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HOUSE OF REPRESENTATIVES - FLOOR VERSION
STATE OF OKLAHOMA
2nd Session of the 58th Legislature (2022)
HOUSE BILL 3965 By: Burns
AS INTRODUCED
An Act relating to commercial auction and consignment
dealers; creating the Oklahoma Commercial Auction a nd
Consignment Dealers Act; defining terms; requiring
dealers to record certain information; providing that
municipalities or other political subdivisions may
designate different methods or formats for recording
information; requiring the Oklahoma Departme nt of
Agriculture, Food, and Fore stry to designate an
Internet-based reporting method; providing time for
which records must be retained ; requiring parental
consent for purchases from minors; requiring
declaration of ownership; requiring notification to
law enforcement agencies upon req uest; requiring
certain information relating to purchases of
vehicles, tractors, construction equipment , and
trailers; requiring certain proof of ownership;
prohibiting cash transactions in excess of certain
amount; providing requirements for accepting chec ks
as payment; stating penalties for violations of act;
providing for revocation or suspension of license;
providing for injunction against dealers; requiring
dealers to obtain sales tax permits; requiring
Oklahoma Tax Commission to keep list of certain
permit holders; prohibiti ng Commission from denying
permit for certain reason; requiring the Oklahoma
Department of Agriculture, Food, and Forestry to
promulgate rules, procedures , and forms governing
application for, granting of and renewal procedures
for licenses; providing for codification; and
providing an effective date.
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BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 11-101 of Title 2, unless th ere
is created a duplication in numbering, reads as follows:
This act shall be known and may be cited as the "Oklahoma
Commercial Auction and Consignment Dealers Act ".
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 11 -102 of Title 2, unless there
is created a duplication in numbering, reads as follows:
As used in this act:
1. "Department" means the Oklahoma Department of Agriculture,
Food, and Forestry and its employees, officers and divis ions;
2. "Digital image" means pixels intended for display on a
computer monitor or for transformation into another format, such as
a printed page. For purposes of this paragraph, "pixels" shall mean
raster-based, two-dimensional, rectangular arrays of s tatic data
elements;
3 "License" means a commercial auction and commercial
consignment dealer license;
4. "Commercial equipment " means any farm, ranching,
agricultural, or construction equipment valued at One Thousand
Dollars ($1,000.00) or more;
5. "Commercial auction or commercial consignment dealer " means
any person, firm, or corporation being an owner, keeper , or
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proprietor of a retail or wholesale business which buys, sells, or
auctions used commercial e quipment regulated by the provisions of
the Oklahoma Commercial Auction and Consignment Dealers Act.
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 11 -103 of Title 2, unless there
is created a duplication in nu mbering, reads as follows:
A. Every commercial auction and commercial consignment dealer
shall keep a separate book, record , or other electronic system as
authorized by the Oklahoma Commercial Auction and Consignment
Dealers Act to record and maintain the following data from any
seller of commercial equipment at auction or through consignment
sale:
1. A legible photocopy of the seller 's driver license or
government-provided photo identification, issued by the United
States government, State of Oklahoma, or any other state of the
United States, or any other federally recognized identification that
contains his or her name, and date of birth; provided, that if the
photo identification does not contain an address, an address shall
be provided;
2. Vehicle description and license tag number, or vehicle
identification number (VIN) if no state license plate is affixed, if
the vehicle was used to transport the commercial equipment being
sold;
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3. Date and place of the transaction and the tran saction number
as provided by the auction comp any or consignment dealer;
4. Description of the items purchased, which shall include any
VIN numbers, serial numbers , or any other identifying marks or
numbers;
5. The digital image of the items purchased. The digital image
shall contain depictions that clearly identify the items purchased
and are captured in the common JPEG format. The digital image shall
be retained by the purchaser for a minimum of ninety (90) days from
the date of purchase.
B. Municipalities or other politica l subdivisions may desi gnate
the reporting methods and the format of the information required by
subsection A of this section, either written, electronic , or
Internet-based. The Oklahoma Department of Agriculture, Food, and
Forestry shall designate an Int ernet-based reporting method that
applies to all geographic areas of the state that are not subject to
a local designation for Internet reporting.
C. Records required by this section shall be retain ed for no
less than two (2) years from the date of transa ction and shall be
made available at any time to any person authorized by law for such
inspection.
D. It shall be unlawful for any commercial auction or
commercial consignment dealer to purchase any item from a minor
under sixteen (16) years of age without having first obtained the
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consent, in writing, of a parent or guardian of such minor. Such
written consent shall be kept with the book, record , or other
electronic recording system required by subsec tion A of this section
and, if requested by a law enfo rcement agency where the purchase was
made, shall be transmitted to the law enforcement agency and may be
kept as a permanent record and made available for public inspection.
E. A commercial auction or commercial consignment dealer shall
obtain from each seller of commercial equi pment regulated by the
Oklahoma Commercial Auction and Consignment Dealers Act, or a parent
or guardian on behalf of a minor, a written declaration of ownership
containing a legible signature of the seller. The declaration of
ownership shall be in the fol lowing form and shall ap pear on the
bill of sale or transaction ticket to be completed by the seller in
the presence of the purchaser at the time of the transaction:
"I hereby affirm that I am the rightful o wner of the hereon
described merchandise; or I am an authorized represent ative of the
rightful owner and affirm that I have been given authority by the
rightful owner to sell the hereon described merchandise.
I state under penalty of perjury under the laws of Oklahoma that
the foregoing is true and corre ct.
____________________ __________ __________________________
Signature Date and Place"
F. If requested by a law enforcement agency, a commercial
auction or commercial consignm ent dealer shall report in wri ting all
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purchases of commercial equipment as def ined by the Oklahoma
Commercial Auction and Consignment Dealers Act within forty -eight
(48) hours. The report shall contain the information required by
this section.
G. Prior to the purchase of a used motor vehicle, tractor,
construction equipment, or trailer, the commercial auc tion or
commercial consignment dealer shall require one of the following
forms of proof of ownership from the seller:
1. A certificate of title that matches the vehicle
identification number of the vehicle being sold;
2. A notarized power of attorney fro m the individual on the
certificate of title authorizing the seller to dispose of the
vehicle, tractor, trailer, or other equipment on behalf of the
owner; or
3. A statement of owner ship from the seller sta ting that the
vehicle, tractor, trailer, or other equipment was purchased from the
lawful owner, including a statement that there are no outstanding
liens on the vehicle , tractor, or equipment.
The provisions of this subsection shal l not apply to sales,
purchases or other transfer s of vehicles, tractors, or other
equipment between commercial auction and commercial consignment
dealers and licensed car dealers.
H. A commercial auction or commercial consig nment dealer shall
not enter into any cash transaction s in excess of One Thousa nd
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Dollars ($1,000.00) i n payment for the purchase of commercial
equipment. Payment by check shall be issued and made payable only
to the seller of the commercial equipment who se identification
information has been obtained pursua nt to the provisions of t his
section.
SECTION 4. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 11 -104 of Title 2, unless there
is created a duplication in numbering, reads as follows:
A. Any person found in violation of an y provision of the
Oklahoma Commercial Auction and Consignment Dealers Act, with the
exceptions as provided by subsection B of this section, shall, upon
conviction, be guilty of a misdemeanor and punished by a fine of not
more than Two Thousand Five Hundre d Dollars ($2,500.00) pe r offense.
Any person convicted of a second violation of the Oklahoma
Commercial Auction and Consignment Dealers Act shall be guilty of a
misdemeanor and punished by a fine of not m ore than Five Thousand
Dollars ($5,000.00) per of fense or by imprisonment in the county
jail for a period of not more than six (6) months or by both fine
and imprisonment. Any person convicted of a third or subsequent
violation of the Oklahoma Commercial Auction and Consignment Dealers
Act shall be guilty of a felony punishabl e by a fine of not more
than Ten Thousand Dollars ($10,000.00) per offense or by
imprisonment in the custody of the Department of Corrections for a
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period of not more than two (2) yea rs, or by both such fine and
imprisonment.
B. Any person acting as a com mercial auction or commercial
consignment dealer without a commercial auction and commercial
consignment dealer license or a sales tax permit as required by the
Oklahoma Commercial Au ction and Consignment Dealers Act shall, upon
conviction, be guilty of a misdemeanor and punished by a fine of not
more than Five Hundred Dollars ($500.00); provided, that each day of
operation in violation of the Oklahoma Commercial Auction and
Consignment Dealers Act shall constitute a separate offense .
C. Each commercial au ction or commercial consignment dealer
convicted of a violation of the Oklahoma Commercial Auction and
Consignment Dealers Act shall be reported to the Oklahoma Tax
Commission by the clerk of the court rendering such verdict.
D. The Tax Commission shall r evoke the sales tax permit of any
person convicted of three separate violations of the Oklahoma
Commercial Auction and Consignment Dealers Act. The person shall
not be eligible to re ceive a sales tax permit for such purpose for a
period of one (1) year fo llowing the revocation. The revocation
procedure shall be subject to notice and hearing as required by
Section 11-59 of Title 2 of the Oklahoma Statutes .
SECTION 5. NEW LAW A new sec tion of law to be codified
in the Oklahoma Statut es as Section 11-105 of Title 2, unless there
is created a duplication in numbering, reads as follows:
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A. Any sales tax permit, issued pursuant to Section 1364 of
Title 68 of the Oklahoma Statutes, to any c ommercial auction or
commercial consignment deale r who violates any of the provisions of
this act, may be canceled or suspended for a period not to exceed
thirty (30) days by the Oklahoma Tax Commission. The Tax Commission
may refuse the issuance of or ex tension or reinstatement of any
permit where the applicant or holder of the permit shall have
violated any provisions of this act or existing laws. Such
cancellation or refusal shall be mandatory as to any commercial
auction or commercial consignment deal er having been convicted of
three separate violat ions of this act. However, before the Tax
Commission may cancel or suspend any permit or refuse the issuance,
reinstatement or extension thereof, the Tax Commission shall give
each holder of a permit or app licant ten (10) days' notice of a
hearing before the Tax Commission, granting such person an
opportunity to show cause why such action should not be taken. Upon
notice given to any commercial auction or commercial consignment
dealer by the Tax Commission of its intention to cancel or suspend
any permit or to refuse the issuance, reinstatement , or extension
thereof, the Tax Commission shall have the authority to enter its
order suspending such permit or prohibiting the applicant from doing
business without a permit pending the final hearing as provided for
in this section.
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B. 1. After notice of the order of suspension or prohibition
from doing business, it shall be unlawful for the commercial auction
or commercial consignment dealer to further engage in the business
of selling commercial equipment, as de fined herein. In the event
any such person shall conduct or at any time continue such unlawful
operation, after notice of suspension or prohibition from doing
business, the Tax Commission may institute or cause to be brought
against such person or persons proceedings for injunction in any
court of competent jurisdiction to enjoin and restrain such person
or persons from doing business pending the order of the Tax
Commission.
2. Upon cancellation of a permit by the Tax Commission, n o new
permit shall be issued to such dealer or any firm, corporation , or
other legal entity under his or her direct or indirect control or
association, for a period of one (1) year from the date of
cancellation.
3. In all cases where proceedings are broug ht for injunction
under this act, no bond for injunction shall be required and in all
such cases, after notice of suspension has been given, no further
notice shall be required before the issuance of a temporary
restraining order on any proceeding for inju nction.
C. If an appeal is taken from the order of the Tax Commission
issued pursuant to this section, the commercial auction or
commercial consignment dealer, in order to conduct business as a
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commercial auction or commercial consignment dealer pending o utcome
of the appeal, shall be required to post a bond in the amount of
Five Thousand Dollars ($5,000.00).
SECTION 6. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 11-106 of Title 2, unless there
is created a duplication i n numbering, reads as follows:
A. Any person, firm , or corporation desiring to become a
commercial auction or commercial consignment dealer shall be
required to obtain a sales ta x permit as provided by Section 1364 of
Title 68 of the Oklahoma Statutes, fro m the Oklahoma Tax Commission,
for each commercial auction or commercial consignment location owned
or operated by such person, firm , or corporation.
B. The Tax Commission shall maintain a list of comm ercial
auction and commercial consignment dealers to w hom sales tax permits
have been issued and such list shall be made available for public
inspection.
C. The Tax Commission shall not deny any person, firm , or
corporation desiring a sales tax permit for the purpose of becoming
a commercial auction or comme rcial consignments dealer due to
insufficient quantity or dollar value of sales necessary to warrant
such permit.
D. The Tax Commission is authorized to promulgate any rules
necessary to implement the p rovisions of this act.
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SECTION 7. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 11 -107 of Title 2, unless there
is created a duplication in numbering, reads as follows:
The Oklahoma Department of Ag riculture, Food, and Forestry shall
promulgate rules, procedures, and forms governing the application,
the granting of and renewal procedures for commercial auction and
commercial consignment dealer licenses.
SECTION 8. This act shall become effective November 1, 2022 .
COMMITTEE REPORT BY: COMMITTEE ON BUSINESS AND COMMERCE, dated
02/16/2022 - DO PASS.