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ENGROSSED SENATE
BILL NO. 463 By: Hall of the Senate
and
Kannady of the House
[ motor license agents - removal of motor license
agents - noncompliance and violation - effective date
]
BE IT ENACTED BY THE PEOPLE OF THE STAT E OF OKLAHOMA:
SECTION 1. AMENDATORY 47 O.S. 2011, Section 1140, as
last amended by Section 2, Chapte r 195, O.S.L. 2019 (47 O.S. Supp.
2020, Section 1140), is amended to read as follows:
Section 1140. A. The Oklahoma Tax Commiss ion shall adopt rules
prescribing minimum qualifications and requirements for locating
motor license agencies and for persons a pplying for appointment as a
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;
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4. Obtainment of a faithful perf ormance surety bond as provided
for by law;
5. In counties with a population in excess of t hirty thousand
(30,000) persons acc ording 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 th e 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 obtained
through the appropriate credit bu reau; and
9. That the location spe cified 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 Commission within the third
degree by consanguinity or affinity and that the location not be
within a three-mile radius of an existing motor license agency
unless the applicant is assuming the location of an operating
agency. If the applicant is assum ing the location of an existing or
operating agency, the current agent may submit a letter of
resignation contingent upon the app ointment of the applicant
regardless of the population of the municipality in which the agen cy
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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 i f 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 by a person to serve as a motor license
agent, in such counties, the T ax Commission is authorized to make a
determination whether such person and such location me ets the
qualifications and requirem ents prescribed herein and, if such be
the case, may appoint such person to serve as a motor license agent.
D. A motor license a gent, appointed pursuant to this
subsection, shall be permitted to operate a motor license a gency at
a single location and shal l be prohibited from operating subagencies
or branch agencies.
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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.
Any action taken by the Tax Commission to remove a motor license
agent from his or her position shall be pursuant to and in
accordance with the provisions of the Administrative Procedures Act .
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 opportunit y to correct such violations;
2. Failure of the motor license ag ent to promptly remit funds
owed to the Tax Commission upon written demand;
3. Being charged with a felony crime involving dishon esty or
moral turpitude;
4. Failure to timely file state and federal income tax returns;
or
5. Any act of official misconduc t as set forth in Section 93 of
Title 51 of the Oklahoma Statutes.
The Tax Commission shall appoint as many motor license agents a s
it deems necessary to carry out the provisions of the Motor Vehicle
License and Registration Act. Provided, that in countie s with a
population in excess of twenty -five thousand (25,000) persons,
according to the latest Federal Decennial Census, having o nly one
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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 provisions
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 sha ll 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 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 ta ke
any and all actions it deems appropriate in order to provide for the
orderly transition and for the maintenance of operatio ns of the
motor license agency including but not limited to the designation of
one of its regular employees to serve as "acting agent" without
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bond, and to receive and expend all fees or charges authorized or
provided by law and exercise the same powers an d authority as a
regularly appointed mot or 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 the
payment of expenses of operations and salaries and other overhead.
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 ne cessary to maintain and continue
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 t he motor license agency
shall be reopened and operated by the motor license agent. The
determination shall be effected as soo n as possible to prevent
additional inconvenience to the public.
H. When an application for registration is made with the Tax
Commission, Corporation Commission or a motor license agent, a
registration fee of One Dollar and seventy -five cents ($1.75) shal l
be collected for each license plate or decal issued. Such fees
shall be in addition to the registration fees on motor vehicles and
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when an application for registration is made to the motor license
agent such motor license agent shall retain a fee as pro vided in
Section 1141.1 of this title. When the fee is paid by a person
making application directly with the Tax Commission or Co rporation
Commission, as applicable, the registration fees shall be in the
same amount as provided for motor license agents an d 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 applicable. The Tax Commission shall prepare
schedules of registration fees and charges fo r 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.
I. H. 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. I. Any motor license agent appointed under the provisions of
this title shall be responsible for all costs incurred by the Tax
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Commission when relocating an existing motor licen se agency. The
Tax Commission may waive payment of such costs in case of unforeseen
business or emergency conditions beyond t he control of the agent.
SECTION 2. AMENDATORY 47 O.S. 2011, Section 1142, is
amended to read as follows :
Section 1142. A. There is hereby created as an official
depository of the Oklahoma Tax Commission a special agency account .
The Tax Commission is hereby authorized and directed to assign an
appropriate and distinctive number o r designation for the acc ount
herein created which shall be designated the Oklahoma Tax Commission
Motor License Agent Account. The Tax Commission sha ll assign an
appropriate and distinctive subaccount number or designation for
each motor license agent. Every motor license agent appointed under
the provisions of the Oklahoma Vehicle License and Registration Act
shall safeguard and preserve, in the mann er herein required, all
monies paid to such agent which the agent is bound to account for
and pay over to the Tax Commission.
B. Each motor license agent shall establish, in a bank or banks
authorized to do a banking business in the state, such special
agency account and at any time that the motor license agent
accumulates a total amount of receipts of One H undred Dollars
($100.00) or more then such motor license agent shall deposit within
a period of one (1) banking business day after the close of
business, all receipts which the agent is obligated to account for
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and remit to the Tax Commission in the design ated Oklahoma Tax
Commission Motor License Agent Account and no such monies shall be
deposited in any other banks or other depositories unless the said
bank accounts are maintained by the Tax Commission. Provided that,
where a motor license agent is doing business in a municipali ty
where there is no bank located, such motor license agent shall have
a period of three (3) banking business days after the c lose of
business to make such deposits. Advice of deposit receipts or
duplicate deposit receipts, in a f orm and in an amount pres cribed by
the Tax Commission, shall be obtained and preserved as directed by
the Tax Commission. One shall be retained by the agent, and one
shall be immediately forwarded to the Tax Commission. Withdrawals
or transfers from such Oklahoma Tax Commission Motor License Agent
Account shall be made only by the duly authorized agent of the Tax
Commission. That part of the agent 's fees to be retained by the
agent as the agent's personal compensation shall not be deposited in
said Oklahoma Tax Commission Motor License Agent Account.
Each motor license agent shall submit the appropriate reports
designated by the Tax Commission to prope rly account for all funds,
regardless of source, received by a motor license agent in the
performance of the agent's duties. Reports shall cover a period
from the first day of the month to the fifteenth day of the month
and from the sixteenth day of the m onth to the last day of the
month. It shall be the responsibility of the motor license agent to
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mail or deliver such reports and all documents of all transactions
to the Tax Commission within a time period to be established by the
Tax Commission.
C. Motor license agents shall deposit in such account all
monies, taxes and fees collected and received by them as such
agents, which they are obligated to account for and remit to the Tax
Commission, and it is specifically required that checks or similar
instruments accepted or received by such agents for taxes or fees
must be deposited in such account , less any amount provided by this
act that the agents are entitled to retain as fees .
No motor license agent shall withdraw any funds from the agent's
motor license agent account. All checks, drafts, orders and
vouchers so deposited shall bear an endorsement to the m otor license
agent account which endorsement shall include the assigned account
number and the agent 's subaccount number. Items deposited shall be
credited at par and should payment be refused on any such check,
draft, order or voucher, or should the same prove otherwise
worthless, the amount thereof shall not be charged by the Tax
Commission against the individual subaccounts of the agent. The
agent shall continue to attempt to require proper payment of all
such worthless items, but shall not be personal ly liable to the Tax
Commission for their payment. The Tax Commission or agent shall
charge the person issuing the check a fee of Twenty -five Dollars
($25.00) for each check to cover the costs of the processing of each
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returned check, and all necessary tr avel expenses of collecti on, as
provided by the State Travel Reimbursement Act; provided, such
charge shall not be made unless efforts have been made t o present
such check, draft, order or voucher for payment a second time. Any
motor license agent who col lects a dishonored check pursuant to the
provisions of Section 1121 of this title shall also collect a fee of
Twenty-five Dollars ($25.00) and shall be entitled to retain such
fee.
D. Notwithstanding anything to the contrary, the Tax Commission
shall continue to have the exclusiv e authority and standing to
collect any taxes or other revenues owed to the State of Oklahoma or
any political subdivision the reof pursuant to the provisions of the
Motor Vehicle License and Registration Act.
E. It is specifically provided that nothing in this section
shall be considered or construed as in any way affecting, relieving
or relinquishing the liability of such agent to the Tax Commission
for any monies collected by the agent and due the state or the
liability of such agent or any surety on or under the agent's bond
made to the Tax Commission.
Unless provided otherwise, any motor license agent who fails to
comply with any provision of this section shall pay a penalty to be
imposed by the Tax Commission. Monies collected for payment of the
penalty shall be deposited to the credit of the General Revenue Fund
of the State Treasury. Any motor license agent who pays a pen alty
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pursuant to this section shall not allocate his or her payment
thereof as a part of his or her opera ting expenses, but shall use
his or her personal funds for payment of the penalty. Such penalty
shall be equal to one percent (1%) of the gross amount of the
receipts received by the motor license agent for that particular day
that the agent fails to depo sit all such funds requir ed by this
section or one percent (1%) of the gross amount of the receipts
received by the motor license agent for the report period that the
agent fails to timely mail the required report or remit any excess
agent funds as provide d in subsection B of this section. Such
penalty shall be increased to three percent (3%) of the gross amount
of the receipts received for that particu lar day if the motor
license agent fails to fulfill any of said requirements within a
period of five (5) days. Provided that such penalty shall be three
percent (3%) of the gross amount of the receipts received by the
motor license agent for the report pe riod that the agent fails to
timely mail the required report or remit any excess agent funds as
provided in subsection B of this s ection if the motor license agent
fails to fulfill these requirements within five (5) days.
The Tax Commission may waive the p enalty for failing to timely
file the accounting report required by this section if the Tax
Commission finds that:
1. The funds to which the report applies have been properly
deposited;
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2. The failure to timely file the report was due to emergency
conditions beyond the control of the agent; and
3. The report has been filed within a week of the date on whic h
it was required to be f iled.
It shall be the duty of the Tax Commission to discharge
immediately any motor license agent who fails, neglects or refus es
to comply with the provisions of this section.
SECTION 3. AMENDATORY 47 O.S. 2011, Section 1142.1, as
amended by Section 4, Chapter 195, O.S.L. 2019 (47 O.S. Supp. 2020,
Section 1142.1), is amended to read as follows:
Section 1142.1. A. It shall be unlawful for any motor license
agent or any employee of such motor license agent to carry on a
messenger service, courier service or pick up and delivery service
for the recording of a security interest or for the registration of
a motor vehicle or boat or a motor, or obtaining license plates and
decals, or for the issuance of a certificate of title for any mo tor
vehicle or boat or motor. Provided, nothing in this subsection
shall be construed to prevent a motor license agent or any employee
of such motor license agent from performing such services for the
motor license agent's depository bank, when the motor license agent
or his employee goes to the agent's depository bank to deposit tax
monies into the agent 's designated Oklahoma T ax Commission Motor
License Agent Account. After September 1, 1991, the Oklahoma Tax
Commission shall not designate or assign a m otor license agent more
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than one active Oklahoma Tax Commission Motor License Agent Account.
Accounts designated prior to Sep tember 1, 1991, may remain active.
B. It shall be unlawful for any motor license agent to
compensate in any manner a messenger se rvice, courier service or
pick up and delivery service or any one attempting to provide
messenger service, courier service or pick up and delivery service
for recording a security interest or for the registration of a motor
vehicle or boat or motor, or obt aining license plates and decals, or
for the issuance of a certificate of title for any motor vehicle or
boat or motor.
C. A motor license agent who violates the provisions of this
section shall be subject to a fine of Two Thousand Dollars
($2,000.00) per occurrence and shall be removed immediately by the
Oklahoma Tax Commission .
SECTION 4. AMENDATORY 7 5 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 amend ed to read as follows:
Section 250.4. A. 1. Except as is otherwise specifically
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
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inconsistency with Article I of the Administr ative Procedures Act,
pursuant to Section 35 of Article IX of the Oklahoma Constitution,
it is expressly declared that Article I of th e Administrative
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 A ct to the
extent it exercises its responsibility for military affairs.
Military publications, as defined in Section 801 o f Title 44 of the
Oklahoma Statutes, shall be exempt from the provisions of Article I
and Article II of the Administrative Procedures Act, except as
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 requireme nts and
generally recognized standards, project planning and programming,
and the operation and control of the State Highway System.
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6. The Oklahoma State Regents for Higher Education shall be
exempt from Article I of the Administrative Procedures Act wit h
respect to:
a. prescribing standards of higher education,
b. prescribing functions and courses of study in each
institution to confo rm to the standards,
c. granting of degrees and other forms of academic
recognition for completion of the prescribed cours es,
d. allocation of state-appropriated funds, and
e. fees within the limits prescribed by the Legislature.
7. Institutional governin g boards within The Oklahoma State
System of Higher Education shall be exempt from Article I of the
Administrative Procedu res 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 necessary to promulgate rules
pursuant to the Oklahoma Motor Carrier Safety and
Hazardous Materials Transportatio n 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 regulatio ns, for which the Commissioner
has no discretion when the state is mandated to
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promulgate rules identical to federal rules and
regulations.
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 forth 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 requ ired by Section 251 of this
title.
d. For any rules for which the Commissioner has
discretion to allow variances, tolerances or
modifications from the federal rules and regulations,
the Commissioner shall fully comply with Article I of
the Administrative P rocedures Act.
9. The Council on Judicial Complaints shall be exempt from
Section 306 of Article I of the Administrative Procedures A ct, 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 v alidity or applicability
of a rule made by the Council on Judicial Complaints may petition
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the Court on the Judiciary to r eview the rules and issue opinions
based upon them.
10. The Department of Corrections, 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, supervi sion and control
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 supervision 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 Statutes.
B. As specified, the following agencies or c lasses 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 Section 1140 of Title 47 of the Oklahoma Statutes ;
2. The Commission for Human Services;
3. The Oklahoma Ordnance Works Authority;
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4. The Corporation Commission;
5. The Pardon and Paro le Board;
6. The Midwestern Oklahoma Development Authority;
7. The Grand River Dam Authority;
8. The Northeast Oklahoma Pub lic 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 e leemosynary 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 h igher learning;
13. The Oklahoma Horse Racing Commission, its employees or
agents only with respect to hearing and notice req uirements 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,
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c. any suspension or revocation of an occupat ion license
by any racing jurisdiction recognized by the
Commission,
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 the Depart ment 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 Hospi tals Authority, including all hospitals
or other institutions operated by the University Hospitals
Authority;
19. The Oklahoma He alth Care Authority Board and the
Administrator of the Oklahoma Health Care Autho rity; and
20. The Oklahoma Office of Homelan d Security.
SECTION 5. This act shall become effective November 1, 2021.
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Passed the Senate the 11th day of March, 2021.
Presiding Officer of the Senate
Passed the House of Representatives the ____ day of __________,
2021.
Presiding Officer of the House
of Representatives