Req. No. 3038 Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 STATE OF OKLAHOMA 2nd Session of the 58th Legislature (2022) SENATE BILL 1276 By: Standridge AS INTRODUCED An Act relating to certificates of title; amending 47 O.S. 2021, Section 1105A, wh ich relates to the program to permit el ectronic filing, storage, and delivery; requiring that certain electronic documents be presumed valid; providing an effective date ; and declaring an emergency. BE IT ENACTED BY THE PEOPLE OF THE STATE OF O KLAHOMA: SECTION 1. AMENDATORY 47 O.S. 2021, Section 1105A, is amended to read as follows: Section 1105A. A. On or before July 1, 2022, the Oklahoma Tax Commission shall implement a program which will permit the electronic filing, storage, and delivery of motor veh icle certificates of title and allow a lienholder to perfect, assign and release a lien on a motor vehicle in lieu of submission and maintenance of paper documents as otherwise provided in the provisions of Section 1101 et seq. of Title 47 of the Oklahoma Statutes. The Tax Commission shall ent er into a competitive contract with a qualified third-party service provider (System Developer), subject to the provisions of the Oklahoma Central Req. No. 3038 Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Purchasing Act, Section 85.1 et s eq. of Title 74 of the Oklahoma Statutes, to provide necessary hardware, software and services facilitating the inte rconnection between motor license agents and electronic title service providers described in subsection B o f this section for a certificate of title and for filing or releasing a lien pursuant to the procedures presc ribed by the Oklahoma Tax Commission. The provisions of this section shall apply to applications for certifica tes of title and liens filed after J une 30, 2022. The Tax Commission shall promulgate rules to implement the provisions of this section. B. The program authorized under subsection A o f this section shall include, but not be limited to, procedures: 1. For the delivery of a certificate of t itle, on a paper document or in an electronic format, to the secured p arty having the primary perfected sec urity interest in a vehicle in lieu of del ivery to the record owner, notwithstanding the provisions of Section 11 01 et seq. of Title 47 of the Oklaho ma Statutes. Provided, when electronic transmission of liens and lien satisfactions is used, a certificate of title need not be issued or printed un til the last lien is satisfied and a clear certificate of title is issu ed to the owner of the vehicle at th eir request; 2. Establishing qua lifications for third -party electronic title service providers offering electronic lien services. The vendor selected in subsection A of this section shall not be considered an Req. No. 3038 Page 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 electronic title service provider and shall n ot operate or own an electronic title service provider ; 3. Establishing reasonable fees, if necessary, t o be charged by service providers or contrac tors for the establishment, maintenance and operation of the electronic lien title program; 4. Providing access to the electronic certifica te of title records including liens o n record, for licensed motor vehic le dealers and lienholders who participate in the program notwithstanding the provisions of Section 1109 of Title 47 of the Oklahoma Statutes; 5. Allowing motor license agents to parti cipate in the electronic lien title p rogram. Participating motor lice nse agents shall receive all fees provided by the Oklahoma Vehicle License and Registration Act unless otherwise prov ided in Section 1132A of Title 47 of the Oklahoma Statutes; and 6. For the acceptance and use of electron ic or digital signatures. C. As used in this section and Section 1101 et seq. of Title 47 of the Oklahoma Statutes: 1. “Deliver” or “delivery” means, with respect to a certificate of title or lien, either the physical delivery of a paper document or the electronic delivery of a document in an electronic format; 2. “Electronic format” means an electronic or digital format or medium of any document, re cord or other information; and Req. No. 3038 Page 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 3. “Possess” or “possession” means, with respect to a certificate of title or lien, to hold or otherwise exercise control over a document which is in eit her a physical or electronic format. D. Any documents created, stored , or delivered under the electronic lien title program as provided in this section shall be considered presumed valid including any signatures w hich are generated electronically or contained on a scanned copy. A certified copy of the Oklahoma Ta x Commission’s electronic record of a motor vehicle certificate of title or lien is admissible in any civil, criminal, or administrative proceeding in this state as evidence of the existence and contents of the certificate of title or lien. E. The Tax Commission is authorized to expend funds necessary for the implementation of the pr ogram provided in subsection A of this section from available monies in th e Oklahoma Tax Commission and Office of Management an d Enterprise Services Joint Computer Enhancement Fund created pursuant to Section 265 of Title 68 of the Oklahoma Statutes. F. In the development of the program provided in sub section A of this section, the Oklahoma Tax Commission shall consult interested parties including, but not limited to, represent atives of the Oklahoma Automobile Dealers Association, the Oklahoma Bankers Association, the Oklahoma Credit Union Association , and the Oklahoma Tag Agent Coalition. Req. No. 3038 Page 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 SECTION 2. This act shall become effect ive July 1, 2022. SECTION 3. It being immediately necessary for the preservation of the public peace, health or safety, an emergency is hereby declared to exist, by reason whereof thi s act shall take effect and be in full force from and af ter its passage and approval. 58-2-3038 QD 1/13/2022 5:30:16 PM