Oklahoma House Bill HB3994 Introduced / Bill

                    Req. No. 8442 	Page 1 
STATE OF OKLAHOMA 
 
2nd Session of the 58th Legislature (2022) 
 
HOUSE BILL 3994 	By: Dobrinski 
 
 
 
 
 
AS INTRODUCED 
 
An Act relating to motor vehicle dealers; amending 47 
O.S. 2021, Section 562, which relates to definitions; 
modifying definitions; ame nding 47 O.S. 2021, Section 
564, which relates to licenses; disal lowing certain 
authorization; authorizing certain fee; providing for 
application for certain license; providin g 
requirements and limitations of licensee; requiring 
certain license for deliver y; providing for 
misdemeanor and fine offense; providing for 
guidelines for use of consumer data; providing 
certain indemnification; authorizing certain data 
disclosure; amending 47 O.S. 2021, Section 565, which 
relates to denial, revocation or suspension of 
license; requiring certain adherence; prohibiting 
certain performance methods; providing for 
calculation; providing for exclusions for certain 
rate calculation; requiring written notice; requiri ng 
criteria for validation; requiring certain factory 
compensation; prohibiting factory denial of cert ain 
claims and implementation of certain charge -backs; 
disallowing allocation requireme nts; allowing for 
certain construction or renovation; providing certain 
rebuttable presumption; limiting license for 
distribution; amending 47 O.S. 2021, Section 565.1, 
which relates to succession dealerships; clarifying 
language; requiring certain adherence; amending 47 
O.S. 2021, Section 565.2, which relates to 
termination, cancellation or nonrenewal of franchise; 
requiring certain compensation; amending 47 O.S. 
2021, Section 565.3, which relates to notice of 
proposed sale; limiting evaluations; deleting certain 
protest right; amending 47 O.S. 2021, Section 572, 
which relates to venue in damage actions; modifying 
certain legal remedies; awarding certain fees and 
costs; amending 47 O.S. 2021, Section 578.1, which  Req. No. 8442 	Page 2 
relates to procedures for relocation or 
establishment; modifying def inition; amending 47 O.S. 
2021, Section 580.2, which relates to insura nce 
coverage on loan vehicles; defining term; making 
certain liability policy coverage distinction; 
providing for codification; and providing an 
effective date. 
 
 
 
 
 
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: 
SECTION 1.     AMENDATORY     4 7 O.S. 2021, Section 562, is 
amended to read as follow s: 
Section 562. The following words, terms and phrases, when used 
in Sections 561 through 567, 572, 578.1, 579 and 579.1 of this 
title, shall have the meanings respectively ascribed to them in this 
section, except where the context clearly indicates a dif ferent 
meaning: 
1.  "Motor vehicle" means any motor-driven vehicle required to 
be registered under the Oklahoma Vehicle License and Registration 
Act.  The term "motor vehicle" does not include: 
a. recreational vehicles, as defined in the Recreational 
Vehicle Franchise Act, or 
b. all-terrain vehicles, utility vehicles, and 
motorcycles used exclusively for off-road use which 
are sold by a retail implement dealer; 
2.  "New motor vehicle dealer " means any person, firm, 
association, corporation or trust not excl uded by this paragraph who  Req. No. 8442 	Page 3 
that sells, leases, exchanges or otherwise conveys a new motor 
vehicle, accepts orders for sale, lease, exchange or other 
conveyance of a new motor vehicle , offers for sale, lease, exchange 
or other conveyance of a new motor vehi cle, finances the sale, 
lease, or other conveyance of a new motor vehicle , advertises to 
sell, leases or lease, exchange or convey a new motor vehicle , 
offers through a subscription or like arrangement, displays new 
motor vehicles, offers vehicle test driv es or demonstrations of new 
motor vehicle functions or features , or otherwise engages in any 
way, in whole or in part, in the business of selling, leasing, 
exchanging or otherwise conveying new motor vehicles and used motor 
vehicles, as well as parts, including post-sale software and 
hardware upgrades or changes to vehicle fun ctions and features, and 
accessories for those motor vehicles , and holds a bona fide contract 
or franchise in effect with a manufacturer or d istributor authorized 
by the manufacturer to establish a physical place of business in the 
state which is of such reasonably suff icient size and accommodation 
to perform the activities of a new motor vehicle dealer , including 
vehicle inventory and display , sales activity, make predelivery 
preparation of such new motor vehicles sold, leased or otherwise 
conveyed to purchasers consumers and to perform post-sale work 
pursuant to the manufacturer 's or distributor's warranty and recall 
policies.  As used herein, "authorized predelivery preparation " 
means the rendition by the dealer of services and safety adjustments  Req. No. 8442 	Page 4 
on each new motor vehi cle in accordance with the procedure and 
safety standards required by the ma nufacturer of the vehicle to be 
made before its delivery to the purchaser.  "Performance of 
authorized post-sale work pursuant to the warranty", as used herein, 
means the rendition of services which are required by the terms of 
the warranty that stands ext ended to the vehicle at the time of its 
sale and are to be made in accordance with the safety standards 
prescribed by the manufacturer.  The term includes premises or 
facilities at which a person engages only in the repair of motor 
vehicles if repairs are performed pursuant to the terms of a 
franchise and or motor vehicle manufacturer 's warranty and recall 
policies.  However, the term shall not include premises or 
facilities at which a new motor vehicle dealer or dealers within the 
area of responsibility of su ch dealer or dealers as defined in the 
manufacturer's franchise agreement of such dealer or dealers 
performs motor vehicle repairs pursuant to the terms of a franchise 
and motor vehicle manufacturer 's warranty. For the purpose of 
Sections 561 through 567, 572, 578.1, 579 and 579.1 of this title, 
the terms "new motor vehicle dealer " and "new motor vehicle 
dealership" shall be synonymous.  The term "new motor vehicle 
dealer" does not include: 
a. receivers, trustees, administrators, executors, 
guardians or other persons appointed by or acting 
under judgment or order of any court,  Req. No. 8442 	Page 5 
b. public officers while performing or in operation of 
their duties, or 
c. employees of persons, corpora tions or associations 
enumerated in subparagraph a of this paragraph when 
engaged in the specific performance of their duties a s 
such employees; 
3.  "Motor vehicle salesp erson" means any person who, for gain 
or compensation of any kind, either directly or indirectly, 
regularly or occasionally, by any form of agreement or arrangement, 
sells or negotiates for the sale , lease, conveyance or financing of 
any new motor vehicle for any new motor vehicle dealer to a ny one or 
more third parties; 
4.  "Commission" means the Oklahoma Motor Vehicle Commission; 
5.  "Manufacturer" means any person, firm, association, 
corporation or trust, resident or nonresident, who manufactures or 
assembles new and unused motor vehicles o r who engages in the 
fabrication or assembly of motorized vehicles of a type required to 
be registered in the State of Oklahoma; 
6.  "Distributor" means any person, firm, association, 
corporation or trust, resident or n onresident, who, being authorized 
by the original manufacturer, in whole or in part sells or 
distributes new and unused motor vehicles to motor vehicle dealers, 
or who maintains distributor represe ntatives;  Req. No. 8442 	Page 6 
7.  "Factory branch" means any branch office main tained by a 
person, firm, association , corporation or trust who manufactures or 
assembles motor vehicles for the sale of motor vehicles to 
distributors, or for the sale of motor vehicles to motor v ehicle 
dealers, or for directing or supervising, in whole o r in part, its 
representatives; 
8.  "Distributor branch" means any branch office similarly 
maintained by a distributor for the same purposes a factory branch 
is maintained; 
9.  "Factory representative" means any officer or agent engaged 
as a representative of a manufacturer of motor vehicles or by a 
factory branch, for the purpose of making or promoting the sale of 
its motor vehicles, or for supervising or contacting its dealers or 
prospective dealers; 
10.  "Distributor representative " means any person, fir m, 
association, corporation or trust and each officer and employee 
thereof engaged as a representative of a distributor or distributor 
branch of motor vehicles, for the purpose of making or promoti ng the 
sale of its motor vehicles, or for supervising or co ntacting its 
dealers or prospective d ealers; 
11.  "Franchise" means any contract or agreement between a motor 
vehicle dealer and a manufacturer of a new motor vehicle or its 
distributor or factory branch by which the dealer is authorized to 
engage in the business of selling any specified make or makes of new  Req. No. 8442 	Page 7 
motor vehicles activities of a new motor vehicle dealer as defined 
by this section; 
12.  "New or unused motor vehicle " means a vehicle which is in 
the possession of the manufacturer or distributor or ha s been sold 
only to the holder of a v alid selling agreement, franchise or 
contract, granted by the manufacturer or distributor for the sale of 
that make of new vehicle so long as the manufacturer 's statement of 
origin has not been assigned to anyone other than a licensed 
franchised new motor vehicle dealer of the same line-make; 
13.  "Area of responsibility" means the geographical area, as 
designated by the manufacturer, factory branch, factory 
representative, distributor, distributor branch or distributor 
representative, in which the new moto r vehicle dealer is held 
responsible for the promotion and development of sales and rendering 
of service for the make of motor vehicle for which the motor vehicle 
dealer holds a franchise or selling agreement; 
14.  "Off premises" means at a location other than the address 
designated on the new motor vehicle dealer's license; 
15.  "Sponsoring entity" means any person, firm, association, 
corporation or trust which has contr ol, either permanently or 
temporarily, over the re al property upon which the off-premise off-
premises sale or display is conducted; 
16.  "Product" means new motor vehicles and new motor vehicle 
parts;  Req. No. 8442 	Page 8 
17.  "Service" means motor vehicle warranty repairs including 
both parts and labor; 
18.  "Lead" means a consumer contact in response to a fact ory 
program designed to generate interest in purchasing or leasing a new 
motor vehicle; 
19.  "Sell or sale" means to sell or lease; 
20.  "Factory" means a manufacturer, distrib utor, factory 
branch, distributor branch, f actory representative or distributor 
representative, which manufactures or distributes vehicle products; 
21.  "Powersports vehicle" means motorcycles, scooters, mopeds, 
all-terrain vehicles, and utility vehicles; 
22.  "Powersports vehicle dealer " means any person, firm, or 
corporation who is in the business of selling any new powersports 
vehicles except for retail implement dealers; and 
23.  "Retail implement dealer " means a business engaged 
primarily in the sale o f farm tractors as defined in Section 1 -118 
of this title or implements of husba ndry as defined in Section 1-125 
of this title or a combination thereof ; 
24.  "Consumer data" means nonpublic personal information as 
such term is defined in 15 U.S.C ., Section 6809(4) as it existed on 
January 1, 2022, that is: 
a. collected by a dealer , and 
b. provided by the dealer directly to a manufacturer or 
third party acting on behalf of a manufacturer.   Req. No. 8442 	Page 9 
Such term shall not include the same or similar data obtained by 
a manufacturer from any source other than the dealer or dealer's 
data management system; and 
25.  "Data management system" means a computer hardware or 
software system that: 
a. is owned, leased or licensed by a dealer including a 
system or web-based applications, computer software or 
computer hardware, 
b. is located at the dealership or hosted remotely, and 
c. stores and provides access to consumer data collected 
or stored by a dealer. 
Such term shall include, but shall not be limited to, dealership 
management systems and customer relations m anagement systems. 
SECTION 2.    AMENDATORY     47 O.S. 2021, Section 564, is 
amended to read as follows: 
Section 564. A.  It shall be unlawful for any person, firm, 
association, corporation or trust to engage in business as, or serve 
in the capacity of, or act as a motor vehicle de aler or manufacturer 
or distributor of new motor vehicles, or factory branch, distributor 
branch or factory representative or distributor representative, as 
such defined in Section 562 of this title, in this state witho ut 
first obtaining a license therefor as provided for by law.  Any 
person, firm, association, corporation or trust engaging in more 
than one of such capacities or having more than one place where such  Req. No. 8442 	Page 10 
business is carried on or conducted shall be required t o obtain and 
hold a current license f or each thereof.  Provided that, a new motor 
vehicle dealer's license shall authorize one person to sell in the 
event such person shall be the owner of a proprietorship, or the 
person designated as principal in the deal er's franchise or the 
managing officer or one partner if no principal person is named in 
the franchise. It is further provided that a factory or an entity 
affiliated by any ownership or control by the factory shall not be 
permitted to be licensed as a motor vehicle dealer. 
B.  Applications for licenses required to be obtained under 
provisions of Section 561 et seq. of this title shall be verified by 
the oath or affirmation of the applicant and shall be on forms 
prescribed by the Oklahoma Motor Vehicle Comm ission and furnished to 
such applicants, and shall contain such information as the 
Commission deems necessary to enable it to fully determine the 
qualifications and eligibility of the several applicants to receive 
the license or licenses applied for.  The Commission shall require 
in such application, or otherwise, information relating to the 
applicant's financial standing, the applicant 's business integrity, 
whether the applicant has an established place of busines s and is 
primarily engaged in the pursuit, avocation or business for which a 
license, or licenses, are applied for, and whether the applicant is 
able to properly conduct the business for which a license, or 
licenses, are applied for, and such other pertine nt information  Req. No. 8442 	Page 11 
consistent with the safeguar ding of the public interest and the 
public welfare.  All such applications for license or licenses shall 
be accompanied by the appropriate fee or fees therefor in accordance 
with the schedule thereof hereinafter s et out.  In the event any 
such application is denied and the license applied for is not 
issued, the entire license fee shall be returned to the applicant.  
All licenses issued under the provisions of Section 561 et seq. of 
this title shall expire on June 3 0, following the date of issue and 
shall be nontransferable.  All applications f or renewal of a license 
for a new motor vehicle dealer, manufacturer, distributor or 
manufacturer's or distributor's representative shall be submitted by 
June 1 of each year, a nd such license or licenses will be issued by 
July 1.  If applications have not been made for renewal of licenses 
at the times described in this subsection, it shall be illegal for 
any person to represent himself or herself and act as a dealer, 
manufacturer, distributor or manufacturer's or distributor's 
representative.  Motor license agents will be notified not to accept 
such dealers' titles until such time as licenses have been issued by 
the Commission. 
C.  The schedule of license fees to be charged and r eceived by 
the Commission for the licenses issued hereunder shall be as 
follows:  Req. No. 8442 	Page 12 
1.  For each factory branch or distributor branch, Four Hundred 
Dollars ($400.00) initial fee with annual renewal fee of Three 
Hundred Dollars ($300.00); 
2.  For each manufact urer or distributor of new motor vehicles, 
Four Hundred Dollars ($400.00) initia l fee with annual renewal fee 
of Three Hundred Dollars ($300.00); 
3.  For each factory representative or distributor 
representative, One Hundred Dollars ($100.00) annually; 
4.  For each new motor vehicle dealer, except powersports 
vehicle dealers, initial fee of Three Hundred Dollars ($300.00) per 
franchise sold at each location licensed, with an annual renewal fee 
of One Hundred Dollars ($100.00) per franchise sold at each loca tion 
per year; and 
5.  For each powersports vehicle dealer, initial fee of Three 
Hundred Dollars ($300.00) per manufacturer represented by the dealer 
at each location licensed, with an annual renewal fee of One Hundred 
Dollars ($100.00) per manufacturer re presented by the dealer at each 
location licensed per year; and 
6.  For each motor vehicle direct shipper, initial fee of Three 
Hundred Dollars ($300.00), with an annual renewal fee of One Hundred 
Dollars ($100.00). 
D.  The licenses issued to each new moto r vehicle dealer, 
manufacturer, distributor , factory branch, distributor branch or 
representative, if a corporation, shall specify the location of the  Req. No. 8442 	Page 13 
factory, office or branch thereof.  In case such location is 
changed, the Commission may endorse the chan ge of location on the 
license without charg e unless the change of address trigge rs a 
relocation of a new motor vehicle dealer pursuant to the provisions 
of Section 578.1 of this title.  The license of each dealer shall be 
posted in a conspicuous place in t he dealer's place or places of 
business. 
Every motor vehicle factory representat ive or distributor 
representative if an individual shall physically possess the license 
when engaged in business, and shall display same upon request.  The 
name of the employer of such factory representative or distribu tor 
representative shall be stated on the license and, in case of a 
change of employer, the holder of such license shall immediately 
mail same to the Commission for its endorsement of such change 
thereon.  The Commission shall endorse each such change of e mployer 
on licenses for a fee of Ten Dollars ($10.00). 
E.  The powersports dealer license shall only allow the sale of 
the specific types of powersports vehicles authorized by the 
manufacturer and agreed to by the powersports dealer. 
SECTION 3.     NEW LAW     A new section of law to be codified 
in the Oklahoma Statutes as Section 564.3 of Title 47, unless there 
is created a duplication in numbering, reads as follows: 
A.  A person who is licensed in his or her state of domicile as 
a franchised new motor vehicle dealer, and wh o is not affiliated by  Req. No. 8442 	Page 14 
ownership or control of a manufacturer, distributor, factory branch, 
factory representative, distributor branch or distributor 
representative, as defined in Section 562 Title 47 of the Oklahoma 
Statutes, may apply to the Oklahoma Motor Vehicle Commission for a 
motor vehicle direct shipper license.  Only a person holding a motor 
vehicle direct shipper license may ship a new motor vehicle from out 
of the state to a person, association or entity who is an Oklahoma 
resident.  A motor vehicle dealer licensed in this state shall not 
be required to obtain a motor vehicle direct shipper license to ship 
a new motor vehicle to a person, association or entity who is an 
Oklahoma resident.  Any person who ships le ss than three new motor 
vehicles per year from out of the state to a person, association or 
entity that is an Oklahoma resident shall not be required to obtain 
a motor vehicle direct shipper license. The license fee for a motor 
vehicle direct shipper shall be determined by the Commission . The 
amount of the fee must approximate and reasonably reflect the costs 
necessary to defray the expenses of the Commissioner 's service and 
activities in connection with this sec tion. 
B.  It shall be unlawful for common o r permit carriers, 
operators of trucks, buses or other conveyances or out-of-state 
manufacturers or suppliers to make delivery of any new motor vehicle 
from without the State of Oklahoma to any person, association or 
entity within the state unless the deli very is made by a person  Req. No. 8442 	Page 15 
licensed in this state as a motor vehicle dealer or a motor vehicle 
direct shipper. 
C.  A person who sells and ships a new motor vehicle directly 
from any person, association or corporatio n to a resident of the 
State of Oklahoma wi thout holding a valid motor vehicle d irect 
shipper's license, upon conviction, shall be guilty of a misdemeanor 
and subject to a fine pursuant to Section 565 of Title 47 of the 
Oklahoma Statutes. 
SECTION 4.     NEW LAW     A new section of law to be codified 
in the Oklahoma Statutes as Section 564.4 of Title 47, unless the re 
is created a duplication in numbering, reads as follows: 
With respect to consumer data, a factory or third party acting 
on behalf of a factory: 
1.  Shall comply with and shall not cause a dealer to violate 
any applicable restrict ions on reuse or disclos ure of consumer data 
established by federal or st ate law; 
2.  Shall, upon the written request of the dealer, provide a 
written statement describing the established procedur es adopted by 
such factory or third p arty acting on behalf o f the factory which 
meet or exceed any federal or state requirements to saf eguard 
consumer data including, but not limited to, those established in 
the Gramm-Leach-Bliley Act, 15 U.S.C. , Section 6801 et seq.; 
3.  Shall, upon the writ ten request of the deal er, provide a 
written list of the consumer data obtained from the deale r and all  Req. No. 8442 	Page 16 
persons to whom any consumer data has been provided by the factory 
or a third party acting on behalf of a factory d uring the preceding 
six (6) months.  The dealer may make suc h a request no more than 
once every six (6) months. The list must indicate the specific 
fields of consumer data which were provided to each person; 
4.  May not require that a dealer grant the fac tory or a third 
party acting on behal f of a factory, or use any incentive or 
withhold any benefit from a dealer t o obtain, direct or indirect 
access to such dealer 's data management system to obtain con sumer 
data.  A factory or a third party acting on beha lf of a factory 
shall permit a dealer to furnish consumer da ta in a widely accepted 
file format, such as comma delimited, and through a third -party 
vendor selected by the dealer.  However, a factory or a third party 
acting on behalf of a factory may access or obtain consumer data 
directly from a dealer's data management system with the ex press 
written consent of the dealer.  The consent shall be in the form of 
a stand-alone written document that is execu ted by the dealer 
principal or operator and may be withdrawn by the dealer upon thirty 
(30) days' written notice to the factory or third party acting on 
the factory's behalf , as applicable. Such consent shall not be 
required as a condition to a new motor v ehicle dealer's 
participation in an incentive program or receipt of some other 
benefit; and  Req. No. 8442 	Page 17 
5.  Shall indemnify the dealer for any third -party claims 
asserted against or damages incurred by the dealer to the extent 
caused by access to, use of, or disclosure of consu mer data in 
violation of this section by th e factory or a third party to whom 
the factory has provided consumer data.  Nothing contained in this 
section shall limit th e ability of the factory or a third party 
acting on the factory's behalf to require that the dealer provide, 
or use in accordance wi th the law, such consumer information related 
solely to such factory's own vehicle makes to the extent necessary 
to do any of the following: 
a. satisfy any safety or recall notice obligations or 
other legal notice obligations on the part of the 
manufacturer, 
b. validate and pay to a dealer a consumer or dealer 
incentive, or 
c. submit claims to the factory for any services supplied 
by the dealer for any claim for warranty parts or 
repair. 
The factory shall be limite d to using consumer data strictly for the 
purposes listed in this paragraph. 
SECTION 5.    AMENDATORY     47 O.S. 2021, Section 565, is 
amended to read as follows : 
Section 565.  A.  The Oklahoma Motor Vehicle Commi ssion may deny 
an application for a license, or revoke or suspend a license, or  Req. No. 8442 	Page 18 
impose a fine against any person, not to exceed Ten Thousand Dollars 
($10,000.00) against a manufacturer or distributor or a fine not to 
exceed One Thousand Dollars ($1,00 0.00) against a dealer, per 
occurrence that, who violates 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 provisions of Section 561 et 
seq. of this title; 
2.  For any material misstatement made by an applicant in any 
application for any lice nse under the provisions of Section 561 et 
seq. of this title; 
3.  For any failure to comply with any provision of Section 561 
et seq. of this title or a ny 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 qua lifications for license; 
5.  Being a new motor vehicle deale r who: 
a. has required a purchaser of a new motor vehicle, as a 
condition of sale and delivery thereof, to also 
purchase special features, appliances, accessories or 
equipment not desired or reque sted by the purchaser 
and installed by the dealer,  Req. No. 8442 	Page 19 
b. uses any false or misleading advertising in connection 
with business as a new motor veh icle dealer, 
c. has committed any unlawful act which resulted in the 
revocation of any similar license in another s tate, 
d. has failed or refused to perform any written agreem ent 
with any retail buyer involving the sale of a motor 
vehicle, 
e. has been convicted of a crime invol ving moral 
turpitude, 
f. has committed a fraudulent act in selling, purchasing 
or otherwise dealing in new motor vehicles or has 
misrepresented the terms and conditions of a sale, 
purchase or contract for sale or purchase of a new 
motor vehicle or any inte rest therein including an 
option to purchase such vehicle, 
g. has failed to meet or maintain the conditions and 
requirements necessary to qualify for the issuance of 
a license, or 
h. completes any sale or transaction of an extended 
service contract, extend ed maintenance plan, or 
similar product using contract forms that do not 
conspicuously disclo se the identity of the service 
contract provider;  Req. No. 8442 	Page 20 
6.  Being a new motor vehicle salesperson who is not employed as 
such by a licensed new mot or 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 repair or 
recondition one or more vehicles at the same time, and 
which is staffed with properly trained repair 
technicians and 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 s tate and to properly 
fulfill the dealer's or manufacturer's warranty 
obligation, 
c. does not hold a franchise in ef fect with a 
manufacturer or distributor of new or unused mot or 
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 po st-sale 
work pursuant to the manufacturer's or distributor's 
warranty, 
d. employs a person without obtaining a certificate of 
registration for the person, or utili zes the services  Req. No. 8442 	Page 21 
of used motor vehicle lots or dealers or other 
unlicensed persons in connect ion with the sale of new 
motor vehicles, 
e. does not properly service a new motor vehicle before 
delivery of same to the original purchaser t hereof, or 
f. fails to order and stock a reasonable number of new 
motor vehicles necessary to meet customer consumer 
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 
available 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 including advertising material 
which shall not have been ordered by the new 
motor vehicle dealer, 
(2) to order or accept delivery of any motor vehicle 
with special features, appliances, accessories or 
equipment not included in the list price of the  Req. No. 8442 	Page 22 
motor vehicles as publicly advertised b y the 
manufacturer thereof, or 
(3) to order or accept delivery of any parts, 
accessories, equipment, machinery, tools, 
appliances or any comm odity 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 amending 
unilaterally the dealer's allotment of motor vehicles 
and/or withholding and de laying delivery of such 
vehicles out of the ordinary course of business, in 
order to induce by such coercion any su ch dealer to 
participate or contribute to any local or national 
advertising fund controlled directly or indirectly by 
the factory or for any other purposes such as contest, 
"give-aways" "giveaways" or other so-called sales 
promotional devices and/or change of quotas in any 
sales contest; or has required motor vehicle dealers, 
as a condition to receiving their vehicle allotment, 
to order a certain percentage of the vehicles with 
optional equipment not specified by the new motor 
vehicle dealer; however, nothi ng in this section shall 
prohibit a factory from supporting an advertising  Req. No. 8442 	Page 23 
association which is open to all dealers on the same 
basis, 
c. used or proposed to use an unreasonable, arbit rary or 
unfair sales or other standard to measure a dealer 's 
performance under any factory program, policy or the 
franchise agreement.  It shall be considered 
unreasonable, arbitrary and unfair for the factory to 
fail to take into account the dealer 's specific and 
market circumstances in establishing the sales or 
other standard, 
d. failed or refused to sell, or offer for sale, new and 
used motor vehicles to all of its same line-make 
franchised dealers at the same pr ice for a comparably 
equipped motor vehicl e, on the same terms, with no 
differential in discount, allowance, credi t or bonus, 
e. failed to reimburse a dealer in full for the actual 
cost of providing a loaner vehicle to any c onsumer who 
is having a vehicle serviced at the dealership if the 
provision of such a loaner vehicle is required by the 
factory. For purposes of this paragraph, actual cost 
shall not exceed the average cost in the dealer's 
region for the rental of a substantially similar make 
and model as the vehicle being serviced ; 
9.  Being a factory that:  Req. No. 8442 	Page 24 
a. has attempted to coerce or has coerced any new motor 
vehicle dealer to enter into any agreement or to 
cancel any agreement, or fails to act in good faith 
and in a fair, equitable and nondiscrimina tory manner; 
or has directly or indirectly coerced, intimidated, 
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 dealers for the work and 
services they are required to perform in connection 
with the dealer's delivery and prepar ation obligations 
according to the agreements on file with the 
Commission which must be found by the Commission to be 
reasonable, or fail has failed to adequately and 
fairly compensate its dealer s for labor, parts and 
other expenses incurred by such dealer to perform 
under and comply with manufacturer's warranty 
agreements, extended warranty agreements, maintenance 
agreements, recall repairs and similar work, which 
shall include diagnostic work an d goodwill repairs.  
Time allowances for the diagnosis and pe rformance of 
repair work shall be reasonable and adequate for the 
work to be performed. Adequate and fair compensation  Req. No. 8442 	Page 25 
for parts and/or labor shall be established by the 
dealer submitting to the manufacturer or distributor 
one hundred sequential nonwarran ty customer-paid 
consumer-paid service repair orders whic h contain 
warranty-like parts repairs, or ninety (90) 
consecutive days of nonwarranty customer-paid 
consumer-paid service repair orders which contain 
warranty-like parts repairs, whichever is less, 
covering repairs made no more than one hundred eighty 
(180) days before the submission and declaring the 
average percentage markup.  Adequate and fair 
compensation for labor shall be established by the 
dealer submitting to t he manufacturer or distributor 
one hundred sequential c ustomer-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.  
The dealer shall calculate its retail parts rate by 
determining the total charges for parts from the 
qualified repair orders submitted, dividing that 
amount by the dealer 's total cost of the purchas e of 
those parts, subtracting one (1), and multiplying by 
one hundred (100) to produce a percentage.  The dealer 
shall calculate its retail labor rate by dividing the  Req. No. 8442 	Page 26 
amount of the dealer's total labor sales from the 
qualified repair orders by the total labor hour s that 
generated those sales.  When submitting repair orders 
to calculate establish a retail parts and/or labor 
rate, a dealer need not include repair orders repairs 
for: 
(1) routine maintenance including, but not limited 
to, the replacement of bulbs, flui ds, filters, 
batteries and belts that are not provided in the 
course of and related to a repair, 
(2) factory special events, specials or promotional 
discounts for retail consumer repairs, 
(3) parts sold or repairs performed at wholesale , 
(4) factory-approved goodwill or policy repairs or 
replacements, 
(5) repairs with aftermarket parts, when calculating 
the retail parts rate but not the retail labor 
rate, 
(6) repairs on aftermarket parts, 
(7) replacement of or work on tires including front -
end alignments and wheel or tire rotations , 
(8) repairs of motor vehicles owned by the dealer or 
employee thereof at the time of the repair, 
(9) engine and/or transmission assemb lies,  Req. No. 8442 	Page 27 
(10) vehicle reconditioning, or 
(11) items that do not have individual part numbers 
including, but not limited to, nuts, bolts and 
fasteners.  A manufacturer or distributor may, 
not later than thirty (30) days after submission, 
rebut that declared retail parts and labor rate 
in writing by reasonably substantiating that the 
rate is inaccurate o r unreasonable in light of 
the practices of all other franchised motor 
vehicle dealers in an economi cally similar part 
of the state offering the same line-make vehicles 
not established in accordance with this section. 
A manufacturer or distributor shall n ot deny the 
dealer's submission to establish the retail labor 
rate, retail parts rate or both, under this 
section.  Instead, the manufacturer or 
distributor must approve or rebut as provided 
herein. The retail rate labor and parts rates 
shall go into effect thirty (30) days following 
the approval by the manufacturer or distributor, 
subject to audit of t he submitted repair o rders 
by the franchisor and a rebuttal of the declared 
rate as described above.  If the declared rate is 
rebutted, the manufacturer or di stributor shall  Req. No. 8442 	Page 28 
provide written notice stating the specific 
reasons for the rebuttal, a full expla nation of 
any and all reasons for the allegation, evidence 
substantiating the manufacturer or distributor's 
position, a copy of all calculations used by the 
franchisor in determining t he manufacturer or 
distributor's position and propose an adjustment 
in writing of the average percentage markup or 
labor rate based on that rebuttal not later than 
thirty (30) days after submission.  If the dealer 
does not agree with the proposed average 
percentage markup or labor rate, the dealer may 
file a protest with the C ommission not later t han 
thirty (30) days after receipt of that pr oposal 
by the manufacturer or distributor. In the event 
a protest is filed, the manufacturer or 
distributor shall have the burden of proof to 
establish the new motor vehicle dealer 's 
submitted parts markup rate or labor rate was 
inaccurate or unreasonable in light of the 
practices of all other franchised motor vehicle 
dealers in an economically similar part of the 
state not established in accordance with this 
section.  A manufacturer or distributor may not  Req. No. 8442 	Page 29 
retaliate against any new motor vehicle dealer 
seeking to exercise its rights under this 
provision section.  A manufacturer or distributor 
may require a dealer to submit repair orders in 
accordance with this section in order to val idate 
a dealer's retail rate for parts or labor not 
more often than once ev ery twelve (12) months.  
Any validation of the retail parts and labor rate 
as permitted herein m ust use the same criteria 
for establishment of the rate in this section.  A 
manufacturer or distributor may not otherwise 
recover its costs from dealers within this state 
including an increase in the wholesale price of a 
vehicle or surcharge imposed on a d ealer solely 
intended to recover the cost of reimbursing a 
dealer for parts and labor pursuant to this 
section; provided, a manufacturer or distributor 
shall not be prohibited from increasing prices 
for vehicles or parts in the normal course of 
business.  All claims made by dealers for 
compensation for delivery, preparation and 
warranty repair work shall be paid within thirty 
(30) days after approval and shall be approved or 
disapproved within thirty (30) days after  Req. No. 8442 	Page 30 
receipt.  When any claim is disapproved , the 
dealer shall be notified in writing of the 
grounds for disapproval.  The d ealer's delivery, 
preparation and warranty obligations as filed 
with the Commission 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 o r any charge-
backs for warranty parts or service compensation.  
Except in cases of suspected f raud, audits of 
warranty payments shall only be for the one -year 
period immediately following 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 suspec ted fraud, 
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 subsequent 
to the payment of the claim unless the factory  Req. No. 8442 	Page 31 
can show that the claim was false or fraudulent 
or that the new motor vehicle dea ler failed to 
reasonably substantiate the claim by the written 
reasonable procedures of the fa ctory.  A factory 
shall not deny a claim or implem ent a charge-back 
against a new motor vehicle dealer after payment 
of a claim in the event a purchaser of a new 
vehicle that is the subject of a claim fails to 
comply with titling or registration laws of this 
state and is not prevented from compliance by any 
action of the dealer.  The factory shall provide 
written notice to a dealer of a proposed charg e-
back that is the result of an audit along with 
the specific audit results and pro posed 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 
Commission within thirty (30) days after receipt 
of the notice of the charge-back or audit 
results, whichever 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 protest has passed o r a 
final adjudication is rendered by the Commission,  Req. No. 8442 	Page 32 
whichever is later, unless th e dealer has agreed 
to the charge-back or charge-backs, 
c. fails to compensate the new motor vehicle dealer for a 
used motor vehicle: 
(1) that is of the same make and model manufactured, 
imported or distributed by the manufacturer, 
(2) that is subject to a recall notice issued by the 
manufacturer, distributor or an authorized 
governmental agency, regardless of whether the 
vehicle is identified by its vehicle 
identification number, 
(3) that is held by the new motor vehicle dealer in 
the dealer's inventory at the time the recall 
notice is issued or that is taken by the new 
motor vehicle dealer into t he dealer's inventory 
after the recall notice as a result of a retail 
consumer trade-in or a lease return to the dealer 
inventory in accordance with an applicable lease 
contract, 
(4) that cannot be repaired due to the 
unavailability, within thirty (30) days after 
issuance of the recall notice, of a remedy or 
parts necessary for the ne w motor vehicle dealer 
to make the recall repair, and  Req. No. 8442 	Page 33 
(5) for which the factory has not issued a written 
statement to the new motor vehicle dealer 
indicating that the used moto r vehicle may be 
sold or delivered to a retail consumer before 
completion of the recall repair.  The purpose of 
such written statement is to provide notice to 
the new motor vehicle dealer that the vehicle may 
be sold or delivered based solely on the specif ic 
recall notice and is not intended to address any 
other aspect of the vehicle unrelated to the 
recall notice.  The factory shall pay the 
compensation required un der this subsection 
within thirty (30) days after the motor vehicle 
dealer's application for payment. Compensation 
under this subsection must be the greater of: 
(a) payment at a rate of at least one and one-
half percent (1.5%) per month of the value 
of the motor vehicle as determined by the 
average Black Book value of the 
corresponding model year vehicle of average 
condition, of each eligible used motor 
vehicle in the new motor vehicle dealer's 
inventory for each month that the dealer 
does not receive a re medy and parts to  Req. No. 8442 	Page 34 
complete the required recall repair. Such 
payment must be prorated for any period less 
than one (1) month based on the number of 
days during the month each eligible used 
motor vehicle is in the motor vehicle 
dealer's inventory, or 
(b) payment under a national program applicable 
to all motor vehicle dealers holding a 
franchise agreement with the manufac turer 
for the motor vehicle dealer's costs 
associated with holding the eligible used 
motor vehicles, 
d. unreasonably fails or refuses to of fer to its same 
line-make franchised dealers a reasonable supply and 
mix of all models manufactured for that line-make, or 
unreasonably requires a dealer to pay any extra fee, 
purchase unreasonable advertising displays or other 
materials, enter into a separate agreement, or 
remodel, renovate, or recondition the dealer 's 
existing facilities as a pre requisite to receiving a 
model or series of vehicles. It shall be a violation 
of this section for new vehicle allocation to be 
withheld subject to any requiremen t to purchase or 
sell any number of used or off-lease vehicles.  The  Req. No. 8442 	Page 35 
failure to deliver any su ch 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 capacity or to a strike or labor 
difficulty, a shortage of materials, a freight embargo 
or other cause over which the manufacturer has no 
control.  However, this for vehicles planned for 
limited production, each dealer shall receive at least 
one such vehicle and otherwise shall receive a 
reasonable and proportional share of such vehicle 
allocation.  This subparagraph shall not apply to 
recreational vehicles or limited production model 
vehicles, 
d. 
e. except as necessary to comply with a health or safety 
law, or to comply with a t echnology 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 service, 
requires a new motor vehicle dealer to provide any 
service or take any acti on or to construct a new 
facility or substantially renovate the new motor 
vehicle dealer's existing facility, in order to 
receive all models manufactured for that line-make,  Req. No. 8442 	Page 36 
f. except as necessary to comply with a health or safety 
law, or to comply with a technology 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 service , 
requires a new motor vehicle dealer to construct a new 
facility or substantially renovate 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 wel l as 
the reasonably foreseeable projections, in the 
dealer's market and in the automotive industry.  
However, this subparagraph shall not apply if the 
factory provides dealer voluntarily agrees to facility 
construction or renovation in exchange for money, 
credit, allowance, reimbursement, except for payments 
on a per vehicle basis , or additional vehicle 
allocation to a dealer from the factory to compensate 
the dealer for the cost of, or a portion of the cost 
of, the facility construction or renovation.  Except 
as necessary to comply with a health or safety law, or 
to comply with a technology requirement which is 
necessary to sell or service a motor vehicle that the 
franchised motor vehicle dealer is authorized or  Req. No. 8442 	Page 37 
licensed by the franchisor to sell or service , a 
dealer which completes a facility construction or 
renovation pursuant to factory requirements shall not 
be required to construct a new facility or renovate 
the existing facility for ten (10) years, during which 
time the dealer will be considered in com pliance with 
any new facility program for purposes of being 
entitled to all incentive or bonus payments offered to 
same line-make dealers, 
e.  
g. requires a new motor veh icle dealer to establish an 
exclusive facility, unless supported by reasonable 
business, market and economic considerations; 
provided, that this provision section shall not 
restrict the terms of any agreement for such exclusive 
facility voluntarily 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, 
f.  
h. requires a new motor vehicle dealer to enter into a 
site-control agreement covering any or all of the new 
motor vehicle dealer's facilities or premises; 
provided, that this provision section shall not  Req. No. 8442 	Page 38 
restrict the terms of any site-control agreement 
voluntarily 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 extinguishes if all of the 
factory's franchises that operated from the loc ation 
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.  
i. refuses to pay, or claim reimbursement from, a dealer 
for sales, incentives or other payments related to a 
motor vehicle sold by the dealer because the purchaser 
of the motor vehicle exported or resold the motor 
vehicle in violation of the policy of the factory 
unless the factory can show that, at the time of the 
sale, the dealer knew or reasonably should have kno wn 
of the purchaser's intention to export or resell the 
motor vehicle. There is a rebuttable presumption that 
the dealer did not know or could not have known tha t 
the vehicle would be exported if the vehicle is titled 
and registered in any state of the Un ited States, or  Req. No. 8442 	Page 39 
j. requires a new motor vehicle dealer to purchase goods 
or services for the construction, 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 subs tantially similar 
quality and design and comply with all applicable 
laws; provided, however, that such goods are not 
subject to the factory's intellectual propert y or 
trademark rights and the new motor vehicle dealer has 
received the factory 's approval, which approval may 
not be unreasonably withheld.  Nothing in this 
subparagraph may be construed to allow a new motor 
vehicle dealer to impair or eliminate a factory 's 
intellectual property, trademark rights or trade dress 
usage guidelines.  Nothing in this s ection 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: 
a. establishes a system of motor vehicle allo cation or 
distribution which is unfair, inequitable or 
unreasonably discriminatory.  Upon the request of any 
dealer franchised by it, a factory shall disclose in  Req. No. 8442 	Page 40 
writing to the dealer the basis upon which new motor 
vehicles are allocated, scheduled and del ivered among 
the dealers of the same line-make for that factory, or 
b. changes an established plan or system of motor vehicle 
distribution.  A motor vehicle deale r franchise 
agreement shall continue in full force and operation 
notwithstanding a change, in whole or in part, of a n 
established plan or system of distribution of the 
motor vehicles offered or previously offered for sale 
under such franchise agreement.  The appointment of a 
new importer or distributor for motor vehicles offered 
for sale under such franchise agreement s hall be 
deemed to be a change of an established plan or system 
of distribution.  Upon the occurrence of such change, 
the manufacturer or dis tributor shall be prohibited 
from obtaining a license to distribute vehicles under 
the new plan or system of distrib ution unless the 
manufacturer or distributor offers to each motor 
vehicle dealer who is a party to the franchise 
agreement a new franchise a greement containing 
substantially the same provisions which were contained 
in the previous franchise agreement; 
11.  Being a factory that sells directly or indirectly new motor 
vehicles to any retail consumer in the state except through a new  Req. No. 8442 	Page 41 
motor vehicle dealer holding a franchise for the line-make that 
includes the new motor vehicle.  This parag raph does not apply to 
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 paragraph sh all not preclude a fac tory from 
providing information to a consumer for the purpose of marketing or 
facilitating a sale of a new motor vehicle through its franchised 
motor vehicle dealers or from establishing a program to sell or 
offer to sell new motor ve hicles through partici pating dealers 
subject to the limitations contained in paragraph 2 of Section 562 
of this title; 
12. a. Being a factory which directly or in directly: 
(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 dealer, 
or 
(3) acts in the capacity of a new moto r vehicle 
dealer. 
b. (1) This paragraph does not prohibit a factory from 
owning or controlling a new motor vehicle dealer 
while in a bona fide relationship with a dealer  Req. No. 8442 	Page 42 
development candidate who has made a substantial 
initial investment in the franchise a nd whose 
initial investment is subject to potential loss.  
The dealer development candidate ca n 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 reasonable 
terms and conditions.  The ten-year acquisition 
period may be expanded for good cause shown. 
(2) This paragraph does not proh ibit 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 independent dealer to another 
independent dealer if the dealership is for sa le 
at a reasonable price and on reasonable terms a nd 
conditions to an independent qualified buyer.  On 
showing by a factory of good cau se, the Oklahoma 
Motor Vehicle Commission may extend the time 
limit set forth above; extension s 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 t he  Req. No. 8442 	Page 43 
capacity of a motor vehicle dealer which was in 
operation prior to January 1, 2000. 
(4) This paragraph does not prohib it a factory from 
owning, directly or indirectly, a minority 
interest in an entity that owns, operates or 
controls motor vehicle dealer ships of the same 
line-make franchised by the manufacturer, 
provided that each of the followin g conditions 
are met: 
(a) all of the motor vehicle dealerships selling 
the motor vehicles of that manufacturer in 
this state trade exclusively in the line -
make of that manufacturer, 
(b) all of the franchise agreements of the 
manufacturer confer rights on t he dealer of 
the line-make to develop and operate, within 
a defined geographic territory or area, as 
many dealership facilities as the dealer and 
manufacturer shall agree are appropriate, 
(c) at the time the manufacturer first acquires 
an ownership interes t or assumes operation, 
the distance between any dealership thus 
owned or operated and the nearest 
unaffiliated motor vehicle dealership  Req. No. 8442 	Page 44 
trading in the same line -make is not less 
than seventy (70) miles, 
(d) during any period in which the manufacturer 
has such an ownership interest, the 
manufacturer has no more than three 
franchise agreements with new motor vehicle 
dealers licensed by the Oklahoma Motor 
Vehicle Commission to do business within the 
state, and 
(e) prior to January 1, 2000, the factory shall 
have furnished or made avail able 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 dealerships; 
13.  Being a factory which directly or indirectly makes 
available for public disclosure any proprietary information 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  Req. No. 8442 	Page 45 
subpoena or order of the Commission or a court.  Proprietary 
information includes, but is not limited to, information : 
a. derived from monthly fi nancial 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 timely ma nner.  Nothing in this para graph shall 
be construed to require a factory to d isregard the preference of a 
consumer in providing or directing a lead; 
15.  Being a factory which used the customer consumer list of a 
new motor vehicle dealer for the purpose of unfairly competing with 
dealers; 
16.  Being a factory which prohibits a new motor veh icle dealer 
from relocating after a written request by such new motor vehicl e 
dealer if: 
a. the facility and the proposed new location satisfies 
or meets the written reas onable guidelines of the 
factory.  Reasonable guidelines do not include 
exclusivity or site control unless agreed to as set 
forth in subparagraphs e g and f h of paragraph 9 of 
this subsection,  Req. No. 8442 	Page 46 
b. the proposed new location is within the area of 
responsibility of the new motor vehicl e 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 exclusivity or site control unless agreed to 
by the dealer as set forth in subparag raphs e g and f h of paragraph 
9 of this subsection; 
18.  Being a factory that increases prices of new motor vehicles 
which the new motor vehicle dealer had order ed for retail consumers 
and notified the factory prior to the dealer 's receipt of the 
written official price increase not ification.  A sales co ntract 
signed by a retail consumer accom panied with proof of order 
submission to the factory shall constitute evi dence of each such 
order, provided that the vehicle is in fact delivered to the 
customer consumer.  Price differences applicable to new models o r  Req. No. 8442 	Page 47 
series motor vehicles at the time of the introduction of new 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 paragraph: 
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 increa sed 
rates imposed by common or contract carriers; 
19. Being a factory that requires a new motor vehicle dealer to 
participate monetarily in an advertising cam paign or contest, or 
purchase any promotional materials, showroom or other display 
decoration or materials at the expense of the new motor vehicle 
dealer without consent of the dealer, which consent shall not be 
unreasonably withheld; 
20.  Being a factory that denies any new motor vehicle dealer 
the right of free association with any other new motor v ehicle 
dealer for any lawful purpose, unless otherwise permitted by this 
chapter; or 
21.  Being a factory that requires a new motor vehicle dealer to 
sell, offer to sell or sell exclusively an extended service 
contract, extended maintenance plan or similar product, such as gap  Req. No. 8442 	Page 48 
products offered, endorsed or sponsored by the factory by the 
following means: 
a. by an act or statement from the factory that will in 
any manner adversely impact 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 or sp onsored by the 
manufacturer or distrib utor. 
B.  Notwithstanding the terms of any franchise agr eement, in the 
event of a proposed sale o r transfer of a dealership, the 
manufacturer or distributor shall be permitted to exercise a right 
of first refusal to ac quire the assets or ownership interest of the 
dealer of the new vehicle dealership, if such sa le or transfer is 
conditioned upon the ma nufacturer 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 refusal, the factory must 
notify the dealer in writing within sixty (60) day s of receipt of 
the completed proposal for the proposed sale transfer; 
2. The exercise of the right of first refusal wil l result in 
the dealer and the owner o f the dealership receiving the same or 
greater consideration as they have contracted to receive i n 
connection with the proposed change of ownership or transfer;  Req. No. 8442 	Page 49 
3. The proposed sale or transfer of the assets of the 
dealership does not involve the transfer or sale to a member or 
members of the family of one or more dealer owners, or to a 
qualified manager or a partnership or corporation controlled by such 
persons; and 
4.  The factory agrees to pay the reasonable expense s, including 
attorney fees which do no t exceed the usual, customary and 
reasonable fees charge d for similar work done for other clients 
incurred by the proposed new owner and transferee prior to the 
exercise by the factory of its right of first refusal in negotiating 
and implementing the contr act for the proposed sale or transfer of 
the dealership or dealership assets.  Notwithstanding th e 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 expenses within thirty (30) days of 
receipt of the written request of the fa ctory for such an 
accounting.  The accounting may be requested by a factory before 
exercising its right of first refusal. 
C.  Nothing in this section shall pro hibit, limit, restrict or 
impose conditions on: 
1.  Business activities, including without limita tion the 
dealings with motor vehicle manufacturers and the representatives 
and affiliates of motor vehicle manufacturers, of any person that is 
primarily engaged in the business of short -term, not to exceed  Req. No. 8442 	Page 50 
twelve (12) months, rental of motor vehicles and industrial and 
construction equipment and activities incidental to that business, 
provided that: 
a. any motor vehicle sol d 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 vehicles that it 
owns, previously own ed 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 perso n in the conduct of 
business; or 
2.  The direct or indirect ownership, affiliation or control of 
a person described in paragraph 1 of t his subsection. 
SECTION 6.    AMENDATORY    47 O.S. 2021, Section 565.1, is 
amended to read as follow s: 
Section 565.1 Notwithstanding the terms of any franchise 
agreement, and subject to the fol lowing conditions contained in 
paragraphs 1 through 5 of this section, any manufacturer or 
distributor who prevents or refuses to honor the succession to the 
operation of a dealership by any legal hei r or devisee under the  Req. No. 8442 	Page 51 
will of a new motor vehicle deale r or under the laws of descent and 
distribution of this state, or designated successor to a departing 
dealership operator, without good cause or good faith, as de fined in 
this section, shall be subjec t to the following procedure: 
1.  Within one hundred twe nty (120) days after the death or 
departure of the new motor vehicle dealer, the manufacturer shall 
receive a written notice from any legal heir or devisee or designee 
successor who intends to establish a become the successor dealership 
operator.  If timely notice is not so received, then this pa ragraph 
shall not apply, and any succession shall be governed solely by the 
terms of the franchise; 
2.  Within thirty (30 ) days of receipt of the legal heir 's or, 
devisee's or successor's timely written notice, the manufacturer may 
request, and the legal h eir or, devisee or successor shall, within a 
reasonable time, provide any information which is reasonably 
necessary for the manufacturer to evaluate the propos ed successor 
dealer and dealership, including, but not l imited to, applications, 
proposals for facilities and financing; 
3.  Within sixty (60) days of receipt of such information, the 
manufacturer shall approve or disa pprove the proposed successor 
dealership dealer, and in case of disapproval shall communicate in 
writing such disapproval and grounds f or disapproval to the legal 
heir or devisee proposed successor;  Req. No. 8442 	Page 52 
4. Failure of the manufacturer to act in a timely manner with 
respect to any time period descr ibed above shall constitute a waiver 
of the manufacturer's right to disapprove the proposed succe ssion; 
5.  Within ten (10) days of its the proposed successor's receipt 
of the manufacturer's notice of disapproval, the legal heir or 
devisee proposed successor may file a protest of the manufacturer 's 
decision with the Oklahoma Motor Vehicle Commission a nd request a 
hearing.  Such heari ng shall be heard in a substantially similar 
manner as provided by Section 566 of this t itle, except that the 
Commission shall render a final decision within sixty (60) days of 
the filing of the protest.  The manufacturer s hall have the burden 
of proof to show that its disapproval was for a good cause and in 
good faith.  A denial shall not be for good cause and in good faith 
unless the factory establishes that the legal heir or devise e 
proposed successor, or the legal heir or devisee's proposed 
successor's controlling executive management, is not of good moral 
character or fails to meet the wr itten, reasonable and uniformly 
applied requirements of the manufacturer or distributor relati ng to 
financial qualifications, general b usiness experience, and other 
requirements relating to prospective franchisees.  However, a legal 
heir that who is of good moral character in accordance with t he 
reasonable factory's qualifications and meets the fac tory's 
financial qualifications may rely on controlling executive 
management that is of good moral character and meets the factory's  Req. No. 8442 	Page 53 
qualifications for general bu siness experience and other 
requirements relating to prospective franchises .  Any denial of the 
proposed successor based upon a failure to agree to terms other than 
those contained in the existing franchise agreement shall not be 
considered good cause for such denial. The disapproval by the 
manufacturer shall be final if the legal heir or devisee proposed 
successor or dealership fails to file a timely protest of such 
disapproval.  In the event that the Commission finds that the 
manufacturer's disapproval was not made for good cause, then it 
shall issue a final order requiring the manufacturer to ho nor the 
successor designated in the notic e sent by the legal heir or 
devisee.  Notwithstanding anything to the contrary in this section, 
a new motor vehicle deale r may designate any person as successo r by 
filing a written instrument pursuant to the franchi se with the 
manufacturer during the new m otor vehicle dealer's lifetime.  In 
such a case, the written instrument and franchise shall govern the 
dealership succession. 
The suspension, revocation or ref usal to issue or renew a 
license or the imposition of an y other penalty by the Commission 
shall be in addition to any penalty which migh t be imposed upon any 
licensee upon judgment or conviction in a court of competent 
jurisdiction for any violation of the provisions of Sections 561 
through 567, 572, 578.1, 579 and 579.1 of this title.  Req. No. 8442 	Page 54 
SECTION 7.     AMENDATORY     47 O.S. 2021, Section 565.2, is 
amended to read as follows: 
Section 565.2 A.  Irrespective of the terms, provisions or 
conditions of any franchise, or the terms or provisions of any 
waiver, no manufacturer shall terminate, cancel or fail to renew any 
franchise with a licensed new motor vehicle dealer unless the 
manufacturer has satisfied the notice requirements as provided in 
this section and has good cause for cancellation, terminat ion or 
nonrenewal. The manufacturer shal l not attempt to cancel or fail to 
renew the franchise agreement of a new motor vehicle dealer in this 
state unfairly and without just provocation or without d ue regard to 
the equities of the dealer or without good faith as defined herein.  
As used herein, "good faith" means the duty of each pa rty to any 
franchise agreement to act in a fair and equitable manner toward 
each other, with freedom from coercion or in timidation or threats 
thereof from each other. 
B.  Irrespective of the terms, provisions or condi tions of any 
franchise, or the terms or provisions of any waiver, good cause 
shall exist for the purpose of a termination , cancellation, or 
nonrenewal when: 
1. The new motor vehicle dealer has failed to comply with a 
provision of the franchise, which prov ision is both reasonable and 
of material significance to the franchise relationship, or the new 
motor vehicle dealer has failed to comply with reasonable  Req. No. 8442 	Page 55 
performance criteria for sales or service established by the 
manufacturer, and the dealer has been not ified by written notice 
from the manufacturer; and 
2. The new motor vehicle dealer has received written 
notification of failure to comply with the manufacture r's reasonable 
sales performance standards, capitalizati on requirements, facility 
commitments, business related equipment acquisitions o r other such 
remediable failings exclusive of those reasons enumerated in 
paragraph 1 of subsection C of this section, a nd the new motor 
vehicle dealer has been afforded a reas onable opportunity of not 
less than six (6) months to comply with such a provisi on or 
criteria. 
C.  Irrespective of the terms, provisions or conditions of any 
franchise agreement prior to the terminat ion, cancellation or 
nonrenewal of any franchise, the ma nufacturer shall furnish 
notification of such termination, cancellation or nonre newal to the 
new motor vehicle dealer and the Oklahoma Motor Vehicle Commission 
as follows: 
1.  Not less than ninety (90 ) days prior to the effective date 
of such termination, cancellation or nonrenewal unless for a c ause 
described in paragraph 2 of this s ubsection; 
2.  Not less than fifteen (15) days prior to the effective date 
of such termination, cancellation or nonrenew al with respect to any 
of the following:  Req. No. 8442 	Page 56 
a. insolvency of the new motor vehicle dealer, or the 
filing of any petition by or against the motor vehicle 
dealer under any bankruptcy or receivership law, 
b. failure of the new motor vehicle dealer to conduct its 
customary sales and service operations during its 
customary business hours for seven (7) consecu tive 
business days, provided that such failure to conduct 
business shall not be due to an act of God or 
circumstances beyond the direct control of the new 
motor vehicle dealer, or 
c. conviction of the new motor vehi cle dealer of any 
felony which is punisha ble by imprisonment or a 
violation of the Federal Odometer Act; and 
3.  Not less than one hundred eighty (180) days prior to the 
effective date of such termina tion or cancellation where the 
manufacturer or distribut or is discontinuing the sale of the produ ct 
line. 
The notification required by t his subsection shall be by 
certified mail, return receipt requested, and shall con tain a 
statement of intent to terminat e, to cancel or to not renew the 
franchise, a statement of the reasons for the termination, 
cancellation or nonrenewal and the date the termination shall take 
effect.  Req. No. 8442 	Page 57 
D.  Upon the affected new motor vehicle dealer 's receipt of the 
aforementioned notice of termination, cancellation or nonrenewal, 
the new motor vehicle dealer shall have the right to fil e a protest 
of such threatened terminat ion, cancellation or nonrenewal with the 
Commission within thirty (30) days and re quest a hearing.  Such 
hearing shall be held in accordance with the provisions of the 
Administrative Procedures Act, Sections 301 250 through 326 323 of 
Title 75 of the Oklahoma Statutes, to determine if the threatened 
cancellation, termination or nonrenew al of the franchise has been 
for good cause and if the factory has complied with its obligatio ns 
pursuant to subsections A, B and C of this section and the factory 
shall have the burden of proof.  If the Commission finds that the 
threatened cancellation, t ermination or nonrenewal of the franch ise 
has not been for good cause or violates subsection A , B or C of this 
section, then it shall i ssue a final order stating that the 
threatened termination is wrongful.  A factory shall have the right 
to appeal such order.  During the pendency of the heari ng and after 
the decision, the franchise shall remain in full force and effect, 
including the right to transfer the franchise.  If the Commi ssion 
finds that the threatened cancellation, termination or nonrenewal is 
for good cause and does not violate subse ction A, B or C of this 
section, the new motor vehicle d ealer shall have the right to an 
appeal.  During the pendency of the action, includi ng the final 
decision or appeal, the franchise shall remain in full force and  Req. No. 8442 	Page 58 
effect, including the right to transfe r the franchise.  If the new 
motor vehicle dealer prevai ls in the threatened termination action, 
the Commission shall award to the new motor vehicle dealer the 
attorney fees and costs incurred to defend the action. 
E.  If the factory prevails in an action to terminate, cancel or 
not renew any franchise, the new motor vehicle dealer shall be 
allowed fair and reasonable compensation by the manuf acturer for: 
1. New current and previous model year vehicle inventory which 
has been acquired from the manufacturer , and which is unused and has 
not been damaged or altere d while in the dealer's possession; 
2.  Supplies and parts which have been acquired from the 
manufacturer, for the purpose of this section, limited to any and 
all supplies and parts that are listed on the current parts price 
sheet available to the dealer; 
3.  Equipment and furnishings, provided t he new motor vehicle 
dealer purchased them from the manufacturer or its approved sources; 
and 
4.  Special tools, with suc h fair and reasonable compensation to 
be paid by the manufacturer within ninety (90) days of t he effective 
date of the termination, can cellation or nonrenewal, provided the 
new motor vehicle dealer has clear title to the inventory and other 
items and is in a position to convey that title to th e manufacturer. 
a. For the purposes of paragraph 1 of th is subsection, 
fair and reasonable compen sation shall be no less than  Req. No. 8442 	Page 59 
the net acquisition price of the vehicle paid by the 
new motor vehicle dealer. 
b. For the purposes of paragraphs 2, 3 and 4 of thi s 
subsection, fair and reasonable compensation shall be 
the net acquisition price paid by the new motor 
vehicle dealer less a twenty -percent (20%) straight-
line depreciation for each year following the dealer 's 
acquisition of the supplies, parts, equipment , 
furnishings and/or special tools. 
F.  If a factory pre vails in an action to terminate, cancel o r 
not renew any franchise and the new motor vehicle dealer is leasing 
the dealership facilities, the manufacturer shall p ay a reasonable 
rent to the lessor in accordance with and subject to the provisions 
of subsection G of this section.  Nothing in this s ection shall be 
construed to relieve a deal er of its duty to mitigate damages. 
G.  1. Such reasonable rental value shall be paid only to the 
extent the dealership premises are recognized in the franchise and 
only if they are: 
a. used solely for performanc e in accordance with the 
franchise.  If the facility is used for the operation 
of more than one franchise, the reasonable rent shall 
be paid based upon the por tion of the facility 
utilized by the franchise being ter minated, canceled 
or nonrenewed, and  Req. No. 8442 	Page 60 
b. not substantially in excess of facilities re commended 
by the manufacturer. 
2.  If the facilities are owned by the new moto r vehicle dealer, 
within ninety (90) d ays following the effective date of the 
termination, cancellation or nonrenewal the manufacturer will 
either: 
a. locate a qualified purchase r who will offer to 
purchase the dealership facilities at a reasonable 
price, 
b. locate a qualified lessee who will offer to lease the 
premises for the remaining lease term at the rent set 
forth in the lease, or 
c. failing the foregoing, lease the dealersh ip facilities 
at a reasonable rental value for the portion of the 
facility that is recognized in the franchise agree ment 
for one (1) year. 
3.  If the facilities are leased by the new motor vehicle 
dealer, within ninety (90) days following the effective dat e of the 
termination, cancellation or nonrenewal the manufacturer will 
either: 
a. locate a tenant or tenants satisfa ctory to the lessor, 
who will sublet or assume the balan ce of the lease, 
b. arrange with the less or for the cancellation of the 
lease without penalty to the dealer, or  Req. No. 8442 	Page 61 
c. failing the foregoing, lease the dealership fac ilities 
at a reasonable rent for the p ortion of the facility 
that is recognized in the franchi se agreement for one 
(1) year. 
4.  The manufacturer shall not be obligated to provid e 
assistance under this section if the new motor vehicle dealer: 
a. fails to accept a bona fide offer from a prospec tive 
purchaser, subleases or assignee, 
b. refuses to execute a settlement agreement with the 
lessor if such agreement with the lessor would be 
without cost to the dealer, or 
c. fails to make written request for assista nce under 
this section within ninety ( 90) days after the 
effective date of the termination, ca ncellation or 
nonrenewal. 
5.  The manufacturer shall be entitled to occupy and use a ny 
space for which it pays rent required by this section. 
H.  In addition to t he repurchase requirements set forth i n 
subsections E and G of this section, in the event the termination or 
cancellation is the result of a discontinuance of a product line, 
the manufacturer or distributor shall compensate the new motor 
vehicle dealer in an amount equivalent to the fair marke t value of 
the terminated franchise as of the date of immediately preceding the 
manufacturer's or distributor's announcement or provide the new  Req. No. 8442 	Page 62 
motor vehicle dealer with a replacement franchise on substantially 
similar terms and conditions as those offered to other same line-
make dealers.  The dealer may immedi ately request payment under this 
provision section following the announcement in exc hange for 
cancelling any further franchise rights, except payments owed to the 
dealer in the ordinary course of busi ness, or may request payment 
under this provision section upon the final termination, 
cancellation or nonrenewal of the franchise.  In eithe r case, 
payment under this provision section shall be made not later than 
ninety (90) days after the fair market val ue is determined.  If the 
factory and dealer cannot agre e on the fair market value of the 
terminated franchise or agree to a process to dete rmine the fair 
market value, then the factory and dealer shall utilize a neutral 
third party mediator to resolve the disagreement. 
SECTION 8.     AMENDATORY     47 O.S. 2021, Section 565.3, is 
amended to read as follows: 
Section 565.3 A.  A franchised vehicle dealer proposing a sale, 
transfer, or assignment of a franchise agreement or the business and 
assets of a dealership or an interest in a dealership t o another 
person, hereinafter transferee, shall notify the manufacturer or 
distributor whose vehicles the dealer is franchised to sell of the 
proposed action of the dealer.  The manufacturer or distri butor may 
make written request to the proposed transferee to submit completed 
application forms and related information generally utilized b y a  Req. No. 8442 	Page 63 
manufacturer to evaluate such a proposal and a copy of all 
agreements related to the proposed sale, transfer, or assignment. 
B.  The approval by the manufacturer or dis tributor of the sale, 
transfer, or assignment shall not be unreasonably withheld unl ess 
the proposed transferee is not of good moral character or fails to 
meet the written, reasonable, and uniformly a pplied requirements of 
the manufacturer or distributor r elating to prospective franchisees.  
Approval of the transfer shall not be made contingent upon the 
transferee meeting unreasonable facility requirements or performance 
standards different than those contained in the transferor 's 
franchise agreement, but may be made contingent upon the proposed 
transferee meeting reasonable written requir ements.  The burden of 
proof shall be upon the manufacturer or distributor to show good 
cause existed to withhold approval.  The manufacturer or distributor 
that has made such a determination shall send a letter b y certified 
mail to the dealer and the appl icant of its refusal to approve the 
proposal, which shall in clude a statement of the specific grounds 
for refusal, within sixty (60) days after the later of: 
1.  Receipt by the manufacturer or distributor of the n otice of 
the proposed sale, transfer, or as signment; or 
2.  Receipt by the manufacturer or distributor of the 
information requested from the proposed transferee pursuant to 
subsection A of this section if the manufa cturer or distributor has  Req. No. 8442 	Page 64 
requested such information within fifteen (15) days of rec eipt of 
written notice of the proposed sale, transfer, or assi gnment. 
C.  Failure of the manufacturer or distributor to send its 
notice of refusal pursuant to subsection B of this section shall 
mean that the application for the proposed sale, transfer, or 
assignment is approved. 
D.  If the proposed sale, transfer or assignment is to an 
existing owner's family member or other existing owner , then the 
manufacturer or distribut or's evaluation of such proposal is limit ed 
to the written, reasonable and uniformly applied requirements of the 
manufacturer or distributor relat ing to good moral character and 
financial qualifications. 
E. A dealer dealership or dealership owner receiving notice of 
refusal of the sale, transfer , or assignment shall have the right to 
file a protest with the Commission within thirty (30) days of 
receipt of the refusal.  A dealer receiving notice that the sale, 
transfer or assignment is contingent upon the t ransferee meeting 
facility and/or perform ance standards shall have the right to file a 
protest with the Commission within thirty (30) days of rece ipt of 
the notice. In the event a protest is filed, the manufacturer or 
distributor shall have the burden of proof to establish the proposed 
transferee or the proposed transferee's controlling executive 
management is not of good moral character or fails t o meet the 
written reasonable and uniformly applied re quirements of the  Req. No. 8442 	Page 65 
manufacturer or distributor relating t o prospective franchisees or 
that the facility requirements are not reasonable based on the 
reasons set forth in subparagraph d of paragraph 9 of Section 565 of 
this title. 
SECTION 9.     AMENDATORY     47 O.S. 2021, Section 572, is 
amended to read as follows: 
Section 572. Any action brought to recover any damages that may 
be sustained by any motor vehicle dealer may be brought in the 
county in which said dealer is located and in addition to the action 
for damages he shall be entitled to sue for and have i njunctive 
relief against the threatened loss, damage or injury to his business 
or property because of any violation of Sections 565 through 566 and 
579 of this title or the threaten ed cancellation, termination or 
failure to renew any franchise agreement be tween any factory and 
said dealer, and the court may grant such in junctive relief, 
including temporary restraining orders, as it deems just and 
proper,.  Notwithstanding the existenc e of any adequate remedy at 
law, a dealer is authorized to bring an action in the county in 
which said dealer is located for the grant, upon a hearing and for 
cause shown, of a temporary or permanent injunction, or bot h, 
restraining any person from acting as a licensee under the te rms of 
Sections 561 through 567, 572, 578.1, 579 and 579.1 of this title 
without being properly licensed hereunder , or from violating or 
continuing to violate any of the provisions of S ections 561 through  Req. No. 8442 	Page 66 
567, 572, 578.1, 579 and 579.1 of this title, or from failing or 
refusing to comply with the requir ements of this law or any rule or 
regulation adopted hereunder.  Such injunction shall be issued 
without bond.  A single act in violation of the provisions of 
Sections 561 through 567 , 572, 578.1, 579 and 579.1 of this 
title shall be sufficient to authoriz e the issuance of an 
injunction.  Upon a prima facie showing by th e person bringing the 
action that such a violation by the licensee has occurre d, the 
burden of proof shall then be upo n the licensee to prove tha t such 
violation or unfair practice did not occur.  In any action brought 
under this section, the court shall award attorney fees and costs to 
a dealer who prevails, notwithstanding any oth er provisions of law, 
and in addition to any other remedy which may be affo rded under any 
other statute of this state. 
SECTION 10.     AMENDATORY    47 O.S. 2021, Section 578.1, is 
amended to read as follows: 
Section 578.1 A.  Notwithstanding the terms of a franchise and 
notwithstanding the terms of a waiver, i f a factory intends or 
proposes to enter into a franchise to establish an additional new 
motor vehicle dealer or to relocate an existing new motor vehicle 
dealer within or into a re levant market area in which the same lin e-
make of motor vehicle is currentl y represented, the factory shall 
provide at least sixty (60) days advance written notice to the 
Commission and to each new motor vehicle dealer of the same line- Req. No. 8442 	Page 67 
make in the relevant market area, of the intention of the fa ctory to 
establish an additional ne w motor vehicle dealer or to rel ocate an 
existing new motor vehicle dealer within or int o the relevant market 
area.  For purposes of this section, the "relevant market area " 
means the area within a radius of fifteen (15) miles of around the 
site of the proposed new motor vehicle dealersh ip measured from the 
property boundary.  The notice shall be sent by certified mail to 
each party and shall include the following information: 
1.  The specific location at which the additio nal or relocated 
motor vehicle dealer will be established; 
2.  The date on or after which the additional or relocated motor 
vehicle intends to commence business at the proposed location; 
3.  The identity of all motor vehicle dealers who are franchised 
to sell the same line-make vehicles as the proposed dealer and who 
have licensed locations within the relevant market area; 
4.  The names and addresses of the person intended to be 
franchised as the proposed additional o r relocated motor vehicle 
dealership, the principal investors in the propos ed additional or 
relocated motor vehicle dealership, and the proposed dealer operator 
of the proposed additional or relocated motor vehicle dealership; 
and 
5.  The specific grounds or reasons for the proposed 
establishment of an additional motor vehicle de aler or relocation of 
an existing dealer.  Req. No. 8442 	Page 68 
B.  This section does not apply: 
1.  To the relocation of an existing new motor vehicle dealer 
within the relevant market area of that deal er; provided, that the 
relocation not be at a site within ten (10) miles of a licensed new 
motor vehicle dealer for the same line-make of motor vehicle; 
2.  To a proposed additional new motor vehicle dealer which is 
to be established at or within two (2) m iles of a location at which 
a former licensed new motor vehicle dealer for the same line-make of 
new motor vehicle had ceased operating within the previous two (2) 
years; 
3.  To the relocation of an existing new motor vehicle dealer 
within two (2) miles of the existing site of the new motor vehi cle 
dealership; or 
4.  To the relocation of an existing new motor v ehicle dealer if 
the proposed site of the relocated new motor vehicle dealership is 
farther away from all other new motor vehicle dealers of the same 
line-make in that relevant market area. 
C.  Within thirty (30) days after receipt of the notice, or 
within thirty (30) days after the end of an appeal procedure 
provided by the factory, whichever is greater, a new motor vehicle 
dealer so notified or entit led to notice may file a petition with 
the Commission protesting the propos ed establishment or relocation. 
The petition shall contain a short statement setting fo rth the 
reasons for the objection of the dealer to the proposed  Req. No. 8442 	Page 69 
establishment or relocation. Upon filing of a protest, the 
Commission shall promptly notify the factory that a timely protest 
has been filed and shall schedule a hearing, which shall be held 
within one hundred twenty (120) days of the filing of a timely 
protest.  The factory shall no t establish or relocate the new motor 
vehicle dealer until the Commission h as held a hearing and has 
determined that there is good cause for permitting the propose d 
establishment or relocation.  When more than one protest is filed 
against the establishment or relocation of the same dealer, the 
Commission shall consolidate the hea rings to expedite disposition of 
the matter. 
D.  The burden of proof to establish that g ood cause exists for 
permitting the proposed establishment of a new motor vehicle dealer 
or relocating an existing new motor vehicle dealership shall be on 
the applicant who seeks to establish a new m otor vehicle dealership 
or the relocation of an existing new motor vehicle dealership. 
SECTION 11.     AMENDATORY     47 O.S. 20 21, Section 580.2, is 
amended to read as follo ws: 
Section 580.2 During the time a person is operating a motor 
vehicle with the express or im plied permission of an authorized a 
new motor vehicle dealer, as defined in Section 562 of this title, 
such person's motor vehicle liability policy shall have pr imary 
coverage with the motor vehic le liability policy of the dealer 
having secondary coverage until the vehicle is returned.  As used  Req. No. 8442 	Page 70 
herein, "motor vehicle liability policy" means motor vehicle 
insurance against legal li ability for the death, injury or 
disability of any human being, or for dam age to real or personal 
property.  The motor vehicle li ability policy of any person who has 
been loaned a vehicle by a new motor vehicle dealer pursuant to the 
terms of this section shall provide primary coverage for any d eath 
or injury of any human being or for any real or personal prop erty 
damage, including damage to the loaned vehicle, with the moto r 
vehicle insurance policy of the deale r having secondary coverage for 
any death or injury of any human being or for any real or personal 
property damage, including damage to the loaned vehi cle.  The change 
in financial responsibility shall be evidenced by a release signed 
by the person operati ng the vehicle with the express or implied 
permission of the dealer with the release to be returned to the 
person upon the return of the motor vehicle to the dealer.  The 
motor vehicle liability policy of such person shall meet the minimum 
financial responsibility requirements found in Section 7 -324 of this 
title. 
This section shall apply only to the loan of a motor vehic le by 
an authorized a new motor vehicle dealer which loa n occurs without 
financial remuneration in the form of a fee or lease charge. 
SECTION 12.  This act shall become effective November 1, 202 2. 
 
58-2-8442 JBH 01/17/22