Oklahoma 2022 Regular Session

Oklahoma House Bill HB3994 Compare Versions

Version 1 (Old)

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3		-	HB3994 HFLR Page 1
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31	28		STATE OF OKLAHOMA
32	29
33	30		2nd Session of the 58th Legislature (2022)
34	31
35	32		COMMITTEE SUBSTITUTE
36	33		FOR
37	34		HOUSE BILL NO. 3994 By: Dobrinski
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43	40		COMMITTEE SUBSTITUTE
44	41
45	42		An Act relating to motor vehicle dealers; providing
46	43		for application for certain license; p roviding
47	44		requirements and limitations of licensee; requiring
48	45		certain license for delivery; providing for
49	46		misdemeanor and fine for offense; making exception
50	47		for certain fleet vehicle sales; setting certain
51	48		guidelines for certain enti ties regarding consumer
52	49		data; providing certain indemnification; authorizing
53	50		certain data disclosur e; requiring certain party bear
54	51		burden of proof; amending 47 O.S. 2021, Section 562,
55	52		which relates to definitions; modifying definitions;
56	53		defining terms; amending 47 O.S. 2021, Sect ion 564,
57	54		which relates to licenses; disallowing certain
58	55		authorization; making certain exception; authorizing
59	56		certain fee; amending 47 O.S. 2021, Section 565,
60	57		which relates to denial, revocation or suspension of
61	58		license; modifying entity which may receive l icense
62	59		denial, revocation, suspension or receive a fine;
63	60		modifying reasons for li cense denial, revocation,
64	61		suspension or punishment by fine; requiring certain
65	62		adherence; prohibiting certain performance methods;
66	63		limiting dealers to one part or labor rate re quest
67	64		per year; providing for certain calculation;
68	65		providing for exclusions for c ertain rate
69	66		calculation; allowing for the dealers to request
70	67		closure of certain orders; all owing for certain
71	68		adjusted rates for supplemental repair orders;
72	69		requiring written notice; requiring criteria for
73	70		validation; requiring certain factory compensation;
74	71		prohibiting factory denial of certain claims and
75	72		implementation of certain charge -backs; disallowing
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77		-	HB3994 HFLR Page 2
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103	73		allocation requirements; allowing for certain
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105	101		rebuttable presumption; limiting license for
106	102		distribution; amending 47 O.S. 2021, Section 565.1,
107	103		which relates to succession dealerships; clarifying
108	104		language; requiring certain adherence; amending 47
109	105		O.S. 2021, Section 565.2, which relat es to
110	106		termination, cancellation or nonrenewal of franchise;
111	107		requiring certain com pensation; amending 47 O.S.
112	108		2021, Section 565.3, which relates to notice of
113	109		proposed sale; limiting evaluations; deleting certain
114	110		protest right; amending 47 O.S. 2021, Section 572,
115	111		which relates to venue in damage actions; modifying
116	112		certain legal remedies; awarding certain fees and
117	113		costs; amending 47 O.S. 2021, Section 578.1, which
118	114		relates to procedures for relocation or
119	115		establishment; modifying definition; amending 47 O.S.
120	116		2021, Section 580.2, which relates to insurance
121	117		coverage on loan vehicles; defining term; making
122	118		certain liability policy coverage distinction;
123	119		providing for codification; and providing an
124	120		effective date.
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131	127		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKL AHOMA:
132	128		SECTION 1. NEW LAW A new section of law to be codified
133	129		in the Oklahoma Statutes as Section 564.3 of Title 47, unless there
134	130		is created a duplication in numbering, reads as follows:
135	131		A. A person who is licensed in his or her state of domicile as
136	132		a franchised new motor vehicle dealer, and wh o is not affiliated by
137	133		ownership or control of a manufacturer, distributor, factory branch,
138	134		factory representative, distributor branch or distributor
139	135		representative, as defined in Section 562 Title 47 of the Oklahoma
140	136		Statutes, may apply to the Oklahoma Motor Vehicle Commission for a
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168	137		motor vehicle direct shipper license. Only a person holding a motor
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169	164		vehicle direct shipper license may ship a new motor vehicle from out
170	165		of the state to a person, association or entity who is an Oklahoma
171	166		resident. A motor vehicle dealer licensed in this state shall not
172	167		be required to obtain a motor vehicle direct shipper license to ship
173	168		a new motor vehicle to a person, association or entity who is an
174	169		Oklahoma resident. Any person who ships less than three new motor
175	170		vehicles per year from out of the state to a person, association or
176	171		entity that is an Oklahoma resident shall not be re quired to obtain
177	172		a motor vehicle direct shipper license. The license fee for a motor
178	173		vehicle direct shipper shall be determined by the Commission . The
179	174		amount of the fee must approximate and reasonably reflect the costs
180	175		necessary to defray the expenses of the Commissioner's service and
181	176		activities in connection with this section.
182	177		B. It shall be unlawful for common or permit carriers,
183	178		operators of trucks, buses or other conveyances, or out-of-state
184	179		manufacturers or suppliers to make delivery of any new moto r vehicle
185	180		from without the State of Oklahoma to any person, association or
186	181		entity within the state unless the delivery is made by a person
187	182		licensed in this state as a motor vehicle dealer or a motor vehicle
188	183		direct shipper or delivery is made to a resident of the State of
189	184		Oklahoma outside of the State of Oklahoma .
190	185		C. A person who sells and ships a new motor vehicle directly
191	186		from any person, association or corporation to a resident of the
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193		-	HB3994 HFLR Page 4
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219	187		State of Oklahoma wi thout holding a valid motor vehicle d irect
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220	214		shipper's license, upon conviction, shall be guilty of a misdemeanor
221	215		and subject to a fine pursuant to Section 565 of Title 47 of the
222	216		Oklahoma Statutes.
223	217		D. This section shall not apply to the sale of more than five
224	218		fleet vehicles at one time to consumers that ti tle and register the
225	219		vehicle in this state or another state.
226	220		SECTION 2. NEW LAW A new section of law to be codified
227	221		in the Oklahoma Statutes as Section 564.4 of Title 47, unless the re
228	222		is created a duplication in numbering, reads as follows:
229	223		With respect to consumer data, a factory or third party acting
230	224		on behalf of a factory:
231	225		1. Shall comply with and shall not cause a dealer to violate
232	226		any applicable restrict ions on reuse or disclos ure of consumer data
233	227		established by federal or st ate law;
234	228		2. Shall, upon the written request of the dealer, provide a
235	229		written statement describing the established procedur es adopted by
236	230		such factory or third p arty acting on behalf o f the factory which
237	231		meet or exceed any federal or state requirements to saf eguard
238	232		consumer data including, but not limited to, those established in
239	233		the Gramm-Leach-Bliley Act, 15 U.S.C., Section 6801 et seq.;
240	234		3. Shall, upon the writ ten request of the deal er, provide a
241	235		written list of the consumer data obtained from the deale r and all
242	236		persons to whom any consumer data has been provided by the factory
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244		-	HB3994 HFLR Page 5
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270	237		or a third party acting on behalf of a factory d uring the preceding
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271	264		six (6) months. The dealer may make suc h a request no more than
272	265		once every six (6) months. The list must indicate the specific
273	266		fields of consumer data which were provided to each person .
274	267		Notwithstanding the foregoing, such a list shall not be required to
275	268		include:
276	269		a. a person to whom consumer data was provided, or the
277	270		specific consumer data provided to such person, if the
278	271		person was, at the time such consumer data was
279	272		provided, a service provider, subcontractor, or
280	273		consultant acting in the course of performance of
281	274		services on behalf of or for the benefit of the
282	275		factory, third party, or dealer, provided that the
283	276		factory, third party, or dealer has entered into an
284	277		agreement with such pe rson requiring that such person
285	278		comply with the safeguard requirements of applicable
286	279		state and federal law, including, but not limited to,
287	280		those established in the Gramm -Leach-Bliley Act, 15
288	281		U.S.C., Section 6801 et seq.,
289	282		b. a person to whom consumer data was provided, or the
290	283		specific consumer data provided to such person, if the
291	284		dealer has previously consented in writing to such
292	285		person receiving such consumer data and the dealer has
293	286		not withdrawn such consent in writing, or
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295		-	HB3994 HFLR Page 6
296		-	BOLD FACE denotes Committee Amendments. 1
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321	313		c. data collected or receiv ed for purposes enumerated in
322	314		paragraph 5 of this section ;
323	315		4. May not require that a dealer grant the fac tory or a third
324	316		party acting on behal f of a factory, or use any incentive that is
325	317		not paid to all dealers or withhold any benefit from a dealer t o
326	318		obtain, direct or indirect access to such dealer's data management
327	319		system to obtain con sumer data. A factory or a third party acting
328	320		on behalf of a factory shall permit a dealer to furnish consumer
329	321		data in a widely accepted file format, such as comma delimited, and
330	322		through a third-party vendor selected by the dealer. However, a
331	323		factory or a third party acting on behalf of a factory may access or
332	324		obtain consumer data directly fro m a dealer's data management system
333	325		with the express written consent of the dealer. The consent shall
334	326		be in the form of a written document that is separate from the
335	327		franchise agreement and is executed by the dealer principal or
336	328		operator and may be withdrawn by the dealer upon thirty (30) days'
337	329		written notice to the factory or third party acting on the factory's
338	330		behalf, as applicable. For incentive programs beginning on or after
339	331		November 1, 2022, such consent shall not be required as a condition
340	332		to a new motor vehicle dealer's participation in an incentive
341	333		program unless such consent is necessar y to obtain consumer data to
342	334		implement the program;
343	335		5. Shall indemnify the dealer for any third -party claims
344	336		asserted against or damages incurred by the dealer to the extent
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346		-	HB3994 HFLR Page 7
347		-	BOLD FACE denotes Committee Amendments. 1
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372	363		caused by access to, use of, or disclosure of consumer data in
373	364		violation of this section by the factory or a third party to whom
374	365		the factory has provided consumer data. Nothing contained in this
375	366		section shall limit th e ability of the factory or a third party
376	367		acting on the factory's behalf to require that the dealer prov ide,
377	368		or use in accordance with the law, such consumer information related
378	369		solely to such factory's own vehicle makes to the extent necessary
379	370		to do any of the following:
380	371		a. satisfy any safety or recall notice obligations or
381	372		other legal notice obligations on the part of the
382	373		manufacturer,
383	374		b. validate and pay to a dealer a consumer or dealer
384	375		incentive, or
385	376		c. submit claims to the factory for any services supplied
386	377		by the dealer for any claim for warranty parts or
387	378		repair.
388	379		The factory shall be limited to using consumer data stri ctly for the
389	380		purposes listed in this paragraph ; and
390	381		6. In any cause of action against the factory for a violation
391	382		of this section, the party bringing the action shall hav e the burden
392	383		of proof.
393	384		SECTION 3. AMENDATORY 4 7 O.S. 2021, Section 562, is
394	385		amended to read as follow s:
395	386
396		-	HB3994 HFLR Page 8
397		-	BOLD FACE denotes Committee Amendments. 1
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422	412		Section 562. The following words, terms and phrases, when used
423	413		in Sections 561 through 567, 572, 578.1, 579 and 579.1 of this
424	414		title, shall have the meanings respectively ascribed to them in this
425	415		section, except where the context clearly indicates a dif ferent
426	416		meaning:
427	417		1. "Motor vehicle" means any motor-driven vehicle required to
428	418		be registered under the Oklahoma Vehicle License and Registration
429	419		Act. The term "motor vehicle" does not include:
430	420		a. recreational vehicles, as defined in the Recreational
431	421		Vehicle Franchise Act, or
432	422		b. all-terrain vehicles, utility vehicles, and
433	423		motorcycles used exclusively for off-road use which
434	424		are sold by a retail implement dealer;
435	425		2. "New motor vehicle dealer " means any person, firm,
436	426		association, corporation or trust not excl uded by this paragraph who
437	427		that sells, leases, exchanges or otherwise conveys a new motor
438	428		vehicle at retail, offers for sale, advertises to sell, leases or
439	429		lease, exchange or other conveyance of a new motor vehi cle, arranges
440	430		for the financing of the sale, lease, or other conveyance of a new
441	431		motor vehicle, offers through a subscription or like arrangement,
442	432		displays new motor vehicles, offers vehicle test driv es or
443	433		demonstrations of new motor vehicle functions or fea tures except as
444	434		otherwise provided for in Section 564.1 of this title , or otherwise
445	435		engages in any way, in whole o r in part, in the business of selling,
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447		-	HB3994 HFLR Page 9
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473	462		leasing, exchanging or otherwise conveying new motor vehicles and
474	463		used motor vehicles, as well as parts, including offering in
475	464		exchange for payment any software or hardware upgrade or change to
476	465		vehicle functions and features which are available at the time the
477	466		new motor vehicle is sold at retail or twelve (12) months
478	467		thereafter, and holds a bona fide contract or franchise in effect
479	468		with a manufacturer or distributor authorized by the manufacturer to
480	469		establish a physical place of business in the state which is of such
481	470		reasonably sufficient size and accommodation to p erform the
482	471		activities of a new motor vehicl e dealer, including vehicle
483	472		inventory and display , sales activity, make predelivery preparati on
484	473		of such new motor vehicles sold, leased or otherwise conveyed to
485	474		purchasers consumers, and to perform post-sale work pursuant to the
486	475		manufacturer's or distributor's warranty and recall policies. As
487	476		used herein, "authorized predelivery preparation " means the
488	477		rendition by the dealer of services and safety adjustments on each
489	478		new motor vehicle in accordance with the procedure and safety
490	479		standards required by the ma nufacturer of the vehicle to be made
491	480		before its delivery to the purchaser. "Performance of authorized
492	481		post-sale work pursuant to the warranty", as used herein, means the
493	482		rendition of services which are required by the terms of the
494	483		warranty that stands ext ended to the vehicle at the time of its sale
495	484		and are to be made in accordance with the safety standards
496	485		prescribed by the manufacturer. The term includes premises or
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498		-	HB3994 HFLR Page 10
499		-	BOLD FACE denotes Committee Amendments. 1
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524	512		facilities at which a person engages only in the repair of motor
525	513		vehicles if repairs are performed pursuant to the terms of a
526	514		franchise and or motor vehicle manufacturer 's warranty and recall
527	515		policies. However, the term shall not include premises or
528	516		facilities at which a new motor vehicle dealer or dealers within the
529	517		area of responsibility of such dealer or dealers as defined in the
530	518		manufacturer's franchise agreement of such dealer or dealers
531	519		performs motor vehicle repairs pursuant to the terms of a franchise
532	520		and motor vehicle manufacturer 's warranty. For the purpose of
533	521		Sections 561 through 5 67, 572, 578.1, 579 and 579.1 of this title,
534	522		the terms "new motor vehicle dealer " and "new motor vehicle
535	523		dealership" shall be synonymous. The term "new motor vehicle
536	524		dealer" does not include:
537	525		a. receivers, trustees, administrators, executors,
538	526		guardians or other persons appointed by or acting
539	527		under judgment or order of any court,
540	528		b. public officers while performing or in operation of
541	529		their duties, or
542	530		c. employees of persons, corporations or associations
543	531		enumerated in subparagraph a of this paragraph when
544	532		engaged in the specific performance of their duties as
545	533		such employees;
546	534		3. "Motor vehicle salesp erson" means any person who, for gain
547	535		or compensation of any kind, either dire ctly or indirectly,
548	536
549		-	HB3994 HFLR Page 11
550		-	BOLD FACE denotes Committee Amendments. 1
	537	+	Req. No. 10893 Page 11 1
551	538		2
552	539		3
553	540		4
554	541		5
555	542		6
556	543		7
557	544		8
558	545		9
559	546		10
560	547		11
561	548		12
562	549		13
563	550		14
564	551		15
565	552		16
566	553		17
567	554		18
568	555		19
569	556		20
570	557		21
571	558		22
572	559		23
573	560		24
574	561
575	562		regularly or occasionally, by any form of agreement or arrangeme nt,
576	563		sells or negotiates for the sale, lease, conveyance or arranges the
577	564		financing of any new motor vehicle for any new motor vehicle dealer
578	565		to any one or more third parties;
579	566		4. "Commission" means the Oklahoma Motor Vehicle Commission;
580	567		5. "Manufacturer" means any person, firm, association,
581	568		corporation or trust, resident or nonresident, who manufactures or
582	569		assembles new and unused motor vehicles o r who engages in the
583	570		fabrication or assembly of motorized vehicles of a type required to
584	571		be registered in the St ate of Oklahoma;
585	572		6. "Distributor" means any person, firm, association,
586	573		corporation or trust, resident or n onresident, who, being authorized
587	574		by the original manufacturer, in whole or in part sells or
588	575		distributes new and unused motor vehicles to motor vehic le dealers,
589	576		or who maintains distributor represe ntatives;
590	577		7. "Factory branch" means any branch office main tained by a
591	578		person, firm, association , corporation or trust who manufactures or
592	579		assembles motor vehicles for the sale of motor vehicles to
593	580		distributors, or for the sale of motor vehicles to motor v ehicle
594	581		dealers, or for directing or supervising, in whole o r in part, its
595	582		representatives;
596	583		8. "Distributor branch" means any branch office similarly
597	584		maintained by a distributor for the same purposes a factor y branch
598	585		is maintained;
599	586
600		-	HB3994 HFLR Page 12
601		-	BOLD FACE denotes Committee Amendments. 1
	587	+	Req. No. 10893 Page 12 1
602	588		2
603	589		3
604	590		4
605	591		5
606	592		6
607	593		7
608	594		8
609	595		9
610	596		10
611	597		11
612	598		12
613	599		13
614	600		14
615	601		15
616	602		16
617	603		17
618	604		18
619	605		19
620	606		20
621	607		21
622	608		22
623	609		23
624	610		24
625	611
626	612		9. "Factory representative" means any officer or agent engaged
627	613		as a representative of a manufacturer of motor vehicles or by a
628	614		factory branch, for the purpose of making or promoting the sale of
629	615		its motor vehicles, or for supervisin g or contacting its dealers or
630	616		prospective dealers;
631	617		10. "Distributor representative " means any person, fir m,
632	618		association, corporation or trust and each officer and employee
633	619		thereof engaged as a representative of a distributor or distributor
634	620		branch of motor vehicles, for the purpose of making or promoti ng the
635	621		sale of its motor vehicles, or for supervising or co ntacting its
636	622		dealers or prospective d ealers;
637	623		11. "Franchise" means any contract or agreement between a motor
638	624		vehicle dealer and a manufacturer of a new motor vehicle or its
639	625		distributor or factory branch by which the dealer is authorized to
640	626		engage in the business of selling any specified make or makes of new
641	627		motor vehicles activities of a new motor vehicle dealer as defined
642	628		by this section;
643	629		12. "New or unused motor vehicle" means a vehicle which is in
644	630		the possession of the manufacturer or distributor or ha s been sold
645	631		only to the holder of a v alid selling agreement, franchise or
646	632		contract, granted by the manufacturer or distributor for the sale of
647	633		that make of new vehicle so long as the manufacturer 's statement of
648	634		origin has not been assigned to anyone other than a licensed
649	635		franchised new motor vehicle dealer of the same line-make;
650	636
651		-	HB3994 HFLR Page 13
652		-	BOLD FACE denotes Committee Amendments. 1
	637	+	Req. No. 10893 Page 13 1
653	638		2
654	639		3
655	640		4
656	641		5
657	642		6
658	643		7
659	644		8
660	645		9
661	646		10
662	647		11
663	648		12
664	649		13
665	650		14
666	651		15
667	652		16
668	653		17
669	654		18
670	655		19
671	656		20
672	657		21
673	658		22
674	659		23
675	660		24
676	661
677	662		13. "Area of responsibility" means the geographical area, as
678	663		designated by the manufacturer, factory branch, factory
679	664		representative, distributor, distributor branch or distributor
680	665		representative, in which the new moto r vehicle dealer is held
681	666		responsible for the promotion and development of sales and rendering
682	667		of service for the make of motor vehicle for which the motor vehicle
683	668		dealer holds a franchise or selling agreement;
684	669		14. "Off premises" means at a location other than the address
685	670		designated on the new motor vehicle dealer's license;
686	671		15. "Sponsoring entity" means any person, firm, association,
687	672		corporation or trust which has contr ol, either permanently or
688	673		temporarily, over the re al property upon which the off-premise off-
689	674		premises sale or display is conducted;
690	675		16. "Product" means new motor vehicles and new motor vehicle
691	676		parts;
692	677		17. "Service" means motor vehicle warranty repairs including
693	678		both parts and labor;
694	679		18. "Lead" means a consumer contact in response to a fact ory
695	680		program designed to generate interest in purchasing or leasing a new
696	681		motor vehicle;
697	682		19. "Sell or sale" means to sell or lease;
698	683		20. "Factory" means a manufacturer, distributor, factory
699	684		branch, distributor branch, f actory representative or distributor
700	685		representative, which manufactures or distributes vehicle products;
701	686
702		-	HB3994 HFLR Page 14
703		-	BOLD FACE denotes Committee Amendments. 1
	687	+	Req. No. 10893 Page 14 1
704	688		2
705	689		3
706	690		4
707	691		5
708	692		6
709	693		7
710	694		8
711	695		9
712	696		10
713	697		11
714	698		12
715	699		13
716	700		14
717	701		15
718	702		16
719	703		17
720	704		18
721	705		19
722	706		20
723	707		21
724	708		22
725	709		23
726	710		24
727	711
728	712		21. "Powersports vehicle" means motorcycles, scooters, mopeds,
729	713		all-terrain vehicles, and utility vehicles;
730	714		22. "Powersports vehicle dealer " means any person, firm, or
731	715		corporation who is in the business of selling any new powersports
732	716		vehicles except for retail implement dealers; and
733	717		23. "Retail implement dealer" means a business engaged
734	718		primarily in the sale of farm tractors as defined in Section 1 -118
735	719		of this title or implements of husba ndry as defined in Section 1-125
736	720		of this title or a combination thereof ;
737	721		24. "Consumer data" means nonpublic personal information as
738	722		such term is defined in 15 U.S.C ., Section 6809(4) as it existed on
739	723		January 1, 2022, that is:
740	724		a. collected by a dealer , and
741	725		b. provided by the dealer directly to a manufacturer or
742	726		third party acting on behalf of a manufacturer.
743	727		Such term shall not include the same or similar data obtained by
744	728		a manufacturer from any source other than the dealer or dealer's
745	729		data management system;
746	730		25. "Data management system" means a computer hardware or
747	731		software system that:
748	732		a. is owned, leased or li censed by a dealer including a
749	733		system or web-based applications, c omputer software or
750	734		computer hardware,
751	735		b. is located at the dealership or hosted remotely, and
752	736
753		-	HB3994 HFLR Page 15
754		-	BOLD FACE denotes Committee Amendments. 1
	737	+	Req. No. 10893 Page 15 1
755	738		2
756	739		3
757	740		4
758	741		5
759	742		6
760	743		7
761	744		8
762	745		9
763	746		10
764	747		11
765	748		12
766	749		13
767	750		14
768	751		15
769	752		16
770	753		17
771	754		18
772	755		19
773	756		20
774	757		21
775	758		22
776	759		23
777	760		24
778	761
779	762		c. stores and provides access to consumer data collected
780	763		or stored by a dealer.
781	764		Such term shall include, but shall not be limited to, dealership
782	765		management systems and customer relations m anagement systems; and
783	766		26. "Fleet vehicle" means a new motor vehicle sold and titled
784	767		or registered to a business and used for business purposes only .
785	768		SECTION 4. AMENDATORY 47 O.S. 2021, Section 564, is
786	769		amended to read as follows:
787	770		Section 564. A. It shall be unlawful for any person, firm,
788	771		association, corporation or trust to engage in business as, or serve
789	772		in the capacity of, or act as a motor vehicle dealer or manufacturer
790	773		or distributor of new motor vehicles, or factory branch, distributor
791	774		branch or factory representative or distributor representative, as
792	775		such defined in Section 562 of this title, in this state witho ut
793	776		first obtaining a license therefor as provided for by law. Any
794	777		person, firm, association, corporation or trust engaging in more
795	778		than one of such capacities or having more than one place whe re such
796	779		business is carried on or conducted shall be required t o obtain and
797	780		hold a current license for each thereof. Provided that, a new motor
798	781		vehicle dealer's license shall authorize one person to sell in the
799	782		event such person shall be the owner of a pr oprietorship, or the
800	783		person designated as principal in the deal er's franchise or the
801	784		managing officer or one partner if no principal person is named in
802	785		the franchise. It is further provided that a factory or an entity
803	786
804		-	HB3994 HFLR Page 16
805		-	BOLD FACE denotes Committee Amendments. 1
	787	+	Req. No. 10893 Page 16 1
806	788		2
807	789		3
808	790		4
809	791		5
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811	793		7
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816	798		12
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820	802		16
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825	807		21
826	808		22
827	809		23
828	810		24
829	811
830	812		affiliated by any ownership or contro l by the factory shall not be
831	813		permitted to be licensed as a motor vehicle dealer in this state,
832	814		except as provided by subparagraph b o f paragraph 12 of Section 565
833	815		of this title.
834	816		B. Applications for licenses required to be obtained under
835	817		provisions of Section 561 et seq. of this title shall be verified by
836	818		the oath or affirmation of the a pplicant and shall be on forms
837	819		prescribed by the Oklahoma Motor Vehicle Comm ission and furnished to
838	820		such applicants, and shall contain such information as the
839	821		Commission deems necessary to enable it to fully determine the
840	822		qualifications and eligibility of the several applicants to receive
841	823		the license or licenses applied for. The Commission shall require
842	824		in such application, or otherwise, information relating to the
843	825		applicant's financial standing, the applicant 's business integrity,
844	826		whether the applicant ha s an established place of business and is
845	827		primarily engaged in the pursuit, avocation or business for which a
846	828		license, or licenses, are applied for, and whether the applicant is
847	829		able to properly conduct the business for which a license, or
848	830		licenses, are applied for, and such other pertinent informati on
849	831		consistent with the safeguar ding of the public interest and the
850	832		public welfare. All such applications for license or licenses shall
851	833		be accompanied by the appropriate fee or fees therefor in accordance
852	834		with the schedule thereof hereinafter set out. In the event any
853	835		such application is denied and the license applied for is not
854	836
855		-	HB3994 HFLR Page 17
856		-	BOLD FACE denotes Committee Amendments. 1
	837	+	Req. No. 10893 Page 17 1
857	838		2
858	839		3
859	840		4
860	841		5
861	842		6
862	843		7
863	844		8
864	845		9
865	846		10
866	847		11
867	848		12
868	849		13
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871	852		16
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876	857		21
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878	859		23
879	860		24
880	861
881	862		issued, the entire license fee shall be returned to the applicant.
882	863		All licenses issued under the provisions of Section 561 et seq. of
883	864		this title shall expire on June 30, following the date of issue and
884	865		shall be nontransferable. All applications f or renewal of a license
885	866		for a new motor vehicle dealer, manufacturer, distributor or
886	867		manufacturer's or distributor's representative shall be su bmitted by
887	868		June 1 of each year, and such lice nse or licenses will be issued by
888	869		July 1. If applications have not been made for renewal of licenses
889	870		at the times described in this subsection, it shall be illegal for
890	871		any person to represent himself or herself and act as a dealer,
891	872		manufacturer, distribut or or manufacturer's or distributor's
892	873		representative. Motor license agents will be notified not to accept
893	874		such dealers' titles until such time as licenses have been issued by
894	875		the Commission.
895	876		C. The schedule of license fees to be charged and received by
896	877		the Commission for the licenses issued hereunder shall be as
897	878		follows:
898	879		1. For each factory branch or distributor branch, Four Hundred
899	880		Dollars ($400.00) initial fee with annual renewal fee of Three
900	881		Hundred Dollars ($300.00);
901	882		2. For each manufacturer or dist ributor of new motor vehicles,
902	883		Four Hundred Dollars ($400.00) initia l fee with annual renewal fee
903	884		of Three Hundred Dollars ($300.00);
904	885
905		-	HB3994 HFLR Page 18
906		-	BOLD FACE denotes Committee Amendments. 1
	886	+	Req. No. 10893 Page 18 1
907	887		2
908	888		3
909	889		4
910	890		5
911	891		6
912	892		7
913	893		8
914	894		9
915	895		10
916	896		11
917	897		12
918	898		13
919	899		14
920	900		15
921	901		16
922	902		17
923	903		18
924	904		19
925	905		20
926	906		21
927	907		22
928	908		23
929	909		24
930	910
931	911		3. For each factory representative or distributor
932	912		representative, One Hundre d Dollars ($100.00) annually;
933	913		4. For each new motor vehicle dealer, except powersports
934	914		vehicle dealers, initial fee of Three Hundred Dollars ($300.00) per
935	915		franchise sold at each location licensed, with an annual renewal fee
936	916		of One Hundred Dollars ($100.00 ) per franchise sold at each location
937	917		per year; and
938	918		5. For each powersports vehicle dealer, initial fee of Three
939	919		Hundred Dollars ($300.00) per manufacturer represented by the dealer
940	920		at each location licensed, with an annual renewal fee of One Hundred
941	921		Dollars ($100.00) per manufacturer represented by the dealer at each
942	922		location licensed per year; and
943	923		6. For each motor vehicle direct shipper, initial fee of Three
944	924		Hundred Dollars ($300.00), with an annual renewal fee of One Hundred
945	925		Dollars ($100.00).
946	926		D. The licenses issued to each new motor vehicle de aler,
947	927		manufacturer, distributor , factory branch, distributor branch or
948	928		representative, if a corporation, shall specify the location of the
949	929		factory, office or branch thereof. In case such location is
950	930		changed, the Commission may endorse the change of locati on on the
951	931		license without charg e unless the change of address trigge rs a
952	932		relocation of a new motor vehicle dealer pursuant to the provisions
953	933		of Section 578.1 of this title. The license of each dealer shall be
954	934
955		-	HB3994 HFLR Page 19
956		-	BOLD FACE denotes Committee Amendments. 1
	935	+	Req. No. 10893 Page 19 1
957	936		2
958	937		3
959	938		4
960	939		5
961	940		6
962	941		7
963	942		8
964	943		9
965	944		10
966	945		11
967	946		12
968	947		13
969	948		14
970	949		15
971	950		16
972	951		17
973	952		18
974	953		19
975	954		20
976	955		21
977	956		22
978	957		23
979	958		24
980	959
981	960		posted in a conspicuous place in the dealer 's place or places of
982	961		business.
983	962		Every motor vehicle factory representat ive or distributor
984	963		representative if an individual shall physically possess the license
985	964		when engaged in business, and shall display same upon r equest. The
986	965		name of the employer of such fac tory representative or distribu tor
987	966		representative shall be stated on the license and, in case of a
988	967		change of employer, the holder of such license shall immediately
989	968		mail same to the Commission for its endorsement of such change
990	969		thereon. The Commission shal l endorse each such change of e mployer
991	970		on licenses for a fee of Ten Dollars ($10.00).
992	971		E. The powersports dealer license shall only allow the sale of
993	972		the specific types of powersports vehicles authorized by the
994	973		manufacturer and agreed to by the powersports dealer.
995	974		SECTION 5. AMENDATORY 47 O.S. 2021, Section 565, is
996	975		amended to read as follows :
997	976		Section 565. A. The Oklahoma Motor Vehicle Commi ssion may deny
998	977		an application for a license, or revoke or suspend a license, or
999	978		impose a fine against any person, not to exceed Ten Thousand Dollars
1000	979		($10,000.00) against a manufacturer or distributor or a fine not to
1001	980		exceed One Thousand Dollars ($1,00 0.00) against a dealer, per
1002	981		occurrence that, who violates any provision of Sections 561 through
1003	982		567, 572, 578.1, 579 and 579.1 of this title is violated or for any
1004	983		of the following reasons:
1005	984
1006		-	HB3994 HFLR Page 20
1007		-	BOLD FACE denotes Committee Amendments. 1
	985	+	Req. No. 10893 Page 20 1
1008	986		2
1009	987		3
1010	988		4
1011	989		5
1012	990		6
1013	991		7
1014	992		8
1015	993		9
1016	994		10
1017	995		11
1018	996		12
1019	997		13
1020	998		14
1021	999		15
1022	1000		16
1023	1001		17
1024	1002		18
1025	1003		19
1026	1004		20
1027	1005		21
1028	1006		22
1029	1007		23
1030	1008		24
1031	1009
1032	1010		1. On satisfactory proof of unfitn ess of the applicant in any
1033	1011		application for any license under the provis ions of Section 561 et
1034	1012		seq. of this title;
1035	1013		2. For any material misstatement made by an applicant in any
1036	1014		application for any lice nse under the provisions of Section 561 et
1037	1015		seq. of this title;
1038	1016		3. For any failure to comply with any provision of Section 561
1039	1017		et seq. of this title or any rule promulgated by the Commission
1040	1018		under authority vested in it by Section 561 et seq. of this title ;
1041	1019		4. A change of condition after license is granted re sulting in
1042	1020		failure to maintain the qua lifications for license;
1043	1021		5. Being a new motor vehicle dealer who:
1044	1022		a. has required a purchaser of a new motor vehicle, as a
1045	1023		condition of sale and delivery thereof, to also
1046	1024		purchase special features, appliances, accesso ries or
1047	1025		equipment not desired or reque sted by the purchaser
1048	1026		and installed by the dealer,
1049	1027		b. uses any false or misleading advertising in connection
1050	1028		with business as a new motor veh icle dealer,
1051	1029		c. has committed any unlawful act which resulted in the
1052	1030		revocation of any similar license in another s tate,
1053	1031		d. has failed or refused to perform any written agreement
1054	1032		with any retail buyer involving the sale of a motor
1055	1033		vehicle,
1056	1034
1057		-	HB3994 HFLR Page 21
1058		-	BOLD FACE denotes Committee Amendments. 1
	1035	+	Req. No. 10893 Page 21 1
1059	1036		2
1060	1037		3
1061	1038		4
1062	1039		5
1063	1040		6
1064	1041		7
1065	1042		8
1066	1043		9
1067	1044		10
1068	1045		11
1069	1046		12
1070	1047		13
1071	1048		14
1072	1049		15
1073	1050		16
1074	1051		17
1075	1052		18
1076	1053		19
1077	1054		20
1078	1055		21
1079	1056		22
1080	1057		23
1081	1058		24
1082	1059
1083	1060		e. has been convicted of a crime invol ving moral
1084	1061		turpitude,
1085	1062		f. has committed a fraudulent act in selling, purchasing
1086	1063		or otherwise dealing in new motor vehicles or ha s
1087	1064		misrepresented the terms and conditions of a sale,
1088	1065		purchase or contract for sale or purchase of a new
1089	1066		motor vehicle or any inte rest therein including an
1090	1067		option to purchase such vehic le,
1091	1068		g. has failed to meet or maintain the conditions and
1092	1069		requirements necessary to qualify for the issuance of
1093	1070		a license, or
1094	1071		h. completes any sale or transaction of an extended
1095	1072		service contract, extend ed maintenance plan, or
1096	1073		similar product using contract forms that do not
1097	1074		conspicuously disclo se the identity of the service
1098	1075		contract provider;
1099	1076		6. Being a new motor vehicle salesperson who is not employed as
1100	1077		such by a licensed new mot or vehicle dealer;
1101	1078		7. Being a new motor vehicle dealer who:
1102	1079		a. does not have an established place of business,
1103	1080		b. does not provide for a suitable re pair shop separate
1104	1081		from the display room with ample space to repair or
1105	1082		recondition one or more vehicles at the same time, and
1106	1083		which is staffed with properly trained and qualified
1107	1084
1108		-	HB3994 HFLR Page 22
1109		-	BOLD FACE denotes Committee Amendments. 1
	1085	+	Req. No. 10893 Page 22 1
1110	1086		2
1111	1087		3
1112	1088		4
1113	1089		5
1114	1090		6
1115	1091		7
1116	1092		8
1117	1093		9
1118	1094		10
1119	1095		11
1120	1096		12
1121	1097		13
1122	1098		14
1123	1099		15
1124	1100		16
1125	1101		17
1126	1102		18
1127	1103		19
1128	1104		20
1129	1105		21
1130	1106		22
1131	1107		23
1132	1108		24
1133	1109
1134	1110		repair technicians and is equipped with such parts,
1135	1111		tools and equipment as may be requisi te for the
1136	1112		servicing of motor vehicles in such a manner as to
1137	1113		make them comply with the safety laws of this s tate
1138	1114		and to properly fulfill the dealer's or manufacturer's
1139	1115		warranty obligation,
1140	1116		c. does not hold a franchise in ef fect with a
1141	1117		manufacturer or dist ributor of new or unused motor
1142	1118		vehicles for the sale of the same and is not
1143	1119		authorized by the manufacturer or distributor to
1144	1120		render predelivery preparation of such vehicles sold
1145	1121		to purchasers and to perform any authorized po st-sale
1146	1122		work pursuant to the man ufacturer's or distributor's
1147	1123		warranty,
1148	1124		d. employs a person without obtaining a certificate of
1149	1125		registration for the person, or utili zes the services
1150	1126		of used motor vehicle lo ts or dealers or other
1151	1127		unlicensed persons in connect ion with the sale of new
1152	1128		motor vehicles,
1153	1129		e. does not properly service a new motor vehicle before
1154	1130		delivery of same to the original purchaser t hereof, or
1155	1131		f. fails to order and stock a reasonable number of n ew
1156	1132		motor vehicles necessary to meet customer consumer
1157	1133		demand for each of the new motor vehicles included in
1158	1134
1159		-	HB3994 HFLR Page 23
1160		-	BOLD FACE denotes Committee Amendments. 1
	1135	+	Req. No. 10893 Page 23 1
1161	1136		2
1162	1137		3
1163	1138		4
1164	1139		5
1165	1140		6
1166	1141		7
1167	1142		8
1168	1143		9
1169	1144		10
1170	1145		11
1171	1146		12
1172	1147		13
1173	1148		14
1174	1149		15
1175	1150		16
1176	1151		17
1177	1152		18
1178	1153		19
1179	1154		20
1180	1155		21
1181	1156		22
1182	1157		23
1183	1158		24
1184	1159
1185	1160		the new motor vehicle dealer's franchise agreement,
1186	1161		unless the new motor vehicles are not readily
1187	1162		available from the manufacturer or distributor due to
1188	1163		limited production;
1189	1164		8. Being a factory that has :
1190	1165		a. either induced or attempted to induce by means of
1191	1166		coercion or intimidation, any new motor vehicle
1192	1167		dealer:
1193	1168		(1) to accept delivery of any motor vehicle or
1194	1169		vehicles, parts or accessories therefor, or an y
1195	1170		other commodities including advertising material
1196	1171		which shall not have been ordered by the new
1197	1172		motor vehicle dealer,
1198	1173		(2) to order or accept delivery of any motor vehicle
1199	1174		with special features, appliances, accessories or
1200	1175		equipment not included in the list price of the
1201	1176		motor vehicles as publicly advertised b y the
1202	1177		manufacturer thereof, or
1203	1178		(3) to order or accept delivery of any parts,
1204	1179		accessories, equipment, machinery, tools,
1205	1180		appliances or any comm odity whatsoever, or except
1206	1181		for those necessary to service a ve hicle that the
1207	1182		new motor vehicle dealer is authorized by the
1208	1183		factory to repair,
1209	1184
1210		-	HB3994 HFLR Page 24
1211		-	BOLD FACE denotes Committee Amendments. 1
	1185	+	Req. No. 10893 Page 24 1
1212	1186		2
1213	1187		3
1214	1188		4
1215	1189		5
1216	1190		6
1217	1191		7
1218	1192		8
1219	1193		9
1220	1194		10
1221	1195		11
1222	1196		12
1223	1197		13
1224	1198		14
1225	1199		15
1226	1200		16
1227	1201		17
1228	1202		18
1229	1203		19
1230	1204		20
1231	1205		21
1232	1206		22
1233	1207		23
1234	1208		24
1235	1209
1236	1210		b. induced under threat or discrimination by the
1237	1211		withholding from delivery to a motor vehicle dealer
1238	1212		certain models of motor vehicl es, changing or amending
1239	1213		unilaterally the dealer's allotment of motor vehicles
1240	1214		and/or withholding and de laying delivery of such
1241	1215		vehicles out of the ordinary course of business, in
1242	1216		order to induce by such coercion any su ch dealer to
1243	1217		participate or contribut e to any local or national
1244	1218		advertising fund controlled directly or indirectly by
1245	1219		the factory or for any other purposes such as c ontest,
1246	1220		"give-aways" "giveaways" or other so-called sales
1247	1221		promotional devices and/or change of quotas in any
1248	1222		sales contest; or has required motor vehicle dealers,
1249	1223		as a condition to receiving their vehicle allotment,
1250	1224		to order a certain percentage of the veh icles with
1251	1225		optional equipment not specified by the new motor
1252	1226		vehicle dealer; however, nothi ng in this section shall
1253	1227		prohibit a factory from supporting an advertising
1254	1228		association which is open to all dealers on the same
1255	1229		basis,
1256	1230		c. used or proposed to use an unreasonable, arbitrary or
1257	1231		unfair sales or other standard to measure a dealer 's
1258	1232		performance under any factory program, policy or the
1259	1233		franchise agreement. It shall be considered
1260	1234
1261		-	HB3994 HFLR Page 25
1262		-	BOLD FACE denotes Committee Amendments. 1
	1235	+	Req. No. 10893 Page 25 1
1263	1236		2
1264	1237		3
1265	1238		4
1266	1239		5
1267	1240		6
1268	1241		7
1269	1242		8
1270	1243		9
1271	1244		10
1272	1245		11
1273	1246		12
1274	1247		13
1275	1248		14
1276	1249		15
1277	1250		16
1278	1251		17
1279	1252		18
1280	1253		19
1281	1254		20
1282	1255		21
1283	1256		22
1284	1257		23
1285	1258		24
1286	1259
1287	1260		unreasonable, arbitrary and unfair for the factory to
1288	1261		fail to take into accoun t the dealer's specific and
1289	1262		market circumstances in establishing the sales or
1290	1263		other standard,
1291	1264		d. failed or refused to sell, or offer for sale, new
1292	1265		motor vehicles to all of its same line-make franchised
1293	1266		dealers at the same pr ice for a comparably equipped
1294	1267		motor vehicle, on the same terms, with no differential
1295	1268		in discount, allowance, credi t or bonus,
1296	1269		e. failed to reimburse a dealer in full for the actual
1297	1270		cost of providing a loaner vehicle to any consumer who
1298	1271		is having a vehicle serviced at the dealership if th e
1299	1272		provision of such a loaner vehicle is required by the
1300	1273		factory. For purposes of this paragraph, actual cost
1301	1274		shall not exceed the average cost in the dealer's
1302	1275		region for the rental of a substantially similar make
1303	1276		and model as the vehicle being serviced ;
1304	1277		9. Being a factory that:
1305	1278		a. has attempted to coerce or has coerced any new motor
1306	1279		vehicle dealer to enter into any agree ment or to
1307	1280		cancel any agreement, or fails to act in good faith
1308	1281		and in a fair, equitable and nondiscrimina tory manner;
1309	1282		or has directly or indirectly coerced, intimidated,
1310	1283		threatened or restrained any motor vehicle dealer ; or
1311	1284
1312		-	HB3994 HFLR Page 26
1313		-	BOLD FACE denotes Committee Amendments. 1
	1285	+	Req. No. 10893 Page 26 1
1314	1286		2
1315	1287		3
1316	1288		4
1317	1289		5
1318	1290		6
1319	1291		7
1320	1292		8
1321	1293		9
1322	1294		10
1323	1295		11
1324	1296		12
1325	1297		13
1326	1298		14
1327	1299		15
1328	1300		16
1329	1301		17
1330	1302		18
1331	1303		19
1332	1304		20
1333	1305		21
1334	1306		22
1335	1307		23
1336	1308		24
1337	1309
1338	1310		has acted dishonestly, or has fa iled to act in
1339	1311		accordance with the reasonable standards of fair
1340	1312		dealing,
1341	1313		b. has failed to compensate its dealers for the work and
1342	1314		services they are required to perform in connection
1343	1315		with the dealer's delivery and prepar ation obligations
1344	1316		according to the agreements on file with the
1345	1317		Commission which must be found by the Commission to be
1346	1318		reasonable, or fail has failed to adequately and
1347	1319		fairly compensate its dealers for labor, parts and
1348	1320		other expenses incurred by such dealer to perform
1349	1321		under and comply with manufacturer's warranty
1350	1322		agreements, and recall repairs which shall include
1351	1323		diagnostic work as applicable and factory-authorized
1352	1324		goodwill repairs. Time allowances for the diagnosis
1353	1325		and performance of repair work shall be rea sonable and
1354	1326		adequate for the work to be performed. Adequate and
1355	1327		fair compensation for p arts and/or labor for warranty
1356	1328		and recall repairs shall be established by the dealer
1357	1329		submitting to the manufacturer or distributor one
1358	1330		hundred sequential nonwarranty customer-paid consumer-
1359	1331		paid service repair orders whic h contain warranty-like
1360	1332		parts repairs, or ninety (90) consecutive days of
1361	1333		nonwarranty customer-paid consumer-paid service repair
1362	1334
1363		-	HB3994 HFLR Page 27
1364		-	BOLD FACE denotes Committee Amendments. 1
	1335	+	Req. No. 10893 Page 27 1
1365	1336		2
1366	1337		3
1367	1338		4
1368	1339		5
1369	1340		6
1370	1341		7
1371	1342		8
1372	1343		9
1373	1344		10
1374	1345		11
1375	1346		12
1376	1347		13
1377	1348		14
1378	1349		15
1379	1350		16
1380	1351		17
1381	1352		18
1382	1353		19
1383	1354		20
1384	1355		21
1385	1356		22
1386	1357		23
1387	1358		24
1388	1359
1389	1360		orders which contain warranty -like parts repairs,
1390	1361		whichever is less, c overing repairs made no more than
1391	1362		one hundred eighty (180) days before the submission
1392	1363		and declaring the average percentage markup. Adequate
1393	1364		and fair compensation for labor shal l be established
1394	1365		by the dealer submitting to t he manufacturer or
1395	1366		distributor one hundred sequential c ustomer-paid
1396	1367		service repair orders which contain labor charges, or
1397	1368		ninety (90) consecutive days of customer -paid service
1398	1369		repair orders which contain labor charges, whichever
1399	1370		is less. A dealer may not submit a request to
1400	1371		establish a parts and/or labor rate more than once in
1401	1372		a twelve-month period. The dealer shall calculate i ts
1402	1373		retail parts rate by determining the total charges for
1403	1374		parts from the qualified repair orders submitted,
1404	1375		dividing that amount by the dealer 's total cost of the
1405	1376		purchase of those parts, subtracting one (1), and
1406	1377		multiplying by one hundred (100) to produce a
1407	1378		percentage. The dealer shall calculate its retail
1408	1379		labor rate by dividing the am ount of the dealer's
1409	1380		total labor sales from the qualified rep air orders by
1410	1381		the total labor hour s that generated those sales.
1411	1382		When submitting repair orders to calculate establish a
1412	1383
1413		-	HB3994 HFLR Page 28
1414		-	BOLD FACE denotes Committee Amendments. 1
	1384	+	Req. No. 10893 Page 28 1
1415	1385		2
1416	1386		3
1417	1387		4
1418	1388		5
1419	1389		6
1420	1390		7
1421	1391		8
1422	1392		9
1423	1393		10
1424	1394		11
1425	1395		12
1426	1396		13
1427	1397		14
1428	1398		15
1429	1399		16
1430	1400		17
1431	1401		18
1432	1402		19
1433	1403		20
1434	1404		21
1435	1405		22
1436	1406		23
1437	1407		24
1438	1408
1439	1409		retail parts and/or labor rate, a dealer need not
1440	1410		include repair orders repairs for:
1441	1411		(1) routine maintenance including, but not limited
1442	1412		to, the replacement of bulbs, flui ds, filters,
1443	1413		batteries and belts that are not provided in the
1444	1414		course of and related to a repair,
1445	1415		(2) factory special events, specials or promotional
1446	1416		discounts for retail consumer repairs,
1447	1417		(3) parts sold or repairs performed at wholesale ,
1448	1418		(4) factory-approved goodwill or policy repairs or
1449	1419		replacements,
1450	1420		(5) repairs with aftermarket pa rts, when calculating
1451	1421		the retail parts rate but not the ret ail labor
1452	1422		rate,
1453	1423		(6) repairs on aftermarket parts,
1454	1424		(7) replacement of or work on tires including front -
1455	1425		end alignments and wheel or tire rotations ,
1456	1426		(8) repairs of motor vehicles owned by the dealer o r
1457	1427		employee thereof at the time of the repair,
1458	1428		(9) engine and/or transmission assemb lies,
1459	1429		(10) vehicle reconditioning, or
1460	1430		(11) items that do not have individual part numbers
1461	1431		including, but not limited to, nuts, bolts and
1462	1432		fasteners. If a franchisor determin es from the
1463	1433
1464		-	HB3994 HFLR Page 29
1465		-	BOLD FACE denotes Committee Amendments. 1
	1434	+	Req. No. 10893 Page 29 1
1466	1435		2
1467	1436		3
1468	1437		4
1469	1438		5
1470	1439		6
1471	1440		7
1472	1441		8
1473	1442		9
1474	1443		10
1475	1444		11
1476	1445		12
1477	1446		13
1478	1447		14
1479	1448		15
1480	1449		16
1481	1450		17
1482	1451		18
1483	1452		19
1484	1453		20
1485	1454		21
1486	1455		22
1487	1456		23
1488	1457		24
1489	1458
1490	1459		dealer's set of repair orders submitted pursuant
1491	1460		to this section that the dealer’s submission for
1492	1461		a retail labor rate or retail parts rate is fifty
1493	1462		percent (50%) higher than the dealer’s current
1494	1463		warranty rate, the franchisor may request, in
1495	1464		writing, within thirty (30) days after the
1496	1465		franchisor’s receipt of the dealer’s submission,
1497	1466		all repair orders closed within the period of
1498	1467		thirty (30) days immediately preceding, or thirty
1499	1468		(30) days immediately following, the set of
1500	1469		repair orders submitted by the dealer. All time
1501	1470		periods under this section shall be suspended
1502	1471		until the supplemental repair orders are
1503	1472		provided. If the franchisor requests
1504	1473		supplemental repair orders pursuant to this
1505	1474		subsection, the franchisor may calculate a
1506	1475		proposed adjusted retail labor rate or retail
1507	1476		parts rate, as applicable, using all of the
1508	1477		applicable supplemental repair orders and no less
1509	1478		than one hundred repair orders submitted by the
1510	1479		franchisee, if the franchisor complies by using
1511	1480		the same requirements applicabl e to the
1512	1481		franchisee’s submission pursuant to this section
1513	1482		and by using the formula to calculate retail
1514	1483
1515		-	HB3994 HFLR Page 30
1516		-	BOLD FACE denotes Committee Amendments. 1
	1484	+	Req. No. 10893 Page 30 1
1517	1485		2
1518	1486		3
1519	1487		4
1520	1488		5
1521	1489		6
1522	1490		7
1523	1491		8
1524	1492		9
1525	1493		10
1526	1494		11
1527	1495		12
1528	1496		13
1529	1497		14
1530	1498		15
1531	1499		16
1532	1500		17
1533	1501		18
1534	1502		19
1535	1503		20
1536	1504		21
1537	1505		22
1538	1506		23
1539	1507		24
1540	1508
1541	1509		labor rate or retail parts as provided in this
1542	1510		section.
1543	1511		A manufacturer or distributor may, not later than thirty
1544	1512		(30) forty-five (45) days after submission, rebut that
1545	1513		declared retail parts and/or labor rate in writing by
1546	1514		reasonably substantiating that the rate is inaccurate o r
1547	1515		unreasonable in light of the practices of all other
1548	1516		franchised motor vehicle dealers in an economi cally similar
1549	1517		part of the state offering the same line-make vehicles not
1550	1518		established in accordance with this section. A
1551	1519		manufacturer or distributor shall n ot deny the dealer's
1552	1520		submission to establish the retail labor rate, retail parts
1553	1521		rate or both, under this section. Instead, the
1554	1522		manufacturer or distributor must approve or rebut as
1555	1523		provided herein. The retail rate labor and parts rates
1556	1524		shall go into effect thirty (30) days following the
1557	1525		approval by the manufacturer or distributor, subject to
1558	1526		audit of the submitted repair o rders by the franchisor and
1559	1527		a rebuttal of the declared rate as described above. If the
1560	1528		declared rate is rebutted, the manufacturer or di stributor
1561	1529		shall provide written notice stating the specific reasons
1562	1530		for the rebuttal, a full expla nation of any and all reasons
1563	1531		for the allegation, evidence substan tiating the
1564	1532		manufacturer or distributor's position, a copy of all
1565	1533
1566		-	HB3994 HFLR Page 31
1567		-	BOLD FACE denotes Committee Amendments. 1
	1534	+	Req. No. 10893 Page 31 1
1568	1535		2
1569	1536		3
1570	1537		4
1571	1538		5
1572	1539		6
1573	1540		7
1574	1541		8
1575	1542		9
1576	1543		10
1577	1544		11
1578	1545		12
1579	1546		13
1580	1547		14
1581	1548		15
1582	1549		16
1583	1550		17
1584	1551		18
1585	1552		19
1586	1553		20
1587	1554		21
1588	1555		22
1589	1556		23
1590	1557		24
1591	1558
1592	1559		calculations used by the f ranchisor in determining t he
1593	1560		manufacturer or distributor 's position and propose an
1594	1561		adjustment in writing of the average percentage markup or
1595	1562		labor rate based on that rebuttal not later than thirty
1596	1563		(30) days after submission. If the dealer does not agree
1597	1564		with the proposed average percentage mark up or labor rate,
1598	1565		the dealer may file a protest with the C ommission not later
1599	1566		than thirty (30) days after receipt of that pr oposal by the
1600	1567		manufacturer or distributor. In the event a protest is
1601	1568		filed, the manufacturer or distributor shall have the
1602	1569		burden of proof to est ablish the new motor vehicle dealer 's
1603	1570		submitted parts markup rate or labor rate was inaccurate or
1604	1571		unreasonable in light of the practices of all other
1605	1572		franchised motor vehicle deal ers in an economically similar
1606	1573		part of the state not established in accordance with this
1607	1574		section. A manufacturer or distributor may not retal iate
1608	1575		against any new motor vehicle dealer see king to exercise
1609	1576		its rights under this provision section. A manufacturer or
1610	1577		distributor may require a dealer to submit repair orders in
1611	1578		accordance with this section in order to val idate a
1612	1579		dealer's retail rate for parts or labor not more often than
1613	1580		once every twelve (12) months. Any validation of the
1614	1581		retail parts and labor rate as permitted herein m ust use
1615	1582		the same criteria for establishment of the rate in this
1616	1583
1617		-	HB3994 HFLR Page 32
1618		-	BOLD FACE denotes Committee Amendments. 1
	1584	+	Req. No. 10893 Page 32 1
1619	1585		2
1620	1586		3
1621	1587		4
1622	1588		5
1623	1589		6
1624	1590		7
1625	1591		8
1626	1592		9
1627	1593		10
1628	1594		11
1629	1595		12
1630	1596		13
1631	1597		14
1632	1598		15
1633	1599		16
1634	1600		17
1635	1601		18
1636	1602		19
1637	1603		20
1638	1604		21
1639	1605		22
1640	1606		23
1641	1607		24
1642	1608
1643	1609		section. A manufacturer or distributor may not otherwise
1644	1610		recover its costs from dealers within this state including
1645	1611		an increase in the wholesale price of a vehicle or
1646	1612		surcharge imposed on a d ealer solely intended to recover
1647	1613		the cost of reimbursing a dealer for parts and labor
1648	1614		pursuant to this section; provided, a manufacturer or
1649	1615		distributor shall no t be prohibited from increasing prices
1650	1616		for vehicles or parts in the normal course of business.
1651	1617		All claims made by dealers for compensation for delivery,
1652	1618		preparation and warranty, or recall repair work shall be
1653	1619		paid within thirty (30) days after approval and shall be
1654	1620		approved or disapproved within thirty (30) days after
1655	1621		receipt. When any claim is disapproved , the dealer shall
1656	1622		be notified in writing of the grounds for disapproval. The
1657	1623		dealer's delivery, preparation and warranty obligations as
1658	1624		filed with the Commissio n shall constitute the dealer's
1659	1625		sole responsibility for product liability as between the
1660	1626		dealer and manufacturer. A factory may reasonably and
1661	1627		periodically audit a new motor vehicle dealer to determine
1662	1628		the validity of paid claims for dealer compensation o r any
1663	1629		charge-backs for warranty parts or service compensation.
1664	1630		Except in cases of suspected f raud, audits of warranty
1665	1631		payments shall only be for the one -year period immediat ely
1666	1632		following the date of the payment. A manufacturer shall
1667	1633
1668		-	HB3994 HFLR Page 33
1669		-	BOLD FACE denotes Committee Amendments. 1
	1634	+	Req. No. 10893 Page 33 1
1670	1635		2
1671	1636		3
1672	1637		4
1673	1638		5
1674	1639		6
1675	1640		7
1676	1641		8
1677	1642		9
1678	1643		10
1679	1644		11
1680	1645		12
1681	1646		13
1682	1647		14
1683	1648		15
1684	1649		16
1685	1650		17
1686	1651		18
1687	1652		19
1688	1653		20
1689	1654		21
1690	1655		22
1691	1656		23
1692	1657		24
1693	1658
1694	1659		reserve the right to reasonable, periodic audits to
1695	1660		determine the validity of paid claims for dealer
1696	1661		compensation or any charge-backs for consumer or dealer
1697	1662		incentives. Except in cases of suspec ted fraud, audits of
1698	1663		incentive payments shall only be for a one-year period
1699	1664		immediately following the date of the payment. A factory
1700	1665		shall not deny a claim or charge a new mot or vehicle dealer
1701	1666		back subsequent to the payment of the claim unless the
1702	1667		factory can show that the claim was false or fraudulent or
1703	1668		that the new motor vehicle dea ler failed to reasonably
1704	1669		substantiate the claim by the written reasonable procedures
1705	1670		of the factory. A factory shall not deny a claim or
1706	1671		implement a charge-back against a new motor vehicle dealer
1707	1672		after payment of a claim in the event a purchaser of a new
1708	1673		vehicle that is the subject of a claim fails to comply with
1709	1674		titling or registration laws of this state and is not
1710	1675		prevented from compliance by any action of the dealer
1711	1676		provided that the factory may require th e new motor vehicle
1712	1677		dealer to establish the sale . The factory shall provide
1713	1678		written notice to a dealer of a proposed charg e-back that
1714	1679		is the result of an audit along with the specific audit
1715	1680		results and proposed charge-back amount. A dealer that
1716	1681		receives notice of a proposed charge-back pursuant to a
1717	1682		factory's audit has the right to file a protest with the
1718	1683
1719		-	HB3994 HFLR Page 34
1720		-	BOLD FACE denotes Committee Amendments. 1
	1684	+	Req. No. 10893 Page 34 1
1721	1685		2
1722	1686		3
1723	1687		4
1724	1688		5
1725	1689		6
1726	1690		7
1727	1691		8
1728	1692		9
1729	1693		10
1730	1694		11
1731	1695		12
1732	1696		13
1733	1697		14
1734	1698		15
1735	1699		16
1736	1700		17
1737	1701		18
1738	1702		19
1739	1703		20
1740	1704		21
1741	1705		22
1742	1706		23
1743	1707		24
1744	1708
1745	1709		Commission within thirty (30) days after receipt of the
1746	1710		notice of the charge-back or audit results, wh ichever is
1747	1711		later. The factory is prohibited from implementing the
1748	1712		charge-back or debiting the dealer's account until either
1749	1713		the time frame for filing a protest has passed o r a final
1750	1714		adjudication is rendered by the Commission, whichever is
1751	1715		later, unless the dealer has agreed to the charge-back or
1752	1716		charge-backs,
1753	1717		c. fails to compensate the new motor vehicle dealer for a
1754	1718		used motor vehicle:
1755	1719		(1) that is of the same make and model manufactured,
1756	1720		imported or distributed by the factory and is a
1757	1721		line-make that the dealer is franchised to sell
1758	1722		or on which the dealer is authorized to perform
1759	1723		recall repairs,
1760	1724		(2) that is subject to a stop-sale or do-not-drive
1761	1725		notice issued by the factory,
1762	1726		(3) that is held by the new motor vehicle dealer in
1763	1727		the dealer's inventory at the time the stop-sale
1764	1728		or do-not-drive notice is issued or that is taken
1765	1729		by the new motor vehicle dealer into t he dealer's
1766	1730		inventory after the recall notice as a result of
1767	1731		a retail consumer trade-in or a lease return to
1768	1732
1769		-	HB3994 HFLR Page 35
1770		-	BOLD FACE denotes Committee Amendments. 1
	1733	+	Req. No. 10893 Page 35 1
1771	1734		2
1772	1735		3
1773	1736		4
1774	1737		5
1775	1738		6
1776	1739		7
1777	1740		8
1778	1741		9
1779	1742		10
1780	1743		11
1781	1744		12
1782	1745		13
1783	1746		14
1784	1747		15
1785	1748		16
1786	1749		17
1787	1750		18
1788	1751		19
1789	1752		20
1790	1753		21
1791	1754		22
1792	1755		23
1793	1756		24
1794	1757
1795	1758		the dealer inventory in accordance with an
1796	1759		applicable lease contract,
1797	1760		(4) that cannot be repaired due to the
1798	1761		unavailability, within thirty (30) days after
1799	1762		issuance of the stop-sale or do-not-drive notice,
1800	1763		of a remedy or parts necessary for the ne w motor
1801	1764		vehicle dealer to make the recall repair, and
1802	1765		(5) for which the factory has not issued a written
1803	1766		statement to the new motor vehicle dealer
1804	1767		indicating that the used moto r vehicle may be
1805	1768		sold or delivered to a retail consumer before
1806	1769		completion of the recall repair. The purpose of
1807	1770		such written statement is to provide notice to
1808	1771		the new motor vehicle dealer that the vehicle may
1809	1772		be sold or delivered based solely on the specif ic
1810	1773		recall notice and is not intended to address any
1811	1774		other aspect of the vehicle unrelated to the
1812	1775		recall notice. The factory shall pay the
1813	1776		compensation required un der this subsection
1814	1777		within thirty (30) days after the motor vehicle
1815	1778		dealer's application for payment. Compensation
1816	1779		under this subsection must be the greater of:
1817	1780		(a) payment at a rate of at least one and one-
1818	1781		half percent (1.5%) per month of the value
1819	1782
1820		-	HB3994 HFLR Page 36
1821		-	BOLD FACE denotes Committee Amendments. 1
	1783	+	Req. No. 10893 Page 36 1
1822	1784		2
1823	1785		3
1824	1786		4
1825	1787		5
1826	1788		6
1827	1789		7
1828	1790		8
1829	1791		9
1830	1792		10
1831	1793		11
1832	1794		12
1833	1795		13
1834	1796		14
1835	1797		15
1836	1798		16
1837	1799		17
1838	1800		18
1839	1801		19
1840	1802		20
1841	1803		21
1842	1804		22
1843	1805		23
1844	1806		24
1845	1807
1846	1808		of the motor vehicle as determined by the
1847	1809		average Black Book value of the
1848	1810		corresponding model year vehicle of average
1849	1811		condition, of each eligible used motor
1850	1812		vehicle in the new motor vehicle dealer's
1851	1813		inventory for each month that the dealer
1852	1814		does not receive a re medy and parts to
1853	1815		complete the required recall repair. Such
1854	1816		payment must be prorated for any period less
1855	1817		than one (1) month based on the number of
1856	1818		days during the month each eligible used
1857	1819		motor vehicle is in the motor vehicle
1858	1820		dealer's inventory, or
1859	1821		(b) payment under a national program applicable
1860	1822		to all motor vehicle dealers holding a
1861	1823		franchise agreement with the manufac turer
1862	1824		for the motor vehicle dealer's costs
1863	1825		associated with holding the eligible used
1864	1826		motor vehicles,
1865	1827		d. unreasonably fails or refuses to of fer to its same
1866	1828		line-make franchised dealers a reasonable supply and
1867	1829		mix of all models manufactured for that line-make, or
1868	1830		unreasonably requires a dealer to pay any extra fee,
1869	1831		purchase unreasonable advertising displays or other
1870	1832
1871		-	HB3994 HFLR Page 37
1872		-	BOLD FACE denotes Committee Amendments. 1
	1833	+	Req. No. 10893 Page 37 1
1873	1834		2
1874	1835		3
1875	1836		4
1876	1837		5
1877	1838		6
1878	1839		7
1879	1840		8
1880	1841		9
1881	1842		10
1882	1843		11
1883	1844		12
1884	1845		13
1885	1846		14
1886	1847		15
1887	1848		16
1888	1849		17
1889	1850		18
1890	1851		19
1891	1852		20
1892	1853		21
1893	1854		22
1894	1855		23
1895	1856		24
1896	1857
1897	1858		materials, enter into a separate agreement which is
1898	1859		different than the terms of the dealer's existing
1899	1860		franchise agreement or which waives any right the
1900	1861		dealer has within the existing franchise agreement , or
1901	1862		remodel, renovate, or recondition the dealer 's
1902	1863		existing facilities as a pre requisite to receivin g a
1903	1864		model or series of vehicles. It shall be a violation
1904	1865		of this section for new vehicle allocation to be
1905	1866		withheld subject to any requiremen t to purchase or
1906	1867		sell any number of used or off-lease vehicles. The
1907	1868		failure to deliver any su ch new motor vehicle shall
1908	1869		not be considered a violation of the section if the
1909	1870		failure is not arbitrary or is due to lack of
1910	1871		manufacturing capacity or to a strike or labor
1911	1872		difficulty, a shortage of materials, a freight embargo
1912	1873		or other cause over which the manufacturer has no
1913	1874		control. However, this for vehicles planned for
1914	1875		limited production, each dealer shall receive at least
1915	1876		one such vehicle and otherwise shall receive a
1916	1877		reasonable and proportional share of such vehicle
1917	1878		allocation. This subparagraph shall not apply to
1918	1879		recreational vehicles or limited production model
1919	1880		vehicles,
1920	1881		d.
1921	1882
1922		-	HB3994 HFLR Page 38
1923		-	BOLD FACE denotes Committee Amendments. 1
	1883	+	Req. No. 10893 Page 38 1
1924	1884		2
1925	1885		3
1926	1886		4
1927	1887		5
1928	1888		6
1929	1889		7
1930	1890		8
1931	1891		9
1932	1892		10
1933	1893		11
1934	1894		12
1935	1895		13
1936	1896		14
1937	1897		15
1938	1898		16
1939	1899		17
1940	1900		18
1941	1901		19
1942	1902		20
1943	1903		21
1944	1904		22
1945	1905		23
1946	1906		24
1947	1907
1948	1908		e. except as necessary to comply with a health or safety
1949	1909		law, or to comply with a t echnology requirement which
1950	1910		is necessary to sell or service a motor vehicle that
1951	1911		the franchised motor vehicle dealer is authorized or
1952	1912		licensed by the franchisor to sell or service,
1953	1913		requires a new motor vehicle dealer to provide any
1954	1914		service or take any acti on or to construct a new
1955	1915		facility or substantially renovate the new motor
1956	1916		vehicle dealer's existing facility, in order to
1957	1917		receive all models manufactured for that line-make,
1958	1918		f. except as necessary to comply with a health or safety
1959	1919		law, or to comply with a technology requirement which
1960	1920		is necessary to sell or service a motor vehicle that
1961	1921		the franchised motor vehicle dealer is authorized or
1962	1922		licensed by the franchisor to sell or service ,
1963	1923		requires a new motor vehicle dealer to construct a new
1964	1924		facility or substantially renovate the new motor
1965	1925		vehicle dealer's existing facility unless the facility
1966	1926		construction or renovation is justified by the
1967	1927		economic conditions existing at the time, as wel l as
1968	1928		the reasonably foreseeable projections, in the
1969	1929		dealer's market and in the automotive industry.
1970	1930		However, this subparagraph shall not apply if the
1971	1931		factory provides dealer voluntarily agrees to facility
1972	1932
1973		-	HB3994 HFLR Page 39
1974		-	BOLD FACE denotes Committee Amendments. 1
	1933	+	Req. No. 10893 Page 39 1
1975	1934		2
1976	1935		3
1977	1936		4
1978	1937		5
1979	1938		6
1980	1939		7
1981	1940		8
1982	1941		9
1983	1942		10
1984	1943		11
1985	1944		12
1986	1945		13
1987	1946		14
1988	1947		15
1989	1948		16
1990	1949		17
1991	1950		18
1992	1951		19
1993	1952		20
1994	1953		21
1995	1954		22
1996	1955		23
1997	1956		24
1998	1957
1999	1958		construction or renovation in exchange for money,
2000	1959		credit, allowance, reimbursement, except for payments
2001	1960		on a per vehicle basis , or additional vehicle
2002	1961		allocation to a dealer from the factory to compensate
2003	1962		the dealer for the cost of, or a portion of the cost
2004	1963		of, the facility construction or renovation. Except
2005	1964		as necessary to comply with a health or safety law, or
2006	1965		to comply with a technology requirement which is
2007	1966		necessary to sell or service a motor vehicle that the
2008	1967		franchised motor vehicle dealer is authorized or
2009	1968		licensed by the franchisor to sell or service , a
2010	1969		dealer which completes a facility construction or
2011	1970		renovation pursuant to factory requirements shall not
2012	1971		be required to construct a new facility or renovate
2013	1972		the existing facility for ten (10) years, during which
2014	1973		time the dealer will be considered in com pliance with
2015	1974		any new facility program for purposes of being
2016	1975		entitled to all incentive or bonus payments offered to
2017	1976		same line-make dealers,
2018	1977		e.
2019	1978		g. requires a new motor veh icle dealer to establish an
2020	1979		exclusive facility, unless supported by reasonable
2021	1980		business, market and economic considerations;
2022	1981		provided, that this provision section shall not
2023	1982
2024		-	HB3994 HFLR Page 40
2025		-	BOLD FACE denotes Committee Amendments. 1
	1983	+	Req. No. 10893 Page 40 1
2026	1984		2
2027	1985		3
2028	1986		4
2029	1987		5
2030	1988		6
2031	1989		7
2032	1990		8
2033	1991		9
2034	1992		10
2035	1993		11
2036	1994		12
2037	1995		13
2038	1996		14
2039	1997		15
2040	1998		16
2041	1999		17
2042	2000		18
2043	2001		19
2044	2002		20
2045	2003		21
2046	2004		22
2047	2005		23
2048	2006		24
2049	2007
2050	2008		restrict the terms of any agreement for such exclusive
2051	2009		facility voluntarily entered into and supported by
2052	2010		valuable consideration separate from the new motor
2053	2011		vehicle dealer's right to sell and service motor
2054	2012		vehicles for the franchisor,
2055	2013		f.
2056	2014		h. requires a new motor vehicle dealer to enter into a
2057	2015		site-control agreement covering any or all of the new
2058	2016		motor vehicle dealer's facilities or premises;
2059	2017		provided, that this provision section shall not
2060	2018		restrict the terms of any site-control agreement
2061	2019		voluntarily entered into and supported by valuable
2062	2020		consideration separate from the new motor vehicle
2063	2021		dealer's right to sell and service motor vehicles for
2064	2022		the franchisor. Notwithstanding the foregoing or the
2065	2023		terms of any site-control agreement, a site-control
2066	2024		agreement automatically extinguishes if all of the
2067	2025		factory's franchises that operated from the loc ation
2068	2026		that are the subject of the site-control agreement are
2069	2027		terminated by the factory as part of the
2070	2028		discontinuance of a product line, or
2071	2029		g.
2072	2030		i. refuses to pay, or claim reimbursement from, a dealer
2073	2031		for sales, incentives or other payments related to a
2074	2032
2075		-	HB3994 HFLR Page 41
2076		-	BOLD FACE denotes Committee Amendments. 1
	2033	+	Req. No. 10893 Page 41 1
2077	2034		2
2078	2035		3
2079	2036		4
2080	2037		5
2081	2038		6
2082	2039		7
2083	2040		8
2084	2041		9
2085	2042		10
2086	2043		11
2087	2044		12
2088	2045		13
2089	2046		14
2090	2047		15
2091	2048		16
2092	2049		17
2093	2050		18
2094	2051		19
2095	2052		20
2096	2053		21
2097	2054		22
2098	2055		23
2099	2056		24
2100	2057
2101	2058		motor vehicle sold by th e dealer because the purchaser
2102	2059		of the motor vehicle exported or resold the motor
2103	2060		vehicle in violation of the policy of the factory
2104	2061		unless the factory can show that, at the time of the
2105	2062		sale, the dealer knew or reasonably should have kno wn
2106	2063		of the purchaser's intention to export or resell the
2107	2064		motor vehicle. There is a rebuttable presumption that
2108	2065		the dealer did not know or could not have known tha t
2109	2066		the vehicle would be exported if the vehicle is titled
2110	2067		and registered in any state of the Un ited States, or
2111	2068		j. requires a new motor vehicle dealer to purc hase goods
2112	2069		or services for the construction, renovation, or
2113	2070		improvement of the dealer's facility from a vendor
2114	2071		chosen by the factory if goods or services available
2115	2072		from other sources are of subs tantially similar
2116	2073		quality and design and comply with all appli cable
2117	2074		laws; provided, however, that such goods are not
2118	2075		subject to the factory's intellectual propert y or
2119	2076		trademark rights and the new motor vehicle dealer has
2120	2077		received the factory 's approval, which approval may
2121	2078		not be unreasonably withheld. Nothing in thi s
2122	2079		subparagraph may be construed to allow a new motor
2123	2080		vehicle dealer to impair or eliminate a factory 's
2124	2081		intellectual property, trademark rights or trade dress
2125	2082
2126		-	HB3994 HFLR Page 42
2127		-	BOLD FACE denotes Committee Amendments. 1
	2083	+	Req. No. 10893 Page 42 1
2128	2084		2
2129	2085		3
2130	2086		4
2131	2087		5
2132	2088		6
2133	2089		7
2134	2090		8
2135	2091		9
2136	2092		10
2137	2093		11
2138	2094		12
2139	2095		13
2140	2096		14
2141	2097		15
2142	2098		16
2143	2099		17
2144	2100		18
2145	2101		19
2146	2102		20
2147	2103		21
2148	2104		22
2149	2105		23
2150	2106		24
2151	2107
2152	2108		usage guidelines. Nothing in this s ection prohibits
2153	2109		the enforcement of a voluntary agreement betw een the
2154	2110		factory and the new motor vehicle dealer where
2155	2111		separate and valuable consideration has been offered
2156	2112		and accepted;
2157	2113		10. Being a factory that:
2158	2114		a. establishes a system of motor vehicle allo cation or
2159	2115		distribution which is unfair, inequitable or
2160	2116		unreasonably discriminatory. Upon the request of any
2161	2117		dealer franchised by it, a factory shall disclose in
2162	2118		writing to the dealer the basis upon which new motor
2163	2119		vehicles are allocated, scheduled and del ivered among
2164	2120		the dealers of the same line-make for that factor y, or
2165	2121		b. changes an established plan or system of motor vehicle
2166	2122		distribution. A motor vehicle deale r franchise
2167	2123		agreement shall continue in full force and operation
2168	2124		notwithstanding a change, in whole or in part, of an
2169	2125		established plan or system of distribu tion of the
2170	2126		motor vehicles offered or previously offered for sale
2171	2127		under such franchise agreement. The appointment of a
2172	2128		new importer or distributor for motor vehicles offered
2173	2129		for sale under such franchise agreement shall be
2174	2130		deemed to be a change of an esta blished plan or system
2175	2131		of distribution. Upon the occurrence of such change,
2176	2132
2177		-	HB3994 HFLR Page 43
2178		-	BOLD FACE denotes Committee Amendments. 1
	2133	+	Req. No. 10893 Page 43 1
2179	2134		2
2180	2135		3
2181	2136		4
2182	2137		5
2183	2138		6
2184	2139		7
2185	2140		8
2186	2141		9
2187	2142		10
2188	2143		11
2189	2144		12
2190	2145		13
2191	2146		14
2192	2147		15
2193	2148		16
2194	2149		17
2195	2150		18
2196	2151		19
2197	2152		20
2198	2153		21
2199	2154		22
2200	2155		23
2201	2156		24
2202	2157
2203	2158		the manufacturer or dis tributor shall be prohibited
2204	2159		from obtaining a license to distribute vehicles under
2205	2160		the new plan or system of distri bution unless the
2206	2161		manufacturer or distrib utor offers to each motor
2207	2162		vehicle dealer who is a party to the franchise
2208	2163		agreement a new franchise a greement containing
2209	2164		substantially the same provisions which were contained
2210	2165		in the previous franchise agreement;
2211	2166		11. Being a factory that sells directly or indirectly new motor
2212	2167		vehicles to any retail consumer in the state except through a new
2213	2168		motor vehicle dealer holding a franchise for the line-make that
2214	2169		includes the new motor vehicle. This parag raph does not apply t o
2215	2170		factory sales of new motor vehicles to its employees, family members
2216	2171		of employees, retirees and family members of retirees, not-for-
2217	2172		profit organizations or the federal, state or local governments.
2218	2173		The provisions of this paragraph sh all not preclude a fa ctory from
2219	2174		providing information to a con sumer for the purpose of marketing or
2220	2175		facilitating a sale of a new motor vehicle through its franchised
2221	2176		motor vehicle dealers or from establishing a program to sell or
2222	2177		offer to sell new motor ve hicles through partic ipating dealers
2223	2178		subject to the limitation s contained in paragraph 2 of Section 562
2224	2179		of this title;
2225	2180		12. a. Being a factory which directly or in directly:
2226	2181
2227		-	HB3994 HFLR Page 44
2228		-	BOLD FACE denotes Committee Amendments. 1
	2182	+	Req. No. 10893 Page 44 1
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2240	2194		13
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2243	2197		16
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2245	2199		18
2246	2200		19
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2250	2204		23
2251	2205		24
2252	2206
2253	2207		(1) owns any ownership interest or has any financial
2254	2208		interest in a new motor vehicle dealer or any
2255	2209		person who sells products or services to the
2256	2210		public,
2257	2211		(2) operates or controls a new motor vehicle dealer,
2258	2212		or
2259	2213		(3) acts in the capacity of a new moto r vehicle
2260	2214		dealer.
2261	2215		b. (1) This paragraph does not prohibit a factory from
2262	2216		owning or controlling a new motor vehicle dealer
2263	2217		while in a bona fide relationship with a dealer
2264	2218		development candidate who has made a substantial
2265	2219		initial investment in the franchise a nd whose
2266	2220		initial investment is subject to potential loss.
2267	2221		The dealer development candidate ca n reasonably
2268	2222		expect to acquire full ownership of a new motor
2269	2223		vehicle dealer within a reasonable period of time
2270	2224		not to exceed ten (10) years and on reasonable
2271	2225		terms and conditions. The ten-year acquisition
2272	2226		period may be expanded for good cause shown.
2273	2227		(2) This paragraph does no t prohibit a factory from
2274	2228		owning, operating, controlling or acting in the
2275	2229		capacity of a motor vehicle dealer for a period
2276	2230		not to exceed twelve (12) months during the
2277	2231
2278		-	HB3994 HFLR Page 45
2279		-	BOLD FACE denotes Committee Amendments. 1
	2232	+	Req. No. 10893 Page 45 1
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2303	2256
2304	2257		transition from one independent dealer to another
2305	2258		independent dealer if the dealership is for sale
2306	2259		at a reasonable price and on reasonable terms a nd
2307	2260		conditions to an independent qualified buyer. On
2308	2261		showing by a factory of good cau se, the Oklahoma
2309	2262		Motor Vehicle Commission may extend the time
2310	2263		limit set forth above; extension s may be granted
2311	2264		for periods not to exceed twelve (12) months.
2312	2265		(3) This paragraph does not prohibit a factory from
2313	2266		owning, operating or controlling or acting in t he
2314	2267		capacity of a motor vehicle dealer which was in
2315	2268		operation prior to January 1, 2000.
2316	2269		(4) This paragraph does not prohibit a factory from
2317	2270		owning, directly or indirectly, a minority
2318	2271		interest in an entity that owns, operates or
2319	2272		controls motor vehicle dealer ships of the same
2320	2273		line-make franchised by the manufacturer,
2321	2274		provided that each of the followin g conditions
2322	2275		are met:
2323	2276		(a) all of the motor vehicle dealerships selling
2324	2277		the motor vehicles of that manufacturer in
2325	2278		this state trade exclusively in the line -
2326	2279		make of that manufacturer,
2327	2280
2328		-	HB3994 HFLR Page 46
2329		-	BOLD FACE denotes Committee Amendments. 1
	2281	+	Req. No. 10893 Page 46 1
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2351	2303		23
2352	2304		24
2353	2305
2354	2306		(b) all of the franchise agreements of the
2355	2307		manufacturer confer rights on t he dealer of
2356	2308		the line-make to develop and operate, within
2357	2309		a defined geographic territory or area, as
2358	2310		many dealership facilities as the dealer and
2359	2311		manufacturer shall agree are appropriate,
2360	2312		(c) at the time the manufacturer first acquires
2361	2313		an ownership interes t or assumes operatio n,
2362	2314		the distance between any dealership thus
2363	2315		owned or operated and the nearest
2364	2316		unaffiliated motor vehicle dealership
2365	2317		trading in the same line -make is not less
2366	2318		than seventy (70) miles,
2367	2319		(d) during any period in which the manufacturer
2368	2320		has such an ownership int erest, the
2369	2321		manufacturer has no more than three
2370	2322		franchise agreements with new motor vehicle
2371	2323		dealers licensed by the Oklahoma Motor
2372	2324		Vehicle Commission to do business within the
2373	2325		state, and
2374	2326		(e) prior to January 1, 2000, the factory shall
2375	2327		have furnished or made available to
2376	2328		prospective motor vehicle dealers an
2377	2329		offering-circular in accordance with the
2378	2330
2379		-	HB3994 HFLR Page 47
2380		-	BOLD FACE denotes Committee Amendments. 1
	2331	+	Req. No. 10893 Page 47 1
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2403	2354		24
2404	2355
2405	2356		Trade Regulation Rule on Franchising of the
2406	2357		Federal Trade Commission, and any guidelines
2407	2358		and exemptions issued thereunder, which
2408	2359		disclose the possibility that the f actory
2409	2360		may from time to time seek to own or
2410	2361		acquire, directly or indirectly, ownership
2411	2362		interests in retail dealerships;
2412	2363		13. Being a factory which directly or indirectly makes
2413	2364		available for public disclosure any proprietary information provided
2414	2365		to the factory by a new motor vehicle dealer, other than in
2415	2366		composite form to dealers in the same line-make or in response to a
2416	2367		subpoena or order of the Commission or a court. Proprietary
2417	2368		information includes, but is not limited to, information :
2418	2369		a. derived from monthly financial statements provided to
2419	2370		the factory, and
2420	2371		b. regarding any aspect of the profitability of a
2421	2372		particular new motor vehicle dealer;
2422	2373		14. Being a factory which does not provide or direct leads in a
2423	2374		fair, equitable and timely ma nner. Nothing in thi s paragraph shall
2424	2375		be construed to require a factory to d isregard the preference of a
2425	2376		consumer in providing or directing a lead;
2426	2377		15. Being a factory which used the customer consumer list of a
2427	2378		new motor vehicle dealer for the purpose of unfairly competing w ith
2428	2379		dealers;
2429	2380
2430		-	HB3994 HFLR Page 48
2431		-	BOLD FACE denotes Committee Amendments. 1
	2381	+	Req. No. 10893 Page 48 1
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2455	2405
2456	2406		16. Being a factory which prohibits a new motor veh icle dealer
2457	2407		from relocating after a written request by such new motor vehicl e
2458	2408		dealer if:
2459	2409		a. the facility and the proposed new location satisfies
2460	2410		or meets the written reas onable guidelines of the
2461	2411		factory. Reasonable guidelines do not include
2462	2412		exclusivity or site control unless agreed to as set
2463	2413		forth in subparagraphs e g and f h of paragraph 9 of
2464	2414		this subsection,
2465	2415		b. the proposed new location is within the area of
2466	2416		responsibility of the new motor vehicle dealer
2467	2417		pursuant to Section 578.1 of this title, and
2468	2418		c. the factory has sixty (60) days from receipt of the
2469	2419		new motor vehicle dealer 's relocation request to
2470	2420		approve or deny the request. The failure to approve
2471	2421		or deny the request within the sixty-day time frame
2472	2422		shall constitute approval of the request;
2473	2423		17. Being a factory which prohibits a new motor vehicle dealer
2474	2424		from adding additional line-makes to its existing facility, if,
2475	2425		after adding the additional line -makes, the facility satisfies the
2476	2426		written reasonable capitalization standards and facility guidelines
2477	2427		of each factory. Reasonable facility guidelines do not include a
2478	2428		requirement to maintain exclusivity or site control unless agreed to
2479	2429
2480		-	HB3994 HFLR Page 49
2481		-	BOLD FACE denotes Committee Amendments. 1
	2430	+	Req. No. 10893 Page 49 1
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2505	2454
2506	2455		by the dealer as set forth in subparag raphs e g and f h of paragraph
2507	2456		9 of this subsection;
2508	2457		18. Being a factory that increases prices of new motor vehicles
2509	2458		which the new motor vehicle dealer had order ed for retail consumers
2510	2459		and notified the factory prior to the dealer 's receipt of the
2511	2460		written official price increa se notification. A sales contract
2512	2461		signed by a retail consumer accom panied with proof of order
2513	2462		submission to the factory shall constitute evi dence of each such
2514	2463		order, provided that the vehicle is in fact delivered to the
2515	2464		customer consumer. Price differences applicable to new models or
2516	2465		series motor vehicles at the time of the introduction of new models
2517	2466		or series shall not be considered a price increase for purposes of
2518	2467		this paragraph. Price changes caused by any of the following shall
2519	2468		not be subject to the provisions of this paragraph:
2520	2469		a. the addition to a motor vehicle of required or
2521	2470		optional equipment pursuant to state or federal law,
2522	2471		b. revaluation of the United States dollar in the case of
2523	2472		foreign-made vehicles or components, or
2524	2473		c. an increase in transportation charges due to increased
2525	2474		rates imposed by common or contract carriers;
2526	2475		19. Being a factory that requires a new motor vehicle dealer to
2527	2476		participate monetarily in an advertising cam paign or contest, or
2528	2477		purchase any promotional materials, showroom or other display
2529	2478		decoration or material s at the expense of the new motor vehicle
2530	2479
2531		-	HB3994 HFLR Page 50
2532		-	BOLD FACE denotes Committee Amendments. 1
	2480	+	Req. No. 10893 Page 50 1
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2555	2503		24
2556	2504
2557	2505		dealer without consent of the dealer, which consent shall not be
2558	2506		unreasonably withheld;
2559	2507		20. Being a factory that denies any new motor vehicle dealer
2560	2508		the right of free association with any other new motor vehicle
2561	2509		dealer for any lawful purpose, unless otherwise permitted by this
2562	2510		chapter; or
2563	2511		21. Being a factory that requires a new motor vehicle dealer to
2564	2512		sell, offer to sell or sell exclusively an extended service
2565	2513		contract, extended maintenance plan or similar product , such as gap
2566	2514		products offered, endorsed or sponsored by the factory by the
2567	2515		following means:
2568	2516		a. by an act or statement from the factory that will in
2569	2517		any manner adversely impact the dealer,
2570	2518		b. by measuring the dealer's performance under the
2571	2519		franchise based on the sale of extended service
2572	2520		contracts, extended maintenance plans or similar
2573	2521		products offered, endorsed or sp onsored by the
2574	2522		manufacturer or distrib utor.
2575	2523		B. Notwithstanding the terms of any franchise agr eement, in the
2576	2524		event of a proposed sale or transf er of a dealership, the
2577	2525		manufacturer or distributor shall be permitted to exercise a right
2578	2526		of first refusal to ac quire the assets or ownership interest of the
2579	2527		dealer of the new vehicle dealership, if such sa le or transfer is
2580	2528		conditioned upon the manufactur er or dealer entering into a dealer
2581	2529
2582		-	HB3994 HFLR Page 51
2583		-	BOLD FACE denotes Committee Amendments. 1
	2530	+	Req. No. 10893 Page 51 1
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2607	2554
2608	2555		agreement with the proposed new owner or transferee, only if all the
2609	2556		following requirements are met:
2610	2557		1. To exercise its right of first refusal, the factory must
2611	2558		notify the dealer in writing within sixty (60) days of rec eipt of
2612	2559		the completed proposal for the proposed sale transfer;
2613	2560		2. The exercise of the right of first refusal wil l result in
2614	2561		the dealer and the owner o f the dealership receiving the same or
2615	2562		greater consideration as they have contracted to receive in
2616	2563		connection with the proposed change of ownership or transfer;
2617	2564		3. The proposed sale or transfer of the assets of the
2618	2565		dealership does not involve the transfer or sale to a member or
2619	2566		members of the family of one or more dealer owners, or to a
2620	2567		qualified manager or a partnership or corporation controlled by such
2621	2568		persons; and
2622	2569		4. The factory agrees to pay the reasonable expense s, including
2623	2570		attorney fees which do no t exceed the usual, customary and
2624	2571		reasonable fees charge d for similar work done for other clients
2625	2572		incurred by the proposed new owner and transferee prior to the
2626	2573		exercise by the factory of its right of first refusal in negotiating
2627	2574		and implementing the contr act for the proposed sale or transfer of
2628	2575		the dealership or dealership assets. Notwithstanding the forego ing,
2629	2576		no payment of expenses and attorney fees shall be required if the
2630	2577		proposed new dealer or transferee has not submitted or caused to be
2631	2578		submitted an accounting of those expenses within thirty (30) days of
2632	2579
2633		-	HB3994 HFLR Page 52
2634		-	BOLD FACE denotes Committee Amendments. 1
	2580	+	Req. No. 10893 Page 52 1
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2658	2604
2659	2605		receipt of the written request of the factory fo r such an
2660	2606		accounting. The accounting may be requested by a factory before
2661	2607		exercising its right of first refusal.
2662	2608		C. Nothing in this section shall pro hibit, limit, restrict or
2663	2609		impose conditions on:
2664	2610		1. Business activities, including without limitation the
2665	2611		dealings with motor vehicle manufacturers and the representatives
2666	2612		and affiliates of motor vehicle manufacturers, of any person that is
2667	2613		primarily engaged in the business of short -term, not to exceed
2668	2614		twelve (12) months, rental of motor vehicles and industri al and
2669	2615		construction equipment and activities incidental to that business,
2670	2616		provided that:
2671	2617		a. any motor vehicle sol d by that person is limited to
2672	2618		used motor vehicles that have been previously used
2673	2619		exclusively and regularly by that person in the
2674	2620		conduct of business and used motor vehicles traded in
2675	2621		on motor vehicles sold by that person,
2676	2622		b. warranty repairs performed by that person on motor
2677	2623		vehicles are limited to those motor vehicles that it
2678	2624		owns, previously own ed or takes in trade, and
2679	2625		c. motor vehicle financ ing provided by that person to
2680	2626		retail consumers for motor vehicles is limited to used
2681	2627		vehicles sold by that perso n in the conduct of
2682	2628		business; or
2683	2629
2684		-	HB3994 HFLR Page 53
2685		-	BOLD FACE denotes Committee Amendments. 1
	2630	+	Req. No. 10893 Page 53 1
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2709	2654
2710	2655		2. The direct or indirect ownership, affiliation or control of
2711	2656		a person described in paragraph 1 of this subs ection.
2712	2657		SECTION 6. AMENDATORY 47 O.S. 2021, Section 565.1, is
2713	2658		amended to read as follow s:
2714	2659		Section 565.1 Notwithstanding the terms of any franchise
2715	2660		agreement, and subject to the fol lowing conditions contained in
2716	2661		paragraphs 1 through 5 of this section, any manufacturer or
2717	2662		distributor who prevents or refuses to honor the succession to the
2718	2663		operation of a dealership by any legal hei r or devisee under the
2719	2664		will of a new motor vehicle deale r or under the laws of descent and
2720	2665		distribution of this state, or designated successor to a departing
2721	2666		dealership operator, without good cause or good faith, as de fined in
2722	2667		this section, shall be subjec t to the following procedure:
2723	2668		1. Within one hundred twe nty (120) days after the death or
2724	2669		departure of the new motor vehicle dealer, the manufacturer shall
2725	2670		receive a written notice from any legal heir or devisee or designee
2726	2671		successor who intends to establish a become the successor dealership
2727	2672		operator. If timely notice is not so received, then this paragraph
2728	2673		shall not apply, and any succession shall be governed solely by the
2729	2674		terms of the franchise;
2730	2675		2. Within thirty (30 ) days of receipt of the legal heir 's or,
2731	2676		devisee's or successor's timely written notice, the manufacturer may
2732	2677		request, and the legal heir or, devisee or successor shall, within a
2733	2678		reasonable time, provide any information which is reasonably
2734	2679
2735		-	HB3994 HFLR Page 54
2736		-	BOLD FACE denotes Committee Amendments. 1
	2680	+	Req. No. 10893 Page 54 1
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2760	2704
2761	2705		necessary for the manufacturer to evaluate the propos ed successor
2762	2706		dealer and dealership, including, but not l imited to, applications,
2763	2707		proposals for facilities and financing;
2764	2708		3. Within sixty (60) days of receipt of such information, the
2765	2709		manufacturer shall approve or disa pprove the proposed successor
2766	2710		dealership dealer, and in case of disapproval shall communicate in
2767	2711		writing such disapproval and grounds for disap proval to the legal
2768	2712		heir or devisee proposed successor;
2769	2713		4. Failure of the manufacturer to act in a timely manner with
2770	2714		respect to any time period descr ibed above shall constitute a waiver
2771	2715		of the manufacturer's right to disapprove the proposed succession;
2772	2716		5. Within ten (10) days of its the proposed successor's receipt
2773	2717		of the manufacturer's notice of disapproval, the legal heir or
2774	2718		devisee proposed successor may file a protest of the manufacturer 's
2775	2719		decision with the Oklahoma Motor Vehicle Commission and request a
2776	2720		hearing. Such heari ng shall be heard in a substantially similar
2777	2721		manner as provided by Section 566 of this t itle, except that the
2778	2722		Commission shall render a final decision within sixty (60) days of
2779	2723		the filing of the protest. The manufacturer shall have the burden
2780	2724		of proof to show that its disapproval was for a good cause and in
2781	2725		good faith. A denial shall not be for good cause and in good faith
2782	2726		unless the factory establishes that the legal heir or devise e
2783	2727		proposed successor, or the legal heir or devisee 's proposed
2784	2728		successor's controlling executive management, is not of good moral
2785	2729
2786		-	HB3994 HFLR Page 55
2787		-	BOLD FACE denotes Committee Amendments. 1
	2730	+	Req. No. 10893 Page 55 1
2788	2731		2
2789	2732		3
2790	2733		4
2791	2734		5
2792	2735		6
2793	2736		7
2794	2737		8
2795	2738		9
2796	2739		10
2797	2740		11
2798	2741		12
2799	2742		13
2800	2743		14
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2802	2745		16
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2810	2753		24
2811	2754
2812	2755		character or fails to meet the wr itten, reasonable and uniformly
2813	2756		applied requirements of the manufacturer or distributor relati ng to
2814	2757		financial qualifications, general business experience, and other
2815	2758		requirements relating to prospective franchisees. However, a legal
2816	2759		heir that who is of good moral character in accordance with t he
2817	2760		reasonable factory's qualifications and meets the fac tory's
2818	2761		financial qualifications may rely on controlling executive
2819	2762		management that is of good moral character and meets the factory's
2820	2763		qualifications for general bu siness experience and other
2821	2764		requirements relating to prospective franchises . Any denial of the
2822	2765		proposed successor based upon a failure to agree to terms other than
2823	2766		those contained in the existing franchise agreement shall not be
2824	2767		considered good cause for such denial. The disapproval by the
2825	2768		manufacturer shall be final if the legal heir or devisee proposed
2826	2769		successor or dealership fails to file a timely protest of such
2827	2770		disapproval. In the event that the Commission finds that the
2828	2771		manufacturer's disapproval was not made for good cause, then it
2829	2772		shall issue a final order requiring the manufacturer to ho nor the
2830	2773		successor designated in the notice sent by the legal heir or
2831	2774		devisee. Notwithstanding anything to the contrary in this section,
2832	2775		a new motor vehicle deale r may designate any person as successo r by
2833	2776		filing a written instrument pursuant to the franchi se with the
2834	2777		manufacturer during the new motor vehicle dealer 's lifetime. In
2835	2778
2836		-	HB3994 HFLR Page 56
2837		-	BOLD FACE denotes Committee Amendments. 1
	2779	+	Req. No. 10893 Page 56 1
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2861	2803
2862	2804		such a case, the written instrument and franchise shall govern the
2863	2805		dealership succession.
2864	2806		The suspension, revocation or ref usal to issue or renew a
2865	2807		license or the imposition of an y other penalty by the Commission
2866	2808		shall be in addition to any penalty which migh t be imposed upon any
2867	2809		licensee upon judgment or conviction in a court of competent
2868	2810		jurisdiction for any violation of the provisions of Sections 561
2869	2811		through 567, 572, 578.1, 579 and 579.1 of this title.
2870	2812		SECTION 7. AMENDATORY 47 O.S. 2021, Section 565.2, is
2871	2813		amended to read as follows:
2872	2814		Section 565.2 A. Irrespective of the terms, provisions or
2873	2815		conditions of any franchise, or the terms or provisions of any
2874	2816		waiver, no manufacturer shall terminate, cancel or fail to renew any
2875	2817		franchise with a licensed new motor vehicle dealer unless the
2876	2818		manufacturer has satisfied the notice requirements as provided in
2877	2819		this section and has good cause for cancellation, terminat ion or
2878	2820		nonrenewal. The manufacturer shall not attempt to cancel or fail to
2879	2821		renew the franchise agreement of a new motor vehicle dealer in this
2880	2822		state unfairly and without just provocation or without d ue regard to
2881	2823		the equities of the dealer or without good faith as defined herein.
2882	2824		As used herein, "good faith" means the duty of each pa rty to any
2883	2825		franchise agreement to act in a fair and equitable manner toward
2884	2826		each other, with freedom from coercion or in timidation or threats
2885	2827		thereof from each other.
2886	2828
2887		-	HB3994 HFLR Page 57
2888		-	BOLD FACE denotes Committee Amendments. 1
	2829	+	Req. No. 10893 Page 57 1
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2890	2831		3
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2912	2853
2913	2854		B. Irrespective of the terms, provisions or conditions of any
2914	2855		franchise, or the terms or provisions of any waiver, good cause
2915	2856		shall exist for the purpose of a termination , cancellation, or
2916	2857		nonrenewal when:
2917	2858		1. The new motor vehicle dealer has failed to comply with a
2918	2859		provision of the franchise, which provision is both reasonable and
2919	2860		of material significance to the franchise relationship, or the new
2920	2861		motor vehicle dealer has failed to comply with reasonable
2921	2862		performance criteria for sales or service established by the
2922	2863		manufacturer, and the dealer has been notified by written notice
2923	2864		from the manufacturer; and
2924	2865		2. The new motor vehicle dealer has received written
2925	2866		notification of failure to comply with the manufacture r's reasonable
2926	2867		sales performance standards, capitalizati on requirements, facility
2927	2868		commitments, business related equipment acquisitions o r other such
2928	2869		remediable failings exclusive of those reasons enumerated in
2929	2870		paragraph 1 of subsection C of this section, a nd the new motor
2930	2871		vehicle dealer has been afforded a reas onable opportunity of not
2931	2872		less than six (6) months to comply with such a provisi on or
2932	2873		criteria.
2933	2874		C. Irrespective of the terms, provisions or conditions of any
2934	2875		franchise agreement prior to the terminat ion, cancellation or
2935	2876		nonrenewal of any franchise, the ma nufacturer shall furnish
2936	2877		notification of such termination, cancellation or nonre newal to the
2937	2878
2938		-	HB3994 HFLR Page 58
2939		-	BOLD FACE denotes Committee Amendments. 1
	2879	+	Req. No. 10893 Page 58 1
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2962	2902		24
2963	2903
2964	2904		new motor vehicle dealer and the Oklahoma Motor Vehicle Commission
2965	2905		as follows:
2966	2906		1. Not less than ninety (90 ) days prior to the effective date
2967	2907		of such termination, cancellation or nonrenewal unless for a cause
2968	2908		described in paragraph 2 of this s ubsection;
2969	2909		2. Not less than fifteen (15) days prior to the effective date
2970	2910		of such termination, cancellation or nonrenew al with respect to any
2971	2911		of the following:
2972	2912		a. insolvency of the new motor vehicle dealer, or the
2973	2913		filing of any petition by or against the motor vehicle
2974	2914		dealer under any bankruptcy or receivership law,
2975	2915		b. failure of the new motor vehicle dealer to conduct its
2976	2916		customary sales and service operations during its
2977	2917		customary business hours for seven (7) consecutive
2978	2918		business days, provided that such failure to conduct
2979	2919		business shall not be due to an act of God or
2980	2920		circumstances beyond the direct control of the new
2981	2921		motor vehicle dealer, or
2982	2922		c. conviction of the new motor vehi cle dealer of any
2983	2923		felony which is punishable by imprisonment or a
2984	2924		violation of the Federal Odometer Act; and
2985	2925		3. Not less than one hundred eighty (180) days prior to the
2986	2926		effective date of such termina tion or cancellation where the
2987	2927
2988		-	HB3994 HFLR Page 59
2989		-	BOLD FACE denotes Committee Amendments. 1
	2928	+	Req. No. 10893 Page 59 1
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2998	2937		10
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3000	2939		12
3001	2940		13
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3013	2952
3014	2953		manufacturer or distribut or is discontinuing the sale of the product
3015	2954		line.
3016	2955		The notification required by t his subsection shall be by
3017	2956		certified mail, return receipt requested, and shall con tain a
3018	2957		statement of intent to terminat e, to cancel or to not renew the
3019	2958		franchise, a statement of the reasons for the termination,
3020	2959		cancellation or nonrenewal and the date the termination shall take
3021	2960		effect.
3022	2961		D. Upon the affected new motor vehicle dealer 's receipt of the
3023	2962		aforementioned notice of termination, cancellation or nonrenewal,
3024	2963		the new motor vehicle dealer shall have the right to file a protest
3025	2964		of such threatened terminat ion, cancellation or nonrenewal with the
3026	2965		Commission within thirty (30) days and re quest a hearing. Such
3027	2966		hearing shall be held in accordance with the provisions of the
3028	2967		Administrative Procedures Act, Sections 301 250 through 326 323 of
3029	2968		Title 75 of the Oklahoma Statutes, to determine if the threatened
3030	2969		cancellation, termination or nonrenew al of the franchise has been
3031	2970		for good cause and if the factory has complied with its obligatio ns
3032	2971		pursuant to subsections A, B and C of this section and the factory
3033	2972		shall have the burden of proof. If the Commission finds that the
3034	2973		threatened cancellation, t ermination or nonrenewal of the franch ise
3035	2974		has not been for good cause or violates subsection A , B or C of this
3036	2975		section, then it shall issue a final order stating that the
3037	2976		threatened termination is wrongful. A factory shall have the right
3038	2977
3039		-	HB3994 HFLR Page 60
3040		-	BOLD FACE denotes Committee Amendments. 1
	2978	+	Req. No. 10893 Page 60 1
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3060	2998		21
3061	2999		22
3062	3000		23
3063	3001		24
3064	3002
3065	3003		to appeal such order. During the pendency of the heari ng and after
3066	3004		the decision, the franchise shall remain in full force and effect,
3067	3005		including the right to transfer the franchise. If the Commi ssion
3068	3006		finds that the threatened cancellation, termination or nonrenewal is
3069	3007		for good cause and does not violate subse ction A, B or C of this
3070	3008		section, the new motor vehicle d ealer shall have the right to an
3071	3009		appeal. During the pendency of the action, includi ng the final
3072	3010		decision or appeal, the franchise shall remain in full force and
3073	3011		effect, including the right to transfe r the franchise. If the new
3074	3012		motor vehicle dealer prevai ls in the threatened termination action,
3075	3013		the Commission shall award to the new motor vehicle dealer the
3076	3014		attorney fees and costs incurred to defend the action.
3077	3015		E. If the factory prevails in an action to terminate, cancel or
3078	3016		not renew any franchise, the new motor vehicle dealer shall be
3079	3017		allowed fair and reasonable compensation by the manuf acturer for:
3080	3018		1. New current and previous model year vehicle inventory which
3081	3019		has been acquired from the manufacturer , and which is unused and has
3082	3020		not been damaged or altere d while in the dealer's possession;
3083	3021		2. Supplies and parts which have been acquired from the
3084	3022		manufacturer, for the purpose of this section, limited to any and
3085	3023		all supplies and parts that are listed on the current parts price
3086	3024		sheet available to the dealer;
3087	3025
3088		-	HB3994 HFLR Page 61
3089		-	BOLD FACE denotes Committee Amendments. 1
	3026	+	Req. No. 10893 Page 61 1
3090	3027		2
3091	3028		3
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3099	3036		11
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3109	3046		21
3110	3047		22
3111	3048		23
3112	3049		24
3113	3050
3114	3051		3. Equipment and furnishings, provided the new motor vehicle
3115	3052		dealer purchased them from the manufacturer or its approved sources;
3116	3053		and
3117	3054		4. Special tools, with suc h fair and reasonable compensation to
3118	3055		be paid by the manufacturer within ninety (90) days of t he effective
3119	3056		date of the termination, cancellation or nonrenewal, provided the
3120	3057		new motor vehicle dealer has clear title to the inventory and other
3121	3058		items and is in a position to convey that title to th e manufacturer.
3122	3059		a. For the purposes of paragraph 1 of th is subsection,
3123	3060		fair and reasonable compensation shall be no less than
3124	3061		the net acquisition price of the vehicle paid by the
3125	3062		new motor vehicle dealer.
3126	3063		b. For the purposes of paragraphs 2, 3 and 4 of thi s
3127	3064		subsection, fair and reasonable compensation shall be
3128	3065		the net acquisition price paid by the new motor
3129	3066		vehicle dealer less a twenty -percent (20%) straight-
3130	3067		line depreciation for each year following the dealer 's
3131	3068		acquisition of the supplies, parts, equipment ,
3132	3069		furnishings and/or special tools.
3133	3070		F. If a factory pre vails in an action to terminate, cancel or
3134	3071		not renew any franchise and the new motor vehicle dealer is leasing
3135	3072		the dealership facilities, the manufacturer shall p ay a reasonable
3136	3073		rent to the lessor in accordance with and subject to the provisions
3137	3074
3138		-	HB3994 HFLR Page 62
3139		-	BOLD FACE denotes Committee Amendments. 1
	3075	+	Req. No. 10893 Page 62 1
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3160	3096		22
3161	3097		23
3162	3098		24
3163	3099
3164	3100		of subsection G of this section. Nothing in this section shall be
3165	3101		construed to relieve a deal er of its duty to mitigate damages.
3166	3102		G. 1. Such reasonable rental value shall be paid only to the
3167	3103		extent the dealership premises are recognized in the franchise and
3168	3104		only if they are:
3169	3105		a. used solely for performance in accordance with the
3170	3106		franchise. If the facility is used for the operation
3171	3107		of more than one franchise, the reasonable rent shall
3172	3108		be paid based upon the por tion of the facility
3173	3109		utilized by the franchise being ter minated, canceled
3174	3110		or nonrenewed, and
3175	3111		b. not substantially in excess of facilities re commended
3176	3112		by the manufacturer.
3177	3113		2. If the facilities are owned by the new moto r vehicle dealer,
3178	3114		within ninety (90) d ays following the effective date of the
3179	3115		termination, cancellation or nonrenewal the manufacturer will
3180	3116		either:
3181	3117		a. locate a qualified purchase r who will offer to
3182	3118		purchase the dealership facilities at a reasonable
3183	3119		price,
3184	3120		b. locate a qualified lessee who will offer to lease the
3185	3121		premises for the remaining lease term at the rent set
3186	3122		forth in the lease, or
3187	3123
3188		-	HB3994 HFLR Page 63
3189		-	BOLD FACE denotes Committee Amendments. 1
	3124	+	Req. No. 10893 Page 63 1
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3201	3136		13
3202	3137		14
3203	3138		15
3204	3139		16
3205	3140		17
3206	3141		18
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3208	3143		20
3209	3144		21
3210	3145		22
3211	3146		23
3212	3147		24
3213	3148
3214	3149		c. failing the foregoing, lease the dealersh ip facilities
3215	3150		at a reasonable rental value for the portion of the
3216	3151		facility that is recognized in the franchise agree ment
3217	3152		for one (1) year.
3218	3153		3. If the facilities are leased by the new motor vehicle
3219	3154		dealer, within ninety (90) days following the effective dat e of the
3220	3155		termination, cancellation or nonrenewal the manufacturer will
3221	3156		either:
3222	3157		a. locate a tenant or tenants satisfa ctory to the lessor,
3223	3158		who will sublet or assume the balan ce of the lease,
3224	3159		b. arrange with the lessor for the cancellation of the
3225	3160		lease without penalty to the dealer, or
3226	3161		c. failing the foregoing, lease the dealership fac ilities
3227	3162		at a reasonable rent for the p ortion of the facility
3228	3163		that is recognized in the franchi se agreement for one
3229	3164		(1) year.
3230	3165		4. The manufacturer shall not be obligated to provid e
3231	3166		assistance under this section if the new motor vehicle dealer:
3232	3167		a. fails to accept a bona fide offer from a prospec tive
3233	3168		purchaser, subleases or assignee,
3234	3169		b. refuses to execute a settlement agreement with the
3235	3170		lessor if such agreement with the lessor would be
3236	3171		without cost to the dealer, or
3237	3172
3238		-	HB3994 HFLR Page 64
3239		-	BOLD FACE denotes Committee Amendments. 1
	3173	+	Req. No. 10893 Page 64 1
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3254	3188		16
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3257	3191		19
3258	3192		20
3259	3193		21
3260	3194		22
3261	3195		23
3262	3196		24
3263	3197
3264	3198		c. fails to make written request for assista nce under
3265	3199		this section within ninety ( 90) days after the
3266	3200		effective date of the termination, ca ncellation or
3267	3201		nonrenewal.
3268	3202		5. The manufacturer shall be entitled to occupy and use a ny
3269	3203		space for which it pays rent required by this section.
3270	3204		H. In addition to t he repurchase requirements set forth i n
3271	3205		subsections E and G of this section, in the event the termination or
3272	3206		cancellation is the result of a discontinuance of a product line,
3273	3207		the manufacturer or distributor shall compensate the new motor
3274	3208		vehicle dealer in an amount equivalent to the fair marke t value of
3275	3209		the terminated franchise as of the date of immediately preceding the
3276	3210		manufacturer's or distributor's announcement or provide the new
3277	3211		motor vehicle dealer with a replacement franchise on substantially
3278	3212		similar terms and conditions as those offered to other same line-
3279	3213		make dealers. The dealer may immedi ately request payment under this
3280	3214		provision section following the announcement in exc hange for
3281	3215		cancelling any further franchise rights, except payments owed to the
3282	3216		dealer in the ordinary course of busi ness, or may request payment
3283	3217		under this provision section upon the final termination,
3284	3218		cancellation or nonrenewal of the franchise. In eithe r case,
3285	3219		payment under this provision section shall be made not later than
3286	3220		ninety (90) days after the fair market val ue is determined. If the
3287	3221		factory and dealer cannot agre e on the fair market value of the
3288	3222
3289		-	HB3994 HFLR Page 65
3290		-	BOLD FACE denotes Committee Amendments. 1
	3223	+	Req. No. 10893 Page 65 1
3291	3224		2
3292	3225		3
3293	3226		4
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3314	3247
3315	3248		terminated franchise or agree to a process to dete rmine the fair
3316	3249		market value, then the factory and dealer shall utilize a neutral
3317	3250		third party mediator to resolve the disagreement.
3318	3251		SECTION 8. AMENDATORY 47 O.S. 2021, Section 565.3, is
3319	3252		amended to read as follows:
3320	3253		Section 565.3 A. A franchised vehicle dealer proposing a sale,
3321	3254		transfer, or assignment of a franchise agreement or the business and
3322	3255		assets of a dealership or an interest in a dealership t o another
3323	3256		person, hereinafter transferee, shall notify the manufacturer or
3324	3257		distributor whose vehicles the dealer is franchised to sell of the
3325	3258		proposed action of the dealer. The manufacturer or distri butor may
3326	3259		make written request to the proposed transferee to submit completed
3327	3260		application forms and related information generally utilized b y a
3328	3261		manufacturer to evaluate such a proposal and a copy of all
3329	3262		agreements related to the proposed sale, transfer, or assignment.
3330	3263		B. The approval by the manufacturer or dis tributor of the sale,
3331	3264		transfer, or assignment shall not be unreasonably withheld unl ess
3332	3265		the proposed transferee is not of good moral character or fails to
3333	3266		meet the written, reasonable, and uniformly a pplied requirements of
3334	3267		the manufacturer or distributor r elating to prospective franchisees.
3335	3268		Approval of the transfer shall not be made contingent upon the
3336	3269		transferee meeting unreasonable facility requirements or performance
3337	3270		standards different than those contained in the transferor 's
3338	3271		franchise agreement, but may be made contingent upon the proposed
3339	3272
3340		-	HB3994 HFLR Page 66
3341		-	BOLD FACE denotes Committee Amendments. 1
	3273	+	Req. No. 10893 Page 66 1
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3365	3297
3366	3298		transferee meeting reasonable written requir ements. The burden of
3367	3299		proof shall be upon the manufacturer or distributor to show good
3368	3300		cause existed to withhold approval. The manufacturer or distributor
3369	3301		that has made such a determination shall send a letter by certified
3370	3302		mail to the dealer and the appl icant of its refusal to approve the
3371	3303		proposal, which shall in clude a statement of the specific grounds
3372	3304		for refusal, within sixty (60) days after the later of:
3373	3305		1. Receipt by the manufacturer or distributor of the notice of
3374	3306		the proposed sale, transfer, or as signment; or
3375	3307		2. Receipt by the manufacturer or distributor of the
3376	3308		information requested from the proposed transferee pursuant to
3377	3309		subsection A of this section if the manufa cturer or distributor has
3378	3310		requested such information within fifteen (15) days of rec eipt of
3379	3311		written notice of the proposed sale, transfer, or assi gnment.
3380	3312		C. Failure of the manufacturer or distributor to send its
3381	3313		notice of refusal pursuant to subsection B of this section shall
3382	3314		mean that the application for the proposed sale, transfer, or
3383	3315		assignment is approved.
3384	3316		D. If the proposed sale, transfer or assignment is to an
3385	3317		existing owner's family member or other existing owner , then the
3386	3318		manufacturer or distribut or's evaluation of such proposal is limited
3387	3319		to the written, reasonable and uniformly applied requirements of the
3388	3320		manufacturer or distributor relat ing to good moral character and
3389	3321		financial qualifications.
3390	3322
3391		-	HB3994 HFLR Page 67
3392		-	BOLD FACE denotes Committee Amendments. 1
	3323	+	Req. No. 10893 Page 67 1
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3416	3347
3417	3348		E. A dealer dealership or dealership owner receiving notice of
3418	3349		refusal of the sale, transfer, or assignment shall have the right to
3419	3350		file a protest with the Commission within thirty (30) days of
3420	3351		receipt of the refusal. A dealer receiving notice that the sale,
3421	3352		transfer or assignment is contingent upon the t ransferee meeting
3422	3353		facility and/or performance standards shall have the right to file a
3423	3354		protest with the Commission within thirty (30) days of rece ipt of
3424	3355		the notice. In the event a protest is filed, the manufacturer or
3425	3356		distributor shall have the burden of proof to establish the proposed
3426	3357		transferee or the proposed transferee's controlling executive
3427	3358		management is not of good moral character or fails t o meet the
3428	3359		written reasonable and uniformly applied re quirements of the
3429	3360		manufacturer or distributor relating t o prospective franchisees or
3430	3361		that the facility requirements are not reasonable based on the
3431	3362		reasons set forth in subparagraph d of paragraph 9 of Section 565 of
3432	3363		this title.
3433	3364		SECTION 9. AMENDATORY 47 O.S. 2021, Section 572, is
3434	3365		amended to read as follows:
3435	3366		Section 572. Any action brought to recover any damages that may
3436	3367		be sustained by any motor vehicle dealer may be brought in the
3437	3368		county in which said dealer is located and in addition to the action
3438	3369		for damages he shall be entitled to sue for and have injunctive
3439	3370		relief against the threatened loss, damage or injury to his business
3440	3371		or property because of any violation of Sections 565 through 566 and
3441	3372
3442		-	HB3994 HFLR Page 68
3443		-	BOLD FACE denotes Committee Amendments. 1
	3373	+	Req. No. 10893 Page 68 1
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3467	3397
3468	3398		579 of this title or the threaten ed cancellation, termination or
3469	3399		failure to renew any franchise agreem ent between any factory and
3470	3400		said dealer, and the court may grant such in junctive relief,
3471	3401		including temporary restraining orders, as it deems just and
3472	3402		proper,. Notwithstanding the existenc e of any adequate remedy at
3473	3403		law, a dealer is authorized to bring an action in the county in
3474	3404		which said dealer is located for the grant, upon a hearing and for
3475	3405		cause shown, of a temporary or permanent injunction, or bot h,
3476	3406		restraining any person from acting as a licensee under the te rms of
3477	3407		Sections 561 through 567, 572, 578. 1, 579 and 579.1 of this title
3478	3408		without being properly licensed hereunder , or from violating or
3479	3409		continuing to violate any of the provisions of S ections 561 through
3480	3410		567, 572, 578.1, 579 and 579.1 of this title, or from failing or
3481	3411		refusing to comply with the requirements of this law or any rule or
3482	3412		regulation adopted hereunder. Such injunction shall be issued
3483	3413		without bond. A single act in violation of the provisions of
3484	3414		Sections 561 through 567 , 572, 578.1, 579 and 579.1 of this
3485	3415		title shall be sufficient to au thorize the issuance of an
3486	3416		injunction. Upon a prima facie showing by th e person bringing the
3487	3417		action that such a violation by the licensee has occurre d, the
3488	3418		burden of proof shall then be upo n the licensee to prove tha t such
3489	3419		violation or unfair practice did not occur. In any action brought
3490	3420		under this section, the court shall award attorney fees and costs to
3491	3421		a dealer who prevails, notwithstanding any oth er provisions of law,
3492	3422
3493		-	HB3994 HFLR Page 69
3494		-	BOLD FACE denotes Committee Amendments. 1
	3423	+	Req. No. 10893 Page 69 1
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3518	3447
3519	3448		and in addition to any other remedy which may be affo rded under any
3520	3449		other statute of this state.
3521	3450		SECTION 10. AMENDATORY 47 O.S. 2021, Section 578.1, is
3522	3451		amended to read as follows:
3523	3452		Section 578.1 A. Notwithstanding the terms of a franchise and
3524	3453		notwithstanding the terms of a waiver, i f a factory intends or
3525	3454		proposes to enter into a franchise to establish an additional new
3526	3455		motor vehicle dealer or to relocate an existing new motor vehicle
3527	3456		dealer within or into a re levant market area in which the same lin e-
3528	3457		make of motor vehicle is currentl y represented, the factory shal l
3529	3458		provide at least sixty (60) days advance written notice to the
3530	3459		Commission and to each new motor vehicle dealer of the same line-
3531	3460		make in the relevant market area, of the intention of the fa ctory to
3532	3461		establish an additional ne w motor vehicle dealer or to re locate an
3533	3462		existing new motor vehicle dealer within or int o the relevant market
3534	3463		area. For purposes of this section, the "relevant market area "
3535	3464		means the area within a radius of fifteen (15) miles of around the
3536	3465		site of the proposed new motor vehicle dealers hip measured from the
3537	3466		property boundary. The notice shall be sent by certified mail to
3538	3467		each party and shall include the following information:
3539	3468		1. The specific location at which the additio nal or relocated
3540	3469		motor vehicle dealer will be established;
3541	3470		2. The date on or after which the additional or relocated motor
3542	3471		vehicle intends to commence business at the proposed location;
3543	3472
3544		-	HB3994 HFLR Page 70
3545		-	BOLD FACE denotes Committee Amendments. 1
	3473	+	Req. No. 10893 Page 70 1
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3569	3497
3570	3498		3. The identity of all motor vehicle dealers who are franchised
3571	3499		to sell the same line-make vehicles as the proposed dealer and who
3572	3500		have licensed locations within the relevant market area;
3573	3501		4. The names and addresses of the person intended to be
3574	3502		franchised as the proposed additional o r relocated motor vehicle
3575	3503		dealership, the principal investors in the propos ed additional or
3576	3504		relocated motor vehicle dealership, and the proposed dealer operator
3577	3505		of the proposed additional or relocated motor vehicle dealership;
3578	3506		and
3579	3507		5. The specific grounds or reasons for the proposed
3580	3508		establishment of an additional motor vehicle de aler or relocation of
3581	3509		an existing dealer.
3582	3510		B. This section does not apply:
3583	3511		1. To the relocation of an existing new motor vehicle dealer
3584	3512		within the relevant market area of that deal er; provided, that the
3585	3513		relocation not be at a site within ten (10) miles of a licensed new
3586	3514		motor vehicle dealer for the same line-make of motor vehicle;
3587	3515		2. To a proposed additional new motor vehicle dealer which is
3588	3516		to be established at or within two (2) m iles of a location at which
3589	3517		a former licensed new motor vehicle dealer for the same line-make of
3590	3518		new motor vehicle had ceased operating within the previous two (2)
3591	3519		years;
3592	3520
3593		-	HB3994 HFLR Page 71
3594		-	BOLD FACE denotes Committee Amendments. 1
	3521	+	Req. No. 10893 Page 71 1
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3618	3545
3619	3546		3. To the relocation of an existing new motor vehicle dealer
3620	3547		within two (2) miles of the existing site of the new motor vehi cle
3621	3548		dealership; or
3622	3549		4. To the relocation of an existing new motor vehicle dealer if
3623	3550		the proposed site of the relocated new motor vehicle dealership is
3624	3551		farther away from all other new motor vehicle dealers of the same
3625	3552		line-make in that relevant market area.
3626	3553		C. Within thirty (30) days after receipt of the notice, or
3627	3554		within thirty (30) days after the end of an appeal procedure
3628	3555		provided by the factory, whichever is greater, a new motor vehicle
3629	3556		dealer so notified or entit led to notice may file a petition with
3630	3557		the Commission protesting the propos ed establishment or relocation.
3631	3558		The petition shall contain a short statement setting fo rth the
3632	3559		reasons for the objection of the dealer to the proposed
3633	3560		establishment or relocation. Upon filing of a protest, the
3634	3561		Commission shall promptly notify the factory that a timely protest
3635	3562		has been filed and shall schedule a hearing, which shall be held
3636	3563		within one hundred twenty (120) days of the filing of a timely
3637	3564		protest. The factory shall no t establish or relocate the new motor
3638	3565		vehicle dealer until the Commission h as held a hearing and has
3639	3566		determined that there is good cause for permitting the propose d
3640	3567		establishment or relocation. When more than one protest is filed
3641	3568		against the establishment or relocation of the same dealer, the
3642	3569
3643		-	HB3994 HFLR Page 72
3644		-	BOLD FACE denotes Committee Amendments. 1
	3570	+	Req. No. 10893 Page 72 1
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3668	3594
3669	3595		Commission shall consolidate the hea rings to expedite disposition of
3670	3596		the matter.
3671	3597		D. The burden of proof to establish that g ood cause exists for
3672	3598		permitting the proposed establishment of a new motor vehicle dealer
3673	3599		or relocating an existing new motor vehicle dealership shall be on
3674	3600		the applicant who seeks to establish a new m otor vehicle dealership
3675	3601		or the relocation of an existing new motor vehicle dealership.
3676	3602		SECTION 11. AMENDATORY 47 O.S. 20 21, Section 580.2, is
3677	3603		amended to read as follo ws:
3678	3604		Section 580.2 During the time a person is operating a motor
3679	3605		vehicle with the express or implied permission of an authorized a
3680	3606		new motor vehicle dealer, as defined in Section 562 of this title,
3681	3607		such person's motor vehicle liability policy shall have pr imary
3682	3608		coverage with the motor vehic le liability policy of the dealer
3683	3609		having secondary coverage until the vehicle is returned. As used
3684	3610		herein, "motor vehicle liability policy" means motor vehicle
3685	3611		insurance against legal li ability for the death, injury or
3686	3612		disability of any human being, or fo r damage to real or personal
3687	3613		property. The motor vehicle liability po licy of any person who has
3688	3614		been loaned a vehicle by a new motor vehicle dealer pursuant to the
3689	3615		terms of this section shall provide primary coverage for any d eath
3690	3616		or injury of any human b eing or for any real or personal prop erty
3691	3617		damage, including damage to the loaned vehicle, with the moto r
3692	3618		vehicle insurance policy of the deale r having secondary coverage for
3693	3619
3694		-	HB3994 HFLR Page 73
3695		-	BOLD FACE denotes Committee Amendments. 1
	3620	+	Req. No. 10893 Page 73 1
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3719	3644
3720	3645		any death or injury of any human being or for any real or personal
3721	3646		property damage, including damage to the loaned vehi cle. The change
3722	3647		in financial responsibility shall be evidenced by a release signed
3723	3648		by the person operati ng the vehicle with the express or implied
3724	3649		permission of the dealer with the release to be returned to the
3725	3650		person upon the return of the motor vehicle to the dealer. The
3726	3651		motor vehicle liability policy of such person shall meet the minimum
3727	3652		financial responsibility requirements found in Section 7 -324 of this
3728	3653		title.
3729	3654		This section shall apply only to the loan of a motor v ehicle by
3730	3655		an authorized a new motor vehicle dealer which loan occurs w ithout
3731	3656		financial remuneration in the form of a fee or lease charge.
3732	3657		SECTION 12. This act shall become effective November 1, 202 2.
3733	3658
3734		-	COMMITTEE REPORT BY: COMMITTEE ON BUSINESS AND COMMERCE, dated
3735		-	03/02/2022 - DO PASS, As Amended.
	3659	+	58-2-10893 LRB 03/02/22
	3660	+
	3661	+