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ENGROSSED SENATE
BILL NO. 554 By: Newhouse of the Senate
and
Kannady of the House
An Act relating to liens for service on personal
property; amending 42 O.S. 2011, Section 91A, as last
amended by Section 1, Chapter 183, O.S.L. 2 017 (42
O.S. Supp. 2020, Section 91A), which relates to
procedures for lien on certain personal property;
increasing allowable fee for processing of cert ain
notice; updating statutory language; and providing an
effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 42 O.S. 2011, Section 91A, as last
amended by Section 1, Chapter 183, O.S.L. 2017 (42 O.S. Supp. 202 0,
Section 91A), is amended to read a s follows:
Section 91A.
A. 1. a. This section applies to all types of personal property
other than:
(1) farm equipment as def ined in Section 91.2 of this
title, and
(2) “Section 91 Personal Property ” as defined in
Section 91 of this title.
b. This section applies to any vehicle, all -terrain
vehicle, utility vehicle, manufactured home,
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motorcycle, boat, outboard motor, or trailer that is
excluded from covera ge under subsection A of Section
91 of this title because the personal p roperty:
(1) does not have a certificate of title,
(2) has a certificate of title but does not have an
active lien recorded on the certificate of title,
(3) has a certificate of titl e that is not issued by
the Oklahoma Tax Commission or by a federally
recognized Indian tribe in the S tate of Oklahoma,
or
(4) is otherwise excluded by subparagraph b of
paragraph 1 of subsection A of Section 91 of this
title or subsection D of Section 91 of this
title.
c. If personal property has a certificate of title, or
would be required to have a cert ificate of title under
Oklahoma law, and is apparently covered both by this
section and by Sections 191 through 200 of this t itle,
the procedures set out in this section shall apply
instead of Sections 191 through 200 of this ti tle. If
personal property without a certificate of title and
not required to be titled under Oklahoma law is
covered both by this section and Sections 1 91 through
200 of this title, the procedures set out in Sections
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191 through 200 of this title shall ap ply instead of
this section.
2. a. Any person who, while lawfully in p ossession of an
article of personal property to which this section
applies, renders any service to the owner the reof by
furnishing storage, rental space, material, labor or
skill for the protection, improvement, sa fekeeping,
towing, right to occupy space, storage or carriage
thereof, has a special lien thereon, dependent on
possession, for the compensation, if any, which is due
to such person from the owner for such service.
Charges owed under a contract primarily for the
purpose of storage or rental of sp ace shall be accrued
only at the regular periodic rate for storage or
rental as provided in the contract, adjust ed for
partial periods of storage or rental.
b. Except for Class AA licens ed wrecker towing charges,
the special lien shall be subordinate to an y perfected
security interest unless the claimant complies with
the requirements of this section. Failure to co mply
with any requirements of this section shall result in
denial of any title application and cause t he special
lien to be subordinate to any p erfected lien. Upon
such denial, the applicant shall be entitled to one
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resubmission of the title application w ithin thirty
(30) business days of receipt of the denial, and
proceed to comply with the requirements of this
section. “Failure to comply” includes, but is not
limited to:
(1) failure to timely provide additional
documentation supporting or verifying any entry
on submitted forms as requested by the Tax
Commission,
(2) failure to provide the documentation supporting
lawful possession as outlined i n paragraph 3 of
subsection H of this section,
(3) claimant being other than the in dividual who
provided the service giving rise to the special
lien, as in subparagraph a of this paragra ph,
(4) claimant not being i n possession of the vehicle,
or
(5) notification and proceedings not accomplished in
accordance with subparagraph c of this p aragraph,
and paragraph 3 of this subsection.
c. Any person claiming a lien under this section shall
request, within five (5) busin ess days of performing
any service or work on the property, the Tax
Commission or other appropriate license agency to
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furnish the name and address of the current owner of
and any lienholder upon the property. The Motor
Vehicle Division of the Tax Commissi on or appropriate
license agency shall res pond in person or by mail to
the lien claimant within ten (10) business days of the
receipt of the request for i nformation. The Tax
Commission shall render assistance to ascertain
ownership, if needed. The lien c laimant shall send,
within seven (7) busin ess days of receipt of the
requested information from the Oklahoma Tax Commission
or other license agency, a not ice of the location of
the property by certified mail with return receipt
requested, postage prepaid, to the owner and any
lienholder of the veh icle at the addresses furnished.
The lien claimant may charge Twenty Dollars ($20. 00)
not more than Fifty Dolla rs ($50.00) for processing
plus including the cost of postage if the notic e is
timely sent pursuant to the requirements of this
subparagraph in addition to fees regulated by the
Oklahoma Corporation Commission for licensed wreckers.
If the lien claimant i s unable to meet the time
requirements due to a lack of or an altered vehi cle
identification number on the property, the lien
claimant shall proceed diligently to obtain the proper
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vehicle identification number and shall meet the time
requirements on the n otice once the vehicle
identification number is known. If the lien claima nt
is required to send addit ional notices because of
change of ownership or lienholder after it has timely
complied with the requirements of this subparagraph,
the lien claimant shal l remain in compliance if such
additional notices are sent within the requ ired time
periods from the date of discovery of the new owners
or lienholders. The notice shall be in writing and
shall contain, but not be limited to, the following:
(1) a statement that the notice is a Notice of
Possessory Lien,
(2) the complete legal n ame, physical and mailing
address, and telephone number of the claiman t,
(3) the complete legal name, physical and mailing
address of the person who requested that the
claimant render service to the owner by
furnishing material, labor or skill, storage , or
rental space, or the date t he property was
abandoned if the claimant did not render any
other service,
(4) a description of the article of personal
property, and the complete physic al and mailing
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address of the location of the article of
personal property,
(5) the nature of the work , labor or service
performed, material fur nished, or the storage or
rental arrangement, and the date thereof, and
written proof of authority to perform th e work,
labor or service provided that, in the case of a
law enforcement directed tow, the logbook ent ry
prescribed in OAC 595:25 -5-5 or the tow ticket as
defined by the Corporation Commission shall serve
as written proof of authority,
(6) the signature of the claimant which shall be
notarized and, if applicable, the signature o f
the claimant’s attorney. If the claimant is a
business, the name of the contact person
representing the business shall be shown. In
place of an original signature and notary seal , a
digital or electronic signature or seal shall be
accepted, and
(7) an itemized statement describin g the date or
dates the labor or services were performed and
material furnished and the charges claimed for
each item, the totals of which shall equal the
total compensation claimed.
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The lien claimant shall not be required to se nd the
notice required in th is subparagraph if the property
is released to an interested party before the notice
is mailed and no additional charges or fees continue
to accrue. If a law enforcement agency has the
property towed to a law enforcement facili ty, the
person claiming a li en under this section shall not be
required to send notice until the property is released
by law enforcement to the claimant or the date which
claimant starts charging storage, whichever is
earlier. A lien claimant shall have a n extension of
ten (10) business days to send the notice required in
this subparagraph if a state of emergency has been
declared in the county in which the property is
located.
d. Subparagraphs b and c of this paragraph shall not
apply to salvage pools as defined in Section 591.2 of
Title 47 of the Oklahoma Statutes.
3. The lien may be foreclosed by a sale of such personal
property upon the notice and in the manner following: The no tice
shall be in writing and shall contain, but not be limited to:
a. the names of the owner and any o ther known party or
parties who may claim any interest in the property,
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b. a description of the property to be sold, including a
visual inspection or a ph otograph if the property is a
motor vehicle, and the physical location of the
property,
c. the nature of the work, labor or service performed,
material furnished, or the storage or rental
arrangement, and the date thereof, and written proof
of authority to perform the work, labor or service
provided. In the case of a law enforc ement directed
tow, the logbook entry prescribed in OAC 595:25 -5-5 or
the tow ticket as defined by the Corporation
Commission, shall serve as written proof of authority,
d. the time and place of sale,
e. the name, telephone number, physical address and
mailing address of the claimant , and agent or
attorney, if any, foreclosi ng such lien. If the
claimant is a business, then the name of the contact
person representing the business must be shown. In
place of an original signature and notary seal, a
digital or electronic signature or se al shall be
accepted, and
f. itemized charges which shall equal the total
compensation claimed.
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4. a. Such Notice of Sale shall be posted in two public
places in the county where the property is to be sold
at least ten (10) days before the time therein
specified for such sale, and a copy of the no tice
shall be mailed to the owner and any other party
claiming any interest in the property, if known, at
their last-known post office address, by certified
mail, return receipt requeste d, at least ten (10) days
before the time therein specified for such s ale. If
the item of personal property is a manufactured home,
notice shall also be sent by certified mail to th e
county treasurer and to the county assessor of the
county where the manu factured home is located.
b. In the case of any item of personal prope rty without a
certificate of title and not required to be titled
under Oklahoma law, a party who claims any inte rest in
the property shall include all owners of the property;
any secured party who has an active fin ancing
statement on file with the county c lerk of Oklahoma
County listing one or more owners of the property by
legal name as debtors and indicating a col lateral
description that would include the property; and any
other person having any interest in the p ersonal
property, of whom the claimant has actual notice.
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c. In the case of personal property subject to this
section for which a certificate of title has been
issued by any jurisdiction, a party who claims any
interest in the property shall include all ow ners of
the article of personal property a s indicated by the
certificate of title; lien debtors, if any, other than
the owners; any lienholder whose lien is noted on the
face of the certificate of title; and any other person
having any interest in the arti cle of personal
property, of whom the clai mant has actual notice.
d. When the jurisdiction of titling for a vehicle, all -
terrain vehicle, motorcycle, boat , outboard motor, or
trailer that is five (5) model years old or newer, or
a manufactured home that is fifteen (15) model years
old or newer, cannot be determined by ordinary means,
the claimant, the agent of the claimant, or the
attorney of the claimant, shall request, in writing,
that the Oklahoma Tax Commission Motor Vehicle
Division ascertain the juris diction where the vehicle
or manufactured home is titled. The Oklahoma Tax
Commission Motor Vehicle Division shall, within
fourteen (14) days from the da te the request is
received, provide information as to the jurisdiction
where the personal property is titled. If the
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Oklahoma Tax Commission Mo tor Vehicle Division is
unable to provide the information, it shall provide
notice that the record is not availa ble.
e. When personal property is of a type that Oklahoma law
requires to be titled, the owner of reco rd of that
property is unknown, and the ju risdiction of titling
and owner of record cannot be determined by ordinary
means and also, if applicable, cannot be determined in
accordance with the preceding subparagraph, then the
special lien may be foreclosed by publication of a
legal notice in a lega l newspaper in the county where
the personal property is located, as defined in
Section 106 of Title 25 of the O klahoma Statutes.
Such notice shall include the description of the
property by year, make, vehicle id entification number
if available from the property, the name of the
individual who may be contacted for information, and
the telephone number of that pers on or the address
where the vehicle is located. The legal notice shall
be published once per week for three (3) consecutive
weeks. As soon as circumstances exist as described in
the first sentence of this subparagraph, the first
date of publication may o ccur even if the special lien
has not accrued for over thirty (30) days. The first
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date available for public sale of the vehicle is the
day following publication of the final notice, but no
fewer than thirty (30) days after the lien has
accrued. When the owner of record is unknown, the
Notice of Sale nevertheless must be compl eted and
mailed to any known interested party by certified
mail. For purposes of this paragraph, interested
parties shall include all persons described in
subparagraph b or subparag raph c of this paragraph,
whichever is applicable, with the exception of a ny
owner who is unknown. Ex cept in circumstances
described in paragra ph 7 of this subsection that
provide for a shorter time period, the Notice of Sale
shall be posted in two public places in the county
where the property is to be sold at least ten (10)
days before the time therein specified for such sale,
and the Notice of Sale shall not be mailed until at
least thirty (30) days after the lien has accrued.
5. The lienor or any othe r person may in good faith become a
purchaser of the property sold.
6. Proceedings for foreclosure un der this act shall not be
commenced until thirty (30) days after the lien has accrued, except
as provided elsewhere in Oklahoma law.
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7. Notwithstanding a ny other provision of law, proceedings for
foreclosures for the storage of junk vehicles towed and sto red
pursuant to Section 955 of Title 47 of the Oklahoma Statutes by
Class AA wreckers listed with the Motor Vehicle Division of the
Department of Public S afety, may be commenced five (5) days after
the lien has accrued. For pur poses of this paragraph, “junk
vehicles” means any vehicle that is mor e than ten (10) years old if
the cost of a comparable vehicle would be less than Three Hundred
Dollars ($300.00) as quoted in the latest edition of the National
Automobile Dealers Associ ation Official Used Car Guid e or latest
monthly edition of any other n ationally recognized published
guidebook, adjusting to the condition of the vehicle.
B. 1. a. Any person who is induced by means of a check or other
form of written order for immediate p ayment of money
to deliver up possession of an article of personal
property on which the person has a special lien
created by subsection A of this section, which check
or other written order is dishonored, or is not paid
when presented, shall have a lien f or the amount
thereof upon the personal property.
b. The person claiming such lien shall, within thirty
(30) days from the date of dishonor of the check or
other written order for pa yment of money, file in the
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office of the county clerk of the county in wh ich the
property is situated a sworn statement that:
(1) the check or other written order for immediate
payment of money, copy thereof being attached,
was received for labor, materia l or supplies for
producing or repairing an article of personal
property, or for other specific proper ty-related
services covered by this sectio n,
(2) the check or other written order was not paid,
and
(3) the uttering of the check or other written order
constituted the means for inducing the person,
one possessed of a special l ien created by
subsection A of this section upon the described
article of personal property, to deliver up the
article of personal property.
2. a. Any person who renders service to t he owner of an
article of personal property by furnishing storage,
rental space, material, labor , or skill for the
protection, improvement, safe keeping, towing, right to
occupy space, storage , or carriage thereof shall have
a special lien on such property pursuant to this
section if such property is removed from the person ’s
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possession, without such person ’s written consent or
without payment for such service.
b. The person claiming such lien shall, within five (5)
days of such nonauthorized removal, file i n the office
of the county clerk of the county in which the
property is located, a sworn statement inc luding:
(1) that services were rendered on or in relation to
the article of personal property by the person
claiming such lien,
(2) that the property was in the possession of the
person claiming the lien but such property was
removed without his or her wri tten consent,
(3) an identifying descripti on of the article of
personal property on or in relation to which the
service was rendered, and
(4) that the debt for the services rendered on or in
relation to the article of personal p roperty was
not paid. Provided, if the unpaid total amount
of the debt for services rendered on or in
relation to the article of personal property is
unknown, an approximated amount of the debt due
and owing shall be included in the sworn
statement but such approximated debt may be
amended within thirty (30) days of such fi ling to
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reflect the actual amount of the debt due and
owing.
3. The enforcement of the lien shall be within six ty (60) days
after filing the lien in the manner provided by law for enfor cing
the lien of a security agreement and provided that the lien shall
not affect the rights of innocent, intervening purchasers without
notice.
C. If the person who renders service to the owner of an article
of personal property to which this section app lies relinquishes or
loses possession of the article due to circumstan ces described in
subparagraph a of paragraph 1 or subparagraph a of paragraph 2 of
subsection B of this section, the person claiming the lien shall be
entitled to possession of the artic le until the amount due is p aid,
unless the article is possessed by a person who became a bona fide
purchaser. Entitlement to possession shall be in accordance with
the following:
1. The claimant may take possession of an article pursuant to
this subsection only if the person oblig ated under the contract for
services has signed an acknowledgment of receipt of a notice that
the article may be subject to repossession. The notice and
acknowledgment pursuant to this subsection shall be:
a. in writing and separate from the written contr act for
services, or
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b. printed on the written contract for services, credit
agreement or other document which displays the notice
in bold-faced, capitalized and underlined type, or is
separated from surrounding written material so as to
be conspicuous with a separate signature line;
2. The claimant may require the person obligated under the
contract for services to pay the costs of repossession as a
condition for reclaiming the article only to the extent of the
reasonable fair market value of the services required to take
possession of the articl e;
3. The claimant shall not transfer to a third party or to a
person who performs repossession services, a che ck, money order, or
credit card transaction that is received as payment fo r services
with respect to an article and that is returned to the clai mant
because of insufficient funds or no funds, because the person
writing the check, issuing the money order, o r credit cardholder has
no account or because the check, money order, or c redit card account
has been closed. A person violating this paragraph shall be guilty
of a misdemeanor; and
4. An article that is repossessed pursuant to this subsection
shall be promptly delivered to the location where the services were
performed. The article shall remain at the services location at all
times until the article is lawfully returned to the record owner or
a lienholder or is disposed of pursuant to this section.
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D. 1. This section applies if a vehicle, all -terrain vehicle,
manufactured home, motorcycle, boat, outbo ard motor, or trailer has
a certificate of title issued by the Tax Commission or by a
federally recognized Indian tribe in Oklahoma, but there is no
active lien recorded on the certificate of title.
2. This section applies if a vehicle, all-terrain vehicle,
utility vehicle, motorcycle, boat, outb oard motor or trailer has a
certificate of title issued by the Tax Commission or by a federally
recognized Indian tribe in Oklahoma, and there is an active lien
recorded on the certifica te of title, but the lien is over fifteen
(15) years old.
3. This section applies if personal property to which Section
91 of this title otherwise would apply has been registered by the
Tax Commission or by a federally recognized Indian tribe in the
State of Oklahoma, and there is a lien of record but no certificate
of title has been issued.
4. This section applies if personal property to which Section
91 of this title otherwise wou ld apply has not been registered by
either the Tax Commission or a federal ly recognized Indian tribe i n
the State of Oklahoma, and no certificat e of title has been issued,
but there is a lien of record.
5. This section applies to personal property that ot herwise
would be covered by Section 91 of this title, except that the
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services were rendered or the pr operty was abandoned prior to
November 1, 2005.
6. This section applies to a vehicle, all -terrain vehicle,
utility vehicle, manufactured home, motorcycle , boat, outboard
motor, or trailer for which ownership cannot be determine d by
ordinary means or by th e Oklahoma Tax Commission Motor Vehicle
Division, as provided in subparagraphs d and e of paragraph 4 of
subsection A of this section, as applicable.
7. This section applies to items of personal property that are
not required by Oklahoma law to be titled, and that do not have a
certificate of title.
8. This section applies to salvage pools as defined in Section
591.2 of Title 47 of the Oklahoma Statutes.
9. This section applies to class AA licensed wrecker services
taking possession of a vehicle pursuant to an agreement with, or at
the direction of, or dispatched by a state or local law enforcement
or government agency, or pursuant to the abandoned vehicl e removal
provisions of Section 954A of Title 47 of the Oklahoma Statutes with
respect to all types of personal property, regardless of whether
that personal property has a certificate of title.
10. For a vehicle abandoned at a salvage pool, if the cost o f
repairing the vehicle for safe operation on the highway does not
exceed sixty percent (60%) of the f air market value of the vehicle
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as defined in Section 1111 of Title 47 of the Oklahoma Statutes, a
salvage title shall not be required.
E. A person who knowingly makes a false statement of a material
fact regarding the furnishi ng of storage, rental space, material,
labor or skill for the protecti on, improvement, safekeeping, towing,
right to occupy space, storage or carriage thereof in a proceeding
under this section, or attempts to use or uses the provisions of
this section to foreclose an owner or lienho lder’s interest in a
vehicle knowing that any of the statements made in the proceeding
are false, upon conviction, shall be guilty of a felony.
F. Upon receipt of notice of legal proceedings, the Tax
Commission shall cause the sale process to be put on ho ld until
notice of resolution of court pro ceedings is received from the
court. If such notice of commencement of court proceedings is not
filed with the Tax Commission, the possessory lien sale process may
continue.
G. No possessory lien sale shall be he ld on a Sunday.
H. For purposes of this s ection:
1. “Possession” includes actual possession and constructive
possession;
2. “Constructive possession ” means possession by a person who,
although not in actual possession, does n ot have an intention to
abandon property, knowingly has both power and the intention at a
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given time to exercise dominion or control over the property, and
who holds claim to such th ing by virtue of some legal right;
3. “Lawfully in possession ” means a person has documentation
from the owner or the owner ’s authorized agent, or an insurance
company or its authorized agent, authorizing the furnishing of
material, labor or storage, or t hat the property was authorized to
be towed to a repair facility.
Class AA wrecker services taking pos session of a vehicle
pursuant to an agreem ent with, or at the direction of, or dispatched
by, a state or local law enforcement or government agency, or
pursuant to the abandoned vehicle removal provisions of Section 954A
of Title 47 of the Oklahoma Statute s, shall be considered lawfully
in possession of the vehicle. If the person lacks such
documentation, the procedures established by this section shall no t
apply; and
4. “Itemized charges” means total parts, total labor, total
towing fees, total storage f ees, total processing fees and totals of
any other fee groups, the sum total of which shall equal the
compensation claimed.
I. For purposes of this secti on, the United States Postal
Service approved electronic equivalent of pro of of return receipt
requested Form 3811 shall satisfy return receipt requested
documentation requirements.
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J. If a person claiming a special lien pursuant to this section
fails to comply with any of the requirements of this section, any
interested party may proceed against the pers on claiming such lien
for all damages aris ing therefrom, including conversion, if the
article of personal property has been sold. If the notice or
notices required by this section shall be shown to be knowingly
false or fraudulent, the interested party sh all be entitled to
treble damages. The pr evailing party shall be entitled to all
costs, including reasonable attorney fees.
K. Any interested party shal l be permitted to visually inspect
and verify the services rendered by the claimant prior to the sale
of the article of property during normal b usiness hours. If the
claimant fails to allow any interested party to inspect the
property, the interested part y shall mail a request for inspection
by certified mail, return receipt re quested, to the claimant.
Within three (3) business days of receipt o f the request for
inspection, the claimant shall mail a photograph of the property, by
certified mail, return re ceipt requested, and a date of inspection
within five (5) business days fr om the date of the notice to
inspect. The lienholder shall be allowed to retrieve the property
without being required to bring the title into the lienholder ’s
name, if the lienholde r provides proof it is a lienholder and any
payment due the claimant for l awful charges where the clai mant has
complied with this section. Upon the release of personal property
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to an insurer or representative of the insurer, wrecker operators
shall be exempt from all liability and shall be held harmless for
any losses or claims of loss. In the event any law enforcement
agency places a hold on th e property, the party wanting to inspect
or photograph the property shall obtain permission from the law
enforcement agency that placed the hold on the property before
inspecting or photographing.
L. This section shall apply to all actions or proceedings that
commence on or after the effective date of this act August 22, 2014.
SECTION 2. This act shall become effective November 1, 2021.
Passed the Senate the 4th 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