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SENATE FLOOR VERSION
February 23, 2021
COMMITTEE SUBSTITUTE
FOR
SENATE BILL NO. 463 By: Hall of the Senate
and
Kannady of the House
An Act relating to motor license agents; amending 47
O.S. 2011, Section 1140, as last amend ed 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 agents
are subject to removal for cause by the Oklahoma Tax
Commission; providing definit ion; providing procedure
for removal; amending 75 O.S. 2011, Section 250.4, as
last amended by Section 214, Chapter 408, O.S.L. 2019
(75 O.S. Supp. 2020, Section 250.4), which relates to
the Administrative Procedu res Act; providing
exception for certain co mpliance exemption; 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
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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
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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
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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 oppor tunity 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 stat e 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
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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 reg istrations
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 titl e. 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 occur s.
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
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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 balance s 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 app ropriated 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
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done in accordance with t he provisions of the Administrative
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 whic h 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.
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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 a gent.
SECTION 2. AMENDATORY 75 O.S. 2011, Section 250.4, as
last amended by Section 214, Chapter 408, O.S.L. 2019 (75 O.S. Supp.
2020, Section 250.4), is amended to read as follows:
Section 250.4. A. 1. Except as is otherwise spe cifically
provided in this subsection, each agency is required to comply with
Article I of the Administrative Procedures Act.
2. The Corporation Commission shall be required to comply with
the provisions of Article I of the Administrative Procedures Act
except for subsections A, B, C and E of Section 303 of this title
and Section 306 of this title. To the extent of any conflict or
inconsistency with Article I of the Administrative Procedures Act,
pursuant to Section 35 of Article IX of the Oklahoma Consti tution,
it is expressly declared that Article I of the Administrat ive
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Procedures Act is an amendment to and alteration of Sections 18
through 34 of Article IX of the Oklahoma Constitution.
3. The Oklahoma Military Department shall be exempt from the
provisions of Article I of the Administrative Procedures Act to the
extent it exercises its responsibility for military affairs.
Military publications, as defined in Section 801 of Title 44 of the
Oklahoma Statutes, shall be exempt from the provisions of Artic le I
and Article II of the Administrative Procedures Act, except a s
provided in Section 251 of this title.
4. The Oklahoma Ordnance Works Authority, the Northeast
Oklahoma Public Facilities Authority, the Oklahoma Office of
Homeland Security and the Board of Trustees of the Oklahoma College
Savings Plan shall be exempt from Article I of the Administrative
Procedures Act.
5. The Transportation Commission and the Department of
Transportation shall be exempt from Article I of the Administrative
Procedures Act to the extent they exercise their authority in
adopting standard specifications, special provisions, plans, design
standards, testing procedures, federally imposed requirements and
generally recognized standards, project planning and programming,
and the operation and control of the State Highway System.
6. The Oklahoma State Regents for Higher Education shall be
exempt from Article I of the Administrative Procedures Act with
respect to:
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a. prescribing standards of higher education,
b. prescribing functions and courses of study in each
institution to conform to the sta ndards,
c. granting of degrees and other forms of academic
recognition for completion of the prescribed courses,
d. allocation of state-appropriated funds, and
e. fees within the limits pres cribed by the Legislature.
7. Institutional governing boards with in The Oklahoma State
System of Higher Education shall be exempt from Article I of the
Administrative Procedures Act.
8. a. The Commissioner of Public Safety shall be exempt from
Sections 303.1, 304, 307.1, 308 and 308.1 of this
title insofar as it is nece ssary to promulgate rules
pursuant to the Oklahoma Motor Carrier Safety and
Hazardous Materials Transportation Act, to maintain a
current incorporation of federal motor carrier safety
and hazardous material regulations, or pursuant to
Chapter 6 of Title 47 of the Oklahoma Statutes, to
maintain a current incorporation of federal commercial
driver license regulations, for which the Commissioner
has no discretion when the state is mandated to
promulgate rules identical to federal rules and
regulations.
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b. Such rules may be adopted by the Commissioner and
shall be deemed promulgated twenty (20) days after
notice of adoption is published in "The Oklahoma
Register". Such publication need not set fo rth the
full text of the rule but may incorporate the federal
rules and regulations by reference.
c. Such copies of promulgated rules shall be filed with
the Secretary as required by Section 251 of this
title.
d. For any rules for which the Commissioner ha s
discretion to allow variances, tolerances or
modifications from the federal rules and regulations,
the Commissioner shall fully comply with Article I of
the Administrative Procedures Act.
9. The Council on Judicial Complaints shall be exempt from
Section 306 of Article I of the Administrative Procedures Act, with
respect to review of the validity or applicability of a rule by an
action for declaratory judgment, or any other relief based upon the
validity or applicability of a rule, in the district court or by an
appellate court. A party aggrieved by the validity or ap plicability
of a rule made by the Council on Judicial Complaints may petition
the Court on the Judiciary to review the rules and issue opinions
based upon them.
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10. The Department of Correc tions, State Board of Corrections,
county sheriffs and managers of city jails shall be exempt from
Article I of the Administrative Procedures Act with respect to:
a. prescribing internal management procedures for the
management of the state prisons, county jails and city
jails and for the management, supervision and cont rol
of all incarcerated prisoners, and
b. prescribing internal management procedures for the
management of the probation and parole unit of the
Department of Corrections and for the supervis ion of
probationers and parolees.
11. The State Board of Education shall be exempt from Article I
of the Administrative Procedures Act with respect to prescribing
subject matter standards as provided for in Section 11 -103.6a of
Title 70 of the Oklahoma St atutes.
B. As specified, the following agencies or classes of agency
activities are not required to comply with the provisions of Article
II of the Administrative Procedures Act:
1. The Oklahoma Tax Commission , except as provided in
subsection G of Secti on 1140 of Title 47 of the Oklahoma Statutes;
2. The Commission for Human Services;
3. The Oklahoma Ordnance Works Authority;
4. The Corporation Commission;
5. The Pardon and Parole Board;
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6. The Midwestern Oklahoma Development Authority;
7. The Grand River Dam Authority;
8. The Northeast Oklahoma Public Facilities Authority;
9. The Council on Judicial Complaints;
10. The Board of Trustees of the Oklahoma College Savings Plan;
11. The supervisory or administrative agency of any penal,
mental, medical or eleemosynary institution, only with respect to
the institutional supervision, custody, control, care or treatment
of inmates, prisoners or patients therein; provided, that the
provisions of Article II shall apply to and govern all
administrative actions of the Oklahoma Alcohol Prevention, Training,
Treatment and Rehabilitation Authority;
12. The Board of Regents or employees of any university,
college, or other institution of higher learning;
13. The Oklahoma Horse Racing Commission, its employees or
agents only with respect to hearing and notice requirements on the
following classes of violations which are an imminent peril to the
public health, safety and welfare:
a. any rule regarding the running of a race,
b. any violation of medication laws and rules,
c. any suspension or revocation of an occupation license
by any racing jurisdiction recognized by the
Commission,
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d. any assault or other destructive acts within
Commission-licensed premises,
e. any violation of prohibited devices, laws and rules,
or
f. any filing of false information;
14. The Commissioner of Public Safety only with respect to
driver license hearings and hearings conducted pursuant to the
provisions of Section 2 -115 of Title 47 of the Oklahoma Statutes;
15. The Administrator of th e Department of Securities only with
respect to hearings conducted pursuant to provisions of the Oklahoma
Take-over Disclosure Act of 1985;
16. Hearings conducted by a public agency pursuant to Section
962 of Title 47 of the Oklahoma Statutes;
17. The Oklahoma Military Department;
18. The University Hospitals Authority, including all hospitals
or other institutions operated by the University Hospitals
Authority;
19. The Oklahoma Health Care Authority Board and the
Administrator of the Oklahoma Health Ca re Authority; and
20. The Oklahoma Office of Homeland Security.
SECTION 3. This act shall become effective November 1, 2021.
COMMITTEE REPORT BY: COMMITTEE ON FINANCE
February 23, 2021 - DO PASS AS AMENDED