Oklahoma 2022 Regular Session

Oklahoma Senate Bill SB1243 Compare Versions

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4-An Act
5-ENROLLED SENATE
29+HOUSE OF REPRESENTATIVES - FLOOR VERSION
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31+STATE OF OKLAHOMA
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33+2nd Session of the 58th Legislature (2022)
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35+ENGROSSED SENATE
636 BILL NO. 1243 By: Quinn of the Senate
737
838 and
939
1040 Sneed of the House
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1545 An Act relating to motor vehicles; amending 47 O.S.
1646 2021, Section 1105, which relates t o certificates of
1747 title; exempting certain vehicle title transfers from
1848 certain requirements; amending 47 O.S. 2021, Section
1949 1107, which relates to the sale or transfer of
2050 ownership of a vehicle; authorizing the use of an
2151 electronic signature on documents required for the
2252 transfer of ownership of a vehicle resulting from the
2353 settlement of a total loss claim; and providing an
2454 effective date.
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29-SUBJECT: Motor vehicle titles
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3159 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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3360 SECTION 1. AMENDATORY 47 O.S. 2021, Section 1105, is
3461 amended to read as follows:
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3662 Section 1105. A. As used in the Oklahoma Vehicle License and
3763 Registration Act:
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3964 1. “Salvage vehicle” means any vehicle which is within the last
4065 ten (10) model years and which has bee n damaged by collision or
4166 other occurrence to the extent t hat the cost of repairing the
4267 vehicle for safe operation on the highway exceeds sixty percent
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4395 (60%) of its fair market value, as defined by Section 1111 of this
4496 title, immediately prior to the damag e. For purposes of this
4597 section, actual repair costs shal l only include labor and parts for
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47-ENR. S. B. NO. 1243 Page 2
4898 actual damage to the suspension, motor, transmission, frame or
4999 unibody and designated structural components;
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51100 2. “Rebuilt vehicle” means any salvage vehicle which has been
52101 rebuilt and inspected for the purpose of registra tion and title;
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54102 3. “Flood-damaged vehicle” means a salvage or rebuilt vehicle
55103 which was damaged by floodin g or a vehicle which was submerged at a
56104 level to or above the dashboard of the vehicle and on which an
57105 amount of loss was paid by the insurer;
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59106 4. “Unrecovered-theft vehicle” means a vehicle which has been
60107 stolen and not yet recovered;
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62108 5. “Recovered-theft vehicle” means a vehicle, including a
63109 salvage or rebuilt vehicle, which was recovered from a theft; and
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65110 6. “Junked vehicle” means any vehicle which is incapable of
66111 operation or use on the highway, has no resale value except as a
67112 source of parts or scrap and has an eighty percent (80%) loss in
68113 fair market value.
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70114 B. The owner of every vehicle i n this state shall possess a
71115 certificate of title as proof of ownership of such vehicle, except
72116 those vehicles registered pursuant to Section 1120 of this title and
73117 trailers registered pursuant to Section 1133 of this title,
74118 previously titled by anyone in another state and engaged in
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75146 interstate commerce, and exce pt as provided in subsection M of this
76147 section. Except for owners that possess an agricultural exemption
77148 permit pursuant to Section 1358.1 of Title 68 of the Oklahoma
78149 Statutes, the owner of an all -terrain vehicle or a motorcycle used
79150 exclusively off roads or highways in this state whi ch is purchased
80151 or the ownership of which is transferred on or after July 1, 2005,
81152 and the owner of a utility vehicle used exclusively off roads and
82153 highways in this state which is purchased or the ownership of which
83154 is transferred on or after July 1, 2008 , shall possess a certificate
84155 of title as proof of ownership. Any person pos sessing an
85156 agricultural exemption permit and owning an all -terrain vehicle or a
86157 motorcycle used exclusively off roads or highways in this state
87158 which is purchased or the ownership of which is transferred on or
88159 after July 1, 2008, shall possess a certificat e of title as proof of
89160 ownership. Upon receipt of proper application information by such
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92161 owner, the Oklahoma Tax Commission shall issue an original or
93162 transfer certificate of tit le. Until July 1, 2008, any security
94163 interest in an all-terrain vehicle that attached and was perfected
95164 before July 1, 2005, and that has not otherwise terminated shal l
96165 remain perfected, and shall take priority over any subse quently
97166 perfected security int erest in the same all-terrain vehicle,
98167 notwithstanding that a certificate of title may have been issued
99168 with respect to the same all -terrain vehicle on or after July 1,
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100196 2005, and that a lien may have been recorded on said cert ificate of
101197 title. There shall be eight types of certificates of title:
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103198 1. Original title for any motor ve hicle which is not a
104199 remanufactured, salvage, unrecovered -theft, rebuilt, rebodied or
105200 junked vehicle;
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107201 2. Salvage title for any motor vehicle which i s a salvage
108202 vehicle or is specified as a salvage vehicle or the equivalent
109203 thereof on a certificate of titl e from another state;
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111204 3. Rebuilt title for any motor vehicle which is a rebuilt
112205 vehicle;
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114206 4. Junked title for any motor vehicle which is a junked ve hicle
115207 or is specified as a jun ked vehicle or the equivalent thereof on a
116208 certificate of title from another state;
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118209 5. Classic title for any motor vehicle, except a junked
119210 vehicle, which is twenty -five (25) model years or older;
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121211 6. Remanufactured title for any vehicle which is a
122212 remanufactured vehicle;
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124213 7. Unrecovered-theft title for any motor vehicle which has been
125214 stolen and not recovered; and
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127215 8. Rebodied title for any motor vehicle which is a reb odied
128216 vehicle.
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130217 Application for a certificate of title, whe ther the initial
131218 certificate of title or a duplicate, may be made to the Tax
132219 Commission or any motor licens e agent. When application is made
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133247 with a motor license agent, the application information shall be
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136248 transmitted either electronically or by mail to t he Tax Commission
137249 by the motor license agent. If the application information is
138250 transmitted electronically , the motor license agent shall forward
139251 the required application along with evidence of own ership, where
140252 required, by mail. Where the transmission o f application
141253 information cannot be performed electronically, the Tax Commission
142254 is authorized to provide p ostage paid envelopes to motor license
143255 agents for the purpose of mailing the application al ong with
144256 evidence of ownership, where required. The Tax C ommission shall
145257 upon receipt of proper application information issue an Oklahoma
146258 certificate of title. The certificates may be mailed to the
147259 applicant. Upon issuance of a certificate of title, the Tax
148260 Commission shall provide the appropriate motor licens e agent with
149261 confirmation of such issuance.
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151262 C. 1. The application for certificate of title shall be upon a
152263 blank form furnished by the Tax Commission, containing:
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154264 a. a full description of the vehi cle,
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156265 b. the manufacturer’s serial or other identification
157266 number,
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159267 c. the motor number and the date on which first sold by
160268 the manufacturer or dealer to the owner,
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162269 d. any distinguishing marks,
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164270 e. a statement of the applicant ’s source of title,
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166298 f. any security interest upon the vehicle, and
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168299 g. such other informatio n as the Tax Commission may
169300 require.
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171301 2. The application for a certificate of title for a vehicle
172302 which is within the last seven (7) model years shall require a
173303 declaration as to whether the vehicle has been damaged by collision
174304 or other occurrence and whe ther the vehicle has been reco vered from
175305 theft and the extent of the damage to the vehicle. The declaratio n
176306 shall be made by the owner of a vehicle if:
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180307 a. the vehicle has been damaged or stolen,
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182308 b. the owner did or did not receive any payment for the
183309 loss from an insurer, or
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185310 c. the vehicle is titled or registered in a state that
186311 does not classify the vehicle o r brand the title
187312 because of damage to or loss of the vehicle similar to
188313 the classifications or brands utilized by this state.
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190314 The declaration shall be based upon the best informa tion and
191315 knowledge of the owner and shall be in addition to the requirements
192316 specified in paragraph 1 of this subsection. The Tax Commission
193317 shall not issue a certific ate of title for a vehicle which is
194318 subject to the provisi ons of this paragraph without the required
195319 declaration, completed and signed by the owner of the vehicle. Upon
196320 receipt of an application without the properly completed
197321 declaration, the Tax Commissi on shall return the application to the
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198349 applicant with notice that the title may not be i ssued without the
199350 required declaration. Nothing in this paragraph shall proh ibit the
200351 Tax Commission from recognizing the type of or brand on a title or
201352 other ownership document issued by another state or the inspection
202353 conducted in another state and issui ng the appropriate certificate
203354 of title for the vehicle.
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205355 3. The certificate of title shall have the following security
206356 features:
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208357 a. intaglio printing or security threa d, with or without
209358 watermark,
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211359 b. latent images,
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213360 c. fluorescent inks,
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215361 d. micro print,
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217362 e. void background, and
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219363 f. color coding.
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223364 4. Each title issued pursuant to the p rovisions of the Oklahoma
224365 Vehicle License and Registration Act shall be color coded as
225366 determined by the Tax Commission.
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227367 5. The certificate of title shall be of such size and des ign
228368 and color as the Tax Commission may direct pursuant to the
229369 provisions of this section. The title shall be on colored paper or
230370 other material as designated by the T ax Commission and be of such
231371 intensity or hue as will allo w easy identification as to wh ether the
232372 title is an original title, a salvage title, a rebuilt title,
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233400 remanufactured title, rebodied title or a junked title. The type of
234401 title shall be identified o n the front of the certificate of title.
235402 The original title, rebuilt title, remanufactu red title, an
236403 unrecovered-theft title, rebodied title or classic title shall be
237404 identified by the word “Original”, “Rebuilt”, “Remanufactured”,
238405 “Unrecovered Theft”, “Rebodied” or “Classic” printed in the upper
239406 right quadrant of the certificate of title, in the space which is
240407 currently captioned “type of title”. A rebodied title sh all also
241408 identify on the front of the title the year, make and model of the
242409 originally manufactured vehicle which has been rebodied and display
243410 a notation that reads as follows: “This vehicle has been assembled
244411 with new major components licensed by the ori ginal manufacturer”.
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246412 D. 1. To obtain an original certificate of title for a vehicle
247413 that is being registered for the first time in this state which has
248414 not been previously regis tered in any other state, the applicant
249415 shall be required to deliver, as evid ence of ownership, a
250416 manufacturer’s certificate of origin properly assigned by the
251417 manufacturer, distributor, or dealer licensed in this or any other
252418 state shown thereon to be the last transferee to the applicant upon
253419 a form to be prescribed and approved b y the Tax Commission. A
254420 manufacturer’s certificate of origin shall contain:
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256421 a. the manufacturer’s serial or other identification
257422 number,
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259450 b. date on which first sold by the manufa cturer to the
260451 dealer,
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262452 c. any distinguishing marks including model and the yea r
263453 same was made,
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267454 d. a statement of any security interests upon the
268455 vehicle, and
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270456 e. such other information as the Tax Commission may
271457 require.
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273458 2. The manufacturer’s certificate of origin shall have the
274459 following security features:
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276460 a. intaglio printing or se curity thread, with or without
277461 watermark,
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279462 b. latent images,
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281463 c. fluorescent inks,
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283464 d. micro print, and
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285465 e. void background.
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287466 E. In the absence of a deal er’s or manufacturer’s number, the
288467 Tax Commission may assign such identifying number to the vehicle,
289468 which shall be permanently stamped, burned or pressed or attached
290469 into the vehicle, and a certifi cate of title shall be delivered to
291470 the applicant upon pay ment of all fees and taxes, an d the remaining
292471 copies shall be permanently filed and indexed by the Tax Comm ission.
293472 The Tax Commission shall assign an identifying number to any rebuilt
294473 vehicle if the vehicle identification number displayed on the
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295501 rebuilt vehicle does not accurately des cribe the vehicle as rebuilt.
296502 The motor license agent, at the time of inspec tion of the rebuilt
297503 vehicle pursuant to Section 1111 of this title, shall identify the
298504 make, model, and year for the body to accurately describe the
299505 rebuilt vehicle. At the time of the inspection, an appropriate
300506 identifying number shall be permanently sta mped, burned, pressed, or
301507 attached on the rebuilt vehicle. The assigned identifying number
302508 shall be recorded on the certificate of title for the reb uilt
303509 vehicle. The dealer ’s or manufacturer’s vehicle identification
304510 number on the rebuilt vehicle shall be preserved in the computer
305511 files of the Tax Commission for at least five (5) years.
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307512 F. When registering for the first time in this state a vehicle
308513 which was not originally manufa ctured for sale in the United States,
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311514 to obtain a certificate of title, the T ax Commission shall require
312515 the applicant to deliver:
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314516 1. As evidence of ownership, if the vehicle has not previously
315517 been titled in the United State s, the documents constituting valid
316518 proof of ownership in the country in which the vehicle was
317519 originally purchased, together with a notarized translation of any
318520 such documents; and
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320521 2. As evidence of compliance with federal law, copies of the
321522 bond release letters for the vehicle issue d by the United States
322523 Environmental Protection Agency and the United States Department of
323524 Transportation, together with a receipt issued by the Internal
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324552 Revenue Service indicating that the applicable federal gas guzzler
325553 tax has been paid.
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327554 The Tax Commission shall not issue a certificate of title for a
328555 vehicle which is subject to t he provisions of this paragraph without
329556 the required documentation from agencies of the Uni ted States and
330557 evidence of ownership. Upon receipt of an application without the
331558 required documentation, the Tax Commission shall return the
332559 application to the appl icant with notice that the certificate of
333560 title may not be issued without the required docu mentation. Nothing
334561 in this paragraph shall prohibit the T ax Commission from issuing
335562 certificates of title for antique or classic vehicles not driven
336563 upon the public streets, roads, or highways, for mini -trucks
337564 registered pursuant to Section 1151.3 of this title, or for medium-
338565 speed electric vehicles.
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340566 G. When registering in this state a vehi cle which was titled in
341567 another state and which title contains the name of a secured party
342568 on the face of the other state certificate of title, or such state
343569 certificate is being held by the secured party in that state or any
344570 other state, the Tax Commissio n or the motor license agent shall
345571 complete a lien entry form as prescribed b y the Tax Commission. The
346572 owner of such vehicle shall file an affidavit with the Tax
347573 Commission or the motor license agent stating that title to the
348574 vehicle is being held by a se cured party, has not been issued
349575 pursuant to the laws of the state where titl ed, and that there is an
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350603 existing lien or encumbrance on the vehicle. The current name and
351604 address of the secured party or lienholder shall also be stated in
352605 the affidavit. The form of the affidavit shall be prescribed by the
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355606 Tax Commission and contain a ny other information deemed necessary by
356607 the Tax Commission. A statement of the lien or en cumbrance shall be
357608 included on the Oklahoma certificate of title and the lien or
358609 encumbrance shall be deemed continuously perfected as though it had
359610 been perfected pursuant to Section 1110 of this title. For
360611 completing the lien entry form and recording th e security interest
361612 on the certificate of title, the Tax C ommission or the motor license
362613 agent shall collect a fee of Three Dollars ($3.00) which shall be in
363614 addition to other fees provided by the Oklahoma Vehicle License and
364615 Registration Act. The fee, if collected by the motor license agent
365616 pursuant to this sub section, shall be retained by the motor license
366617 agent.
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368618 H. The charge for each certificate of title issued, except for
369619 junked titles as defined in paragraph 4 of subsection B of this
370620 section, shall be Eleven Dollars ($11.00), which charge shall be in
371621 addition to any other fees or taxes imposed by law for such vehicle.
372622 One Dollar ($1.00) of each such charge sha ll be deposited in the
373623 Oklahoma Tax Commission Reimbursement Fund. However, the charge
374624 shall not apply to any vehicle which is to be registered in t his
375625 state pursuant to the prov isions of Section 1120 or 1133 of this
376626 title and which was registered in anot her state at least sixty (60)
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377654 days prior to the time it is required to be registered in thi s
378655 state. When an insurer requests a salvage or junk title in the name
379656 of the insurer resulting from the settlement of a total loss claim
380657 and upon presentation of ap propriate proof of loss documentation as
381658 required by the Commission, such transfer may be p rocessed as one
382659 title transaction, without first requiring issuance of a replacement
383660 certificate of title in the name of the vehicle owner. The fee
384661 shall be Twenty-two Dollars ($22.00). Two Dollars ($2.00) of this
385662 fee shall be deposited in the Oklahoma T ax Commission Reimbursement
386663 Fund.
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388664 I. The vehicle identifi cation number of a junked vehi cle shall
389665 be preserved in the computer files of the Tax Commission for a
390666 period of not less than five (5) years. The charge of junked titles
391667 as defined in paragraph 4 of subsection B of this section shall be
392668 Four Dollars ($4.00). The fee remitted to the Tax Commission shall
393669 be deposited in the Oklahoma Tax Commission Reimbursemen t Fund.
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395670 J. If a vehicle is sold to a resident of another state
396671 destroyed, dismantled, or c eases to be used as a vehicle, the owner
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399672 shall immediately notify the Tax Commission. A bsent evidence to the
400673 contrary, failure to notify the Tax Commission shall be prima facie
401674 evidence that the vehicle has been in continuous operation in this
402675 state.
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404676 K. If a vehicle is stolen, the owner shall immediately notify
405677 the appropriate law enforceme nt agency. Immediately after receiving
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406705 such notification, the law enforcemen t agency shall notify the Tax
407706 Commission.
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409707 L. Except for all-terrain vehicles, utility vehi cles and
410708 motorcycles used exclusively for off -road use, no title for an out-
411709 of-state vehicle, except any commercial truck or truck -tractor
412710 registered pursuant to Sec tion 1120 of this title which is engaged
413711 in interstate commerce or any trailer or semitrail er registered
414712 pursuant to Section 1133 of this title which is engaged in
415713 interstate commerce, shall be issued without an inspection of such
416714 vehicle and payment of a fee of Four Dollars ($4.00) for such
417715 inspection; provided, the Tax Commission may enter int o reciprocal
418716 agreements with other states for such inspect ions to be performed at
419717 locations outside the boundaries of this state for vehicles which:
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421718 1. Are offered for sale at auction;
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423719 2. Have been solely used as vehicles for rent under the
424720 ownership of a licensed motor vehicle dealer or a person engaged in
425721 the business of renting motor veh icles; or
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427722 3. Have not been registered in this or any other state for more
428723 than one (1) year.
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430724 The inspection shall include a comparison of the vehicle
431725 identification number on the vehicle with the number recorded on the
432726 ownership records and the recording of the actual odometer reading
433727 on the vehicle. The four -dollar fee shall be collected by the motor
434728 license agent or Tax Commission when the title is issued. The motor
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435756 license agent shall retain Two Dollars ($2.00). The rema ining Two
436757 Dollars ($2.00) shal l be deposited in the Oklahoma Tax Commission
437758 Reimbursement Fund.
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439-
440-ENR. S. B. NO. 1243 Page 11
441759 The Tax Commission may allow the inspection to be performed at a
442760 location out-of-state by another stat e’s department of motor
443761 vehicles or state police.
444-
445762 M. No title for any out-of-state vehicle offered for sale at
446763 salvage pools, salvage disposal sales, or an auction, or by a dealer
447764 or a licensed automotive dismantler and parts recycler, shall be
448765 issued without an inspection to compare the vehicle identification
449766 number on the vehicle with the number recorded on the ownership
450767 record and to record the actual odometer rea ding on the vehicle. On
451768 or after the effective date of this act, vehicles that require a
452769 transfer to a salvage title or junked title resulting from a n
453770 insurance claim that utilizes an out-of-state or tribal title shall
454771 be exempt from the requirements of this subsection. Upon request of
455772 the seller, person or entity conducting an auction, dealer or
456773 licensed dismantler, the inspection shall be conducted a t the
457774 location or place of b usiness of the sale, auction, dealer, or the
458775 dismantler. The inspection shall be conducted by any motor license
459776 agent or a duly authorized employee thereof; provided, if the
460777 vehicle identification number on the vehicle offered for sale at
461778 salvage pools, salvage disposal sales or a classic or antique
462779 auction does not match the number recorded on the ownership record,
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463807 the inspection may be conducted at the location of or place of
464808 business of such sale or auction by any state, coun ty or city law
465809 enforcement officer. The Tax Commission may enter into reciprocal
466810 agreements with other states for such inspections to be performed at
467811 locations outside the boundaries of this stat e for vehicles which:
468-
469812 1. Are offered for sale at auction;
470-
471813 2. Have been solely used as vehicles for rent under the
472814 ownership of a licensed motor vehicle dealer or a person engaged in
473815 the business of renting motor vehicles; or
474-
475816 3. Have not been registered in this or any other state for more
476817 than one (1) year.
477-
478818 The inspection shall be certified upon forms prescribed by the Tax
479819 Commission. The name and other identi fication of the authorized
480820 person conducting the inspection shall be legibly printed or typed
481821 on the form. Prior to any inspection by any employee of a mot or
482822 license agent, the motor license agent shall notify the Tax
483-
484-ENR. S. B. NO. 1243 Page 12
485823 Commission of the name and any other identification information
486824 requested by the Tax Commission of the authorized person. A
487825 signature specimen of the authorized person shall be submitted to
488826 the Tax Commission by the empl oying motor license agent. If the
489827 authorization to inspect vehicles is withdrawn or the employer -
490828 employee relationship is terminated, the motor license agent,
491829 immediately, shall notify the Tax Commission and return any
492830 remaining inspection forms to the Ta x Commission. The fee for the
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493858 inspection shall be Four Dollars ($4.00). The motor license agent
494859 shall retain Three Dollars ($3.00) of the fee. Fees received by a
495860 motor license agent or an authorized employee thereof shall be
496861 handled and accounted for in the manner as prescribed by law for any
497862 other fees paid to or received by a motor license agent. Out -of-
498863 state vehicles brought into this state by a person licensed in
499864 another state to sell new or used vehicles to be sold withi n this
500865 state at a motor vehi cle auction which is limited to dealer -to-
501866 dealer transactions shall not be required to be inspected, unless
502867 the vehicle is purchased by an Oklahoma dealer. Any person licensed
503868 in another state to sell new or used motor vehicles , who offers a
504869 motor vehicle for sale within this state at a motor vehicle auction
505870 which is limited to dealer-to-dealer transactions, shall not be
506871 within the definition of “owner” in Section 1102 of this title, for
507872 purposes of Section 1101 et seq. of this title.
508-
509873 N. A licensed motor vehicle dealer, upon payment of a fee of
510874 Fifteen Dollars ($15.00), may r eassign an out-of-state certificate
511875 of title to a used motor vehicle provided such dealer obtain s the
512876 appropriate inspection form required by either subsect ion L or M of
513877 this section and attaches the form to the out-of-state certificate
514878 of title. Motor license agents shall be allowed to retain Two
515879 Dollars and twenty-five cents ($2.25) of the fee plu s an additional
516880 Two Dollars ($2.00) or Three Dollars ($3.00) as provided in
517881 subsections L and M of this section for performance of the
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518909 inspection. Two Dollars ($2.00) of the fee shall be deposited in
519910 the Tax Commission Reimbursement Fund. An out -of-state vehicle
520911 which has been rebuilt shall be inspected pursuant to the provisions
521912 of Section 1111 of this title. The Tax Commission shall train motor
522913 license agents in interpreting vehicle identification numbers to
523914 assure that it accurately describes the vehi cle and to detect
524915 rollback or alteration of the odometer. F ailure of a motor license
525916 agent to inspect the vehicle and make the required notations shall
526917 be a misdemeanor punishable by a fine of not more than One Thousand
527-
528-ENR. S. B. NO. 1243 Page 13
529918 Dollars ($1,000.00) for the first o ffense and Five Thousand Dollars
530919 ($5,000.00) for the second offense or subsequent offens e, or by
531920 imprisonment in the county jail for not more than six (6) month s, or
532921 by both such fine and imprisonment.
533-
534922 O. The ownership of any unrecovered vehicle which has been
535923 declared a total loss by an insurer because of theft s hall be
536924 transferred to the i nsurer by an unrecovered-theft vehicle title;
537925 provided, the ownership of any such vehicle which has been declared
538926 a total loss by an insurer licensed by the Insurance D epartment of
539927 the State of Oklahoma and maintaining a multi -state motor vehicle
540928 salvage processing center in this state shall be transferred to the
541929 insurer by a salvage or an unrecovered -theft title without the
542930 requirement of a visual inspection of the vehi cle identification
543931 number by the insurer. Upon recovery of the vehicle, the ownership
544932 shall be transferred by an original title, salvage title, or junked
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545960 title, as may be appropriate based upon an estimate of the amount of
546961 loss submitted by the insurer.
547-
548962 P. When an insurance company makes a total loss settlement o n a
549963 total loss vehicle and t he insurance company or a salvage pool
550964 authorized by the insurance compa ny is unable to obtain the properly
551965 endorsed certificate of ownership or other evidence of owner ship
552966 acceptable to the Oklahoma Tax Commission within thirty (30) days
553967 following acceptance by the owner of an offer of an amount in
554968 settlement of a total loss, that insurance company or salvage pool,
555969 on a form provided by the Oklahoma Tax Commission and s igned under
556970 penalty of perjury, may request the Oklahoma Tax Commission to issue
557971 the applicable salvage title for the vehicle. The request shall
558972 include information declaring that the requester has made at least
559973 two written attempts to obtain the certific ate of ownership or other
560974 acceptable evidence of title.
561-
562975 Q. The owner of any vehicle whi ch is incapable of operation or
563976 use on the public roads and has no resal e value, except as parts,
564977 scrap or junk, may deliver the certificate of title to the vehicle
565978 to the Tax Commission for cancellation. Upon verification that any
566979 perfected lien against the vehicle has been released, the
567980 certificate of title shall be cancele d without any fee, charge, or
568981 cost required from the owner. The vehicle identification numbers on
569982 the certificates of title shall be preserved in the compu ter files
570983 of the Tax Commission for at least five (5) years from the date of
571984
572-ENR. S. B. NO. 1243 Page 14
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5731011 cancellation of the cer tificate of title. The Tax Commission shall
5741012 prescribe and provide an affidavit form to be compl eted by the owner
5751013 of any vehicle for which the certificate o f title is canceled. No
5761014 title or registration shall subsequently be issued for a vehicle for
5771015 which the certificate of title has been surrendered pursuant to this
5781016 subsection. The Tax Commission s hall prescribe a form for the
5791017 transfer of ownership of a veh icle for which the certifica te of
5801018 title has been canceled.
581-
5821019 R. The owner of a vehicle which is not w ithin the last ten (10)
5831020 model years, not roadworthy and not capable of repair for operation
5841021 or use on the roads and highways, or a vehicle which is being so ld
5851022 to a scrap metal dealer p ursuant to Section 11-92 of Title 2 of the
5861023 Oklahoma Statutes, shall tran sfer the vehicle only upon a
5871024 certificate of ownership prescribed by the Tax Commission, if the
5881025 certificate of title to the vehicle is lost, has been cancele d, or
5891026 otherwise not availabl e. The prescribed ownership form shall
5901027 include the names and addresses of the buyer and seller, the driver
5911028 license number or social security number of the seller, the make and
5921029 model of the vehicle, and the public vehicle identi fication number.
5931030 If there is no public vehicle identification number, the vehicle
5941031 shall be inspected by a law enforcement officer to verify the
5951032 absence of the number on the vehicle and the prescr ibed ownership
5961033 form shall include a signed statement, by suc h officer, verifying
5971034 the absence of the number.
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5991062 The certificate of ownership shall be completed in t riplicate.
6001063 The buyer and seller shall each retain a copy. Within thirty (30)
6011064 days of the transaction, the seller shall submit one copy to the Tax
6021065 Commission or a motor license agent accompanied with a fee of Four
6031066 Dollars ($4.00). One Dollar ($1.00) shal l be retained by the motor
6041067 license agent and Three Dollars ($3.00) shall be deposited in the
6051068 Oklahoma Tax Commission Reimbursement Fund in the State Treasur y.
606-
6071069 Upon receipt of the certi ficate, the Tax Commission shall verify
6081070 that any perfected lien upon the vehicle has been released. If the
6091071 lien is not released, the Tax Commission shall mail notice o f the
6101072 transfer to the lienholder at the lienholder ’s last-known address.
6111073 If a certificate of title has been issued, it shall be canceled and
6121074 the vehicle identification number shall be preserved in the computer
6131075 of the Tax Commission for at least five (5) y ears. The buyer of the
6141076 vehicle may not be sued and shall no t be liable for monetary dam ages
615-
616-ENR. S. B. NO. 1243 Page 15
6171077 to the lienholder, however, the vehicle shall be subject to a valid
6181078 repossession by a lienholder.
619-
6201079 S. The Tax Commission shall notify the chief administrative
6211080 officer of the agency or department responsible for issuing moto r
6221081 vehicle certificates of ti tle in each state in the United States of
6231082 the types of motor vehicle cer tificate of title effective in
6241083 Oklahoma on and after January 1, 1989.
625-
6261084 T. When registering for t he first time in this state a
6271085 remanufactured vehicle which h as not been registered in an y other
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6281113 state since its remanufacture, before issuing a certificate of
6291114 title, the Tax Commission shall require the applicant to deliver a
6301115 statement of origin from the r emanufacturer.
631-
6321116 U. If a vehicle is sold to a foreign buyer p ursuant to the
6331117 provisions of the Automotive Dismantlers and Parts Recycler Act, the
6341118 licensed seller shall stamp the title with: “EXPORT ONLY.
6351119 NONTRANSFERABLE IN THE UNITED STATES. ” The licensed seller shall
6361120 supply the Tax Commission the title number, th e vehicle
6371121 identification number and the foreign buyer’s bid identification
6381122 number on a form prescrib ed by the Tax Commission. The Tax
6391123 Commission shall cancel the title, and the vehicle identifica tion
6401124 number shall be preserved in the computer files of the Tax
6411125 Commission for a period of not less than five (5) years.
642-
6431126 V. The Tax Commission shall not be con sidered a necessary party
6441127 to any lawsuit which is instigated for the purpose of determining
6451128 ownership of a vehicle, wherein the Tax Commission ’s only
6461129 involvement would be to issue titl e, and the court shall issue an
6471130 order dismissing the Tax Commission from the pending action. In the
6481131 event no other party or lienholder can be identified as to ownershi p
6491132 or claim, the Tax Commission shall accept an affidavit of ownership
6501133 from the party claiming ownership and issue proper title thereon.
651-
6521134 SECTION 2. AMENDATORY 47 O.S. 2021, Section 1107, is
6531135 amended to read as follows:
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6541162
6551163 Section 1107. A. In the event of the sale or transfer of the
6561164 ownership of a vehicle for which a cer tificate of title has been
6571165 issued as provided by Section 1105 of this title, the holder of such
6581166 certificate shall endorse on the back of same a compl ete assignment
659-
660-ENR. S. B. NO. 1243 Page 16
6611167 thereof with warranty of title in form printed thereon with a
6621168 statement of all liens or encu mbrances on the vehicle, sworn to
6631169 before a notary public or some other person authorized by law to
6641170 take acknowledgments, and deliver same to the purc haser or
6651171 transferee at the time of delivery to the purchaser or transferee of
6661172 the vehicle; provided, a tran sfer of the ownership of a vehicle to
6671173 an insurer resulting from the settlement of a total l oss claim shall
6681174 not require a notarized signature on the c ertificate of title. In
6691175 the event that any other documents required for a transfer of the
6701176 ownership of a vehicle to an insurer resulting from the settlement
6711177 of a total loss claim require a notarized signature, such documents
6721178 shall be permitted to be signed electronically pursuant to Section
6731179 15-109 of Title 12A of the Oklahoma Statutes in lieu of such
6741180 requirement. The purchaser or transferee, unless such person is a
6751181 bona fide used motor vehicle dealer licensed by this state, a retail
6761182 implement dealer in con nection with the purchase or transfer of off-
6771183 road vehicles or a charitable organization shall, within thir ty (30)
6781184 days from the time of delivery to the purchaser or transferee of the
6791185 vehicle, present the assigned certificate of title and the insurance
6801186 security verification to the vehicle to the Oklahoma Tax Commission,
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6811214 or one of its motor license agents, accom panied by a fee of Eleven
6821215 Dollars ($11.00), together with any motor vehicle excise tax or
6831216 license fee that may be due, whereupon a new certificate of title,
6841217 shall be issued to the assignee. One Dollar ($1.00) of each fee
6851218 shall be deposited in the Oklahoma Tax Commission Reimbursement
6861219 Fund. Any charitable organization utilizing the exemption
6871220 authorized by this subsection shall receive training as presc ribed
6881221 by the Oklahoma Used Motor Vehicle and Parts Commission.
689-
6901222 B. A licensed dealer, a retail implement d ealer in connection
6911223 with the sale or disposal of off -road vehicles or a charitable
6921224 organization shall, on selling or otherwise disposing of a vehicle,
6931225 execute and deliver to the purchaser thereof the certificate of
6941226 title properly and completely reassigned. Thereupon, the purchaser
6951227 of the vehicle shall present the reassigned certificate to the
6961228 Commission, or a motor license agent, accompanied by a fee o f Eleven
6971229 Dollars ($11.00), and any motor vehicle excise tax or license fee
6981230 that may be due, whereupon a ne w certificate of title will be issued
6991231 to the purchaser. One Dollar ($1.00) of each fee shall be deposited
7001232 in the Oklahoma Tax Commission Reimbursemen t Fund. The certificate,
7011233 when so assigned and returned to the Commission, together with any
7021234 subsequent assignment or reissue thereof, shall be appropriately
703-
704-ENR. S. B. NO. 1243 Page 17
7051235 filed and indexed so that at all times it will be possible to trace
7061236 title to the vehicle designate d therein. Provided, when the
7071237 ownership of any motor vehicle shall pass by operation of law, the
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7081265 person owning the vehicle may, upon furnishing satisfactory proof to
7091266 the Commission of ownership, procure a title to the motor vehicle,
7101267 regardless of whether a certificate of title has ever been issued.
7111268 The dealer shall execute and deliver to the purchaser bills of sale
7121269 on forms prescribed by the Commission for all new vehicles sold by
7131270 the dealer. On presentation of a bill of sale executed on forms
7141271 prescribed by the Commission, by a manufacturer or dealer for a new
7151272 vehicle sold in this state, accompanied by remit tance in the sum of
7161273 Eleven Dollars ($11.00), together with any motor vehicle excise tax
7171274 or license fee that may be due, a certificate of title shall b e
7181275 issued in accordance with the provisions of the Oklahoma Vehicle
7191276 License and Registration Act. One Doll ar ($1.00) of each fee shall
7201277 be deposited in the Oklahoma Tax Commission Reimbursement Fund. For
7211278 purposes of this subsection, “charitable organizatio n” shall mean
7221279 any organization which is exempt from taxation pursuant to the
7231280 provisions of the Internal Re venue Code, 26 U.S.C., Section
7241281 501(c)(3) and which is registered as a charitable organization with
7251282 the Oklahoma Secretary of State and the Oklahoma At torney General’s
7261283 office; “off-road vehicles” means all-terrain vehicles, utility
7271284 vehicles, and motorcycles used exclusively for off-road use; “retail
7281285 implement dealer” means a business engaged primarily in the sale of
7291286 farm tractors as defined in Section 1 -118 of this title or
7301287 implements of husbandry as defined in Section 1 -125 of this title or
7311288 a combination thereof.
7321289
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7331316 C. Any person violating the provisions of this section shall be
7341317 guilty of a misdemeanor and upon the first conviction thereof shall
7351318 be punished by a fine not to exceed Five Hundred Dollars ($500.00),
7361319 with impoundment of the vehicle until all taxes and fees are paid.
7371320 A second or subsequent conviction shall be punished by a fine not to
7381321 exceed One Thousand Dollars ($1,000.00), with impoundment of the
7391322 vehicle until all taxes and fees are paid. If a vehicle is
7401323 impounded pursuant to the provisions of th is section, the vehicle
7411324 shall not be released to the owner until the owner provides proof of
7421325 security or an affidavit that the vehicle will not be use d on public
7431326 highways or public streets, as required pursuant to Section 7 -600 et
7441327 seq. of this title. Each vehicle involved in a violation of this
7451328 section shall be considered a separate offense.
746-
747-
748-ENR. S. B. NO. 1243 Page 18
7491329 SECTION 3. This act shall become effectiv e November 1, 2022.
7501330
751-Passed the Senate the 7th day of March, 2022.
752-
753-
754-
755- Presiding Officer of the Senate
756-
757-
758-Passed the House of Representatives the 27th day of April, 2022.
759-
760-
761-
762- Presiding Officer of the House
763- of Representatives
764-
765-OFFICE OF THE GOVERNOR
766-Received by the Office of the Governor this _______ _____________
767-day of _________________ __, 20_______, at _______ o'clock _______ M.
768-By: _______________________________ __
769-Approved by the Governor of the State of Oklahoma this _____ ____
770-day of _________________ __, 20_______, at _______ o'clock _______ M.
771-
772- _________________________________
773- Governor of the State of Oklahoma
774-
775-
776-OFFICE OF THE SECRETARY OF STATE
777-Received by the Office of the Secretary of State this _______ ___
778-day of __________________, 20 _______, at ____ ___ o'clock _______ M.
779-By: _______________________________ __
1331+COMMITTEE REPORT BY: COMMITTEE ON INSURANCE, dated 04/06/2022 - DO
1332+PASS.