Req. No. 1906 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 STATE OF OKLAHOMA 1st Session of the 58th Legislature (2021) COMMITTEE SUBSTITUTE FOR SENATE BILL 463 By: Hall of the Senate and Kannady of the House COMMITTEE SUBSTITUTE An Act relating to motor license agents; a mending 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), which relates to qualifications and requirements; modifying basis for removal of motor license agents; providing that motor licen se agents are subject to removal for cause by the Oklahoma Tax Commission; providing definition; providing procedure for removal; and providing an effective date . BE IT ENACTED BY THE PEOPLE OF TH E 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 amended to read as follows: Section 1140. A. The Oklahoma Tax Commission shall ad opt rules prescribing minimum qualifications and requirements for locating motor license agencies and for persons applying for appointment as a Req. No. 1906 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 motor license agent. Such qualifications and requirements shall include, but not be limited to, the following: 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 sure ty 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 applicant; 7. That a complete financial statement be submitted by the applicant on forms provided by the Tax Commission; 8. That a report of the applicant’s credit history be obtain ed 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 re lated to a member of the Oklahoma Ta x Commission or an employee of the Tax Commission within the third Req. No. 1906 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 degree by consanguinity or affinity and that the location not be within a three-mile radius of an existing mo tor license agency unless the applicant is a ssuming the location of an operating agency. If the applicant is assuming the location of an existing or operating agency, the current agent may submit a letter of resignation contingent upon the appointment of the applicant regardless of the population o f the municipality in which the agen cy is located. The Tax Commission may, at its discretion, approve the relocation of an existing agency within a three -mile radius of another existing agency only if a naturall y 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 nonr efundable 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 by a person to serve as a motor license agent, in such counties, the Tax Commissio n is authorized to make a determination whether such person and such location me ets the Req. No. 1906 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 qualifications and requirements prescribed herein and, if such be the case, may appoint such person to serve as a motor license agent. D. A motor license agent, appoin ted pursuant to this subsection, shall be pe rmitted to operate a motor license a gency at a single location and shall be prohibited 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 and an opportunity to correct such violations; 2. Failure of the motor license agent to promptly 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 timely file state and federal income tax returns; or 5. Any act of official misconduct as set forth in Section 93 of Title 51 of the Oklahoma Statutes. The Tax Commission sha ll appoint as many motor license agents as it deems necessary to carry out the provisions of the Motor Vehicle Req. No. 1906 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 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 Commission shall establish at least one addition al agency to serve the county. E. All motor license agents sh all be self-employed independent contractors and shall be under the supervision of the Tax Commission; provided, any agent authorized to issue registrations pursuant to the International Registration Plan shall also be under the supervision of the Corporat ion Commission, subject to rules promulgated by the Corporation Commission pursuant to the pr ovisions of subsection E of Section 1166 of this title. Any 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 such things in the administration of the 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 mot or license agency in any county where a vacancy occurs. F. In the event of a vacancy existing by reason of resignation, removal, death or otherwise, in the positi on of any motor license agent, the Tax Commission is hereby empowered and authorized to take any and all actions it deems appropriate in order to provide for the Req. No. 1906 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 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 charges authorized or provided by law and exercise the same powers and authority as a regularly appointed mot or license agent. An acting agent may be authorized by the Tax Commission equally as the p receding agent to make disbursements from any balances in the preceding motor license agent’s operating account and the agent ’s operating funds for the payment of expenses of operations and salaries and other overh ead. If such funds are insufficient, the Tax Commission is authorized to expend from funds appropriated for the operation of the Tax Commission such amounts as are necessary to maintain and continue the operation of any such motor license agency until a s uccessor 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 th e 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 action by the Tax Commiss ion to remove a motor license agent from h is or her position shall be Req. No. 1906 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 done in accordance with the provisions of the Administra tive Procedures Act. H. When an application for registration is made with the Tax Commission, Corporation Commission or a motor l icense agent, a registration fee of One Do llar 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 registration 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 Commission or Corporation Commission, as applicable, the reg istration 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 applicabl e. The Tax Commission shall prepare schedules of registration fees and charges for titles which shall include the fees for such agents and all fees and charges paid by a person shall be listed separately on the application and registration and totaled 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 shall be posted in such a manner that any person shall have notice of all fees that are imposed by law. Req. No. 1906 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 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 consanguinity 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 motor license agency. The Tax Commission may waive payment o f 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. 58-1-1906 QD 2/23/2021 2:33:37 PM