms; and
providing an effective date.
SUBJECT: Professions and occupations
BE IT ENACTED BY THE PEOPLE OF THE STAT E OF OKLAHOMA:
SECTION 1. AMENDATORY 2 O.S. 2021, Secti on 11-98, is
amended to read as follows:
Section 11-98. A. An applicant for a license to engage in
business as a scrap meta l dealer shall provide all of the following
information on the license a pplication:
ENR. H. B. NO. 3002 Page 2
1. If the applicant is an individual, the full name and place
of residence of the applicant;
2. If the applicant is a firm, corporation or other legal
entity, the full name, place of residence, and the position of th e
individual filing the ap plication on behalf of the entity;
3. The business address of the location where the scrap metal
dealer conducts business or will conduct business as a scrap metal
dealer;
4. Legal proof of ownership, lease agreement or contra ct for
the business location ;
5. Proof of a dedicated telephone line for the business
location;
6. Proof of a general liability insurance policy for the
business location;
7. Proof of a current discharge permi t issued pursuant to the
provisions of the Oklahoma Pollutant Discharge Elimination System
Act; and
8. Whether the person has been previously convicted of, or pled
guilty or nolo contendere to , any felony or to a misdemeanor
involving moral turpitude or di shonesty; and
9. Any other additional information that will sufficiently
enable the Oklahoma Department of Agriculture, Food, and Forestry to
determine if the scrap metal dealer is prohibited from being issued
a license crime that substantially relates to scrap metal dealing
and poses a reasonable threat to public safety .
B. The Department may conduct any reasonable inquiry or
investigation relative to the determination of the fitness of the
applicant to be licensed or continue to be licensed including, b ut
not limited to, requiring a natio nal criminal history record check
as provided in Section 150.9 of Title 74 of the Oklahoma Stat utes.
C. The Department shall charge an application fee in the amount
of One Hundred Dollars ($100.00) for processing an ini tial
application for a scrap metal dealer license. The Department shall
also charge an investigative fee of One Hundred Dollars ($ 100.00) to ENR. H. B. NO. 3002 Page 3
be used for the purpose of conducting an investigation of the
applicant. All fees shall be nonrefundable.
D. In addition to the application, each applicant shall submit
a full set of fingerprints and a photograph with each application
for an original license. The fingerprints shall be used for a
national criminal history record check as provided for in subsection
B of this section. The applicant s hall be required to pay for
fingerprints, photographs and the national criminal history records
check required for licensure and renewals.
E. If the results of the investigation of the applicant show no
prohibition to granting a license, the Department s hall issue the
scrap metal dealer licen se. The scrap metal dealer license shall be
valid for a period of one (1) year unless otherwise voluntarily
surrendered, suspended or revoked by the Department.
F. A scrap metal deal er license issued pursuant to th e
provisions of this act is valid for th e conduct of business as a
scrap metal dealer only at the l ocation specified in the
application. A separate scrap metal dealer license shall be
required for each location specified in the application form and
each license shall designate the location to w hich it applies. The
business of the scrap metal dealer sh all not be conducted in any
place other than that designated by the license. The scrap metal
dealer license shall not be tra nsferable.
G. The Department s hall deny the license when the applicant
fails to properly complete the application form or if it is
determined that the applicant is not eligible to receive a scrap
metal dealer license.
H. A scrap metal dealer license may be renewed any time within
sixty (60) days prior to the expiration date of the license. To
renew a scrap metal dealer license, the licensee must first obtain a
renewal form from the Department. The licensee must complete the
renewal form and submit a ren ewal fee in the amount of One Hundred
Dollars ($100.00) to the Departmen t. Upon receipt of the renewal
application and fee, the De partment shall conduct a national
criminal history record check and investigate any other records or
information deemed by th e Department to be relevant to the renewal
of the scrap metal dealer lic ense. If the licensee appears not to
have any prohibition to renewing the scrap metal dealer license, the
Department shall issue the renewed license for a period of one (1)
year. ENR. H. B. NO. 3002 Page 4
I. The Oklahoma Department of Ag riculture, Food, and Forestry
shall promulgate rules, procedures and forms governing the
application and renewal procedures for scrap metal dealer licenses.
J. As used in this section:
1. "Substantially relates " means the nature of criminal conduct
for which the person was convicted has a direct bearing on the
fitness or ability to perform one or more of the duties or
responsibilities necessarily related to the occupation; and
2. "Poses a reasonable threat " means the nature of criminal
conduct for which the person was convicted involved an act or threat
of harm against another and has a bearing on the fi tness or ability
to serve the public or work with others in the occupation.
SECTION 2. AMENDATORY 37A O.S. 2021, Section 2 -146, is
amended to read as follows:
Section 2-146. A. The ABLE Commission shall refuse to issue a
wine and spirits wholesaler, beer distributor, retail spirits,
retail wine or retail beer license, either on an original
application or a renewal applicatio n, if it has reasonable grounds
to believe and finds any of the following to be true:
1. Except in the case of a beer distributor, that the applicant
is not a citizen of the United States or is not a qualified elector
in this state, or has not been a con tinuous resident of this state
for the five (5) years next preceding the application for the
license;
2. That the applicant is under twenty -one (21) years of age;
3. That the applicant or any partner, or spouse of the
applicant or any partner, has been convicted of a felony;
4. That the applicant or a ny partner, or spouse of the
applicant or any partner, has been convicted of a violation of any
state or federal law relating to alcoholic beverages, has forfeited
a bond while any cha rge of such violatio n was pending, nor may any
license be granted for an y purpose under the Oklahoma Alcoholic
Beverage Control Act to an Oklahoma resident, who has held or whose
spouse has held a Federal Liquor Stamp in Oklahoma before the
adoption of Article XXVIII-A of the Oklahoma Constitution unless the ENR. H. B. NO. 3002 Page 5
Liquor Stamp was granted for supplying alcoholic beverages to a
federal military installation, or was granted under the Oklahoma
Alcoholic Beverage Control Act;
5. That the applicant or any partner has , within twelve (12)
months next preceding the date of the application, violated any
provision of the Oklahoma Alco holic Beverage Control Act or rule of
the ABLE Commission promulgated pursuant hereto. Provided, however,
that if the ABLE Commission has, d uring such twelve-month period,
suspended any license sought to be renew ed, such renewal application
may be approved if the term of the suspension has been completed and
the applicant has complied with any special conditions imposed in
connection with the suspension;
6. That the applicant is not of good moral character, or th at
the applicant is in the habit of using a lcoholic beverages to
excess, or is mentally incapacitated . Provided, that the record in
any municipal court showing a conviction of violati on of any
municipal ordinances or state statutes involving moral charact er or
public nuisance obtained after passag e and approval of the Oklahoma
Alcoholic Beverage Control Act shall be received in evidence by the
ABLE Commission;
7. That the applicant do es not own or have a written lease for
the premises for which a license is sought;
8. That the applicant, within t welve (12) months next preceding
the date of application, has been the holder of a license revoked
for cause;
9. That the applicant is not t he real party in interest, or
intends to carry on the business authorize d by the license as the
agent of another;
10. That the applicant, in the case of an application for
renewal of any license, would not be eligible for such license on a
first application;
11. That the applicant is a person who appoints or is a law
enforcement official or is an employee of the ABLE Commission;
12. That the proposed location of the licensed premises would
violate a valid municipal nondiscriminatory zoning ordinance;
ENR. H. B. NO. 3002 Page 6
13. That, in the case of an application fo r a wine and spirits
wholesaler license or beer distributor license, any br ewer or
manufacturer, including an officer, director or principal
stockholder thereof or any partner, has any financial interest in
the business to be conducted under the license, u nless otherwise
permitted by law;
14. That the issuance of the license app lied for would result
in a violation of any provision of the Oklahoma Alcoholic Beverage
Control Act;
15. That, in the case of an applicatio n for a wine and spirits
wholesaler or beer distributor license, the app licant or any
partner, or spouse of the app licant or any partner, is the holder or
partner of the holder of any other class of license issued under the
provisions of the Oklahoma Alcoh olic Beverage Control Act, other
than an agent or employee license for e mployment by the applicant,
or a storage license, bonded warehouse license, carrier license or
private carrier license; provided, nothing shall prohibit a wine and
spirits wholesaler, who is otherwise qualified, from maintai ning
beer distributor licenses i n the state, nor a beer distributor, who
is otherwise qualified, from maintaining a wine and spirits
wholesaler license in the state;
16. That, in the case of an application for a ret ail spirits,
retail wine or retail beer license, the applicant or any pa rtner is
the holder or partner of the holde r, or employee of such holder of
any other class of license issued under the provisions of the
Oklahoma Alcoholic Beverage Control Act, other than a storage
license or an employee l icense for the proposed licensed premises of
the applicant, provided, nothi ng in this title shall prohibit an
applicant for a retail wine and/or retail beer license from
maintaining a separate mixed beverage, caterer , mixed
beverage/caterer combination lic ense, and/or an on-premise on-
premises beer and wine license; or
17. That the applicant or any partner, spouse, employee or
other person affiliated with the applicant is not in compliance with
the tax laws of this s tate as required in Article XXVIII -A of the
Oklahoma Constitution.
B. The provisions of this section shall not ope rate to prohibit
the issuance of a beer distributor license to a corporation or
partnership or limited liability company.
ENR. H. B. NO. 3002 Page 7
SECTION 3. AMENDATORY 47 O.S. 2021, Section 565, is
amended to read as follows:
Section 565. A. The Oklahoma Motor Vehicle Co mmission may deny
an application for a license, or revoke or suspend a license or
impose a fine not to exceed Ten Thousand Dollars ($10,000.00)
against a manufacturer or distributor or a fine no t to exceed One
Thousand Dollars ($1,000.00) against a dealer per occurrence that
any provision of Sections 561 through 567, 572, 578.1, 579 and 579. 1
of this title is violated or for any of the following reasons:
1. On satisfactory proof of unfitness of the applicant in any
application for any license under the pro visions of Section 561 et
seq. of this title;
2. For any material misstatement made by an applicant in any
application for any license under the provisions of Section 561 et
seq. of this title;
3. For any failure to comply with any provision of Section 5 61
et seq. of this title or any rule promulgated by the Commission
under authority vested in it by Section 561 et seq. of this title;
4. A change of condition after license is granted resulting in
failure to maintain the qualifications for license;
5. Being a new motor vehicle dealer who:
a. has required a purchaser of a new motor ve hicle, as a
condition of sale and deliv ery thereof, to also
purchase special features, appliances, accessories or
equipment not desired or requested by the purchaser
and installed by the dealer,
b. uses any false or misleading advertising in connection
with business as a new motor vehicle deal er,
c. has committed any unlawful act which resulted in the
revocation of any similar license in another state,
d. has failed or refused to perform any written agreement
with any retail buyer involving the sale of a motor
vehicle,
ENR. H. B. NO. 3002 Page 8
e. has been convicted of a felony crime involving moral
turpitude that substantially relates to the occupation
of a motor vehicle dealer and poses a reasonable
threat to public safety ,
f. has committed a fraudulent act in selling, purchasing
or otherwise dealing in new motor v ehicles or has
misrepresented the terms an d conditions of a sale,
purchase or contract for sale or purchase of a new
motor vehicle or any int erest therein including an
option to purchase such vehicle,
g. has failed to meet or maintain the conditions and
requirements necessary to qualify for the is suance of
a license, or
h. completes any sale or transaction of an extended
service contract, exten ded maintenance plan, or
similar product using contract forms that do not
conspicuously disclose the identity of the service
contract provider;
6. Being a new motor vehicle salesperson who is n ot employed as
such by a licensed new motor vehicle dealer;
7. Being a new motor vehicle dealer who:
a. does not have an established place of business,
b. does not provide for a suitable repair shop separate
from the display room with ample space to repai r or
recondition one or more vehicles at the same time, and
which is equipped with such parts, tools and equipment
as may be requisite for the servicing of motor
vehicles in such a manner as to make them comply with
the safety laws of this state and to properly fulfill
the dealer's or manufacturer's warranty obligation,
c. does not hold a franchise in effect with a
manufacturer or distributor of new or unused motor
vehicles for the sale of the same and is not
authorized by the manufacturer or distributor to
render predelivery preparation of such vehicles sold
to purchasers and to perform any authorized post -sale ENR. H. B. NO. 3002 Page 9
work pursuant to the manufacturer's or distributor's
warranty,
d. employs a person without obtaining a certific ate of
registration for the person, or utilizes the services
of used motor vehicle lots or dealers or other
unlicensed persons in connection with the sale of new
motor vehicles,
e. does not properly servic e a new motor vehicle before
delivery of same to th e original purchaser thereof, or
f. fails to order and stock a reasonable number of new
motor vehicles necessary to meet customer demand for
each of the new motor vehicles included in the new
motor vehicle dealer's franchise agreement, unless the
new motor vehicles are not readily availabl e from the
manufacturer or distributor due to limited production;
8. Being a factory that has:
a. either induced or attempted to induce by means of
coercion or intimidation, any new motor vehicle
dealer:
(1) to accept delivery of any motor vehicle or
vehicles, parts or accessories therefor, or any
other commodities inc luding advertising material
which shall not have been ordered by the new
motor vehicle dealer,
(2) to order or accept deli very of any motor vehicle
with special features, appliances, acce ssories or
equipment not included in the list price of the
motor vehicles as publicly advertised by the
manufacturer thereof, or
(3) to order or accept delivery of any p arts,
accessories, equipment, machinery, tools,
appliances or any commodity whatsoever , or
b. induced under threat or discrimination by the
withholding from delivery to a motor vehicle dealer
certain models of motor vehicles, changing or a mending
unilaterally the dealer's allotment of motor vehicles ENR. H. B. NO. 3002 Page 10
and/or withholding and delaying delivery of such
vehicles out of the ordinary course of business, in
order to induce by such coercion any such dealer to
participate or contribute to any local or national
advertising fund controlled d irectly or indirectly by
the factory or for any other purposes such as contest,
"give-aways" or other so-called sales promotional
devices and/or change of quotas in any sales contest;
or has required motor vehicle dealers, as a condi tion
to receiving their vehicle allotment, to order a
certain percentage of the vehicl es with optional
equipment not specified by the new motor vehicle
dealer; however, nothing in this section shall
prohibit a factory from supporting an advertising
association which is open to a ll dealers on the same
basis;
9. Being a factory that:
a. has attempted to coerce or has coerced any new motor
vehicle dealer to ente r into any agreement or to
cancel any agreement, or fails to act in good faith
and in a fair, equitable and nondiscriminat ory manner;
or has directly or indi rectly coerced, intimidate d,
threatened or restrained any motor vehicle dealer; or
has acted dishonestly, or has failed to act in
accordance with the reasonable standards of fair
dealing,
b. has failed to compensate its d ealers for the work and
services they are required to perfor m in connection
with the dealer's delivery and preparation obligations
according to the agreements on file with the
Commission which must be found by the Commission to be
reasonable, or fail to ad equately and fairly
compensate its dealers for labor, parts and other
expenses incurred by such dealer to perform und er and
comply with manufacturer's warranty agreements .
Adequate and fair compensation for parts shall be
established by the dealer submitt ing to the
manufacturer or distribu tor one hundred sequentia l
nonwarranty customer-paid service repair orders which
contain warranty-like parts, or ninety (90)
consecutive days of nonwarranty customer -paid service
repair orders which contain warranty-like parts, ENR. H. B. NO. 3002 Page 11
whichever is less, covering repairs made no more than
one hundred eighty (180) days before the submission
and declaring the ave rage percentage markup. Adequate
and fair compensation for labor shall be established
by the dealer submitting to the man ufacturer or
distributor one hundre d sequential customer -paid
service repair orders which contain labor charges, or
ninety (90) consecutive days of customer-paid service
repair orders which contain labor charges, whichever
is less. When submitting repair orders to calculate a
labor rate, a dealer need not include repair orders
for routine maintenance. A manufacturer or
distributor may, not later than thirty (30) days after
submission, rebut that declared rate in writing by
reasonably substantiating that t he rate is inaccurate
or unreasonable in light of the practi ces of all other
franchised motor vehicle dealers in an economically
similar part of the state offering the same line -make
vehicles. The retail rate shall go into effect thirty
(30) days following the approval by the manufacturer,
subject to audit of the submitted repair orders by the
franchisor and a rebuttal of the declared r ate as
described above. If the declared rate is rebutted,
the manufacturer or distributor shall propose an
adjustment in writing of the average percentage m arkup
based on that rebuttal not later than thirty (30) days
after submission. If the dealer does not agree with
the proposed average percentage markup, the dealer may
file a protest with the Co mmission not later than
thirty (30) days after receipt of tha t proposal by the
manufacturer or distributor. In the event a protest
is filed, the manufacturer o r distributor shall have
the burden of proof to establi sh the new motor vehicle
dealer's submitted rate was inaccurate or unreasonable
in light of the practi ces of all other franchis ed
motor vehicle dealers in an economically similar part
of the state. A manufacturer or distributor may not
retaliate against any new motor vehicle dealer seeking
to exercise its rights under th is provision. A
manufacturer or distributor may require a d ealer to
submit repair orders in accordance with this section
in order to validate a dealer's retail rate for parts
or labor not more often than once every twelve (12)
months. All claims made by dealers for compensation
for delivery, preparation and warra nty work shall be ENR. H. B. NO. 3002 Page 12
paid within thirty (30) days after approval and shall
be approved or disapproved within thirty (30) days
after receipt. When any claim is disapproved, the
dealer shall be notifi ed in writing of the groun ds for
disapproval. The dealer's delivery, preparation and
warranty obligations as filed with the Commiss ion
shall constitute the dealer's sole responsibility for
product liability as between the dealer and
manufacturer. A factory may reasonably and
periodically audit a new motor vehicle dealer to
determine the validity of paid claims for dealer
compensation or any charge-backs for warranty parts or
service compensation . Except in cases of suspected
fraud, audits of warranty pay ments shall only be for
the one-year period immediately foll owing the date of
the payment. A manufacturer shall reserve the right
to reasonable, periodic audits to determine the
validity of paid claims for dealer compensation or any
charge-backs for consumer or dealer incentives .
Except in cases of suspected frau d, audits of
incentive payments shall only be for a one -year period
immediately following the date of the payment . A
factory shall not deny a claim or charge a new motor
vehicle dealer back subse quent to the payment of the
claim unless the factory can sho w that the claim was
false or fraudulent or that the new motor vehicle
dealer failed to reasonably substantiate the claim by
the written reasonable procedures of the fact ory. The
factory shall provide written notice to a dealer of a
proposed charge-back that is the result of an audit
along with the specific audit results and pr oposed
charge-back amount. A dealer that receives notice of
a proposed charge-back pursuant to a factory's audit
has the right to file a protest with the Co mmission
within thirty (30) days after receipt of the notice of
the charge-back or audit results, w hichever is later.
The factory is prohibited from implementing the
charge-back or debiting the dealer's account until
either the time frame for filing a pro test has passed
or a final adjudication is rendered by the Commission,
whichever is later, unless t he dealer has agreed to
the charge-back or charge-backs,
c. unreasonably fails or refuses to of fer to its same
line-make franchised dealers all models manufa ctured ENR. H. B. NO. 3002 Page 13
for that line-make, or unreasonably requires a dealer
to pay any extra fee, purchase unreaso nable
advertising displays or other materials, or remodel,
renovate, or recondition the dealer 's existing
facilities as a prerequisite to receiving a model o r
series of vehicles. The failure to deliver any such
new motor vehicle shall not be considered a violation
of the section if the failure is not arbitrary or is
due to lack of manufacturing cap acity or to a strike
or labor difficulty, a shortage of materi als, a
freight embargo or other cause over which the
manufacturer has no control . However, this
subparagraph shall not apply to recreational vehicles
or limited production model vehicles,
d. except as necessary to comply with a health or safety
law, or to comply with a technolo gy requirement which
is necessary to sell or service a motor vehicle that
the franchised motor vehicle dealer is authorized or
licensed by the franchisor to sell or servi ce,
requires a new motor veh icle dealer to construct a new
facility or substantially r enovate the new motor
vehicle dealer's existing facility unless the facility
construction or renovation is justified by the
economic conditions existing at the time, as w ell as
the reasonably forese eable projections, in the
automotive industry. However, this subparagraph shall
not apply if the factory provides money, credit,
allowance, reimbursement, or additional vehicle
allocation to a dealer to compensate the dealer fo r
the cost of, or a portion of the cost of, the facility
construction or renovation,
e. requires a new motor vehicle dealer to establish an
exclusive facility, un less supported by reasonable
business, market and economic considerations;
provided, that this provision shall not restric t the
terms of any agreement for su ch exclusive facility
voluntarily entered into and supported by valuable
consideration separate fro m the new motor vehicle
dealer's right to sell and service motor vehicles for
the franchisor,
f. requires a new motor vehi cle dealer to enter into a
site-control agreement coveri ng any or all of the new ENR. H. B. NO. 3002 Page 14
motor vehicle dealer's facilities or premises;
provided, that this provision shall not restrict the
terms of any site-control agreement voluntari ly
entered into and supported by valuable consideration
separate from the new motor vehicle dealer's right to
sell and service motor vehicles for the franchisor .
Notwithstanding the foregoing or the terms of any
site-control agreement, a site -control agreement
automatically extinguish es if all of the factory 's
franchises that operated from the location that are
the subject of the site-control agreement are
terminated by the factory as part of the
discontinuance of a product line, or
g. requires a new motor vehicle dealer to purchase go ods
or services for the constructio n, renovation, or
improvement of the dealer's facility from a vendor
chosen by the factory if goods or services available
from other sources are of substantially similar
quality and design a nd comply with all applicable
laws; provided, however, that such g oods are not
subject to the factory's intellectual property or
trademark rights and the new motor v ehicle dealer has
received the factory 's approval, which approval may
not be unreasonably w ithheld. Nothing in this
subparagraph may be construed to allow a new motor
vehicle dealer to impair or eliminate a factory's
intellectual property, trademark right s or trade dress
usage guidelines. Nothing in this section prohibits
the enforcement of a voluntary agreement between the
factory and the new motor vehicle dealer where
separate and valuable consideration has been offered
and accepted;
10. Being a factory that establishes a system of motor vehicle
allocation or distribution which is unfair, i nequitable or
unreasonably discriminatory. Upon the request of any dealer
franchised by it, a factory shall disclose in writing to the dealer
the basis upon which ne w motor vehicles are allocated, scheduled and
delivered among the dealers of the same line -make for that factory;
11. Being a factory that sells directly or indirectly new motor
vehicles to any retail consumer in the state except through a new
motor vehicle dealer holding a franchise for the line -make that
includes the new motor vehicle . This paragraph does not apply to ENR. H. B. NO. 3002 Page 15
factory sales of new motor vehicles to its employees, family members
of employees, retirees and family members of retirees, not -for-
profit organizations or the federal, state or local governments .
The provisions of this parag raph shall not preclude a factory from
providing information to a co nsumer for the purpose of marketing or
facilitating a sale of a new motor vehicle or from establish ing a
program to sell or offer to sell new motor vehicles through
participating dealers;
12. a. Being a factory which dire ctly or indirectly:
(1) owns any ownership interest or has any financial
interest in a new motor vehicle dealer or any
person who sells products or services to the
public,
(2) operates or controls a new motor vehicle dea ler,
or
(3) acts in the capacity of a new motor vehicle
dealer.
b. (1) This paragraph does not prohibit a fa ctory from
owning or controlling a new motor vehicle dealer
while in a bona fide relationship with a dealer
development candidate who has made a s ubstantial
initial investment in the f ranchise and whose
initial investment is subject to potential loss.
The dealer development candidate can reasonably
expect to acquire full ownership of a new motor
vehicle dealer within a reasonable period of time
not to exceed ten (10) years and on reaso nable
terms and conditions . The ten-year acquisition
period may be expanded for good cause shown.
(2) This paragraph does not prohibi t a factory from
owning, operating, controlling or acting in the
capacity of a motor vehicle dealer for a period
not to exceed twelve (12) months during the
transition from one dealer to another dealer if
the dealership is for sale at a reasonable price
and on reasonable terms and conditions to an
independent qualified buyer . On showing by a
factory of good cause, the Oklaho ma Motor Vehicle
Commission may extend the time limit set forth ENR. H. B. NO. 3002 Page 16
above; extensions may be granted for periods not
to exceed twelve (12) months.
(3) This paragraph does not prohibit a factory from
owning, operating or controlling or acting in the
capacity of a motor vehicle dealer which was i n
operation prior to January 1, 2000.
(4) This paragraph does not prohibit a factory from
owning, directly or indirectly, a minority
interest in an entity that owns, operates or
controls motor vehicle dealerships of the s ame
line-make franchised by the man ufacturer,
provided that each of the following conditions
are met:
(a) all of the motor vehicle dea lerships selling
the motor vehicles of that manufacturer in
this state trade exc lusively in the line-
make of that manufact urer,
(b) all of the franchise agre ements of the
manufacturer confer rig hts on the dealer of
the line-make to develop and operate, wit hin
a defined geographic territory or area, as
many dealership facilities as th e dealer and
manufacturer shall agree are a ppropriate,
(c) at the time the manufacturer first acquires
an ownership interest or assumes operation,
the distance between any deale rship thus
owned or operated and the nearest
unaffiliated motor vehicle dealer ship
trading in the same line -make is not less
than seventy (70) miles,
(d) during any period in which the manufactu rer
has such an ownership interest, the
manufacturer has no mo re than three
franchise agreements with new motor vehicle
dealers licensed by the Oklahoma Motor
Vehicle Commission to do business within the
state, and
ENR. H. B. NO. 3002 Page 17
(e) prior to January 1, 2000, the factory shall
have furnished or made available to
prospective motor vehicle dealers an
offering-circular in accordance with the
Trade Regulation Rule on Franchising of the
Federal Trade Commission, and any guidelines
and exemptions issued thereunder, which
disclose the possibility that the factory
may from time to time seek to own or
acquire, directly or indirectly, ownership
interests in retail de alerships;
13. Being a factory which directly or indirectly makes
available for public disclosure any proprietary inf ormation provided
to the factory by a new motor vehicle dealer , other than in
composite form to dealers in the same line -make or in response to a
subpoena or order of the Commission or a court. Proprietary
information includes, but is not limited to, info rmation:
a. derived from monthly financial statements provided to
the factory, and
b. regarding any aspect of the profitability of a
particular new motor vehicle dealer;
14. Being a factory which does not provide or direct leads in a
fair, equitable and t imely manner. Nothing in this paragraph shall
be construed to require a factory to disregard the preference of a
consumer in providin g or directing a lead;
15. Being a factory which used the customer list of a new motor
vehicle dealer for the purpose of unfairly competing with dealers;
16. Being a factory which pr ohibits a new motor vehicle dealer
from relocating after a written req uest by such new motor vehicle
dealer if:
a. the facility and the proposed new loc ation satisfies
or meets the written reaso nable guidelines of the
factory. Reasonable guidelines do not include site
control unless agreed to as set forth in subparagraphs
e and f of paragraph 9 of this subsection,
ENR. H. B. NO. 3002 Page 18
b. the proposed new location is within the area of
responsibility of the new motor vehicle dealer
pursuant to Section 578.1 of this title, and
c. the factory has sixty (60) days from receipt of the
new motor vehicle dealer's relocation request to
approve or deny the request. The failure to approve
or deny the request within the sixty -day time frame
shall constitute approval of the request;
17. Being a factory which prohibits a new motor vehicle dealer
from adding additional line-makes to its existing facility, if,
after adding the additional line-makes, the facility satisfies the
written reasonable capitalization standards and facility guidelines
of each factory. Reasonable facility guidelines do not include a
requirement to maintain site control unless agreed to b y the dealer
as set forth in subparagraphs e and f of paragraph 9 of thi s
subsection;
18. Being a factory that increases prices of ne w motor vehicles
which the new motor vehicle dealer had ordered f or retail consumers
and notified the factory prior to the dealer's receipt of the
written official price increase notification . A sales contract
signed by a retail consumer accompanied with proof of order
submission to the factory shall constitute evidenc e of each such
order, provided that the vehicle is in fac t delivered to the
customer. Price differences applicable to new models or series
motor vehicles at the time of the introduction of n ew models or
series shall not be considered a price increase for purposes of this
paragraph. Price changes caused by any of the following shall not
be subject to the provisions of this paragrap h:
a. the addition to a motor vehicle of required or
optional equipment pursuant to state or federal law,
b. revaluation of the United States dollar in the case of
foreign-made vehicles or components, or
c. an increase in transportation charges due to incr eased
rates imposed by common or contract carriers;
19. Being a factory that requires a new motor vehicle dealer to
participate monetarily in an advertising campaign or contest, or
purchase any promotional materials, showroom or other display
decoration or materials at the expense of the new motor vehicle ENR. H. B. NO. 3002 Page 19
dealer without consent of the dealer, which consent shall not be
unreasonably withheld;
20. Being a factory that denies any new mot or vehicle dealer
the right of free association with any other new motor vehicle
dealer for any lawful purpose, unless otherwise permi tted by this
chapter; or
21. Being a factory that requires a new motor vehicle dealer to
sell, offer to sell or sell excl usively an extended service
contract, extended maintenance plan or simil ar product, such as gap
products offered, endorsed or sponsore d by the factory by the
following means:
a. by an act or statement from the factory that will in
any manner adversely impa ct the dealer,
b. by measuring the dealer's performance under the
franchise based on the sale of extended service
contracts, extended maintenance plans or similar
products offered, endorsed o r sponsored by the
manufacturer or distributor.
B. Notwithstanding the terms of any franchise agreement, in the
event of a proposed sale or transfer of a dealership, the
manufacturer or distributor shall be permitted to exercise a right
of first refusal to acquire the assets or ownership interest of the
dealer of the new vehicle dealership, if such sale or transfer is
conditioned upon the manufacturer or dealer entering into a dealer
agreement with the proposed new owner or transferee, only if all the
following requirements are met:
1. To exercise its right of first re fusal, the factory must
notify the dealer in writing within sixty (60) d ays of receipt of
the completed proposal for the proposed sale transfer;
2. The exercise of the right of first refu sal will result in
the dealer and the owner of the dealership receiv ing the same or
greater consideration as they have contracted to receive in
connection with the proposed change of ownership or transf er;
3. The proposed sale or transfer of the assets o f the
dealership does not involve the transfer or sale to a member or
members of the family of one or mo re dealer owners, or to a ENR. H. B. NO. 3002 Page 20
qualified manager or a partnership or corporation controlled by such
persons; and
4. The factory agrees to pay the reasonabl e expenses, including
attorney fees which do not exceed the usual, cus tomary and
reasonable fees charged for similar work done for other clien ts
incurred by the proposed new owner and transferee prior to the
exercise by the factory of its right of first re fusal in negotiating
and implementing the contract for the proposed sa le or transfer of
the dealership or dealership assets. Notwithstanding the foregoing,
no payment of expenses and attorney fees shall be required if the
proposed new dealer or transferee has not submitted or caused to be
submitted an accounting of those ex penses within thirty (30) days of
receipt of the written request of the factory for such an
accounting. The accounting may be request ed by a factory before
exercising its right of first refusal.
C. Nothing in this section shall prohibit, limit, restrict or
impose conditions on:
1. Business activities, including without limi tation the
dealings with motor vehicle manufacturers and the r epresentatives
and affiliates of motor vehicle man ufacturers, of any person that is
primarily engaged in the business of s hort-term, not to exceed
twelve (12) months, rental of motor vehicles an d industrial and
construction equipment and activities inciden tal to that business,
provided that:
a. any motor vehicle sold by that person is limited to
used motor vehicles that have been previously used
exclusively and regularly by that person in the
conduct of business and used motor vehicles traded in
on motor vehicles sold by that person,
b. warranty repairs performed by that person on motor
vehicles are limited to those motor vehi cles that it
owns, previously owned or takes in trade, and
c. motor vehicle financing provided by that person to
retail consumers for motor vehicles is limited to used
vehicles sold by that person in the conduct of
business; or
2. The direct or indirect o wnership, affiliation or control of
a person described in paragraph 1 of this subsection. ENR. H. B. NO. 3002 Page 21
D. As used in this section:
1. "Substantially relates" means the nature of criminal co nduct
for which the person was convicted has a direct bearing on the
fitness or ability to perform one or more of the duties or
responsibilities neces sarily related to the occupation; and
2. "Poses a reasonable threat" means the nature of criminal
conduct for which the person was convicted involved an act or threat
of harm against another and has a bearing on the fitness or ability
to serve the public or work with others in the occupation.
SECTION 4. AMENDATORY 47 O.S. 2021, Section 584, is
amended to read as follows:
Section 584. A. The Oklahoma Used Mot or Vehicle and Parts
Commission may deny an ap plication for a license, i mpose a fine not
to exceed One Thousand Dollars ($1,000.00) pe r occurrence and/or
revoke or suspend a license after it has been granted, when a ny
provision of Sections 581 through 588 of this title is violated or
for any of the following reasons:
1. On satisfactory proof of unfitness of the applicant or the
licensee, as the case may be, un der the standards established by
Sections 581 through 588 of this title;
2. For fraud practices o r any material misstatement made by an
applicant in any application for license under the provisions of
Sections 581 through 588 of th is title;
3. For any willful failure to comply with any provision of
Section 581 et seq. of this title or with any rule p romulgated by
the Commission under authorit y vested in it by Sections 58 1 through
588 of this title;
4. Change of condition after lic ense is granted resultin g in
failure to maintain the qualifications for license;
5. Continued or flagrant violation of an y of the rules of the
Commission;
6. Being a used motor vehicle dealer, a used motor vehicle
salesperson, a wholesale used motor vehi cle dealer, or a
manufactured home dealer, a restricted manufactured home park ENR. H. B. NO. 3002 Page 22
dealer, a manufactured home installer , a manufactured home
salesperson or a manufactured home manufacturer who:
a. resorts to or uses any false or misleading advertising
in connection with business as a used motor vehicle
dealer, wholesale used motor vehicle dealer or a
restricted manufactured home park dealer or
manufactured home deale r, installer or manufacturer,
b. has committed any unlawful act which resulted in the
revocation of any similar license in another state,
c. has been convicted of a felony crime involving moral
turpitude that substantially relates to the occupation
of a used motor vehicle dealer, a wholes ale used motor
vehicle dealer, a manufactured home dealer, a
restricted manufactured home park dealer, a
manufactured home installer or a ma nufactured home
manufacturer and poses a rea sonable threat to public
safety,
d. has committed a fraudulent act in se lling, purchasing
or otherwise dealing in motor vehicles or manufactured
homes or has misrepr esented the terms and conditions
of a sale, purchase or contract for sale or purchase
of a motor vehicle or manufactured home or any
interest therein including an option to purchase such
motor vehicles or manufactured home s,
e. has engaged in business und er a past or present
license issued pursuant t o Sections 581 through 588 of
this title, in such a manner as to cause injury to the
public or to those with whom the licensee is dealing,
f. has failed to meet or maintain the conditions and
requirements necessary to qualify for the issuance of
a license,
g. has failed or refused to furnish and keep in force any
bond required under Sections 581 through 588 of this
title,
h. has installed or attempted to install a manufactured
home in an unworkmanlike manner, or
ENR. H. B. NO. 3002 Page 23
i. employs a person in connection with the sa le of
manufactured homes without first obtaini ng a
certificate of registration for the person ;
7. Being a used motor vehicle dealer who:
a. does not have an established place o f business,
b. employs a person in connection with the sale of used
vehicles without first obtaining a certificate of
registration for the person ,
c. fails or refuses to furnish or keep in force si ngle
limit liability insurance on any vehicle offered for
sale and otherwise require d under the financial
responsibility laws of this stat e, or
d. is not operating from the address sho wn on the license
if this change has not been reported to the
Commission; or
8. Being a manufactured home dealer or a restricted
manufactured home park dealer who:
a. does not have an established place of busi ness,
b. fails or refuses to furnish or keep i n force garage
liability and completed operations insurance, or
c. is not operating from the address shown on the license
if this change has not been reported to the
Commission.
B. 1. The Commission shall den y an application for a license,
or revoke or suspend a license after it has been granted, if a
manufactured home deale r does not meet the following guidelines and
restrictions:
a. a display area for manufactured homes which is easily
accessible, with suffi cient parking for the public,
b. an office for conducting business where the books,
records, and files are kept, with access to a restroom
for the public,
ENR. H. B. NO. 3002 Page 24
c. a place of business which meets all zoning, occupancy
and other requirements of the appropriate lo cal
government and regular occupancy by a pers on, firm, or
corporation engaged in the business of selling
manufactured homes, and
d. a place of business which is separate and apart from
any other dealer's location.
2. The Commission shall deny an applicat ion for a restricted
manufactured home park de aler license, or revoke or suspend a
license after it has been grant ed, if a manufactured home park
dealer does not satisfy the fol lowing guidelines and restrictions:
a. only mobile or manufactured homes that a re "ready for
occupancy" are sold or offered f or sale,
b. maintains an office for conducting business where the
books, records, and files are kept, with access to a
restroom for the public,
c. maintains a place of business which meets all zoning,
occupancy and other requirements of the appropriate
local government and regular occupancy by a person,
firm or corporation engaged in the business of selling
manufactured homes inside a park, and
d. maintains a place of business which is separate and
apart from any other dealer's location.
C. The Commission shall deny an application for a license, or
revoke or suspend a license after it has been granted, if a
manufactured home installer :
1. Installs or attempts to install a manufactured home in a
manner that is not in compliance with installation standards a s set
by the Commission pursuant to rule; or
2. Violates or fails to comply with any applicable rule as
promulgated by the Commiss ion concerning manufactured home
installers.
D. The Commission shall deny an a pplication for a license, or
revoke or suspend a license after it has been granted, if a
manufactured home manufacturer violates or fails to comply with any ENR. H. B. NO. 3002 Page 25
applicable rule as p romulgated by the Commission concerning
manufactured home manufacturers.
E. The Commission shall deny an application for a l icense by a
motor vehicle manufacturer or factory if the ap plication is for the
purpose of selling used motor vehicles to any retai l consumer in the
state, other than through its retail franchised dealers, or a cting
as a broker between a seller and a retai l buyer. This subsection
does not prohibit a manufacturer from selling used motor vehicles
where the retail customer is a nonprofi t organization or a federal,
state, or local government or agency . This subsection does not
prohibit a manufacturer from pro viding information to a consumer for
the purpose of marketi ng or facilitating the sale of used motor
vehicles or from establishing a program to sell or offer to sell
used motor vehicles through the manufacturer 's retail franchised
dealers as provided for i n Sections 561 through 580.2 of this title .
This subsection shall not prevent a factory from obtaining a
wholesale used motor vehi cle dealer's license or the factory 's
financing subsidiary from obtaining a who lesale used motor vehicle
dealer's license.
F. If the Commission denies issuance of a license the
Commission shall provide the grounds for the action to the applicant
in writing and allow the applicant sixty (60) days to resolve any
issues that are the gr ounds for the action.
G. Each of the aforemen tioned grounds for suspension,
revocation, or denial of i ssuance or renewal of license shall also
constitute a violation of Section s 581 through 588 of this title,
unless the person involved has been tried and acquitted of the
offense constituting such gro unds.
The suspension, revocation or refusal to issue or renew a
license or the imposition of any other penalty by the Commission
shall be in addition to any penalty which might be imposed upon any
licensee upon a conviction at law for any violation of Sect ions 581
through 588 of this title.
H. As used in this section:
1. "Substantially relates" means the nature of criminal conduct
for which the person was convicted has a direct bearing on the
fitness or ability to perform one or more of the duties or
responsibilities necessarily related to the occupation; and
ENR. H. B. NO. 3002 Page 26
2. "Poses a reasonable threat" means the nature of criminal
conduct for which the person was convicted involved an act or threat
of harm against another an d has a bearing on the fitness or ability
to serve the public or work with others in the occupation.
SECTION 5. AMENDATORY 63 O.S. 20 21, Section 1-1454, is
amended to read as follows:
Section 1-1454. A. On and after May 1, 2 002, except for a
physician, any person intendin g to perform medical micropigmentation
in this state shall first be cert ified by the State Department of
Health.
B. The State Commissioner of Health shall not issue a
certificate or renew a certificate to pe rform medical
micropigmentation to a person who has:
1. Been convicted of or pled guilty or nolo contendere to a
felony or a misdemeanor involving moral turpitude in any fed eral,
state, territory, or District of Columbia court crime that
substantially relates to the practice of medical micropigmentatio n
and poses a reasonable threat to public safety ;
2. Been determined to have engaged in unprofessional conduct as
defined by the rules promulgated by the State Board of Health;
3. Made a materially false or fraudulent statement in an
application or other document relating to certification pursuant to
the provisions of the Ok lahoma Medical Micropigmentation Regulation
Act; or
4. Had a health-related license, certificate, or permit
suspended, revoked or not r enewed or had any other disciplinary
action taken, or had an application for a health -related license,
certificate, or permit refused by a federal, state, territory, or
District of Columbia regulatory authority for intentionally
falsifying information.
C. In order to qualify for certification, an appli cant shall:
1. Have received a high school diploma or its equivalent;
2. Be at least twenty-one (21) years of age; and
ENR. H. B. NO. 3002 Page 27
3. Have submitted a completed application to the Department in
such form as required b y the Department which shall include a
notarized copy of:
a. the certificate of birth of the applicant,
b. the applicant's driver license or other similar form
of identification,
c. other professional credentials, if applicable, and
d. proof, in such form as the Department determines
appropriate, of the satisfactory completion of a
program of training and testing approved b y the
Department as specified in Section 6 1-1455 of this
act title.
D. Upon meeting the requirements of the Oklahoma Medical
Micropigmentation Regulation Act and rules promulgated pu rsuant
thereto, the State Commissioner of Health shall issue a certifica te
to perform medical micropigmentation to the applicant.
E. As used in this section:
1. "Substantially relates " means the nature of c riminal conduct
for which the person was convict ed has a direct bearing on the
fitness or ability to perform one or more of the duties or
responsibilities neces sarily related to the occupation; and
2. "Poses a reasonable threat " means the nature of crimin al
conduct for which the person was convicted in volved an act or threat
of harm against another and has a bearing on the fitness or ability
to serve the public or work with others in the occupation.
SECTION 6. This act shall become effecti ve November 1, 2022.
ENR. H. B. NO. 3002 Page 28
Passed the House of Representatives the 22nd day of March, 2022.
Presiding Officer of the House
of Representatives
Passed the Senate the 27th day of April, 2022.
Presiding Officer of the Senate
OFFICE OF THE GOVERNOR
Received by the Office of the Governor this ____________________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________
Approved by the Governor of the State of Oklahoma this _____ ____
day of ___________________, 20_______, at _______ o'clock _______ M.
_________________________________
Governor of the State of Oklahoma
OFFICE OF THE SECRETARY OF STATE
Received by the Office of the Secretary of State this __________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________