An Act ENROLLED SENATE BILL NO. 1243 By: Quinn of the Senate and Sneed of the House An Act relating to motor vehicles; amending 47 O.S. 2021, Section 1105, which relates t o certificates of title; exempting certain vehicle title transfers from certain requirements; amending 47 O.S. 2021, Section 1107, which relates to the sale or transfer of ownership of a vehicle; authorizing the use of an electronic signature on documents required for the transfer of ownership of a vehicle resulting from the settlement of a total loss claim; and providing an effective date. SUBJECT: Motor vehicle titles BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. AMENDATORY 47 O .S. 2021, Section 1105, is amended to read as follows: Section 1105. A. As used in the Oklahoma Vehicle License and Registration Act: 1. “Salvage vehicle” means any vehicle which is within the last ten (10) model years and which has been dama ged by collision or other occurrence to the extent t hat the cost of repairing the vehicle for safe operation on the highway exceeds sixty percent (60%) of its fair market value, as defined by Section 1111 of this title, immediately prior to the damage. Fo r purposes of this section, actual repair costs shal l only include labor and parts for ENR. S. B. NO. 1243 Page 2 actual damage to the suspension, motor, transmission, frame or unibody and designated structural components; 2. “Rebuilt vehicle” means any salvage vehicle which has be en rebuilt and inspected for the purpose of registra tion and title; 3. “Flood-damaged vehicle” means a salvage or rebuilt vehicle which was damaged by floodin g or a vehicle which was submerged at a level to or above the dashboard of the vehicle and on whi ch an amount of loss was paid by the insurer; 4. “Unrecovered-theft vehicle” means a vehicle which has been stolen and not yet recovered; 5. “Recovered-theft vehicle” means a vehicle, including a salvage or rebuilt vehicle, which was recovered from a the ft; and 6. “Junked vehicle” means any vehicle which is incapable of operation or use on the highway, has no resale value except as a source of parts or scrap and has an eighty percent (80%) loss in fair market value. B. The owner of every vehicle in this state shall possess a certificate of title as proof of ownership of such vehicle, except those vehicles registered pursuant to Section 1120 of this title and trailers registered pursuant to Section 1133 of this title, previously titled by anyone in anothe r state and engaged in interstate commerce, and exce pt as provided in subsection M of this section. Except for owners that possess an agricultural exemption permit pursuant to Section 1358.1 of Title 68 of the Oklahoma Statutes, the owner of an all -terrain vehicle or a motorcycle used exclusively off roads or highways in this state whi ch is purchased or the ownership of which is transferred on or after July 1, 2005, and the owner of a utility vehicle used exclusively off roads and highways in this state wh ich is purchased or the ownership of which is transferred on or after July 1, 2008 , shall possess a certificate of title as proof of ownership. Any person pos sessing an agricultural exemption permit and owning an all -terrain vehicle or a motorcycle used exclusively off roads or highways in this state which is purchased or the ownership of which is transferred on or after July 1, 2008, shall possess a certificat e of title as proof of ownership. Upon receipt of proper application information by such ENR. S. B. NO. 1243 Page 3 owner, the Oklahoma Tax Commission shall issue an original or transfer certificate of tit le. Until July 1, 2008, any security interest in an all-terrain vehicle that attached and was perfected before July 1, 2005, and that has not otherwise terminated shall remain perfected, and shall take priority over any subse quently perfected security int erest in the same all-terrain vehicle, notwithstanding that a certificate of title may have been issued with respect to the same all -terrain vehicle on or after July 1, 2005, and that a lien may have been recorded on said cert ificate of title. There shall be eight types of certificates of title: 1. Original title for any motor ve hicle which is not a remanufactured, salvage, unrecovered -theft, rebuilt, rebodied or junked vehicle; 2. Salvage title for any motor vehicle which i s a salvage vehicle or is specified as a salvage vehicle or the equivalent thereof on a certificate of titl e from another state; 3. Rebuilt title for any motor vehicle which is a rebuilt vehicle; 4. Junked title for any motor vehicle which is a junked ve hicle or is specified as a jun ked vehicle or the equivalent thereof on a certificate of title from another state; 5. Classic title for any motor vehicle, except a junked vehicle, which is twenty -five (25) model years or older; 6. Remanufactured title for any vehicle which is a remanufactured vehicle; 7. Unrecovered-theft title for any motor vehicle which has been stolen and not recovered; and 8. Rebodied title for any motor vehicle which is a rebodied vehicle. Application for a certificate of title, w hether the initial certificate of title or a duplicate, may be made to the Tax Commission or any motor licens e agent. When application is made with a motor license agent, the application information shall be ENR. S. B. NO. 1243 Page 4 transmitted either electronically or by mail to the Tax Commission by the motor license agent. If the application information is transmitted electronically , the motor license agent shall forward the required application along with evidence of ownership , where required, by mail. Where the transmission of application information cannot be performed electronically, the Tax Commission is authorized to provide p ostage paid envelopes to motor license agents for the purpose of mailing the application along wi th evidence of ownership, where required. The Tax Commission shall upon receipt of proper application information issue an Oklahoma certificate of title. The certificates may be mailed to the applicant. Upon issuance of a certificate of title, the Tax Commission shall provide the appropriate motor lice nse agent with confirmation of such issuance. C. 1. The application for certificate of title shall be upon a blank form furnished by the Tax Commission, containing: a. a full description of the vehicle, b. the manufacturer’s serial or other identifica tion number, c. the motor number and the date on which first sold by the manufacturer or dealer to the owner, d. any distinguishing marks, e. a statement of the applicant ’s source of title, f. any security interest upon the vehicle, and g. such other information as the Tax Commission may require. 2. The application for a certificate of title for a vehicle which is within the last seven (7) model years shall require a declaration as to whether the vehicle has b een damaged by collision or other occurrence and whether the vehicle has been reco vered from theft and the extent of the damage to the vehicle. The declaratio n shall be made by the owner of a vehicle if: ENR. S. B. NO. 1243 Page 5 a. the vehicle has been damaged or stolen, b. the owner did or did not receive any payment for the loss from an insurer, or c. the vehicle is titled or registered in a state that does not classify the vehicle o r brand the title because of damage to or loss of the vehicle similar to the classifications or b rands utilized by this state. The declaration shall be based upon the best informa tion and knowledge of the owner and shall be in addition to the requirements specified in paragraph 1 of this subsection. The Tax Commission shall not issue a certificate of title for a vehicle which is subject to the provisions of this paragraph without the required declaration, completed and signed by the owner of the vehicle. Upon receipt of an application without the properly completed declaration, the Tax Commission sha ll return the application to the applicant with notice that the title may not be i ssued without the required declaration. Nothing in this paragraph shall proh ibit the Tax Commission from recognizing the type of or brand on a title or other ownership docum ent issued by another state or the in spection conducted in another state and issui ng the appropriate certificate of title for the vehicle. 3. The certificate of title shall have the following security features: a. intaglio printing or security thread, wit h or without watermark, b. latent images, c. fluorescent inks, d. micro print, e. void background, and f. color coding. ENR. S. B. NO. 1243 Page 6 4. Each title issued pursuant to the p rovisions of the Oklahoma Vehicle License and Registration Act shall be color coded as determined by the Tax Commission. 5. The certificate of title shall be of such size and des ign and color as the Tax Commission may direct pursuant to the provisions of this section. The title shall be on colored paper or other material as designated by the Tax Com mission and be of such intensity or hue as will allo w easy identification as to wh ether the title is an original title, a salvage title, a rebuilt title, remanufactured title, rebodied title or a junked title. The type of title shall be identified on the front of the certificate of title. The original title, rebuilt title, remanufactu red title, an unrecovered-theft title, rebodied title or classic title shall be identified by the word “Original”, “Rebuilt”, “Remanufactured”, “Unrecovered Theft”, “Rebodied” or “Classic” printed in the upper right quadrant of the certificate of title, in the space which is currently captioned “type of title”. A rebodied title sh all also identify on the front of the title the year, make and model of the originally manufactur ed vehicle which has been rebodied and display a notation that reads as follows: “This vehicle has been assembled with new major components licensed by the ori ginal manufacturer”. D. 1. To obtain an original certificate of title for a vehicle that is being registered for the first time in this state which has not been previously regis tered in any other state, the applicant shall be required to deliver, as evid ence of ownership, a manufacturer’s certificate of origin properly assigned by the manufacturer, distributor, or dealer licensed in this or any other state shown thereon to be the last transferee to the applicant upon a form to be prescribed and approved b y the Tax Commission. A manufacturer’s certificate of origin shall contain: a. the manufacturer’s serial or other identification number, b. date on which first sold by the manufa cturer to the dealer, c. any distinguishing marks including model and the yea r same was made, ENR. S. B. NO. 1243 Page 7 d. a statement of any security interests upon the vehicle, and e. such other information as the Tax Commission may require. 2. The manufacturer’s certificate of origin shall have the following security features: a. intaglio printing or se curity thread, with or without watermark, b. latent images, c. fluorescent inks, d. micro print, and e. void background. E. In the absence of a deal er’s or manufacturer’s number, the Tax Commission may assign such identifying number to the vehicle, which shall be permanently stamped, burned or pressed or attached into the vehicle, and a certificate o f title shall be delivered to the applicant upon pay ment of all fees and taxes, an d the remaining copies shall be permanently filed and indexed by the Tax Comm ission. The Tax Commission shall assign an identifying number to any rebuilt vehicle if the vehicle identification number displayed on the rebuilt vehicle does not accurately des cribe the vehicle as rebuilt. The motor license agent, at the time of inspec tion of the rebuilt vehicle pursuant to Section 1111 of this title, shall identify the make, model, and year for the body to accurately describe the rebuilt vehicle. At the time of the inspection, an appropriate identifying number shall be permanently sta mped, burned, pressed, or attached on the rebuilt vehicle. The assigned identifying number shall be recorded on the certificate of title for the reb uilt vehicle. The dealer ’s or manufacturer’s vehicle identification number on the rebuilt vehicle shall be preserved in the computer files of the Tax Commission for at least five (5) years. F. When registering for the first time in this state a vehicle which was not originally manufa ctured for sale in the United States, ENR. S. B. NO. 1243 Page 8 to obtain a certificate of title, the T ax Commission shall require the applicant to deliver: 1. As evidence of ownership, if the vehicl e has not previously been titled in the United State s, the documents constituting valid proof of ownership in the country in which the vehicle was originally purchased, together with a notarized translation of any such documents; and 2. As evidence of com pliance with federal law, copies of the bond release letters for the vehicle issue d by the United States Environmental Protection Agency and the United States Department of Transportation, together with a receipt issued by the Internal Revenue Service indi cating that the applicable federal gas guzzler tax has been paid. The Tax Commission shall not issue a certificate of title for a vehicle which is subject to t he provisions of this paragraph without the required documentation from agencies of the United St ates and evidence of ownership. Upon receipt of an application without the required documentation, the Tax Commission shall return the application to the appl icant with notice that the certificate of title may not be issued without the required documentat ion. Nothing in this paragraph shall prohibit the T ax Commission from issuing certificates of title for antique or classic vehicles not driven upon the public streets, roads, or highways, for mini -trucks registered pursuant to Section 1151.3 of this title , or for medium- speed electric vehicles. G. When registering in this state a vehi cle which was titled in another state and which title contains the name of a secured party on the face of the other state certificate of title, or such state certificate is being held by the secured party in that state or any other state, the Tax Commissio n or the motor license agent shall complete a lien entry form as prescribed b y the Tax Commission. The owner of such vehicle shall file an affidavit with the Tax Commission or the motor license agent stating that title to the vehicle is being held by a se cured party, has not been issued pursuant to the laws of the state where titl ed, and that there is an existing lien or encumbrance on the vehicle. The current name and address of the secured party or lienholder shall also be stated in the affidavit. The form of the affidavit shall be prescribed by the ENR. S. B. NO. 1243 Page 9 Tax Commission and contain a ny other information deemed necessary by the Tax Commission. A statement of the lien or encumbra nce shall be included on the Oklahoma certificate of title and the lien or encumbrance shall be deemed continuously perfected as though it had been perfected pursuant to Section 1110 of this title. For completing the lien entry form and recording the secu rity interest on the certificate of title, the Tax C ommission or the motor license agent shall collect a fee of Three Dollars ($3.00) which shall be in addition to other fees provided by the Oklahoma Vehicle License and Registration Act. The fee, if colle cted by the motor license agent pursuant to this sub section, shall be retained by the motor license agent. H. The charge for each certificate of title issued, except for junked titles as defined in paragraph 4 of subsection B of this section, shall be Ele ven Dollars ($11.00), which charge shall be in addition to any other fees or taxes imposed by law for such vehicle. One Dollar ($1.00) of each such charge sha ll be deposited in the Oklahoma Tax Commission Reimbursement Fund. However, the charge shall not apply to any vehicle which is to be registered in t his state pursuant to the prov isions of Section 1120 or 1133 of this title and which was registered in anot her state at least sixty (60) days prior to the time it is required to be registered in this state. When an insurer requests a salvage or junk title in the name of the insurer resulting from the settlement of a total loss claim and upon presentation of ap propriate proof of loss documentation as required by the Commission, such transfer may be process ed as one title transaction, without first requiring issuance of a replacement certificate of title in the name of the vehicle owner. The fee shall be Twenty-two Dollars ($22.00). Two Dollars ($2.00) of this fee shall be deposited in the Oklahoma Tax Com mission Reimbursement Fund. I. The vehicle identifi cation number of a junked vehi cle shall be preserved in the computer files of the Tax Commission for a period of not less than five (5) years. The charge of junked titles as defined in paragraph 4 of sub section B of this section shall be Four Dollars ($4.00). The fee remitted to the Tax Commission shall be deposited in the Oklahoma Tax Commission Reimbursemen t Fund. J. If a vehicle is sold to a resident of another state destroyed, dismantled, or ceases to be used as a vehicle, the owner ENR. S. B. NO. 1243 Page 10 shall immediately notify the Tax Commission. A bsent evidence to the contrary, failure to notify the Tax Commission shall be prima facie evidence that the vehicle has been in continuous operation in this state. K. If a vehicle is stolen, the owner shall immediately notify the appropriate law enforceme nt agency. Immediately after receiving such notification, the law enforcemen t agency shall notify the Tax Commission. L. Except for all-terrain vehicles, utility vehicles a nd motorcycles used exclusively for off -road use, no title for an out- of-state vehicle, except any commercial truck or truck -tractor registered pursuant to Sec tion 1120 of this title which is engaged in interstate commerce or any trailer or semitrailer reg istered pursuant to Section 1133 of this title which is engaged in interstate commerce, shall be issued without an inspection of such vehicle and payment of a fee of Four Dollars ($4.00) for such inspection; provided, the Tax Commission may enter into reci procal agreements with other states for such inspect ions to be performed at locations outside the boundaries of this state for vehicles which: 1. Are offered for sale at auction; 2. Have been solely used as vehicles for rent under the ownership of a licensed motor vehicle dealer or a person engaged in the business of renting motor veh icles; or 3. Have not been registered in this or any other state for more than one (1) year. The inspection shall include a comparison of the vehicle identification number o n the vehicle with the number recorded on the ownership records and the recording of the actual odometer reading on the vehicle. The four -dollar fee shall be collected by the motor license agent or Tax Commission when the title is issued. The motor license agent shall retain Two Dollars ($2.00). The rema ining Two Dollars ($2.00) shal l be deposited in the Oklahoma Tax Commission Reimbursement Fund. ENR. S. B. NO. 1243 Page 11 The Tax Commission may allow the inspection to be performed at a location out-of-state by another state ’s department of motor vehicles or state police. M. No title for any out-of-state vehicle offered for sale at salvage pools, salvage disposal sales, or an auction, or by a dealer or a licensed automotive dismantler and parts recycler, shall be issued without an inspection to compare the vehicle identification number on the vehicle with the number recorded on the ownership record and to record the actual odometer rea ding on the vehicle. On or after the effective date of this act, vehicles that require a transfer to a salvage title or junked title resulting from a n insurance claim that utilizes an out-of-state or tribal title shall be exempt from the requirements of this subsection. Upon request of the seller, person or entity conducting an auction, dealer or licensed dismantler, the inspection shall be conducted a t the location or place of b usiness of the sale, auction, dealer, or the dismantler. The inspection shall be conducted by any motor license agent or a duly authorized employee thereof; provided, if th e vehicle identification number on the vehicle offered for sale at salvage pools, salvage disposal sales or a classic or antique auction does not match the number recorded on the ownership record, the inspection may be conducted at the location of or place of business of such sale or auction by any state, coun ty or city law enforcement officer. The Tax Commission may enter into reciprocal agreements with other states for such inspections to be performed at locations outside the boundaries of this state for vehicles which: 1. Are offered for sale at auction; 2. Have been solely used as vehicles for rent under the ownership of a licensed motor vehicle dealer or a person engaged in the business of renting motor vehicles; or 3. Have not been registered in this or any other state for more than one (1) year. The inspection shall be certified upon forms prescribed by the Tax Commission. The name and other identi fication of the authorized person conducting the inspection shall be legibly printed or typed on the form. Prior to any inspection by any employee of a mot or license agent, the motor license agent shall notify the Tax ENR. S. B. NO. 1243 Page 12 Commission of the name and any other identification information requested by the Tax Commission of the authorized person. A signature specimen of the authorized person shall be submitted to the Tax Commission by the empl oying motor license agent. If the authorization to inspect vehicles is withdrawn or the employer - employee relationship is terminated, the motor license agent, immediately, shall notify the Tax Commission and return any remaining inspection forms to the Ta x Commission. The fee for the inspection shall be Four Dollars ($4.00). The motor license agent shall retain Three Dollars ($3.00) of the fee. Fees received by a motor license agent or an authorized employee thereof shall be handled and accounted for in the manner as prescribed by law for any other fees paid to or received by a motor license agent. Out -of- state vehicles brought into this state by a person licensed in another state to sell new or used vehicles to be sold withi n this state at a motor vehi cle auction which is limited to dealer -to- dealer transactions shall not be required to be inspected, unless the vehicle is purchased by an Oklahoma dealer. Any person l icensed in another state to sell new or used motor vehicles , who offers a motor vehicle for sale within this state at a motor vehicle auction which is limited to dealer-to-dealer transactions, shall not be within the definition of “owner” in Section 1102 of this title, for purposes of Section 1101 et seq. of this title. N. A licensed motor vehicle dealer, upon payment of a fee of Fifteen Dollars ($15.00), may r eassign an out-of-state certificate of title to a used motor vehicle provided such dealer obtain s the appropriate inspection form required by either subsect ion L or M of this section and attaches the form to the out-of-state certificate of title. Motor license agents shall be allowed to retain Two Dollars and twenty-five cents ($2.25) of the fee plu s an additional Two Dollars ($2.00) or Three Dollars ($3.00) as provided in subsections L and M of this section for performance of the inspection. Two Dollars ($2.00) of the fee shall be deposited in the Tax Commission Reimbursement Fund. An out -of-state vehicle which has been rebuilt shall be inspected pursuant to the provisions of Section 1111 of this title. The Tax Commission shall train motor license agents in interpreting vehicle identification numbers to assure that it accurately describes the vehi cle and to detect rollback or alteration of the odometer. F ailure of a motor license agent to inspect the vehicle and make the required notations shall be a misdemeanor punishable by a fine of not more than One Thousand ENR. S. B. NO. 1243 Page 13 Dollars ($1,000.00) for the first o ffense and Five Thousand Dollars ($5,000.00) for the second offense or subsequent offens e, or by imprisonment in the county jail for not more than six (6) month s, or by both such fine and imprisonment. O. The ownership of any unrecovered vehicle which ha s been declared a total loss by an insurer because of theft s hall be transferred to the i nsurer by an unrecovered-theft vehicle title; provided, the ownership of any such vehicle which has been declared a total loss by an insurer licensed by the Insurance Department of the State of Oklahoma and maintaining a multi -state motor vehicle salvage processing center in this state shall be transferred to the insurer by a salvage or an unrecovered -theft title without the requirement of a visual inspection of the veh icle identification number by the insurer. Upon recovery of the vehicle, the ownership shall be transferred by an original title, salvage title, or junked title, as may be appropriate based upon an estimate of the amount of loss submitted by the insurer. P. When an insurance company makes a total loss settlement o n a total loss vehicle and t he insurance company or a salvage pool authorized by the insurance compa ny is unable to obtain the properly endorsed certificate of ownership or other evidence of own ership acceptable to the Oklahoma Tax Commission within thirty (30) days following acceptance by the owner of an offer of an amount in settlement of a total loss, that insurance company or salvage pool, on a form provided by the Oklahoma Tax Commission and signed under penalty of perjury, may request the Oklahoma Tax Commission to issue the applicable salvage title for the vehicle. The request shall include information declaring that the requester has made at least two written attempts to obtain the certif icate of ownership or other acceptable evidence of title. Q. The owner of any vehicle whi ch is incapable of operation or use on the public roads and has no resal e value, except as parts, scrap or junk, may deliver the certificate of title to the vehicle to the Tax Commission for cancellation. Upon verification that any perfected lien against the vehicle has been released, the certificate of title shall be cancele d without any fee, charge, or cost required from the owner. The vehicle identification numbe rs on the certificates of title shall be preserved in the compu ter files of the Tax Commission for at least five (5) years from the date of ENR. S. B. NO. 1243 Page 14 cancellation of the cer tificate of title. The Tax Commission shall prescribe and provide an affidavit form to be co mpleted by the owner of any vehicle for which the certificate o f title is canceled. No title or registration shall subsequently be issued for a vehicle for which the certificate of title has been surrendered pursuant to this subsection. The Tax Commissio n shall prescribe a form for the transfer of ownership of a veh icle for which the certifica te of title has been canceled. R. The owner of a vehicle which is not w ithin the last ten (10) model years, not roadworthy and not capable of repair for operation or use on the roads and highways, or a vehicle which is being so ld to a scrap metal dealer p ursuant to Section 11-92 of Title 2 of the Oklahoma Statutes, shall tran sfer the vehicle only upon a certificate of ownership prescribed by the Tax Commission, if t he certificate of title to the vehicle is lost, has been cancele d, or otherwise not availabl e. The prescribed ownership form shall include the names and addresses of the buyer and seller, the driver license number or social security number of the seller, the make and model of the vehicle, and the public vehicle identi fication number. If there is no public vehicle identification number, the vehicle shall be inspected by a law enforcement officer to verify the absence of the number on the vehicle and the pr escribed ownership form shall include a signed statement, by suc h officer, verifying the absence of the number. The certificate of ownership shall be completed in t riplicate. The buyer and seller shall each retain a copy. Within thirty (30) days of the transaction, the seller shall submit one copy to the Tax Commission or a motor license agent accompanied with a fee of Four Dollars ($4.00). One Dollar ($1.00) shal l be retained by the motor license agent and Three Dollars ($3.00) shall be deposited in th e Oklahoma Tax Commission Reimbursement Fund in the State Treasur y. Upon receipt of the certi ficate, the Tax Commission shall verify that any perfected lien upon the vehicle has been released. If the lien is not released, the Tax Commission shall mail no tice of the transfer to the lienholder at the lienholder ’s last-known address. If a certificate of title has been issued, it shall be canceled and the vehicle identification number shall be preserved in the computer of the Tax Commission for at least five (5) years. The buyer of the vehicle may not be sued and shall no t be liable for monetary dam ages ENR. S. B. NO. 1243 Page 15 to the lienholder, however, the vehicle shall be subject to a valid repossession by a lienholder. S. The Tax Commission shall notify the chief administrati ve officer of the agency or department responsible for issuing moto r vehicle certificates of ti tle in each state in the United States of the types of motor vehicle cer tificate of title effective in Oklahoma on and after January 1, 1989. T. When registering for the first time in this state a remanufactured vehicle which h as not been registered in an y other state since its remanufacture, before issuing a certificate of title, the Tax Commission shall require the applicant to deliver a statement of origin fr om the remanufacturer. U. If a vehicle is sold to a foreign buyer p ursuant to the provisions of the Automotive Dismantlers and Parts Recycler Act, the licensed seller shall stamp the title with: “EXPORT ONLY. NONTRANSFERABLE IN THE UNITED STATES. ” The licensed seller shall supply the Tax Commission the title number, th e vehicle identification number and the foreign buyer’s bid identification number on a form prescrib ed by the Tax Commission. The Tax Commission shall cancel the title, and the vehicle i dentification number shall be preserved in the computer files of the Tax Commission for a period of not less than five (5) years. V. The Tax Commission shall not be con sidered a necessary party to any lawsuit which is instigated for the purpose of determ ining ownership of a vehicle, wherein the Tax Commission ’s only involvement would be to issue titl e, and the court shall issue an order dismissing the Tax Commission from the pending action. In the event no other party or lienholder can be identified as t o ownership or claim, the Tax Commission shall accept an affidavit of ownership from the party claiming ownership and issue proper title thereon. SECTION 2. AMENDATORY 47 O.S. 2021, Section 1107, is amended to read as follows: Section 1107. A. In the event of the sale or transfer of the ownership of a vehicle for which a cer tificate of title has been issued as provided by Section 1105 of this title, the holder of such certificate shall endorse on the back of same a compl ete assignment ENR. S. B. NO. 1243 Page 16 thereof with warranty of title in form printed thereon with a statement of all liens or encu mbrances on the vehicle, sworn to before a notary public or some other person authorized by law to take acknowledgments, and deliver same to the purc haser or transferee at the time of d elivery to the purchaser or transferee of the vehicle; provided, a tran sfer of the ownership of a vehicle to an insurer resulting from the settlement of a total l oss claim shall not require a notarized signature on the c ertificate of title. In the event that any other documents required for a transfer of the ownership of a vehicle to an insurer resulting from the settlement of a total loss claim require a notarized signature, such documents shall be permitted to be signed electronically pursuant to Section 15-109 of Title 12A of the Oklahoma Statutes in lieu of such requirement. The purchaser or transferee, unless such person is a bona fide used motor vehicle dealer licensed by this state, a retail implement dealer in con nection with the purchase or tr ansfer of off- road vehicles or a charitable organization shall, within thir ty (30) days from the time of delivery to the purchaser or transferee of the vehicle, present the assigned certificate of title and the insurance security verification to the vehicl e to the Oklahoma Tax Commission, or one of its motor license agents, accom panied by a fee of Eleven Dollars ($11.00), together with any motor vehicle excise tax or license fee that may be due, whereupon a new certificate of title, shall be issued to the a ssignee. One Dollar ($1.00) of each fee shall be deposited in the Oklahoma Tax Commission Reimbursement Fund. Any charitable organization utilizing the exemption authorized by this subsection shall receive training as presc ribed by the Oklahoma Used Moto r Vehicle and Parts Commission. B. A licensed dealer, a retail implement d ealer in connection with the sale or disposal of off -road vehicles or a charitable organization shall, on selling or otherwise disposing of a vehicle, execute and deliver to the pur chaser thereof the certificate of title properly and completely reassigned. Thereupon, the purchaser of the vehicle shall present the reassigned certificate to the Commission, or a motor license agent, accompanied by a fee o f Eleven Dollars ($11.00), and any motor vehicle excise tax or license fee that may be due, whereupon a ne w certificate of title will be issued to the purchaser. One Dollar ($1.00) of each fee shall be deposited in the Oklahoma Tax Commission Reimbursemen t Fund. The certificate, when so assigned and returned to the Commission, together with any subsequent assignment or reissue thereof, shall be appropriately ENR. S. B. NO. 1243 Page 17 filed and indexed so that at all times it will be possible to trace title to the vehicle designate d therein. Provided, when the ownership of any motor vehicle shall pass by operation of law, the person owning the vehicle may, upon furnishing satisfactory proof to the Commission of ownership, procure a title to the motor vehicle, regardless of whether a certificate of title has ever been issued. The dealer shall execute and deliver to the purchaser bills of sale on forms prescribed by the Commission for all new vehicles sold by the dealer. On presentation of a bill of sale executed on forms prescribed by the Commission, by a manufa cturer or dealer for a new vehicle sold in this state, accompanied by remit tance in the sum of Eleven Dollars ($11.00), together with any motor vehicle excise tax or license fee that may be due, a certificate of title shall b e issued in accordance with the provisions of the Oklahoma Vehicle License and Registration Act. One Doll ar ($1.00) of each fee shall be deposited in the Oklahoma Tax Commission Reimbursement Fund. For purposes of this subsection, “charitable organizatio n” shall mean any organization which is exempt from taxation pursuant to the provisions of the Internal Re venue Code, 26 U.S.C., Section 501(c)(3) and which is registered as a charitable organization with the Oklahoma Secretary of State and the Oklahoma At torney General’s office; “off-road vehicles” means all-terrain vehicles, utility vehicles, and motorcycles used exclusively for off-road use; “retail implement dealer” means a business engaged primarily in the sale of farm tractors as defined in Section 1 -118 of this title or implements of husbandry as defined in Section 1 -125 of this title or a combination thereof. C. Any person violating the provisions of this section shall be guilty of a misdemeanor and upon the first conviction thereof shall be punished by a fine not to exceed Five Hundred Dollars ($500.00), with impoundment of the vehicle until all taxes and fees are paid. A second or subsequent conviction shall be punished by a fine not to exceed One Thousand Dollars ($1,000.00), with impoundment of the vehicle until all taxes and fees are paid. If a vehicle is impounded pursuant to the provisions of th is section, the vehicle shall not be released to the owner until the owner provides proof of security or an affidavit that the vehicle will not be use d on public highways or public streets, as required pursuant to Section 7 -600 et seq. of this title. Each vehicle involved in a violation of this section shall be considered a separate offense. ENR. S. B. NO. 1243 Page 18 SECTION 3. This act shall become effectiv e November 1, 2022. Passed the Senate the 7th day of March, 2022. Presiding Officer of the Senate Passed the House of Representatives the 27th day of April, 2022. Presiding Officer of the House of Representatives OFFICE OF THE GOVERNOR Received by the Office of the Governor this _______ _____________ day of _________________ __, 20_______, at _______ o'clock _______ M. By: _______________________________ __ Approved by the Governor of the State of Oklahoma this _____ ____ day of _________________ __, 20_______, at _______ o'clock _______ M. _________________________________ Governor of the State of Oklahoma OFFICE OF THE SECRETARY OF STATE Received by the Office of the Secretary of State this _______ ___ day of __________________, 20 _______, at ____ ___ o'clock _______ M. By: _______________________________ __