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HOUSE OF REPRESENTATIVES - FLOOR VERSION
STATE OF OKLAHOMA
2nd Session of the 58th Legislature (2022)
COMMITTEE SUBSTITUTE
FOR
HOUSE BILL NO. 3994 By: Dobrinski
COMMITTEE SUBSTITUTE
An Act relating to motor vehicle dealers; providing
for application for certain license; p roviding
requirements and limitations of licensee; requiring
certain license for delivery; providing for
misdemeanor and fine for offense; making exception
for certain fleet vehicle sales; setting certain
guidelines for certain ent ities regarding consumer
data; providing certain indemnification; authorizing
certain data disclosur e; requiring certain party bear
burden of proof; amending 47 O.S. 2021, Section 562,
which relates to definitions; modifying definitions;
defining terms; amending 47 O.S. 2021, Sect ion 564,
which relates to licenses; disallowing certain
authorization; making certain exception; authorizing
certain fee; amending 47 O.S. 2021, Section 565,
which relates to denial, revocation or suspension of
license; modifying e ntity which may receive l icense
denial, revocation, suspension or receive a fine;
modifying reasons for li cense denial, revocation,
suspension or punishment by fine; requiring certain
adherence; prohibiting certain performance methods;
limiting dealers to one part or labor rate re quest
per year; providing for certain calculation;
providing for exclusions for c ertain rate
calculation; allowing for the dealers to request
closure of certain orders; all owing for certain
adjusted rates for supplemental repair or ders;
requiring written notice; requiring criteria for
validation; requiring certain factory compensation;
prohibiting factory denial of certain claims and
implementation of certain charge -backs; disallowing
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allocation requirements; 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 relat es to
termination, cancellation or nonrenewal of franchise;
requiring certain com pensation; amending 47 O.S.
2021, Section 565.3, which relates to notice of
proposed sale; limiting evaluations; deleting certain
protest right; amend ing 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
relates to procedures for relocation or
establishment; modifying definit ion; amending 47 O.S.
2021, Section 580.2, which relates to insurance
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 OKL AHOMA:
SECTION 1. 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
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
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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 less 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 re quired 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 wi th this section.
B. It shall be unlawful for common or permit carriers,
operators of trucks, buses or other conveyances, or out-of-state
manufacturers or suppliers to make delivery of any new moto r vehicle
from without the State of Oklahoma to any person, association or
entity within the state unless the delivery is made by a person
licensed in this state as a motor vehicle dealer or a motor vehicle
direct shipper or delivery is made to a resident of the State of
Oklahoma outside of the State of Oklahoma .
C. A person who sells and ships a new motor vehicle directly
from any person, association or corporation to a resident of the
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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.
D. This section shall not apply to the sale of more than five
fleet vehicles at one time to consumers that ti tle and register the
vehicle in this state or another state .
SECTION 2. 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 e stablished 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
persons to whom any consumer data has been provided b y the factory
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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 t o each person.
Notwithstanding the foregoing, such a list shall not be required to
include:
a. a person to whom consumer data was provided, or the
specific consumer data provided to such person, if the
person was, at the time such consumer data was
provided, a service provider, subcontractor, or
consultant acting in the course of performance of
services on behalf of or for the benefit of the
factory, third party, or dealer, provided that the
factory, third party, or dealer has entered into an
agreement with such person requiring that such person
comply with the safeguard requirements of applicable
state and federal law, including, but not limited to,
those established in the Gramm -Leach-Bliley Act, 15
U.S.C., Section 6801 et seq.,
b. a person to whom consumer data was provided, or the
specific consumer data provided to such person, if the
dealer has previously consented in writing to such
person receiving such consumer data and the dealer has
not withdrawn such consent in writing, or
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c. data collected or received for purposes enumerated in
paragraph 5 of this section ;
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 that is
not paid to all dealers or withhold any benefit from a dealer to
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 behalf of a factory shall permit a dealer to furnish consumer
data 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 fro m a dealer's data management system
with the express written consent of the dealer. The consent shall
be in the form of a written document that is separate from the
franchise agreement and is executed 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. For incentive programs beginning on or after
November 1, 2022, such consent shall not be required as a condition
to a new motor vehicle dealer's participation in an incentive
program unless such consent is necessar y to obtain consumer data to
implement the program;
5. Shall indemnify the dealer for any third -party claims
asserted against or damages incurred by the dealer to the extent
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caused by access to, use of, or disclosure of consumer data in
violation of this section by the 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 with 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 obl igations 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 limited to using consumer data stri ctly for the
purposes listed in this paragraph ; and
6. In any cause of action against the factory for a violation
of this section, the party bringing the action shall hav e the burden
of proof.
SECTION 3. AMENDATORY 47 O.S. 2021, Section 562, is
amended to read as follow s:
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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 th em 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
that sells, leases, exchanges or otherwise conveys a new motor
vehicle at retail, offers for sale, advertises to sell, leases or
lease, exchange or other conveya nce of a new motor vehi cle, arranges
for the financing of the sale, lease, or other conveyance of 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 fea tures except as
otherwise provided for in Section 564.1 of this title , or otherwise
engages in any way, in whole o r in part, in the business of selling,
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leasing, exchanging or otherwise conveying new motor vehicles and
used motor vehicles, as well as parts, including offering in
exchange for payment any software or hardware upgrade or change to
vehicle functions and features which are available at the time the
new motor vehicle is sold at retail or twelve (12) months
thereafter, and holds a bona fide contract or franchise in effect
with a manufacturer or distributor authorized by the manufacturer to
establish a physical place of business in the state which is of such
reasonably sufficient size and accommodation to p erform the
activities of a new motor vehicl e dealer, including vehicle
inventory and display , sales activity, make predelivery preparati on
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 on each
new motor vehicle 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
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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 such 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 5 67, 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,
b. public officers while performing or in operation of
their duties, or
c. employees of persons, corporations or associations
enumerated in subparagraph a of this paragraph when
engaged in the specific performance of their duties as
such employees;
3. "Motor vehicle salesp erson" means any person who, for gain
or compensation of any kind, either dire ctly or indirectly,
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regularly or occasionally, by any form of agreement or arrangeme nt,
sells or negotiates for the sale, lease, conveyance or arranges the
financing of any new motor vehicle for any new motor vehicle dealer
to any one or more third parties;
4. "Commission" means the Oklahoma Motor Vehicle Commiss ion;
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 t o
be registered in the St ate 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 moto r vehicles to motor vehic le dealers,
or who maintains distributor represe ntatives;
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 mot or 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 t he same purposes a factor y branch
is maintained;
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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 supervisin g 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 d istributor
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
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 distribut or 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;
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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 ren dering
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 an d new motor vehicle
parts;
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, distributor, factory
branch, distributor branch, f actory representative or distributor
representative, which manufactures or distributes vehicle products;
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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 dea lers; and
23. "Retail implement dealer" means a business engaged
primarily in the sale of 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.
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;
25. "Data management system" means a computer hardware or
software system that:
a. is owned, leased or li censed by a dealer including a
system or web-based applications, c omputer software or
computer hardware,
b. is located at the dealership or hosted remotely, and
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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; and
26. "Fleet vehicle" means a new motor vehicle sold and titled
or registered to a business and used for business pu rposes only.
SECTION 4. 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 dealer 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 without
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 whe re such
business is carried on or conducted shall be requir ed to obtain and
hold a current license for 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 pr oprietorship, or the
person designated as principal in the dealer'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
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affiliated by any ownership or contro l by the factory shall not be
permitted to be licensed as a motor vehicle dealer in this state,
except as provided by subparagraph b o f paragraph 12 of Section 565
of this title.
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 a pplicant 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 ha s an established place of business 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 lic ense, or
licenses, are applied for, and such other pertinent informati on
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 ther efor in accordance
with the schedule thereof hereinafter set out. In the event any
such application is denied and the license applied for is not
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issued, the entire license fee shall be returned to the applicant.
All licenses issued under the provisions o f Section 561 et seq. of
this title shall expire on June 30, 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 su bmitted by
June 1 of each year, and such lice nse 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, distribut or 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 received by
the Commission for the licenses issued hereunder shall be as
follows:
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 manufacturer or dist ributor of new motor vehicles,
Four Hundred Dollars ($400.00) initia l fee with annual renewal fee
of Three Hundred Dollars ($300.00);
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3. For each factory representative or distributor
representative, One Hundre d 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 location
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 renewa l fee of One Hundred
Dollars ($100.00) per manufacturer represented 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 motor vehicle de aler,
manufacturer, distributor , factory branch, distributor branch or
representative, if a corporation, shall specify the location of the
factory, office or branch thereof. In case suc h location is
changed, the Commission may endorse the change of locati on 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
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posted in a conspicuous place in the 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 r equest. The
name of the employer of such fac tory 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 Commi ssion for its endorsement of such change
thereon. The Commission shal l 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 ve hicles authorized by the
manufacturer and agreed to by the powersports dealer.
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
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:
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1. On satisfactory proof of unfitn ess 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 any rule promulgated by the Commission
under authority vested in it by Section 561 et seq. of this title ;
4. A change of condition after license is granted re sulting in
failure to maintain the qua lifications for license;
5. Being a new motor vehicle dealer 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, accesso ries or
equipment not desired or reque sted by the purchaser
and installed by the dealer,
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 agreement
with any retail buyer involving the sale of a motor
vehicle,
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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 vehic le,
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;
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 and qualified
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repair technicians and is equipped with such parts,
tools and equipment as may be requisi te 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 dist ributor of new or unused motor
vehicles for the sale of the same and is not
authorized by the manufacturer or distributor to
render predelivery preparation of such vehicles sold
to purchasers and to perform any authorized po st-sale
work pursuant to the man ufacturer's or distributor's
warranty,
d. employs a person without obtaining a certificate of
registration for the person, or utili zes the services
of used motor vehicle lo ts 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 n ew
motor vehicles necessary to meet customer consumer
demand for each of the new motor vehicles included in
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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 an y
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
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 except
for those necessary to service a ve hicle that the
new motor vehicle dealer is authorized by th e
factory to repair,
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b. induced under threat or discrimination by the
withholding from delivery to a motor vehicle dealer
certain models of motor vehicl es, changing or amending
unilaterally the dealer's allotment of motor vehicles
and/or withholding and d elaying 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 contribut e to any local or national
advertising fund controlled directly or indirectly by
the factory or for any other purposes such as c ontest,
"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 veh icles 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
association which is open to all dealers on the same
basis,
c. used or proposed to use an unreasonable, arbitrary 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
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unreasonable, arbitrary and unfair for the factory to
fail to take into accoun t 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
motor vehicles to all of its same line-make franchised
dealers at the same pr ice for a comparably equipped
motor vehicle, 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 consumer who
is having a vehicle serviced at the dealership if th e
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:
a. has attempted to coerce or has coerced any new motor
vehicle dealer to enter into any agree ment 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
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has acted dishonestly, or has fa iled 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 dealers for labor, parts and
other expenses incurred by such dealer to perform
under and comply with manufacturer's warranty
agreements, and recall repairs which shall include
diagnostic work as applicable and factory-authorized
goodwill repairs. Time allowances for the diagnosis
and performance of repair work shall be rea sonable and
adequate for the work to be performed. Adequate and
fair compensation for p arts and/or labor for warranty
and recall repairs shall be established by the dealer
submitting to the manufacturer or distributor one
hundred sequential nonwarranty 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
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orders which contain warranty -like parts repairs,
whichever is less, c overing 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 shal l 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. A dealer may not submit a request to
establish a parts and/or labor rate more than once in
a twelve-month period. The dealer shall calculate i ts
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
purchase 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 am ount of the dealer's
total labor sales from the qualified rep air orders by
the total labor hour s that generated those sales.
When submitting repair orders to calculate establish a
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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 pa rts, when calculating
the retail parts rate but not the ret ail 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 o r
employee thereof at the time of the repair,
(9) engine and/or transmission assemb lies,
(10) vehicle reconditioning, or
(11) items that do not have individual part numbers
including, but not limited to, nuts, bolts and
fasteners. If a franchisor determin es from the
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dealer's set of repair orders submitted pursuant
to this section that the dealer’s submission for
a retail labor rate or retail parts rate is fifty
percent (50%) higher than the dealer’s current
warranty rate, the franchisor may request, in
writing, within thirty (30) days after the
franchisor’s receipt of the dealer’s submission,
all repair orders closed within the period of
thirty (30) days immediately preceding, or thirty
(30) days immediately following, the set of
repair orders submitted by the dealer. All time
periods under this section shall be suspended
until the supplemental repair orders are
provided. If the franchisor requests
supplemental repair orders pursuant to this
subsection, the franchisor may calculate a
proposed adjusted retail labor rate or retail
parts rate, as applicable, using all of the
applicable supplemental repair orders and no less
than one hundred repair orders submitted by the
franchisee, if the franchisor complies by using
the same requirements applicabl e to the
franchisee’s submission pursuant to this section
and by using the formula to calculate retail
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labor rate or retail parts as provided in this
section.
A manufacturer or distributor may, not later than thirty
(30) forty-five (45) days after submission, rebut that
declared retail parts and/or 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 the 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 provide written notice stating the specific reasons
for the rebuttal, a full expla nation of any and all reasons
for the allegation, evidence substan tiating the
manufacturer or distributor's position, a copy of all
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calculations used by the f ranchisor 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 mark up or labor rate,
the dealer may file a protest with the C ommission not later
than 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 est ablish 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 deal ers in an economically similar
part of the state not established in accordance with this
section. A manufacturer or distributor may not retal iate
against any new motor vehicle dealer see king 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 every 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
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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 no t 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, or recall repair work shall be
paid within thirty (30) days after approval and shall be
approved or disapproved within thirty (30) days after
receipt. When any claim is disapproved , the dealer shall
be notified in writing of the grounds for disapproval. The
dealer's delivery, preparation and warranty obligations as
filed with the Commissio n 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 immediat ely
following the date of the payment. A manufacturer shall
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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 mot or vehicle dealer
back subsequent to the payment of the claim unless the
factory 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 factory. A factory shall not deny a claim or
implement 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
provided that the factory may require th e new motor vehicle
dealer to establish the sale . 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 proposed 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
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Commission within thirty (30) days after receipt of the
notice of the charge-back or audit results, wh ichever 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, whichever is
later, unless the 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 factory and is a
line-make that the dealer is franchised to sell
or on which the dealer is authorized to perform
recall repairs,
(2) that is subject to a stop-sale or do-not-drive
notice issued by the factory,
(3) that is held by the new motor vehicle dealer in
the dealer's inventory at the time the stop-sale
or do-not-drive 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
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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 stop-sale or do-not-drive notice,
of a remedy or parts necessary for the ne w motor
vehicle dealer to make the recall repair, and
(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
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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
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
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materials, enter into a separate agreement which is
different than the terms of the dealer's existing
franchise agreement or which waives any right the
dealer has within the existing franchise agreement , or
remodel, renovate, or recondition the dealer 's
existing facilities as a pre requisite to receivin g 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
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.
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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,
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
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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
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,
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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
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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
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
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motor vehicle sold by th e 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
j. requires a new motor vehicle dealer to purc hase 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 appli cable
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 thi s
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
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usage guidelines. Nothing in this s ection prohibits
the enforcement of a voluntary agreement betw een 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
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 factor y, 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 an
established plan or system of distribu tion 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 shall be
deemed to be a change of an esta blished plan or system
of distribution. Upon the occurrence of such change,
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the manufacturer or dis tributor shall be prohibited
from obtaining a license to distribute vehicles under
the new plan or system of distri bution unless the
manufacturer or distrib utor 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
motor vehicle dealer holding a franchise for the line-make that
includes the new motor vehicle. This parag raph does not apply t o
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 fa ctory from
providing information to a con sumer 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 partic ipating dealers
subject to the limitation s contained in paragraph 2 of Section 562
of this title;
12. a. Being a factory which directly or in directly:
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(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
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 no t prohibit 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
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transition from one independent dealer to another
independent dealer if the dealership is for sale
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
capacity of a motor vehicle dealer which was in
operation prior to January 1, 2000.
(4) This paragraph does not prohibit a factory from
owning, directly or indirectly, a minority
interest in an entity that owns, operates or
controls motor vehicle 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,
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(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 operatio n,
the distance between any dealership thus
owned or operated and the nearest
unaffiliated motor vehicle dealership
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 int erest, 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 available to
prospective motor vehicle dealers an
offering-circular in accordance with the
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Trade Regulation Rule on Franchising of the
Federal Trade Commission, and any guidelines
and exemptions issued thereunder, which
disclose the possibility that the f actory
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
subpoena or order of the Commission or a court. Proprietary
information includes, but is not limited to, information :
a. derived from monthly financial statements provided to
the factory, and
b. regarding any aspect of the profitability of a
particular new motor vehicle dealer;
14. Being a factory which does not provide or direct leads in a
fair, equitable and timely ma nner. Nothing in thi s paragraph 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 w ith
dealers;
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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,
b. the proposed new location is within the area of
responsibility of the new motor vehicle dealer
pursuant to Section 578.1 of this title, and
c. the factory has sixty (60) days from receipt of the
new motor vehicle dealer 's relocation request to
approve or deny the request. The failure to approve
or deny the request within the sixty-day time frame
shall constitute approval of the request;
17. Being a factory which prohibits a new motor vehicle dealer
from adding additional line-makes to its existing facility, if,
after adding the additional line -makes, the facility satisfies the
written reasonable capitalization standards and facility guidelines
of each factory. Reasonable facility guidelines do not include a
requirement to maintain exclusivity or site control unless agreed to
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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 increa se notification. A sales contract
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 or
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 increased
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 material s at the expense of the new motor vehicle
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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 vehicle
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
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 or transf er 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 manufactur er or dealer entering into a dealer
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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) days of rec eipt 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 in
connection with the proposed change of ownership or transfer;
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 the forego ing,
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
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receipt of the written request of the factory fo r 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 limitation 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
twelve (12) months, rental of motor vehicles and industri al 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 financ ing 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
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2. The direct or indirect ownership, affiliation or control of
a person described in paragraph 1 of this subs ection.
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
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 paragraph
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 heir or, devisee or successor shall, within a
reasonable time, provide any information which is reasonably
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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 for disap proval to the legal
heir or devisee proposed successor;
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 succession;
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 and 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 shall 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
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character or fails to meet the wr itten, reasonable and uniformly
applied requirements of the manufacturer or distributor relati ng to
financial qualifications, general business 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
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 notice 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 motor vehicle dealer 's lifetime. In
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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.
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 shall 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.
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B. Irrespective of the terms, provisions or conditions 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 provision is both reasonable and
of material significance to the franchise relationship, or the new
motor vehicle dealer has failed to comply with reasonable
performance criteria for sales or service established by the
manufacturer, and the dealer has been notified 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
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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 cause
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:
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) consecutive
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 punishable 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
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manufacturer or distribut or is discontinuing the sale of the product
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.
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 file 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 issue a final order stating that the
threatened termination is wrongful. A factory shall have the right
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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
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;
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3. Equipment and furnishings, provided the 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, cancellation 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 compensation shall be no less than
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 or
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
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of subsection G of this section. Nothing in this section 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 performance 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
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
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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 lessor for the cancellation of the
lease without penalty to the dealer, or
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
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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
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
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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
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
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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 by 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 notice 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
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 limited
to the written, reasonable and uniformly applied requirements of the
manufacturer or distributor relat ing to good moral character and
financial qualifications.
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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 performance 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
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 injunctive
relief against the threatened loss, damage or injury to his business
or property because of any violation of Sections 565 through 566 and
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579 of this title or the threaten ed cancellation, termination or
failure to renew any franchise agreem ent between 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
567, 572, 578.1, 579 and 579.1 of this title, or from failing or
refusing to comply with the requirements 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 au thorize 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,
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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 shal l
provide at least sixty (60) days advance written notice to the
Commission and to each new motor vehicle dealer of the same line-
make in the relevant market area, of the intention of the fa ctory to
establish an additional ne w motor vehicle dealer or to re locate 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 dealers hip 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;
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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.
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;
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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 vehicle 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
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
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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 implied 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
herein, "motor vehicle liability policy" means motor vehicle
insurance against legal li ability for the death, injury or
disability of any human being, or fo r damage to real or personal
property. The motor vehicle liability po licy 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 b eing 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
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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 v ehicle by
an authorized a new motor vehicle dealer which loan occurs w ithout
financial remuneration in the form of a fee or lease charge.
SECTION 12. This act shall become effective November 1, 202 2.
COMMITTEE REPORT BY: COMMITTEE ON BUSINESS AND COMMERCE, dated
03/02/2022 - DO PASS, As Amended.