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SENATE FLOOR VERSION
February 8, 2022
COMMITTEE SUBSTITUTE
FOR
SENATE BILL NO. 1276 By: Standridge
An Act relating to certificates of title ; amending 47
O.S. 2021, Section 1105A, which relates to the
program to permit electronic filing, storage, and
delivery; modifying application of certain
provisions; requiring that certain electronic
documents be presumed valid; requiring the Oklahoma
Tax Commission to implement a program for electronic
certificates of title and asso ciated liens; updating
statutory language; providing for codification;
providing an effective date; and declaring an
emergency.
BE IT ENACTED BY THE PEOPLE OF T HE STATE OF OKLAHOMA:
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 ve hicle
certificates of title and all ow a lienholder to perfect, assign and
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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 shal l enter into a competitive
contract with a qualified third-party service provider (System
Developer), subject to the provisions of the Oklahoma Central
Purchasing Act, Section 85.1 et s eq. of Title 74 of the Oklahoma
Statutes, to provide necessary hardware, software and services
facilitating the interconnection 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 prescribed by the Oklahoma Tax
Commission. The provisions of this section shall apply to
applications for certificates of title issued and liens filed after
June 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 s ecured party having the
primary perfected security 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
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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
electronic title service provider and shall n ot operate or own an
electronic title service provider ;
3. Establishing reasonable fees, if necessary, to 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 on record, for licensed motor vehicle
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 program. Participating motor license 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 electronic or digital
signatures.
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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
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 which 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 the Oklahoma Tax Commission
and Office of Management an d Enterprise Services Joint Computer
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Enhancement Fund created pursuant to Section 265 of Title 68 of the
Oklahoma Statutes.
F. In the development of the prog ram provided in subsection 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 of Oklahoma, and
the Oklahoma Tag Agent Coalition.
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 4003A of Title 63, unless there
is created a duplication in numb ering, reads as follows:
On or before July 1, 2022, the Oklahoma Tax Commission shall
implement a program which will permit the electronic filing,
storage, and delivery of boat and motor certifi cates of title and
allow a lienholder to perfect, assign , and release a lien on a boat
or motor in lieu of submission and maintenance of paper documents as
otherwise provided in the provisions of Section 4008 et seq. of
Title 63 of the Oklahoma Statutes. The provisions of this section
shall apply to certificates of title issued an d liens filed after
June 30, 2022. The Tax Commission shall promulgate rules to
implement the provisions of this section.
SECTION 3. This act shall become effectiv e July 1, 2022.
SECTION 4. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
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declared to exist, by reason whereof thi s act shall take effect and
be in full force from and afte r its passage and approval.
COMMITTEE REPORT BY: COMMITTEE ON FINANCE
February 8, 2022 - DO PASS AS AMENDED