Req. No. 1298 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 971 By: Howard AS INTRODUCED An Act relating to liens; amending 42 O.S. 20 11, Sections 91, as last amended by Secti on 1, Chapter 316, O.S.L. 2016, and 91A, as last am ended by Section 1, Chapter 183, O.S.L. 2017 (42 O.S. Supp. 20 20, Sections 91 and 91A), which relate to liens on personal property; modifying requirements for resubmission of certain title applications for perfection of certain special lien; terminating requirements for notarization of certain documents; and providing an effective date . BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. AMENDATORY 42 O.S. 2011, Section 91, as last amended by Section 1, Cha pter 316, O.S.L. 2016 (42 O.S. Supp. 20 20, Section 91), is amended to read as follows: Section 91. A. 1. a. This section applies to every vehicle, all -terrain vehicle, utility vehicle, manufactured home, motorcycle, boat, outboard motor , or trailer that has a certificate of title issued by the Oklahoma Tax Commission or by a federally recognized Indian tribe in the State of Oklahoma, except as otherwise provided Req. No. 1298 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 in subsection D of this section. This sect ion does not apply to farm equipment as defined in Section 91.2 of this title. The items of personal property to which this section applies are collectively referred to as “Section 91 Personal Property ”. If personal property is apparently covered both by this section and by Sections 191 through 200 of th is title, the procedures set out in this section shall apply instead of Sections 191 through 200 of this title. b. Salvage pools as defined in Section 591.2 of Title 47 of the Oklahoma Statutes and class A A 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 ve hicle renewal provisions of Section 954 A of Title 47 of the Oklahoma Statutes, shall not b e subject to the provisions of this section, but shall be subject to the provisions of Section 91A of this title. Unless otherwise provided by this subparagraph, cla ss AA licensed wrecker services perform ing consensual tows shall be subject to the provisi ons of this section. 2. Any person who, while lawfully in possession of an article of Section 91 Personal Property, renders any service to the owner Req. No. 1298 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 thereof by furnishing storage, rental space, material, labor or skill for the protection, improvement, saf ekeeping, 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. 3. This special lien shall be subordinate to any perfected security interest unless the claimant complies with the requirements of this section. Failure to comply with any requirements of this section shall result in denial of any title applicat ion and cause the special lien to be subordinate to any perfected lien. Upon such denial, the applicant shall be entitled to one resubmission no more than two resubmissions of the title application within fifteen (15) thirty (30) business days of receipt of the denial, and proceed to comply with the requi rements of this section. In the event of a denial, the Notice of Possessory Lien and the Notice of Sale may be mailed on the same day in separate envelopes and sto rage charges shall only be charged from t he date of resubmission. “Failure to comply” includes, but is not limited to: a. failure to timely provide additional documentation supporting or verifying any entry on submitted forms as requested by the Tax Comm ission, including but not limited to United States Postal Service proof of return receipt requested such as Form 3811 or United States Postal Service electronic equivalent, Req. No. 1298 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 b. failure to provide the documentation supporting lawful possession as defined in paragraph 3 of subsection H of this section, c. claimant or the agent being other than the in dividual who provided the service giving rise to the special lien, as in paragraph 2 of this subsection, d. claimant not being in possession of the vehicle, e. notice of lien not filed in accordance with p aragraph 4 of this subsection, or f. foreclosure notification and proceedings not accomplished in accordance with paragraph 6 of this section subsection. 4. Any person claiming the special lien provided in p aragraph 2 of this subsection shall mail a notic e of such lien, no later than sixty (60) days after the first services are rendered, by regular, first-class United States mail, and by certified mail, return receipt requested, to all interested parties who reside at separate locations. If services provi ded are pursuant to a contract primarily for the pu rpose of storage or rental of space, the beginning date of the sixty -day period provided in the previous sentence shall be the first day of the first period or partial period for which rental or storage ch arges remain unpaid. The notice shall be in writin g and shall contain, but not be limited to, the following: Req. No. 1298 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 a. a statement that the notice is a Notice of Possessory Lien, b. the complete legal name, physi cal and mailing address, and telephone number of t he claimant, c. the complete legal name, physical a nd 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 the property was abandoned if the claimant did not render any other service, d. a description of the article of personal property, including a photograph if the property is Section 91 Personal Property, and the complete physical and mailing address of the location of the article of personal property, e. an itemized statement describing 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 t otal compensation claimed, f. a statement by the clai mant that the materials, labor or skill furnished, or arrangement for storage or rental of space, was authorized by the owner of the personal property and was in fact provided or Req. No. 1298 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 performed, and written proof of authority to perform the work, labor or servi ce, or that the property was abandoned by the owner if the claimant did not render any other service, and that storage or rental fees will accrue as allowed by law, and g. the signature of the claimant which shall be notarized and, if applicable, the signa ture of the claimant’s attorney. If the claimant i s 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 seal shall be accepted. 5. For services rendered or vehicles abandoned on or after November 1, 2005, storage charges or charges for rental of space, unless agreed to by contract as part of an overall transaction or arrangement that was primarily for the purpose of storage of the Section 91 Personal Property or rental of space, m ay only be assessed beginning with the day that the Notice of Possessory Lien is mailed as evidenced by certified mail. Provided, however, in the case of contractual charges incurred for storage or rental of space in an overall transaction primarily for t he purpose of storage or rental, charges subject to the special lien may only be assessed beginning with a date not more than sixty (60) days prior to the day that the Notice of Possessory Lien is mailed, a nd shall accrue only Req. No. 1298 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 at the regular periodic rate for storage or rental as provided in the contract, adjusted for partial periods of storage or rental. The maximum allowable compensation for storage shall not exceed the fees established by the Corporation Commission for nonconsensual tows. 6. The lien may be foreclosed by a sale of such personal property upon the notice and in the manner following: The Notice of Sale shall be in writing and shall c ontain, but not be limited to: a. a statement that the no tice is a Notice of Sale, b. the names of all interested parties known to the claimant, c. a description of the property to be sold, including a photograph if the property is Section 91 Personal Property and if the condition of such property has materially changed since the mailing of Notice of Possessory Lien required pursuant to paragraph 4 of this subsection, d. a notarized statement of the nature of the work, labor or service performed, materi al furnished, or storage or rental of space, and the date the reof, and the name of the person who authoriz ed the work, labor or service performed, or the storage or rental arrangement, and written proof of authority to perform the work, labor or service, o r that the property was Req. No. 1298 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 abandoned if the claimant did not ren der any other service, e. the date, time, and exact physical location of sale, f. the name, complete physical address, mailing address , and telephone number of the party foreclosing 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 seal shall be accepted, and g. itemized charges which sha ll equal the total compensation claimed. 7. 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 notice shall be mailed to all interested parties at their last -known post office address by regular, first -class United States mail and by certified mail, return receipt requested, at least ten (10) days before the date of the sale. If the item of personal property is a manufactured home, notice shall also be sent by certified mail to the county treasurer and to the county a ssessor of the county where the manufactured home is located. 8. Interested parties shall include all owners of the article of personal property as indicated by the certificate of title issued Req. No. 1298 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 by the Tax Commission or by a federally recognized Indian tri be in the State of Oklahoma; 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 article of personal property, of whom the claimant has act ual notice. 9. Any interested party shall be permitted to inspect and verify the services rendered by the claimant prior to the sale of the article of personal property during normal business hours. The lienholder shall be allowed to retrieve the Sectio n 91 Personal Property without being required to bring the title into the lienholder’s name, if the lienholder provides proof it is a lienholder and any payment due the claimant for lawful charges where the claimant has complied with the requirements of th is section. Upon the release of personal property 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. 10. The claimant or any other person may in good faith become a purchaser of the property sold. 11. Proceedings for foreclosure under this act shall be commenced no sooner than ten (10) day s and no later than thirty (30) days after the Notice of Possessory L ien has been mailed as evidenced by certified mail. The date actually sold shall be within Req. No. 1298 Page 10 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 sixty (60) days from the date of the Notice of Sale as evidenced by certified mail. B. 1. a. Any person who is induced by means of a check or other form of written order for immediate payment 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 che ck or other written order is dishonored, or is not paid when presented, shall have a lien for 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 payment of money, file in the office of the county clerk of the county in which 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, material or supplies for producing or repairing an artic le of personal property, or for other specific property-related services covered by this section, (2) the check or other written order was not paid, and Req. No. 1298 Page 11 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 (3) the uttering of the check or other written order constituted the means for inducing the person, one possessed of a special lien 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 the owner of an article of personal property by fu rnishing storage, rental space, material, labor, or skill for the protection, improvement, safekeeping, 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 remo ved from the person’s 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 in the office of the county clerk of the county in which the property is located, a sworn statement including: (1) that services were rendered on or in relation to the article of personal property by the person claiming such lien, Req. No. 1298 Page 12 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 (2) that the property was in the possession of the person claiming the lien but such property was removed without his or her written consent, (3) an identifying description of the article of personal property on which the service was rendered, and (4) that the debt for the services rendered on or in relation to the article of per sonal property was not paid. Provided, if the unpa id total amount of the debt for services rendered on or in relation to the article of personal property is unknown, an approximat ed amount of the debt due and owing shall be included in the sworn statement but such approximated debt ma y be amended within thirty (30) days of such filing to reflect the actual amount of the debt due and owing. 3. The enforcement of the lien shall be within sixty (60) days after filing the lien in the manner provided by law fo r enforcing the lien of a security agreement and pr ovided that the lien shall not affect the rights of innocent, intervening purchasers without notice. C. If the person who rend ers service to the owner of an article of personal property to which this sect ion applies relinquishes or Req. No. 1298 Page 13 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 loses possession of the article due to circumstances 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 th e article until the amount d ue is paid, 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 pers on obligated under the c ontract for services has signed an acknowledgement of receipt of a notice that the article may be subject to repossession. Th e notice and acknowledgement pursuant to this subsection shall be: a. in writing and separate from the wr itten contract for services, or 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 s ignature line; 2. The claimant may require the person obligated under the contract for services to pay the costs of reposs ession as a condition for reclaiming the article only to the extent of the reasonable fair market value of the services required to t ake possession of the article; Req. No. 1298 Page 14 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 3. The claimant shall not transfer to a third party or to a person who performs repossessi on services, a check, money order , or credit card transaction that is received as p ayment for services with respect to an article and that is returned to the claimant because of insufficient funds or no funds, because the person writing the check, issuing the money order, or credit cardholder has no account or because the check, money or der, or credit card account has been closed. A per son violating this paragraph shall be guilty of a misdemeanor; and 4. An article that is repossessed pursuant to this su bsection shall be promptly delivered to the location where the services were performed. The article shall remain at the services locat ion at all times until the article is lawfully returned to the record owner or a lienholder or is disposed of pursuant to this section. D. 1. If a vehicle, all -terrain vehicle, utility vehicle, manufactured home, motorcycle, boat, outboard motor , or trailer has a certificate of title issued by the Tax Commission or by a federally recognized Indian tribe in the State of Ok lahoma, but there is no active lien recorded on the certificate of title, Section 91A of this title will apply instead of this section. Likewise, if there is an active lien recorded on the certificate of title but the lien is over fifteen (15) years old a nd the property is not a manufactured home, Section 91A of this title will apply instead of this section. Req. No. 1298 Page 15 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 2. If personal property that otherwise would be covered by this section 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, Section 91A of this title wi ll apply instead of this section. 3. If personal property otherwise would be covered by this section, but the service s were rendered or the property was abandoned prior to November 1, 2005, Section 91A of this title will apply instead of this section. E. A person who knowingly makes a false statement of a material fact regarding the furnishing of storage, rental space, material, labor or skill for the protection, improvement, safekeeping, towing, right to occupy space, storage or carriage thereof in a pro ceeding 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 fel ony. F. Upon receipt of notice of legal proceedings, the Tax Commission shall cause the sale process to be put on h old until notice of resolution of court proceedings 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 held on a Sunday. Req. No. 1298 Page 16 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 H. For purposes of this section: 1. “Possession” includes actual posse ssion and constructive possession; 2. “Constructive possession” means possession by a person who, although not in actual possession, does not have an intention to abandon property, knowingly has both power and the intention at a given time to exercise dom inion or control over the property, and who holds claim to such thing 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 age nt, authorizing the furnishing of material, labor or storage, or that the property was authorized to be towed to a repair facility. If the person lacks such documentation, he or she shall not be lawfully in possession of the Section 91 Personal Property a nd shall not be entitled to a special lien as set forth in this section; and 4. “Itemized charges” means total parts, total labor, total towing fees, total stor age fees, total processing fees and totals of any other fee groups, the sum total of which shal l equal the compensation claimed. I. For purposes of this section, the United States Postal Service approved electronic equivalent of proof of return receipt requested Form 3811 shall satisfy return receipt requested documentation requirements. Req. No. 1298 Page 17 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 J. If a person claiming a special lien pursuant to this sect ion fails to comply with any of the requirements of this section, any interested party may proceed against t he person claiming such lien for all damages arising therefrom, including conversion, if the article of personal property has been sold. If the not ice or notices required by this section shall be shown to be knowingly false or fraudulent, the interested p arty shall be entitled to treble damages. The prevailing party shall be entitled to all costs, including reasonable attorney fees. K. This section shall apply to all actions or proceedings that commence on or after the effective date of this act. SECTION 2. AMENDATORY 42 O.S. 2011, Section 91A, as last amended by Section 1, C hapter 183, O.S.L. 2017 (42 O.S. Supp. 20 20, Section 91A), is amended to read as follows: Section 91A. A. 1. a. This section applies to all types of person al property other than: (1) farm equipment as defined 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, manufacture d home, Req. No. 1298 Page 18 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 motorcycle, boat, outboard motor , or trailer that is excluded from coverage under subsection A of Section 91 of this title because the personal property: (1) does not have a certificate of title, (2) has a certificate of title but does not have a n active lien recorded on the certificate of title, (3) has a certificate of title that is not issued b y the Oklahoma Tax Commission or by a federally recognized Indian tribe in the State 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 certificate of title under Oklahoma law, and is apparently covered both by this section and by Sections 191 through 200 of this title, the procedures set out in this section shall apply instead of Sections 191 through 200 of this t itle. If personal property without a certificate of title and not required to be titled under Okla homa law is covered both by this section and Sections 191 through 200 of this title, the procedures set ou t in Sections Req. No. 1298 Page 19 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 24 191 through 200 of this title shall a pply instead of this section. 2. a. Any person who, while lawfully in possession of an article of personal property to which this section applies, renders any service to the owner thereof by furnishing storage, rental space, material, labor or skill for the protection, improvement, safekeeping, 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 space shall be accrued only at the regular periodic rate for storage or rental as provided in the contract, adjusted for partial periods of storage or rental. b. Except for Class class AA licensed wrecker towing charges, the special lien shall be subordinate to any perfected security inter est unless the claimant complies with the requirements of this section. Failure to comply with any re quirements of this section shall result in denial o f any title application and cause the special lien to be subordinate to any perfected lien. Upon such denial, Req. No. 1298 Page 20 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 applicant shall be entitled to one resubmission no more than two resubmissions of the title application within thirty (30) business days of r eceipt 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 requeste d by the Tax Commission, (2) failure to provide the documentation supporting lawful possession as out lined in paragraph 3 of subsection H of this section, (3) claimant being other than the individual who provided the service giving rise to the special lien, as in subparagraph a of this paragraph, (4) claimant not being in possession of the vehicle, or (5) notification and proceedings not accomplished in accordance with subparagraph c of this paragraph, and paragraph 3 of this subsection. c. Any person claiming a lien under this section shall request, within five (5) business days of performing any service or work on the property, the Tax Req. No. 1298 Page 21 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 or other appropriate license agency to furnish the name and address of the current owner of and any lienholder upon the property. The Motor Vehicle Division of the Tax Commission or appropriate license agency shall respond in person or by mail to the lien claimant within ten (10) business days of the receipt of the request for information. The Tax Commission shall render assistance to ascertain ownership, if needed. The lien claimant shall send, within seven (7) business days of receipt of the requested information from the Oklahoma Tax Commission or other license agency, a notice of the location of the property by certified mail with return receipt requested, postage prepaid, to the owner and any lienholder of the vehicle at the addresses furnished. The lien claimant may charge Twenty Dollars ($20.00) for processing plus the cost of postage if the notice 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 is unable to meet the time requirements due to a lack of or an altered vehicle identification number on the property, the lien claimant shall proceed diligently to obtain the proper Req. No. 1298 Page 22 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 vehicle identification number and shall meet the time requirements on the notice once the vehicle identification number is known. If the lien claimant is required to send additional notices because of change of ownership or lienholder after it has timely complied with the requirements of this subparagraph, the lien claimant shall remain in compliance if such additional notices are sent within the required time periods from the date of discovery of the new owners or lienholders. The notice shall be in wri ting 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 name, phys ical and mailing address, and telephone number of the claimant, (3) the complete legal name, p hysical 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 the property was abandoned if the claimant did not render any other service, (4) a description of the article of personal property, and the complete physical and mailing Req. No. 1298 Page 23 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 address of the location of the article of personal property, (5) 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 that, in the case of a law enforcement directed t ow, the logbook entry prescribed in OAC 595:25 -5-5 or the tow ticket as defined by the Corpo ration Commission shall serve as written proof of authority, (6) the signature of the claimant which shal l be notarized and, if applicable, the signature of 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 electroni c signature or seal shall be accepted, and (7) an itemized statement describing 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 cla imed. Req. No. 1298 Page 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 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 The lien claimant shall not be required to send the notice required in this subparagraph if the property is released to an interested party bef ore the notice is mailed and no additional charges or fees continue to accrue. If a law enforcement agenc y has the property towed to a law enforcement facility, the person claiming a lien under this section shall not be required to send notice until the p roperty is released by law enforcement to the claimant or the date which claimant starts charging storage, whichever is earlier. A lien claimant shall have an extensi on 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 o f this paragraph shall not apply to salvage pools as defined i n 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 notice shall be in writing and shall contain, but not be limited to: a. the names of the owner and any other known party or parties who may claim any interest in the prope rty, Req. No. 1298 Page 25 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 b. a description of the property to be sold, including a visual inspection or a photograph if the pr operty is a motor vehicle, and the physical location of the property, c. the nature of the work, labor or service performed, material furnished, or t he 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 enforcement dir ected tow, the logbook entry prescribed in OAC 595:25 -5-5 or the tow ticket as defin ed by the Corporation Commission, shall serve as written proof of authority, d. the time and place of sal e, e. the name, telephone number, physical address and mailing address of the claimant, and agent or attorney, if any, foreclosing 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 seal shall be accepted, and f. itemized charges which shall equa l the total compensation claimed. Req. No. 1298 Page 26 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 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 t he time therein specified for such sale, and a copy of the notice 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 requested, at lea st ten (10) days before the time therein specified for such sale. If the item of personal property is a manufactured home, notice shall also be sent by certified mail to the county treasurer and to the county assessor of the county where the manufactured home is located. b. In the case of any item of personal property without a certificate of title and not required to be titled under Oklahoma law, a party who claims any interest in the property shall inclu de all owners of the property; any secured party wh o has an active financing statement on file with the county clerk of Oklahoma County listing one or more owners of the property by legal name as debtors and indicating a collateral description that would i nclude the property; and any other person having an y interest in the personal property, of whom the claimant has actual notice. Req. No. 1298 Page 27 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 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 s hall include all owners of the article of personal property as indicated by th e 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 article of personal property, of whom the claimant has actual n otice. 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 determin ed by ordinary means, the claimant, the agent of the claimant , or the attorney of the claimant, shall requ est, in writing, that the Oklahoma Tax Commission Motor Vehicle Division ascertain the jurisdiction where the vehicle or manufactured home is titled. The Oklahoma Tax Commission Motor Vehicle Division shall, within fourteen (14) days from the date the req uest is received, provide information as to the jurisdiction where the personal property is titled. If the Req. No. 1298 Page 28 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 Oklahoma Tax Commission Motor Vehicle Divi sion is unable to provide the information, it shall provide notice that the record is not available. e. When personal property i s of a type that Oklahoma law requires to be titled , the owner of record of that property is unknown, and the jurisdiction of t itling and owner of record cannot be determined by ordinary means and also, if applicable, cannot be deter mined in accordance with the preceding subparagraph, then the special lien may be foreclosed by publication of a legal notice in a legal newspaper in the county where the personal property is located, as defined in Section 106 of Title 25 of the Oklahoma S tatutes. Such notice shall include the description of the property by year, make, vehicle identification number if available from the property, the n ame of the individual who may be contacted for information, and the telephone number of that person 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 e xist as described in the first sentence of this subparagraph, the first date of publication may occur even if the special lien has not accrued for over thirty (30) days. The first Req. No. 1298 Page 29 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 date available for public sale of the vehicle is the day following publicat ion 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 completed and mailed to any known interested party by certified mail. For purposes of thi s paragraph, interested parties shall include all persons described in subparagraph b or subparagraph c of this paragraph, whichever is applicable, with the exception of any owner who is unknown. Except in circumstances described in paragraph 7 of this su bsection that provide for a shorter time period, the Notice of Sale shall be posted in two public places i n 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 other person may in good faith becom e a purchaser of the property sold. 6. Proceedings for foreclosure under this act shall not be commenced until thirty (30) d ays after the lien has accrued, except as provided elsewhere in Oklahoma law. Req. No. 1298 Page 30 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 7. Notwithstanding any oth er provision of law, proce edings for foreclosures for the storage of junk veh icles towed and stored pursuant to Section 955 of Title 47 of the Oklahom a Statutes by Class AA wreckers listed with the Motor Vehicle Division of the Department of Public Safety, may be commenced five (5) days after the lien has accrued. For purposes of this paragraph, “junk vehicles” means any vehicle that is more than ten ( 10) years old if the cost of a comparable vehicle would be less than Three Hundred Dollars ($300.00) as qu oted in the latest edition of the National Automobile Dealers Association Off icial Used Car Guide or latest monthly edition of any other nationally re cognized published guidebook, adjusting to the condition of the vehicle. B. 1. a. Any person who is indu ced by means of a check or other form of written order for immediate payment o f 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 n ot paid when presented, shall have a lien for the a mount thereof upon the personal property. b. The person claiming such l ien shall, within thirty (30) days from the date of dishonor of the check or other written order for payme nt of money, file in the Req. No. 1298 Page 31 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 office of the county clerk of the county in which the property is situated a sworn statement that: (1) the check or other wr itten order for immediate payment of money, copy thereof being attached, was received for labor, material or supplies for producing or repairing an article of personal property, or for other specific property -related services covered by this section, (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 induci ng the person, one possessed of a special lien crea ted 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 the owner of an article of personal property by furnishing storage, rental space, material, labor, or skill for the protection, improvement, safekeepi ng, 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 Req. No. 1298 Page 32 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 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 in the office of the county clerk of the county in which the property is located, a sworn statement including: (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 written consent, (3) an identifying descriptio n 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 property 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 appro ximated debt may be amended within thirty (30) days of such fi ling to Req. No. 1298 Page 33 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 reflect the actual amount of the debt due and owing. 3. The enforcement of the lien shall be wit hin sixty (60) days after filing the lien in the manner provided by law for enforcing the lien of a security agreement and provided that the lien shal l 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 applies rel inquishes or loses possession of the article due to circumst ances described in subparagraph a of paragraph 1 or subparagraph a of paragraph 2 of subsection B of this section, the person claiming the lien s hall be entitled to possession of the article until the amount due is paid, 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 posses sion of an article pursuant to this subsection only if the person obligated under the contract for services has signed an acknowledgment of receipt of a notice that the article may be subject to repossession. The no tice and acknowledgment pursuant to this subsection shall be: a. in writing and separate fr om the written contract for services, or Req. No. 1298 Page 34 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 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 t o 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 repossessio n as a condition for reclaiming the article only to the extent of the reasonable fair market v alue of the services required to take possession of the article; 3. The claimant shall not transfer to a third party or to a person who performs repossession se rvices, a check, money order, or credit card transaction that is received as payment for servic es with respect to an article and that is returned to t he claimant because of insufficient funds or no funds, because the person writing the check, issuing the m oney order, or credit cardholder has no account or because the check, money order, or credit ca rd account has been closed. A person violating this pa ragraph shall be guilty of a misdemeanor; and 4. An article that is repossessed pursuant to this subsect ion shall be promptly delivered to the locati on 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. Req. No. 1298 Page 35 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. 1. This section applies if a v ehicle, all-terrain vehicle, manufactured home, mot orcycle, boat, outboard motor , or trailer has a certificate of title issued by the Tax Commission or by a federally recognized Indian tribe in Oklahoma, but th ere is no active lien recorded on the certific ate of title. 2. This section applies if a vehicle , all-terrain vehicle, utility vehicle, motorcycle, boat, outboard 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 certificate of ti tle, 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 b een registered by the Tax Commission or by a fed erally recognized Indian tribe in the State of Oklahoma, and there is a lien of record but no certific ate of title has been issued. 4. This section applies if personal property to which Section 91 of this title otherwise would apply has not been registere d by either the Tax Commission or a federally recog nized Indian tribe in the State of Oklahoma, and n o certificate of title has been issued, but there is a lien of record. 5. This section applies to person al property that otherwise would be covered by Sec tion 91 of this title, except that the Req. No. 1298 Page 36 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 services were rendered or the property was abandoned prior to November 1, 2005. 6. This section applies to a vehicle, all -terrain vehicle, utility vehicle, manufactu red home, motorcycle, boat, outboard motor, or trailer for which ownership cannot be determined by ordinary means or by the Oklahoma Tax Commission Mo tor 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 o f personal property that are not required by Oklaho ma 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 t he 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 vehicle removal provisions of Section 954A of Title 47 of the Oklahoma Statutes with respect to all types of personal property, regar dless of whether that personal property has a certificate of title. 10. For a vehicle abandoned at a sal vage pool, if the cost of repairing the vehicle for saf e operation on the highway does not exceed sixty percent (60%) of the fair market value of the vehicle Req. No. 1298 Page 37 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 as defined in Section 1111 of Title 47 of the Oklahoma Statutes, a salvage title shall not be requ ired. E. A person who knowingly makes a false statemen t of a material fact regarding the furnishing of st orage, rental space, material, labor or skill for the protection, improvement, safekeeping, towing, right to occupy space, storage or carriage thereo f in a proceeding under this section, or attempts to use or uses the provisions of this section to foreclos e an owner or lienholder ’s interest in a vehicle knowing that any of the statements made in the proceeding are false, upon conviction, shall be guilt y of a felony. F. Upon receipt of notice of legal proce edings, the Tax Commission shall cause the sale pro cess to be put on hold until notice of resolution of court proceedings is received from the court. If such notice of commencement of court proceedi ngs is not filed with the Tax Commission, the possessory lien sale process may continue. G. No possessory lien sale shall be held on a Sunday. H. For purposes of this section: 1. “Possession” includes actual possession and constructive possession; 2. “Constructive possession ” means possession by a person who , although not in actual possession, does not have an intention to abandon property, know ingly has both power and the intention at a Req. No. 1298 Page 38 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 given time to exercise dominion or control over the property, and who holds claim to such thing by virtue of some legal rig ht; 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 that the property was authorized to be towed to a repair facility. Class AA wrecker services taking possession of a veh icle pursuant to an agreement with, or at the direction of, or dispatched by, a state or local law enforce ment or government agency, or pursuant to the abandoned vehicle removal provisions of Section 954A of Title 47 of the Oklahoma Statutes, shall be cons idered lawfully in possession of the vehicle. If the person lacks such documentation, the procedures esta blished by this section shall not apply; and 4. “Itemized charges” means total parts, total labor, total towing fees, total storage fees, total proc essing fees and totals of any other fee groups, the sum total of which shall equal the compensation claimed. I. For purposes of this section, the United States Postal Service approved electronic equivalent of proof of re turn receipt requested Form 3811 s hall satisfy return receipt requested documentation requirements. Req. No. 1298 Page 39 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 J. If a person claiming a special lien pursuant to this section fails to comply with any of the requirem ents of this section, any interested party may proc eed against the person claiming s uch lien for all damages arising therefrom, including conversion, if the article of personal property has been sold. If the notice or notices required by this section shal l be shown to be knowingly false or fraudulent, the interested party shall be entitl ed to treble damages. The prevailing party shall be entitled to all costs, including reasonable attorney fees. K. Any interested party shall be permitted to visually insp ect and verify the services rendered by the claiman t prior to the sale of the article of property during normal business hours. If the claimant fails to allow any interested party to inspe ct the property, the interested party shall mail a request for insp ection by certified mail, return receipt requested, to the claimant. Within three (3) business days of receipt of the request for inspection, the claimant shall mail a photograph of the pr operty, by certified mail, return receipt requested, and a date of inspection within five (5) business days from the d ate 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 lienholder provides proof it is a lienho lder and any payment due the claimant for lawful ch arges where the claimant has complied with this section. Upon the release of personal property Req. No. 1298 Page 40 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 to an insurer or representative of the ins urer, wrecker operators shall be exempt from all liability and shal l be held harmless for any losses or claims of loss . In the event any law enforcem ent agency places a hold on the property, the party wanting to inspect or photograph the property shall ob tain permission from the law enforcement agency that placed the hol d on the property before inspecting or photographin g. L. This section shall apply to all actions or proceedings that commence on or after the effective date of this act. SECTION 3. This act shall become effective November 1, 20 21. 58-1-1298 TEK 1/21/2021 7:48:27 PM