Req. No. 884 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 1st Session of the 58th Legislature (2021) SENATE BILL 463 By: Hall AS INTRODUCED An Act relating to motor license agents; amending 47 O.S. 2011, Section 1140, as last am ended by Section 2, Chapter 195, O.S.L. 2019 (47 O. S. Supp. 2020, Section 1140), which relates to qualifications and requirements; modifying basis for removal of motor license agents; providing that motor license ag ents are subject to removal for cause by the Oklahoma Tax Commission; providing definition; prohibiting removal for exercise of free speech; providing procedure for removal; requiring that removal be reviewed by Commissioners; requiring notice; authorizing hearing; providing for presentation of e vidence; creating right to appeal; and providing an effective date. BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. AMENDATORY 47 O.S. 2011, Section 1140, as last amended by Section 2, Chapter 195, O. S.L. 2019 (47 O.S. Supp. 2020, Section 1140), is am ended to read as follows: Section 1140. A. The Oklahoma Tax Commission shall adopt rules prescribing minimum qualifications and requirements for locating motor license agencies and for persons applying f or appointment as a motor license agent. Such qual ifications and requirements shall include, but not be limited to, the following: Req. No. 884 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 1. Necessary job skills and experience; 2. Minimum office hours; 3. Provision for sufficient staffing, equipment, office space and parking to provide maximum efficiency and maximum convenience to the public; 4. Obtainment of a faithful performance surety bond as provided for by law; 5. In counties with a population in excess of t hirty thousand (30,000) persons according to the latest Federal Decennial Census, a requirement that operation of a motor license agency be the primary source of income for the agent; 6. That the applicant has not been convicted of a felony and that no felony charges are pending against the applica nt; 7. That a complete financial statement be subm itted by the applicant on forms provided by the Tax Commission; 8. That a report of the applicant ’s credit history be obtained through the appropriate credit bu reau; and 9. That the location specified in the application for appointment as a motor license agent not be owned by a member of the Oklahoma Tax Commission or an employee of the Oklahoma Tax Commission or any person related to a member of the Oklahoma Ta x Commission or an employee of the Tax Commi ssion within the third degree by consanguinity or a ffinity and that the location not be within a three-mile radius of an existing motor license agency Req. No. 884 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 unless the applicant is assuming the location of an operating agency. If the applicant is assuming the l ocation of an existing or operating agency, the cur rent agent may submit a letter of resignation contingent upon the appointment of the applicant regardless of the population of the municipality in which the agen cy is located. The Tax Commission may, at i ts discretion, approve the relocation of an existin g agency within a three -mile radius of another existing agency only if a naturally intervening geographic barrier within that radius causes the locations to be s eparated by not less than three (3) miles of roadway by the most direct route. B. After the necessary information has been forwarded to the Tax Commission, the Tax Commission or its designees may select applicants to be interviewed and each item of inform ation shall be reviewed. Any person making application to the Tax Commission for the purpose of becoming a motor license agent shall pay when submitting the application, a nonrefundable application fee of One Hundred Dollars ($100.00). All such applicatio n fees shall be deposited in the Oklahoma Tax Commission Revolving Fund. C. Upon application b y a person to serve as a motor license agent, in such counties, the Tax Commission is authorized to make a determination whether such person and such location me ets the qualifications and requirements pres cribed herein and, if such be the case, may appoint such person to serve as a motor license agent. Req. No. 884 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 D. A motor license agent, appointed pursuant to this subsection, shall be permitted to operate a motor license a gency at a single location and shall be proh ibited from operating subagencies or branch agencies. Motor license agents appointed pursuant to this section shall be subject to all laws relating to motor license agents and shall be subject to removal at the will of for cause by the Tax Commission. For the purposes of this section, “for cause” shall be defined as follows: 1. Repeated violations of written rules, regulations and statutes pertaining to motor license agents after written warning by the Tax Commission a nd an opportunity to correct such vio lations; 2. Failure of the motor license agent to p romptly remit funds owed to the Tax Commission upon written demand; 3. Being charged with a felony crime involving dishonesty or moral turpitude; 4. Failure to timel y file state and federal income tax r eturns; and 5. Any act of official misconduct as se t forth in Section 93 of Title 51 of the Oklahoma Statutes. Under no circumstances shall a motor license agent be removed for exercising his or her right of free speec h as guaranteed by Section 22 of Article II of the Oklahoma Constitution or the First Amendment of the United States Constitution. Req. No. 884 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 The Tax Commission shall appoint as many motor license agents as it deems necessary to carry out the provisions of the Motor Vehicle License and Registration Act. Provided, that in counties with a population in excess of twenty-five thousand (25,000) persons, according to the latest Federal Decennial Census, having only one motor license agent serving the county, the Tax Commis sion shall establish at least one add itional agency to serve the county. E. All motor license agents shall be self-employed independent contractors and shall be under the supervision of the Tax Commission; provided, any agent authorized to issue registrat ions pursuant to the International Re gistration Plan shall also be under the supervision of the Corporation Commission, subject to rules promulgated by the Corporation Commission pursuant to the provisions of subsection E of Section 1166 of this title. An y such agent, upon being appointed, shall furnish and file with the Tax Commission a bond in such amount as may be fixed by the Tax Commission . Such agent shall be removable at the will of the Tax Commission . Such agent shall perform all duties and do su ch things in the administration of th e laws of this state as shall be enjoined upon and required by the Tax Commission or the Corporation Commission. Provided, the Tax Commission may operate a motor license agency in any county where a vacancy occurs. F. In the event of a vacancy existing b y reason of resignation, removal, death or otherwise , in the position of any motor license Req. No. 884 Page 6 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 agent, the Tax Commission is hereby empowered and authorized to take any and all actions it deems appropriate in order to provid e for the orderly transition and for the maintenance of operations of the motor license agency including but not limited to the designation of one of its regular employees to serve as “acting agent” without bond, and to receive and expend all fees or charg es authorized or provided by law and exercise the same powers and authority as a regularly appointed motor license agent. An acting agent may be authorized by the Tax Commission equally as the preceding agent to make disbursements from any balances in the preceding motor license agent’s operating account and the agent ’s operating funds for th e payment of expenses of operations and salaries and other overhead. If such funds are insufficient, the Tax Commission is authorized to expend from funds appropriate d for the operation of the Tax Commission such amounts as are necessary to maintain and c ontinue the operation of any such motor license agency until a successor agent is appointed and qualified. The Tax Commission may require a blanket fiduciary bond of the agency employees. G. Any motor license agency operated by a motor license agent who has been charged with a felony shall be closed immediately. The Tax Commission shall determine whether the motor license agency shall be reopened and operated by the motor license agent. The determination shall be effected as soon as possible to prevent additional inconvenience to the public In the event that the Tax Req. No. 884 Page 7 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 Commission determines by a vote of the majority of the Commissioners that sufficient grounds exist to remove a motor license agent from his or her position, the Tax Commission shall cause wri tten notice, stating with specificity upon which grounds the Tax Commission seeks removal, to be served upon the motor license agent by certified mail. The motor lic ense agent may, within ten (10) days of the receipt of the notice, request a hearing befor e the Tax Commission to dispute the removal. Such hearing shall be held within thirty (30) days of the request by the motor license agent. The motor license agent shall be allowed to present evidence, call witnesses, and present testimony regarding the w ritten allegations. Such hearing shall be conducted pursuant to the provisions of the Oklahoma Administrative Procedures Act. If, after the conclusion of the hearing, the Tax Commission determines tha t the motor license agent shall be removed, the Tax Co mmission shall make a written order to include the specific findings of fact and conclusions of law upon which the determination was based. This written order shall be provided to the motor license age nt within ten (10) days of the conclusion of the heari ng. The motor license agent shall have the right to judicial review of the order of the Tax Commission. Proceedings for review shall be instituted by filing a petiti on in the district court of the cou nty in which the party seeking review resides or, at the option of such party, where the affected property interest is situated, within Req. No. 884 Page 8 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 thirty (30) days after the petitioner is notified of the final order as provided by Section 312 of Title 75 of the Oklah oma Statutes. The petition shall name as respondents t he Tax Commission and any other parties as allowed by law. The district court shall review the final order of the Tax Commission de novo. In the event that the district court determines that the remo val proceeding brought by the Tax Commission was frivol ous, the court may order that the petitioner be entitled to recover any court costs, witness fees and reasonable attorney fees from the Tax Commission. H. When an application for registration is made w ith the Tax Commission, Corporation Commission or a mo tor license agent, a registration fee of One Dollar and seventy -five cents ($1.75) shall be collected for each license plate or decal issued. Such fees shall be in addition to the registration fees on motor vehicles and when an application for registratio n is made to the motor license agent such motor license agent shall retain a fee as provided in Section 1141.1 of this title. When the fee is paid by a person making application directly with the Tax C ommission or Corporation Commission, as applicable, th e registration fees shall be in the same amount as provided for motor license agents and the fee provided by Section 1141.1 of this title shall be deposited in the Oklahoma Tax Commission Revolving Fund or as provided in Section 1167 of this title, as appl icable. The Tax Commission shall prepare schedules of registration fees and charges for titles which shall Req. No. 884 Page 9 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 include the fees for such agents and all fees and charges paid by a person shall be listed sep arately on the application and registration and totale d on the application and registration. The motor license agents shall charge only such fees as are specifically provided for by law, and all such authorized fees sh all be posted in such a manner that a ny person shall have notice of all fees that are imposed by law. I. No person shall be appointed as a motor license agent unless the person has attested under oath that the person is not related by affinity or consangu inity within the third degree to: 1. Any member of the Oklahoma Tax Commission; or 2. Any employee of the Tax Commission. J. Any motor license agent appointed under the provisions of this title shall be responsible for all costs incurred by the Tax Commission when relocating an existing mo tor license agency. The Tax Commission may waive paym ent of such costs in case of unforeseen business or emergency conditions beyond the control of the agent. SECTION 2. This act shall become effective November 1, 2021. 58-1-884 QD 1/19/2021 12:18:04 PM