Oklahoma 2023 Regular Session

Oklahoma House Bill HB2244 Compare Versions

Version 1 (Old)

Version 2 (New)

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3		-	SENATE FLOOR VERSION - HB2244 SFLR Page 1
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33	28		ENGROSSED HOUSE
34	29		BILL NO. 2244 By: Dobrinski of the House
35	30
36	31		and
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38	33		Thompson (Roger) of the
39	34		Senate
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45	40		An Act relating to motor vehicles; defining terms;
46	41		authorizing dealer management system providers
47	42		perform certain actions; prohibiting dealer
48	43		management system providers from certain actions ;
49	44		making conflicting term or condition of contracts
50	45		void and unenforceable; requiring certain actions of
51	46		authorized integrator s; allowing dealers to withdraw,
52	47		revoke or amend certain express written authorization
53	48		under certain circumstances; requiring cert ain
54	49		obligations to secure and prevent unauthorized access
55	50		to certain information; stating certain parties not
56	51		liable for certain actions; requiring indemnification
57	52		for certain claims; requiring manufacturers to allow
58	53		new motor vehicle dealers to make certa in offers to
59	54		consumers; making certain exceptions; limiting
60	55		certain applications; amending 21 O.S. 2021, Section
61	56		918, which relates to the sale, barter or excha nge of
62	57		motor vehicles on Sunday prohibited; modifying nam e
63	58		of certain entity; amending 47 O.S. 2021, Section
64	59		562, which relates to definitions; modifying
65	60		definitions; defining terms; amending 47 O.S. 2021,
66	61		Section 563, which relates to Oklahoma Motor Vehicle
67	62		Commission; modifying name of certain entity;
68	63		requiring certain delivery agreement forms for
69	64		certain deliveries; amending 47 O.S. 2021, Section
70	65		564, which relates to licenses; requiring powersports
71	66		dealers obtain certai n license; disallowing certain
72	67		authorization; making certain exception; amending 47
73	68		O.S. 2021, Section 564.1, which relates to off -
74	69		premises displays of new motor vehicles; modifying
75	70		name of certain entity; making certain authorization;
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103	71		removing certain req uest for variance; amending 47
104	72		O.S. 2021, Section 564.2, which relates to
105	73		certificates of registration for new motor vehicle
106	74		salesperson; modifying name of certain enti ty;
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107	101		amending 47 O.S. 2021, Section 565, as amended by
108	102		Section 3, Chapter 192, O.S.L . 2022 (47 O.S. Supp.
109	103		2022, Section 565), which relates to denial,
110	104		revocation, or suspensio n of license; modifying name
111	105		of certain entity; modifying entity subject to
112	106		license denial, revocation, suspension, or fine;
113	107		modifying reasons for license denial, re vocation,
114	108		suspension, or punishment by fine; prohibiting
115	109		certain standards to measure perfo rmance; requiring
116	110		certain vehicles be offered at same price; requiring
117	111		certain reimbursement for rental cars; making certain
118	112		exception; requiring new vehicles be dis tributed in
119	113		certain manner; limiting dealers to one part or labor
120	114		rate request per year; modifying certain time frame
121	115		for rebuttal; providing for certain calculation;
122	116		providing for exclusions for certain rate
123	117		calculation; modifying reasons for certain rebu ttal;
124	118		allowing certain written request; allowing certain
125	119		adjustments; requiring certain wri tten notice;
126	120		prohibiting certain recove ry of costs; allowing for
127	121		certain price increases and charges; prohibiting
128	122		factory denial of certain claims and implementation
129	123		of certain charge-backs; requiring certain
130	124		documentation and written attestation; providin g for
131	125		certain compensation calculation; requiring certain
132	126		method for used vehicle calculations; allowing
133	127		factory to direct dea ler in certain manner and
134	128		method; requiring certain reimbursement claims be
135	129		subject to certain limitations and requirements;
136	130		placing certain limit on total compensation;
137	131		disallowing certain remedy combinations; disallowing
138	132		the use of certain agreements; ma king certain
139	133		exception; providing for c ertain violation; making
140	134		certain exceptions; allowing for certain construction
141	135		or renovation; providing certain rebuttable
142	136		presumption; prohibiting factories from changing
143	137		certain plans or systems; limiting license for
144	138		distribution; allowing manufacturer or distributor to
145	139		require certain dealer compliance; amending 47 O.S.
146	140		2021, Section 565.1, w hich relates to succession
147	141		dealerships; defining term; clarifying language;
148	142		requiring adherence to certain agreement; requiring
149	143		certain changes be in compliance with existing law;
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151		-	SENATE FLOOR VERSION - HB2244 SFLR Page 3
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177	144		amending 47 O.S. 2021, Section 565.2, which rela tes
178	145		to termination, cancella tion, or nonrenewal of
179	146		franchise; modifying terms; requiring certain hearing
180	147		be held within certain time frame; allowin g for
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181	174		certain extension; requiring certain com pensation;
182	175		amending 47 O.S. 2021, Section 565.3, which relates
183	176		to notice of proposed sale; requiring use of certain
184	177		standards; requiring certain changes be in compliance
185	178		with existing law; limiting certain evaluations;
186	179		deleting certain protest right; requiring the
187	180		submission of certain agreement; amending 47 O.S.
188	181		2021, Sections 566, 566.1, 567, and 576, which relate
189	182		to procedure for denial, suspension, or revocation of
190	183		license, application of the Administrative Procedures
191	184		Act, injunctions, and petty cash fund; modifying name
192	185		of certain entity; amending 47 O.S. 2021, Section
193	186		578.1, which relates to procedures for relocation or
194	187		establishment; modifying definition; making certain
195	188		exceptions; amending 47 O.S. 2021, Section 579, which
196	189		relates to relocation or establishment of franchises;
197	190		modifying name of cer tain entity; amending 47 O.S.
198	191		2021, Section 580.2, which relates to in surance
199	192		coverage on loan vehicles; defining term; making
200	193		certain liability policy coverage distinction;
201	194		amending 47 O.S. 2021, Section 583, a s amended by
202	195		Section 3, Chapter 107, O.S.L. 2022 (47 O.S. Supp.
203	196		2022, Section 583), which relates to license
204	197		required; modifying name of certain entity; amending
205	198		47 O.S. 2021, Section 583.1, as amended by Section 4,
206	199		Chapter 107, O.S.L. 2022 (47 O.S. Supp. 2022, Section
207	200		583.1), which relates to certificate of registration
208	201		for used motor vehicle o r manufactured home
209	202		salespersons; modifying name of certain entity;
210	203		amending 47 O.S. 2021, Section s 596.1, 596.2, 596.3,
211	204		596.5, 596.7, 596.8, 596.14, 596.15, 596.16, and
212	205		1116.1, which relate to definitions, new recreational
213	206		vehicle dealer, dealer sales responsibility,
214	207		manufacturer termination of dealer agreement, sale of
215	208		inventory after termination of dealer agreement , sale
216	209		of business assets, denial of application fo r
217	210		license, cause of action, remedies, new vehicles;
218	211		modifying definitions; defining terms; modifying name
219	212		of certain entity; updating statutory references;
220	213		amending 47 O.S. 2021, Section 1128, as am ended by
221	214		Section 142, Chapter 282, O.S.L. 2022 (47 O.S. Su pp.
222	215		2022, Section 1128), which relates to manufacturer's
223	216		or dealer's license; modifying nam e of certain
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251	217		entities; amending 47 O.S. 2021, Section 1137.3, as
252	218		amended by Section 172, Chapter 282, O.S.L. 20 22 (47
253	219		O.S. Supp. 2022, Section 1137.3), which relates to
254	220		registration and licensing of new motor vehicle,
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255	247		trailer or commercial trai ler; modifying name of
256	248		certain entity; amending 62 O.S. 2021, Section 155,
257	249		which relates to state boards, commissions and
258	250		departments; modifying name of certain entity ;
259	251		amending 74 O.S. 2021, Section 3601.1, as amended by
260	252		Section 24, Chapter 107, O.S.L. 2022 (74 O.S. Supp.
261	253		2022, Section 3601.1), which relates to employee
262	254		defined; modifying name of certain entity; repealing
263	255		47 O.S. 2021, Section 1128, as amended by Section 21,
264	256		Chapter 107, O.S.L. 2022 (47 O.S. Supp. 2022, Section
265	257		1128), which relates to manufacturer's or dealer's
266	258		license; providing for codification; and providing an
267	259		effective date.
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273	265		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
274	266		SECTION 1. NEW LAW A new section of law to be codified
275	267		in the Oklahoma Statutes as Section 564.3 of Title 47, unless there
276	268		is created a duplication in numbering, reads as follows:
277	269		A. As used in this section:
278	270		1. "Access fee" means a requirement to pay money for access to
279	271		protected dealer data ;
280	272		2. "Authorized integrator " means a person who a dealer has a
281	273		contractual relationship with or the dealer otherwise gives express
282	274		written authorization to have access to prote cted dealer data stored
283	275		on a dealer data system or to write protected dealer data to the
284	276		dealer data system for the purpose of performing a specific function
285	277		for the dealer;
286	278
287		-	SENATE FLOOR VERSION - HB2244 SFLR Page 5
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313	304		3. "Dealer data system" means software, hardware or firmware
314	305		that a dealer leases or rents from a dealer management system
315	306		provider for the purpose of storing protected dealer da ta;
316	307		4. "Dealer management system provider" means a person who, for
317	308		compensation, maintains and provides access to a dealer data system
318	309		in which a dealer stores protected dealer data;
319	310		5. "Protected dealer data" means:
320	311		a. consumer data that a dealer generated or that the
321	312		consumer provided to the dealer that is not otherwise
322	313		publicly available and the consumer has not otherwise
323	314		provided consent or acknowledgment to share the
324	315		information, and
325	316		b. any other dealer data in connection with the dea ler's
326	317		daily business operations in which a dealer has rights
327	318		in a dealer data system ; and
328	319		6. Authorized integrator and dealer management system provider
329	320		do not include:
330	321		a. a manufacturer, distr ibutor or importer or any entity
331	322		that is a subsidiary or affil iate of, or acts on
332	323		behalf of, a manufacturer, distr ibutor or importer, or
333	324		b. a governmental body or other person that is acting in
334	325		accordance with federal, state , or local law or a
335	326		valid court order.
336	327		B. A dealer management system provider may:
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338		-	SENATE FLOOR VERSION - HB2244 SFLR Page 6
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364	354		1. Condition access and ability of a dealer or authorized
365	355		integrator to receive, share, copy, use, write , or transmit
366	356		protected dealer data from or to a dealer data system on the
367	357		dealer's or authorized integrator's compliance with security
368	358		standards;
369	359		2. Require an authorized integrator to have express written
370	360		authorization from a dealer before allowing the aut horized
371	361		integrator to gain access to, receive, share, copy, use , or transmit
372	362		protected dealer data ; and
373	363		3. Deny access to a dealer data system to a dealer if t he
374	364		dealer fails to pay an amount due to the dealer management system
375	365		provider under a lease, cont ract, or other agreement concerning the
376	366		dealer's access to or use of the dealer data system.
377	367		C. Except as provided in subsection B of this section, a dealer
378	368		management system provider shall not take any actio n that would
379	369		limit or prohibit the ability of a dealer or an authorized
380	370		integrator to receive, protect, store, copy, share , or use protected
381	371		dealer data, using means that include, but are not limited to:
382	372		1. Imposing an access fee on a dealer or authorized integrator;
383	373		and
384	374		2. Restricting a dealer or an autho rized integrator from
385	375		sharing protected dealer data or writing data or having access to a
386	376		dealer data system. Prohibited restrictions pursuant to this
387	377		paragraph include, but are not limited to:
388	378
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415	404		a. limits on the scope or nature of protected dealer dat a
416	405		to which a dealer or authorized integrator has access
417	406		or may share or write to a dealer data sy stem, and
418	407		b. a requirement for a dealer or authorized integrator to
419	408		provide sensitive or confidential business information
420	409		or information that a dealer or auth orized integrator
421	410		uses for competitive purposes in return for access to
422	411		protected dealer data or an authorization to share or
423	412		write protected dealer data to a dealer data system.
424	413		D. Except as otherwise provi ded in this section, any term or
425	414		condition of a contract with a dealer management system provider
426	415		that conflicts with the requirements set forth in subsection C of
427	416		this section is void and unenforceable to the extent of the
428	417		conflict.
429	418		E. An authorized integrator shall:
430	419		1. Obtain express written auth orization from a dealer before
431	420		gaining access to, receiving, sharing, copying, using, writing , or
432	421		transmitting protected dealer data;
433	422		2. Comply with security standards in gaining access to,
434	423		receiving, sharing, copying, using, writing , or transmitting
435	424		protected dealer data; and
436	425		3. Allow a dealer to withdraw, revoke , or amend any express
437	426		written authorization the dealer provides under paragraph 1 of this
438	427		subsection:
439	428
440		-	SENATE FLOOR VERSION - HB2244 SFLR Page 8
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466	454		a. at the sole discretion of the dealer, if the dealer
467	455		gives a thirty-day prior notice to an authorized
468	456		integrator, or
469	457		b. immediately, for good cause.
470	458		F. 1. This section does not pre vent a dealer, a dealer
471	459		management system provider, or an authorized integrator from
472	460		discharging the obligations of a dealer, dealer management system
473	461		provider, or an authorized integrator under federal, state , or local
474	462		law to secure and prevent unauthorized ac cess to protected dealer
475	463		data, or from limiting the scope of the obligations, in accordance
476	464		with federal, state, or local law.
477	465		2. A dealer management system pr ovider is not liable for any
478	466		action that a dealer takes directly with respect to securing or
479	467		preventing unauthorized access to protected dealer data, or for
480	468		actions that an authorized integrator takes in approp riately
481	469		following the written instructions of the dealer for securing or
482	470		preventing unauthorized access to protected dealer data, to the
483	471		extent that the actions prevent the dealer management system
484	472		provider from meeting a legal obligation to secure or prev ent
485	473		unauthorized access to protected dealer data.
486	474		3. A dealer is not liable for any action that an authorized
487	475		integrator takes directly with respec t to securing or preventing
488	476		unauthorized access to protected dealer data, or for actions that
489	477		the authorized integrator takes in appropriately following the
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517	504		written instructions of the dealer for securing or preventing
518	505		unauthorized access to protected dealer da ta, to the extent that the
519	506		actions prevent the dea ler from meeting a legal obligation to secure
520	507		or prevent unauthorized access to protected dealer data.
521	508		4. An authorized integrator is not liable for any action that a
522	509		dealer takes directly with respect to securing or preventing
523	510		unauthorized access to prote cted dealer data, or for actions that
524	511		the dealer takes in appropriately following the written instructions
525	512		of the authorized integrat or for securing or preventing unauthorized
526	513		access to protected dealer dat a, to the extent that the actions
527	514		prevent the authorize d integrator from meeting a legal obligation to
528	515		secure or prevent unauthorized access to protected dealer da ta.
529	516		5. A manufacturer, distributor, importer, or any entity that is
530	517		a subsidiary or affiliat e of, or acts on behalf of, a manufacturer,
531	518		distributor, or importer is not liable for any action that a dealer,
532	519		dealer management system provider, authorized inte grator, or other
533	520		third party, except for a third party who the manufacturer has
534	521		provided the data to as provided for in paragraph 7 of this
535	522		subsection, takes directly with respect to securing or preventing
536	523		unauthorized access to protected dealer data, or for actions that an
537	524		authorized integrator, dealer management system provider, or other
538	525		third party takes in appropriately following the written
539	526		instructions of the dealer for securing or preventin g unauthorized
540	527		access to protected dealer data.
541	528
542		-	SENATE FLOOR VERSION - HB2244 SFLR Page 10
543		-	(Bold face denotes Committee Amendments) 1
	529	+	ENGR. H. B. NO. 2244 Page 10 1
544	530		2
545	531		3
546	532		4
547	533		5
548	534		6
549	535		7
550	536		8
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552	538		10
553	539		11
554	540		12
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558	544		16
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566	552		24
567	553
568	554		6. Notwithstanding any other agre ement, an authorized
569	555		integrator shall indemnify and hold the new motor v ehicle dealer
570	556		harmless from any thi rd-party claims asserted against or damages
571	557		incurred by the new mot or vehicle dealer to the exten t caused by
572	558		access to, use of, or disclosure of cons umer data in violation of
573	559		this section.
574	560		7. Notwithstanding any other ag reement, a manufacturer,
575	561		distributor, importer, or any entity that is a subsidiary or
576	562		affiliate of, or acts on behalf of, a manufac turer, distributor, or
577	563		importer shall indemnify the d ealer for any third-party claims
578	564		asserted against or damages incurred by the dealer to the extent the
579	565		claims or damages are caused by the access to and unlawful
580	566		disclosure of protected dealer data resulti ng from a breach caused
581	567		by the manufacturer or distr ibutor or a third party to which the
582	568		manufacturer or distributor has pro vided the protected dealer data
583	569		in violation of this section, the written consent granted by the
584	570		dealer, or other applicable state o r federal law.
585	571		SECTION 2. NEW LAW A new section of law to be codified
586	572		in the Oklahoma Statutes as Section 564.4 of Title 47, unless there
587	573		is created a duplication in numbering, reads as follows:
588	574		Any manufacturer or distributor who has new motor vehicle sales
589	575		and service agreements with new motor vehicle dealers in the state
590	576		shall allow its new motor vehicle dealers to offer consumers any
591	577		remote software upgrade or change to vehicle functions and features
592	578
593		-	SENATE FLOOR VERSION - HB2244 SFLR Page 11
594		-	(Bold face denotes Committee Amendments) 1
	579	+	ENGR. H. B. NO. 2244 Page 11 1
595	580		2
596	581		3
597	582		4
598	583		5
599	584		6
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601	586		8
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603	588		10
604	589		11
605	590		12
606	591		13
607	592		14
608	593		15
609	594		16
610	595		17
611	596		18
612	597		19
613	598		20
614	599		21
615	600		22
616	601		23
617	602		24
618	603
619	604		to a new motor vehicle which is of a line-make the new motor vehicle
620	605		dealer holds an active sales and service agreement for, as any
621	606		offered to consumers in the state by the manufacturer or
622	607		distributor, and such upgrade or ch ange shall be available for an
623	608		authorized new motor vehicle de aler to offer to consumers at any
624	609		time during the life cycle of the vehicle, and subject to the
625	610		manufacturer or distributor ’s requirements, provided the same
626	611		continues to be made available and offered to consumers in the state
627	612		by the manufacturer or distributor. This section does no t apply to
628	613		remote software upgrades or changes administered at no cost to the
629	614		consumer, or related solely to the safety, regulatory requirements,
630	615		cybersecurity, recall of a motor vehicle, state or federal statutes,
631	616		regulations, or orders. Nothing in this section shall be construed
632	617		to limit or impair a manufacturer or distributor’s intellectual
633	618		property rights nor to grant a new m otor vehicle dealer authority to
634	619		sell, copy, modify, or use the manufacturer or distributor’s
635	620		intellectual property in a manner that has not been authorized by
636	621		the manufacturer or distributor. Nothing in this section shall
637	622		obligate a manufacturer, distrib utor, or other person to support or
638	623		maintain any software or change to vehicle functions and features .
639	624		SECTION 3. AMENDATORY 21 O.S. 2021, Section 918, is
640	625		amended to read as follows:
641	626		Section 918. No person, firm or corporation, whether owner,
642	627		proprietor, agent or employee, shall keep open, operate or assist in
643	628
644		-	SENATE FLOOR VERSION - HB2244 SFLR Page 12
645		-	(Bold face denotes Committee Amendments) 1
	629	+	ENGR. H. B. NO. 2244 Page 12 1
646	630		2
647	631		3
648	632		4
649	633		5
650	634		6
651	635		7
652	636		8
653	637		9
654	638		10
655	639		11
656	640		12
657	641		13
658	642		14
659	643		15
660	644		16
661	645		17
662	646		18
663	647		19
664	648		20
665	649		21
666	650		22
667	651		23
668	652		24
669	653
670	654		keeping open or operating any place or premi ses or residences
671	655		whether open or closed, for the purpose of selling, barterin g, or
672	656		exchanging, or offering for sale, barter, or exchange, any motor
673	657		vehicle or motor vehicles, whether new, used or se cond hand, on the
674	658		first day of the week, commonly called Sunday, except as otherwise
675	659		provided in this section; and provided, however, t hat this act shall
676	660		not apply to the opening of an establishment or place of business on
677	661		the first day of the week for oth er purposes, such as the sale of
678	662		petroleum products, tire s, automobile accessories, or for the
679	663		purpose of operating and conducting a mo tor vehicle repair shop, or
680	664		for the purpose of supplying such services as towing or wrecking.
681	665		Antique, classic, or speci al interest automobiles sold, bartered,
682	666		auctioned, or exchanged by any person, firm, or corporation are
683	667		exempt from the provisions of t his section, as well as off-premise
684	668		off-premises sales of new motorized recreational vehicles approved
685	669		by the Oklahoma New Motor Vehicle Commission pursuant to the
686	670		provisions of the Recreational Vehicle Franchise Act .
687	671		SECTION 4. AMENDATORY 47 O.S. 2021, Section 562, is
688	672		amended to read as fol lows:
689	673		Section 562. The following words, t erms and phrases, when used
690	674		in Sections 561 through 567, 572, 578.1, 579 and 579.1 of this
691	675		title, shall have the meanings respectively ascribed to them in this
692	676		section, except where the context clearly indicates a different
693	677		meaning:
694	678
695		-	SENATE FLOOR VERSION - HB2244 SFLR Page 13
696		-	(Bold face denotes Committee Amendments) 1
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697	680		2
698	681		3
699	682		4
700	683		5
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702	685		7
703	686		8
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705	688		10
706	689		11
707	690		12
708	691		13
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710	693		15
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715	698		20
716	699		21
717	700		22
718	701		23
719	702		24
720	703
721	704		1. "Motor vehicle" means any motor-driven vehicle required to
722	705		be registered under the Oklahoma Vehicle License and Registration
723	706		Act. The term "motor vehicle" does not include:
724	707		a. recreational vehicles, as defined in the Recreational
725	708		Vehicle Franchise Act, or
726	709		b. all-terrain vehicles, utility vehicles, and
727	710		motorcycles used exclusively for off-road use which
728	711		are sold by a retail implement dealer;
729	712		2. "New motor vehicle dealer" means any person, fir m,
730	713		association, corporation or trust not e xcluded by this paragraph who
731	714		sells, offers for sale, advertises to sell, leases or displays new
732	715		motor vehicles and holds a bona fide contract or franchise in effect
733	716		with a manufacturer or distributor authorized by the manufacturer to
734	717		make predelivery preparation of such vehicles sold to purchasers and
735	718		to perform post-sale work pursuant to the manufacturer's or
736	719		distributor's warranty. As used herein, "authorized predelivery
737	720		preparation" means the rendition by the dealer of services and
738	721		safety adjustments on each new motor vehicle in accordance with the
739	722		procedure and safety standards required by the manufacturer of the
740	723		vehicle to be made before its de livery to the purchaser.
741	724		"Performance of authorized post-sale work pursuant to the warranty",
742	725		as used herein, means the rendition of services which are required
743	726		by the terms of the warranty that stands extended to the vehicle at
744	727		the time of its sale and a re to be made in accordance with the
745	728
746		-	SENATE FLOOR VERSION - HB2244 SFLR Page 14
747		-	(Bold face denotes Committee Amendments) 1
	729	+	ENGR. H. B. NO. 2244 Page 14 1
748	730		2
749	731		3
750	732		4
751	733		5
752	734		6
753	735		7
754	736		8
755	737		9
756	738		10
757	739		11
758	740		12
759	741		13
760	742		14
761	743		15
762	744		16
763	745		17
764	746		18
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766	748		20
767	749		21
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769	751		23
770	752		24
771	753
772	754		safety standards prescribed by the manufacturer. The term includes
773	755		premises or facilities at which a person engages only in the repair
774	756		of motor vehicles if repairs are performed pursuant to the terms of
775	757		a franchise and motor vehicle manufacturer's warranty. However, the
776	758		term shall not include premises or facilitie s at which a new motor
777	759		vehicle dealer or deale rs within the area of responsibility of such
778	760		dealer or dealers as defined in the manufact urer's franchise
779	761		agreement of such dealer or dealers performs motor vehicle repairs
780	762		pursuant to the terms of a franchise and motor vehicle
781	763		manufacturer's warranty. For the purpose of Sections 561 through
782	764		567, 572, 578.1, 579 and 579.1 of this title, the t erms "new motor
783	765		vehicle dealer" and "new motor vehicle dealership" shall be
784	766		synonymous. The term "new motor vehicle deal er" does not include:
785	767		a. receivers, trustees, administrators, executors,
786	768		guardians or other persons appointed by or acting
787	769		under judgment or order of any court,
788	770		b. public officers while performing or in operation of
789	771		their duties, or
790	772		c. employees of persons , corporations or associations
791	773		enumerated in subparagraph a of this paragraph when
792	774		engaged in the specific performance of their duties as
793	775		such employees, or
794	776		d. a powersports vehicle dealer;
795	777
796		-	SENATE FLOOR VERSION - HB2244 SFLR Page 15
797		-	(Bold face denotes Committee Amendments) 1
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798	779		2
799	780		3
800	781		4
801	782		5
802	783		6
803	784		7
804	785		8
805	786		9
806	787		10
807	788		11
808	789		12
809	790		13
810	791		14
811	792		15
812	793		16
813	794		17
814	795		18
815	796		19
816	797		20
817	798		21
818	799		22
819	800		23
820	801		24
821	802
822	803		3. "Motor vehicle salesperson" means any person who, for gain
823	804		or compensation of any kind, either dire ctly or indirectly,
824	805		regularly or occasionally, by any form of agreement or arrangement,
825	806		sells or negotiates for the sale, lease, or conveyance or arranges
826	807		the financing of any new motor vehicle for as an employee of any new
827	808		motor vehicle dealer to any one or more third parties;
828	809		4. "Commission" means the Oklahoma New Motor Vehicle
829	810		Commission;
830	811		5. "Manufacturer" means any person, firm, association,
831	812		corporation or trust, resident or nonresident, who that manufactures
832	813		or assembles new and unused motor vehicles or who that engages in
833	814		the fabrication or assembly of motorized vehicles of a type required
834	815		to be registered in the State of Oklahoma this state;
835	816		6. "Distributor" means any person, firm, association,
836	817		corporation or trust, resident or nonresident, who that, being
837	818		authorized by the original manufacturer, in whole or in part, sells
838	819		or distributes new and unused mo tor vehicles to new motor vehicle
839	820		dealers, or who that maintains distributor representatives;
840	821		7. "Factory branch" means any branch office maintained by a
841	822		person, firm, association, corporation or trust who that
842	823		manufactures or assembles motor vehicles for the sale of motor
843	824		vehicles to distributors, or for the sale of motor vehicles to new
844	825		motor vehicle dealers, or for directing or supervising, in whole or
845	826		in part, its representatives;
846	827
847		-	SENATE FLOOR VERSION - HB2244 SFLR Page 16
848		-	(Bold face denotes Committee Amendments) 1
	828	+	ENGR. H. B. NO. 2244 Page 16 1
849	829		2
850	830		3
851	831		4
852	832		5
853	833		6
854	834		7
855	835		8
856	836		9
857	837		10
858	838		11
859	839		12
860	840		13
861	841		14
862	842		15
863	843		16
864	844		17
865	845		18
866	846		19
867	847		20
868	848		21
869	849		22
870	850		23
871	851		24
872	852
873	853		8. "Distributor branch" means any branch office similarly
874	854		maintained by a distr ibutor for the same purposes a factory branch
875	855		is maintained;
876	856		9. "Factory representative" means any officer or agent e ngaged
877	857		as a representative of a manufacturer of motor vehicles or by a
878	858		factory branch, for the purpose of making or promoting the sale of
879	859		its motor vehicles, or for supervising or contacting its dealers or
880	860		prospective dealers;
881	861		10. "Distributor representat ive" means any person, firm,
882	862		association, corporation or trust and each officer and employee
883	863		thereof engaged as a representative of a dist ributor or distributor
884	864		branch of motor vehicles, for the purpose of making or promoting the
885	865		sale of its motor vehicles , or for supervising or contacting its
886	866		dealers or prospective dealers;
887	867		11. "Franchise" means any contract or agreement between a new
888	868		motor vehicle dealer and a manufacturer of a new motor vehicle or
889	869		its distributor or factory branch by which the new motor vehicle
890	870		dealer is authorized to engage in the business of selling any
891	871		specified make or makes of new motor vehicles activities of a new
892	872		motor vehicle dealer as defined by this section;
893	873		12. "New or unused motor vehicle" means a vehicle which is i n
894	874		the possession of the manufacturer or distributor or has been sold
895	875		only to the holder of a valid selling agreement, franchise or
896	876		contract, granted by the manufacturer or distributor for the sale of
897	877
898		-	SENATE FLOOR VERSION - HB2244 SFLR Page 17
899		-	(Bold face denotes Committee Amendments) 1
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900	879		2
901	880		3
902	881		4
903	882		5
904	883		6
905	884		7
906	885		8
907	886		9
908	887		10
909	888		11
910	889		12
911	890		13
912	891		14
913	892		15
914	893		16
915	894		17
916	895		18
917	896		19
918	897		20
919	898		21
920	899		22
921	900		23
922	901		24
923	902
924	903		that make of new vehicle so long as the manufacturer 's statement of
925	904		origin has not been assigned to anyone other than a licensed
926	905		franchised new motor vehicle dealer of the same line-make;
927	906		13. "Area of responsibility" means the geographical area, as
928	907		designated by the manufacturer, factory branch, factory
929	908		representative, distributor, distributor branch or distributor
930	909		representative, in which the new motor vehicle dealer is held
931	910		responsible for the promotion and development of sales and rendering
932	911		of service for the make of motor vehicle for which the new motor
933	912		vehicle dealer holds a franchise or selling agreement;
934	913		14. "Off premises" means at a location other than the address
935	914		designated on the new motor vehicle dealer's license;
936	915		15. "Sponsoring entity" means any person, firm, association,
937	916		corporation or trust which ha s control, either permanently or
938	917		temporarily, over the real property upon which t he off-premise off-
939	918		premises sale or display is conducted;
940	919		16. "Product" means new motor vehicles and new motor vehicle
941	920		parts;
942	921		17. "Service" means motor vehicle warranty repa irs including
943	922		both parts and labor;
944	923		18. "Lead" means a consumer contact in respo nse to a factory
945	924		program designed to generate interest in purchasing or leasing a new
946	925		motor vehicle;
947	926		19. "Sell" or "sale" means to sell or lease;
948	927
949		-	SENATE FLOOR VERSION - HB2244 SFLR Page 18
950		-	(Bold face denotes Committee Amendments) 1
	928	+	ENGR. H. B. NO. 2244 Page 18 1
951	929		2
952	930		3
953	931		4
954	932		5
955	933		6
956	934		7
957	935		8
958	936		9
959	937		10
960	938		11
961	939		12
962	940		13
963	941		14
964	942		15
965	943		16
966	944		17
967	945		18
968	946		19
969	947		20
970	948		21
971	949		22
972	950		23
973	951		24
974	952
975	953		20. "Factory" means a manufacturer, distributor, factory
976	954		branch, distributor branch, factory representative or distributor
977	955		representative, which manufactures or distributes vehicle products;
978	956		21. "Powersports vehicle" means motorcycles, scooters, mopeds,
979	957		all-terrain vehicles, and utility vehicles;
980	958		22. "Powersports vehicle dealer" means any person, firm, or
981	959		corporation who that is in the business of selling any new
982	960		powersports vehicles except for retail implement dealers; and
983	961		23. "Retail implement dealer" means a business engaged
984	962		primarily in the sale of farm tractors as defined in Section 1-118
985	963		of this title or implements of husbandry as defined in Section 1-125
986	964		of this title or a combination thereof;
987	965		24. "Consumer data" means nonpublic personal information
988	966		defined in 15 U.S.C., Section 6809(4) as it existed on January 1,
989	967		2023, that is:
990	968		a. collected by a new motor vehicle dealer, and
991	969		b. provided by the new motor vehicle dealer directly to a
992	970		manufacturer or third party acting on behalf of a
993	971		manufacturer.
994	972		The term shall not include the same or similar data obtained by
995	973		a manufacturer from any source other than the new motor vehicle
996	974		dealer or new motor vehicle dealer's data management system; and
997	975		25. "Fleet vehicle" means a new motor vehicle sold and titled
998	976		or registered to a business and used for business purposes only.
999	977
1000		-	SENATE FLOOR VERSION - HB2244 SFLR Page 19
1001		-	(Bold face denotes Committee Amendments) 1
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1002	979		2
1003	980		3
1004	981		4
1005	982		5
1006	983		6
1007	984		7
1008	985		8
1009	986		9
1010	987		10
1011	988		11
1012	989		12
1013	990		13
1014	991		14
1015	992		15
1016	993		16
1017	994		17
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1020	997		20
1021	998		21
1022	999		22
1023	1000		23
1024	1001		24
1025	1002
1026	1003		SECTION 5. AMENDATORY 47 O.S. 2021, Sec tion 563, is
1027	1004		amended to read as follows:
1028	1005		Section 563. A. There is hereby created the Oklahoma New Motor
1029	1006		Vehicle Commission, to be composed of nine (9) members. Seven of
1030	1007		the members shall have been engaged in the manufacture, distribution
1031	1008		or sale of new motor vehicles and two members shall be lay members,
1032	1009		all to be appointed by the Governor of the State of Oklahoma, with
1033	1010		the advice and consent of the State Senate. Such appointments shall
1034	1011		be made within thirty (30) days after the effective date of this
1035	1012		section. Each of the Commissioners thus appoi nted shall, at the
1036	1013		time of the appointment, be a resident in good faith of the State of
1037	1014		Oklahoma, shall be of good moral character, and each of the industry
1038	1015		related Commissioners shall have been actually engaged in the
1039	1016		manufacture, distribution or sale of such new motor vehicles for not
1040	1017		less than ten (10) years next preceding such appointment. The
1041	1018		members of the Commission shall serve at the pleasure of the
1042	1019		Governor.
1043	1020		B. 1. The Commissioners shall elect a Chair man from amongst
1044	1021		them whose term shall be for one (1) year with the right to succeed
1045	1022		him or herself.
1046	1023		2. There shall be three at large members of the Commission.
1047	1024		Six members of the Commission shall be appointed from the following
1048	1025		geographical areas with a t least one member from each area:
1049	1026
1050		-	SENATE FLOOR VERSION - HB2244 SFLR Page 20
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1057	1033		7
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1061	1037		11
1062	1038		12
1063	1039		13
1064	1040		14
1065	1041		15
1066	1042		16
1067	1043		17
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1073	1049		23
1074	1050		24
1075	1051
1076	1052		a. four areas of the state shall be the northwest,
1077	1053		northeast, southwest and southeast sections designated
1078	1054		by Interstate 35 dividing the state east and west and
1079	1055		Interstate 40 dividing the state north and south,
1080	1056		excluding Oklahoma County and Tulsa County, and
1081	1057		b. two additional areas shall be Oklahoma County and
1082	1058		Tulsa County.
1083	1059		There shall not be more than two members of the Commission from any
1084	1060		one area.
1085	1061		C. The terms of office of the members first appointed to the
1086	1062		Commission shall be as follows:
1087	1063		1. The members appointed from the northwest, northeast and
1088	1064		southwest areas shall serve until June 30, 1987;
1089	1065		2. The members appointed from the southeast area and Oklahoma
1090	1066		County and Tulsa Cou nty shall serve until June 30, 1989; and
1091	1067		3. The members appointed at large shall serve u ntil June 30,
1092	1068		1991.
1093	1069		Each member shall serve until a successor is appointed and
1094	1070		qualifies. Thereafter, the term of office of each member of the
1095	1071		Commission shall be for six (6) years. The term of office of any
1096	1072		member will automatically expire if the member moves out of the
1097	1073		geographical area from which the member was appointed. In event of
1098	1074		death, resignation, removal, or term automatically expiring, of any
1099	1075		person serving on the Commission, the vacancy shall be fi lled by
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1126	1101
1127	1102		appointment as provided for the unexp ired portion of the term. The
1128	1103		Commission shall meet at Oklahoma City and complete its organization
1129	1104		immediately after the membership thereof has been appointed and has
1130	1105		qualified. The Chairman and each member of the Commission shall
1131	1106		take and subscribe to t he oath of office required of public
1132	1107		officers.
1133	1108		D. The members of the Commission shall receive reimbursement
1134	1109		for subsistence and traveling expenses necessarily incurre d in the
1135	1110		performance of their duties as prov ided by the State Travel
1136	1111		Reimbursement Act.
1137	1112		E. The Commission shall appoint a qualified person to serve as
1138	1113		Executive Director thereof, which person shall have had not less
1139	1114		than ten (10) years of experience in th e motor vehicle industry.
1140	1115		The Executive Director shall be appointed for a term of six (6 )
1141	1116		years, and shall not be subject to dismissal or removal without
1142	1117		cause. The Commission shall fix the salary and prescribe the duties
1143	1118		of the Executive Director. The Executive Director shall devote such
1144	1119		time as necessary to fulfill the duties thereof, and before entering
1145	1120		upon such duties shall take and subscribe to the oath of office.
1146	1121		The Executive Director may employ such clerical, technical and other
1147	1122		help and legal services and incur such expenses as may be n ecessary
1148	1123		for the proper discharge of the duti es of the Executive Director
1149	1124		under this act. The Commission shall maintain its office and
1150	1125		transact its business in Oklahoma City, and it is authorized to
1151	1126
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1177	1151
1178	1152		adopt and use a seal. The Executive Director is hereby authorized
1179	1153		to hire, retain or otherwise acqui re the services of an attorney to
1180	1154		represent the Commission in any and all state and federal courts,
1181	1155		and assist the Commission in any and all business or legal matters
1182	1156		that may come before it. The attorney so re presenting the
1183	1157		Commission shall discharge the duties under the direction of the
1184	1158		Executive Director.
1185	1159		F. The Commission is hereby vested with the powers necessary to
1186	1160		enable it to fully and effectively carry out th e provisions and
1187	1161		objects of this act, and is hereby authorized and empowered to make
1188	1162		and enforce all reasonable rules and to adopt and prescribe all
1189	1163		forms necessary to accomplish such purpose. All forms used by a new
1190	1164		motor vehicle dealer to facilitate the delivery of a vehicle pending
1191	1165		approval of financing shall be approved by the Commission. Spot
1192	1166		delivery agreement forms shall be required for all new motor vehicle
1193	1167		deliveries, subject to dealers finding lending institutions to
1194	1168		purchase the retail installm ent contracts executed by the purchasing
1195	1169		and selling parties.
1196	1170		G. All fees, charges and f ines collected under the provisions
1197	1171		of this act shall be deposited by the Executive Director in the
1198	1172		State Treasury in accordance with the depository laws of this state
1199	1173		in a special fund to be known as the "Oklahoma New Motor Vehicle
1200	1174		Commission Fund", which is hereby created, and except as hereinafter
1201	1175		provided the monies in the fund shall be used by the Commission for
1202	1176
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1229	1202		the purpose of carrying out and enforcing the provision s of this
1230	1203		act. Expenditures fro m the fund shall be made upon vouchers
1231	1204		approved by the Commission or its authorized officers.
1232	1205		At the close of each fiscal year, the Commission shall file with
1233	1206		the Governor and the State Auditor and Inspector a true and corre ct
1234	1207		report of all fees, fines and charges collected and received by it
1235	1208		during the preceding fiscal year and shall at the same time pay into
1236	1209		the General Revenue Fund of the state a sum equal to ten percent
1237	1210		(10%) of the fees, fines and charges so collected an d received.
1238	1211		All expenses incurre d by the Commission in carrying out the
1239	1212		provisions of this act, including but not limited to per diem,
1240	1213		wages, salaries, rent, postage, advertising, supplies, bond
1241	1214		premiums, travel and subsistence for the Commissioners, the
1242	1215		Executive Director, employees, an d legal counsel, and printing and
1243	1216		utilities, shall be a proper charge against such fund, exclusive of
1244	1217		the portion thereof to be paid into the General Revenue Fund as
1245	1218		above set out. In no event shall liability ever accrue he reunder
1246	1219		against this state in an y sum whatsoever, or against the Oklahoma
1247	1220		New Motor Vehicle Commission Fund, in excess of the ninety percent
1248	1221		(90%) of the fees, fines and charges deposited therein.
1249	1222		SECTION 6. AMENDATORY 47 O.S. 2021, Section 564, is
1250	1223		amended to read as follows:
1251	1224		Section 564. A. It shall be unlawful for any person, firm,
1252	1225		association, corporation or trust to engage in business as, or serve
1253	1226
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1279	1251
1280	1252		in the capacity of, or act as a new motor vehicle dealer or,
1281	1253		powersports vehicle dealer, manufacturer or distributor of new motor
1282	1254		vehicles or powersports vehicles , or factory branch, distributor
1283	1255		branch or factory representative or distributor repr esentative, as
1284	1256		such defined in Section 562 of this title, in this state without
1285	1257		first obtaining a license therefor as provided for by law. Any
1286	1258		person, firm, association, corporation or trust engaging in more
1287	1259		than one of such capacities or having more than one place where such
1288	1260		business is carried on or conducted shall be required to obtain and
1289	1261		hold a current license for each thereof. Provided that, a new motor
1290	1262		vehicle dealer's license shall authorize one person to sell in the
1291	1263		event such person shall be the owner of a proprietorship, or the
1292	1264		person designated as principal in the dealer's franchise or the
1293	1265		managing officer or one partner if no principal person is named in
1294	1266		the franchise. It is further provided that a factory or an entity
1295	1267		affiliated by any owner ship or control by the factory shall not be
1296	1268		permitted to be licensed as a new motor vehicle dealer in this
1297	1269		state, except as provided by subparagraph b o f paragraph 12 of
1298	1270		Section 565 of this title.
1299	1271		B. Applications for licenses required to be obtained under
1300	1272		provisions of Section 561 et seq. of this title shall be verified by
1301	1273		the oath or affirmation of the applicant and shall be on forms
1302	1274		prescribed by the Oklahoma New Motor Vehicle Commission and
1303	1275		furnished to such the applicants, and shall contain such information
1304	1276
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1330	1301
1331	1302		as the Commission deems necessary to enable it to fully determine
1332	1303		the qualifications and eligibility of the several applicants to
1333	1304		receive the license or licenses applied for. The Commission shall
1334	1305		require in such application, or otherwise, information relating to
1335	1306		the applicant's financial standing, the applicant's business
1336	1307		integrity, whether the applicant has an established place of
1337	1308		business and is primarily engaged in th e pursuit, avocation or
1338	1309		business for which a license, or licenses, are applied for, and
1339	1310		whether the applicant is able to properly conduct the business for
1340	1311		which a license, or licenses, are applied for, and such other
1341	1312		pertinent information consistent with t he safeguarding of the public
1342	1313		interest and the public welfare. All such applications for license
1343	1314		or licenses shall be accompanied by the appropriate fee or fees
1344	1315		therefor in accordance with the schedule thereof hereinafter set
1345	1316		out. In the event any such a pplication is denied and the license
1346	1317		applied for is not issued, the entire license fee shall be returned
1347	1318		to the applicant. All licenses issued under the provisions of
1348	1319		Section 561 et seq. of this title shall expire on June 30, following
1349	1320		the date of issue and shall be nontransferable. All applications
1350	1321		for renewal of a license for a new motor vehicle dealer,
1351	1322		manufacturer, distributor or manufacturer's or distributor's
1352	1323		representative shall be submitted by June 1 of each year, and such
1353	1324		license or licenses will be issued by July 1. If applications have
1354	1325		not been made for renewal of licenses at the times described in this
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1382	1352		subsection, it shall be illegal for any person to represent himself
1383	1353		or herself and act as a dealer, manufacturer, distribut or or
1384	1354		manufacturer's or distributor's representative. Motor license
1385	1355		agents will be notified not to accept such dealers' titles until
1386	1356		such time as licenses have been issued by the Commission.
1387	1357		C. The schedule of license fees to be charged and received by
1388	1358		the Commission for th e licenses issued hereunder shall be as
1389	1359		follows:
1390	1360		1. For each factory branch or distributor branch, Four Hundred
1391	1361		Dollars ($400.00) initial fee with annual renewal fee of Three
1392	1362		Hundred Dollars ($300.00);
1393	1363		2. For each manufacturer or dist ributor of new motor vehicles,
1394	1364		Four Hundred Dollars ($400.00) initial fee with annual renewal fee
1395	1365		of Three Hundred Dollars ($300.00);
1396	1366		3. For each factory representative or distributor
1397	1367		representative, One Hundred Dollars ($100.00) annually;
1398	1368		4. For each new motor vehicle deal er, except powersports
1399	1369		vehicle dealers, initial fee of Three Hundred Dollars ($300.00) per
1400	1370		franchise sold at each location licensed, with an annual renewal fee
1401	1371		of One Hundred Dollars ($100.00) per franchise sold at each location
1402	1372		per year; and
1403	1373		5. For each powersports vehicle dealer, initial fee of Three
1404	1374		Hundred Dollars ($300.00) per manufacturer represented by the dealer
1405	1375		at each location licensed, with an annual renewal fee of One Hundred
1406	1376
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1433	1402		Dollars ($100.00) per manufacturer represented by the dealer at each
1434	1403		location licensed per year.
1435	1404		D. The licenses issued to each new motor vehicle dealer,
1436	1405		manufacturer, distributor , factory branch, distrib utor branch or
1437	1406		representative, if a corporation, shall specify the location of the
1438	1407		factory, office or branch thereof. In case such location is
1439	1408		changed, the Commission may endorse the change of location on the
1440	1409		license without charg e unless the change of ad dress triggers a
1441	1410		relocation of a new motor vehicle dealer pursuant to the provisions
1442	1411		of Section 578.1 of this title. The license of each new motor
1443	1412		vehicle dealer shall be posted in a conspicuous place in the new
1444	1413		motor vehicle dealer's place or places of b usiness.
1445	1414		Every motor vehicle facto ry representative or distributor
1446	1415		representative if an individual shall physically possess the license
1447	1416		when engaged in business, and shall display same such upon request.
1448	1417		The name of the employer of such fac tory representative or
1449	1418		distributor representative shal l be stated on the license and, in
1450	1419		case of a change of employer, the holder of such license shall
1451	1420		immediately mail same such to the Commission for its endorsement of
1452	1421		such change thereon. The Commission shal l endorse each such change
1453	1422		of employer on licenses for a fee of Ten Dollars ($10.00).
1454	1423		E. The powersports dealer license shall only allow the sale of
1455	1424		the specific types of powersports vehicles authorized by the
1456	1425		manufacturer and agreed to by the powersports dealer.
1457	1426
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1483	1451
1484	1452		SECTION 7. AMENDATORY 47 O.S. 2021, Section 564.1, is
1485	1453		amended to read as follows:
1486	1454		Section 564.1 Licensing of off-premises displays of new motor
1487	1455		vehicles and off-premise sales of new motorized recreational
1488	1456		vehicles.
1489	1457		A. The Oklahoma New Motor Vehicle Commission shall provide for
1490	1458		off-premise displays of new motor vehicles by currently licensed new
1491	1459		motor vehicle dealers. An off-premise event may be held for display
1492	1460		purposes only under the following conditions:
1493	1461		1. The motor vehicles are for display purposes only and not for
1494	1462		sale at the off-premise display event;
1495	1463		2. No selling activities shall be con ducted;
1496	1464		3. The display is in dealer's factory-approved area of sales
1497	1465		and service responsibility;
1498	1466		4. The dealer must obtain written approval from the
1499	1467		manufacturer or distributor ; and
1500	1468		5. The dealer is required to obtain approval for the display
1501	1469		location from the sponsoring entity.
1502	1470		B. The Oklahoma Motor Vehicle Commission is authorized to
1503	1471		provide a variance to the distance requirements and the area of
1504	1472		sales and service responsibility requirements specified in this
1505	1473		section, for any off -premise display event if:
1506	1474
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1532	1499
1533	1500		1. The the off-premise display is conducted within municipal,
1534	1501		county, or state-owned or controlled facilities or within the
1535	1502		grounds of any county, district, or state fair ; and
1536	1503		2. The request for the variance must be in writing to the
1537	1504		Commission no less than thirty (30) days prior to the off-premise
1538	1505		display event.
1539	1506		SECTION 8. AMENDATORY 47 O.S. 2021, Section 564.2, is
1540	1507		amended to read as follows:
1541	1508		Section 564.2 It shall be punishable by an administrative fine
1542	1509		not to exceed Five Hundred Dollars ($500.00) for any person, firm,
1543	1510		association, corporation or trust to engage in busin ess as, or serve
1544	1511		in the capacity of, a new motor vehic le salesperson in this state
1545	1512		without first obtaining a certificate of registration with the
1546	1513		Oklahoma New Motor Vehicle Commission. The cost of registration for
1547	1514		each new salesperson shall be set at Twenty -five Dollars ($25.00) to
1548	1515		be renewed annually. The cost of registration and any
1549	1516		administrative fine is to be borne by the employing entity of the
1550	1517		new salesperson. The Commission shall promulgate rules and
1551	1518		procedures necessary for the implementation and cre ation of the
1552	1519		registry and the issuance of certific ates of registration.
1553	1520		SECTION 9. AMENDATORY 47 O.S. 2021, Section 565, as
1554	1521		amended by Section 3, Chapter 192, O.S.L. 2022 (47 O.S. Supp. 2022,
1555	1522		Section 565), is amended to read as follows:
1556	1523
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1582	1548
1583	1549		Section 565. A. The Oklahoma New Motor Vehicle Commission may
1584	1550		deny an application for a license, or revoke or suspend a license,
1585	1551		or impose a fine against any person or entity, not to exceed Ten
1586	1552		Thousand Dollars ($10,000.00) against a manufacturer or distributor
1587	1553		or a fine not to exceed On e Thousand Dollars ($1,000.00) against a
1588	1554		dealer per occurrence, that violates any provision of Sections 561
1589	1555		through 567, 572, 578.1, 579 and 579.1 of this title is violated or
1590	1556		for any of the following reasons:
1591	1557		1. On satisfactory proof of unfitness of the applicant in any
1592	1558		application for any license u nder the provisions of Section 561 et
1593	1559		seq. of this title;
1594	1560		2. For any material misstatement made by an applicant in any
1595	1561		application for any licens e under the provisions of Section 561 et
1596	1562		seq. of this title;
1597	1563		3. For any failure to comply with any provision of Section 561
1598	1564		et seq. of this title or any rule promulgated by the Commission
1599	1565		under authority vested in it by Section 561 et seq. of this title;
1600	1566		4. A change of condition after license is g ranted resulting in
1601	1567		failure to maintain the qualifications for lic ense;
1602	1568		5. Being a new motor vehicl e dealer who:
1603	1569		a. has required a purchaser of a new motor vehicle, as a
1604	1570		condition of sale and delivery thereof, t o also
1605	1571		purchase special features, appliances , accessories or
1606	1572
1607		-	SENATE FLOOR VERSION - HB2244 SFLR Page 31
1608		-	(Bold face denotes Committee Amendments) 1
	1573	+	ENGR. H. B. NO. 2244 Page 31 1
1609	1574		2
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1626	1591		19
1627	1592		20
1628	1593		21
1629	1594		22
1630	1595		23
1631	1596		24
1632	1597
1633	1598		equipment not desired or requested by the purchas er
1634	1599		and installed by the new motor vehicle dealer,
1635	1600		b. uses any false or misleading advertising in connection
1636	1601		with business as a new motor vehicle d ealer,
1637	1602		c. has committed any unlawful act whi ch resulted in the
1638	1603		revocation of any similar license in another st ate,
1639	1604		d. has failed or refused to p erform any written agreement
1640	1605		with any retail buyer involving the sale of a motor
1641	1606		vehicle,
1642	1607		e. has been convicted of a felony crime that
1643	1608		substantially relates to the occupation of a new motor
1644	1609		vehicle dealer and poses a reasonabl e threat to public
1645	1610		safety,
1646	1611		f. has committed a fraudulent act in selling, purchasing
1647	1612		or otherwise dealing in new motor vehicles or has
1648	1613		misrepresented the terms and conditions of a sale,
1649	1614		purchase or contract for sale or purchase of a new
1650	1615		motor vehicle or any interest therein including an
1651	1616		option to purchase such vehicle,
1652	1617		g. has failed to meet or maintain the conditions and
1653	1618		requirements necessary to qualify for the issuance of
1654	1619		a license, or
1655	1620		h. completes any sale or transaction of an extended
1656	1621		service contract, extended maintenance plan, or
1657	1622
1658		-	SENATE FLOOR VERSION - HB2244 SFLR Page 32
1659		-	(Bold face denotes Committee Amendments) 1
	1623	+	ENGR. H. B. NO. 2244 Page 32 1
1660	1624		2
1661	1625		3
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1663	1627		5
1664	1628		6
1665	1629		7
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1668	1632		10
1669	1633		11
1670	1634		12
1671	1635		13
1672	1636		14
1673	1637		15
1674	1638		16
1675	1639		17
1676	1640		18
1677	1641		19
1678	1642		20
1679	1643		21
1680	1644		22
1681	1645		23
1682	1646		24
1683	1647
1684	1648		similar product using contract forms that do not
1685	1649		conspicuously disclose the identity of the service
1686	1650		contract provider;
1687	1651		6. Being a new motor vehicle salesperson who is not employed as
1688	1652		such by a licensed new motor vehicle dealer ;
1689	1653		7. Being a new motor vehicl e dealer who:
1690	1654		a. does not have an established place of business,
1691	1655		b. does not provide for a suitable repair shop separate
1692	1656		from the display room with ample space to repair or
1693	1657		recondition one or more vehicles at the same time, an d
1694	1658		which is staffed with properly trained and qualified
1695	1659		repair technicians and is equipped with such parts,
1696	1660		tools and equipment as may be requi site for the
1697	1661		servicing of motor vehicles in such a manner as to
1698	1662		make them comply with the safety laws of this stat e
1699	1663		and to properly fulfill the dealer's or manufacturer's
1700	1664		warranty obligation,
1701	1665		c. does not hold a franchise in effect with a
1702	1666		manufacturer or distributor of new or unused mot or
1703	1667		vehicles for the sale of the same and is not
1704	1668		authorized by the manufacturer or distributor to
1705	1669		render predelivery preparation of such vehicles sold
1706	1670		to purchasers and to perform any authorized post -sale
1707	1671
1708		-	SENATE FLOOR VERSION - HB2244 SFLR Page 33
1709		-	(Bold face denotes Committee Amendments) 1
	1672	+	ENGR. H. B. NO. 2244 Page 33 1
1710	1673		2
1711	1674		3
1712	1675		4
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1717	1680		9
1718	1681		10
1719	1682		11
1720	1683		12
1721	1684		13
1722	1685		14
1723	1686		15
1724	1687		16
1725	1688		17
1726	1689		18
1727	1690		19
1728	1691		20
1729	1692		21
1730	1693		22
1731	1694		23
1732	1695		24
1733	1696
1734	1697		work pursuant to the manufacturer's or distributor's
1735	1698		warranty,
1736	1699		d. employs a person without obtaining a certificate of
1737	1700		registration for the person, o r utilizes the services
1738	1701		of used motor vehicle lo ts or dealers or other
1739	1702		unlicensed persons in connection with the sale of new
1740	1703		motor vehicles,
1741	1704		e. does not properly service a new motor vehicle before
1742	1705		delivery of same to the origi nal purchaser thereof, or
1743	1706		f. fails to order and stock a reasonable number of n ew
1744	1707		motor vehicles necessary to meet customer consumer
1745	1708		demand for each of the new motor vehicles included in
1746	1709		the new motor vehicle dealer 's franchise agreement,
1747	1710		unless the new motor vehicles are not readily
1748	1711		available from the manufacturer or distributor due to
1749	1712		limited production;
1750	1713		8. Being a factory that has:
1751	1714		a. either induced or attempted to induce by means of
1752	1715		coercion or intimidation, any new motor vehicle
1753	1716		dealer:
1754	1717		(1) to accept delivery of any motor vehicle o r
1755	1718		vehicles, parts or accessories therefor, or an y
1756	1719		other commodities including advertising material
1757	1720
1758		-	SENATE FLOOR VERSION - HB2244 SFLR Page 34
1759		-	(Bold face denotes Committee Amendments) 1
	1721	+	ENGR. H. B. NO. 2244 Page 34 1
1760	1722		2
1761	1723		3
1762	1724		4
1763	1725		5
1764	1726		6
1765	1727		7
1766	1728		8
1767	1729		9
1768	1730		10
1769	1731		11
1770	1732		12
1771	1733		13
1772	1734		14
1773	1735		15
1774	1736		16
1775	1737		17
1776	1738		18
1777	1739		19
1778	1740		20
1779	1741		21
1780	1742		22
1781	1743		23
1782	1744		24
1783	1745
1784	1746		which shall not have been ordered by the new
1785	1747		motor vehicle dealer,
1786	1748		(2) to order or accept delivery of any motor vehicle
1787	1749		with special features, appliances, ac cessories or
1788	1750		equipment not included in the list price of the
1789	1751		motor vehicles as publicly advertised by the
1790	1752		manufacturer thereof, or
1791	1753		(3) to order or accept delive ry of any parts,
1792	1754		accessories, equipment, machinery, tools,
1793	1755		appliances or any commodity whatsoeve r, or
1794	1756		b. induced under threat or discrimination by the
1795	1757		withholding from delivery to a new motor vehicle
1796	1758		dealer certain models of motor vehicles, changing or
1797	1759		amending unilaterally the new motor vehicle dealer's
1798	1760		allotment of motor vehicles and/or withholding and
1799	1761		delaying delivery of such the vehicles out of the
1800	1762		ordinary course of business, in order to indu ce by
1801	1763		such coercion any such new motor vehicle dealer to
1802	1764		participate or contribute to any local or national
1803	1765		advertising fund contr olled directly or indirectly b y
1804	1766		the factory or for any other purposes such as contest,
1805	1767		"give-aways" "giveaways" or other so-called sales
1806	1768		promotional devices and/or change of quotas in any
1807	1769		sales contest; or has required new motor vehicle
1808	1770
1809		-	SENATE FLOOR VERSION - HB2244 SFLR Page 35
1810		-	(Bold face denotes Committee Amendments) 1
	1771	+	ENGR. H. B. NO. 2244 Page 35 1
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1822	1783		13
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1824	1785		15
1825	1786		16
1826	1787		17
1827	1788		18
1828	1789		19
1829	1790		20
1830	1791		21
1831	1792		22
1832	1793		23
1833	1794		24
1834	1795
1835	1796		dealers, as a condition to receiving their vehicl e
1836	1797		allotment, to order a certain percentage o f the
1837	1798		vehicles with optional equipment not specified by the
1838	1799		new motor vehicle dealer; however, nothing in this
1839	1800		section shall prohibit a factory from supporting an
1840	1801		advertising association which is open to all new motor
1841	1802		vehicle dealers on the same basis ;,
1842	1803		c. used a performance standard, sales objective or
1843	1804		program for measuring dealer performance that may have
1844	1805		a material effect on a right of the dealer to vehicle
1845	1806		allocation; or payment under any incentive or
1846	1807		reimbursement program that is unfair, unreasonable,
1847	1808		inequitable, and not based on accurate information,
1848	1809		d. used a performance standard for measuring sales or
1849	1810		service performance of any new motor vehicle dealer
1850	1811		under the terms of the franchise agr eement which:
1851	1812		(1) is unfair, unreasonable, arbitrary or
1852	1813		inequitable, and
1853	1814		(2) does not consider the relevant and material loca l
1854	1815		and state or regional criteria, including
1855	1816		prevailing economic conditions affecting the
1856	1817		sales or service performance of a vehicle dealer
1857	1818		or any relevant and mat erial data and facts
1858	1819		presented by the dealer in writing within thirty
1859	1820
1860		-	SENATE FLOOR VERSION - HB2244 SFLR Page 36
1861		-	(Bold face denotes Committee Amendments) 1
	1821	+	ENGR. H. B. NO. 2244 Page 36 1
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1872	1832		12
1873	1833		13
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1875	1835		15
1876	1836		16
1877	1837		17
1878	1838		18
1879	1839		19
1880	1840		20
1881	1841		21
1882	1842		22
1883	1843		23
1884	1844		24
1885	1845
1886	1846		(30) days of the written notice of the
1887	1847		manufacturer to the dealer of its intention to
1888	1848		cancel, terminate, or not renew the dealer 's
1889	1849		franchise agreement,
1890	1850		e. failed or refused to sell, or offer for sale, new
1891	1851		motor vehicles to all of its authorized same line -make
1892	1852		franchised new motor vehic le dealers at the same price
1893	1853		for a comparably equipped motor vehicle, on the same
1894	1854		terms, with no differential in functionally avail able
1895	1855		discount, allowance, cred it or bonus, except as
1896	1856		provided in subparagraph e of paragraph 9 of this
1897	1857		subsection,
1898	1858		f. failed to provide reasonable compensation to a new
1899	1859		motor vehicle dealer substantially equivalent to the
1900	1860		actual cost of providing a manufac turer-required
1901	1861		loaner or rental vehicle to any consumer who is having
1902	1862		a vehicle serviced at the dealership. For purposes of
1903	1863		this paragraph, actual cost is the average cost in the
1904	1864		new motor vehicle dealer 's region for the rental of a
1905	1865		substantially similar m ake and model as the vehicle
1906	1866		being serviced, or
1907	1867		g. failed to make available to its new motor vehicle
1908	1868		dealers a fair and pro portional share of all new
1909	1869		vehicles distributed to same line -make dealers in this
1910	1870
1911		-	SENATE FLOOR VERSION - HB2244 SFLR Page 37
1912		-	(Bold face denotes Committee Amendments) 1
	1871	+	ENGR. H. B. NO. 2244 Page 37 1
1913	1872		2
1914	1873		3
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1930	1889		19
1931	1890		20
1932	1891		21
1933	1892		22
1934	1893		23
1935	1894		24
1936	1895
1937	1896		state, subject to the same reasonable terms, including
1938	1897		any vehicles distributed f rom a common new vehicle
1939	1898		inventory pool outside of the factory 's ordinary
1940	1899		allocation process such as any vehicles the factory
1941	1900		reserves to distribute on a discretionary basis ;
1942	1901		9. Being a factory that:
1943	1902		a. has attempted to coer ce or has coerced any new moto r
1944	1903		vehicle dealer to enter into any agreement or to
1945	1904		cancel any agreement , or fails; has failed to act in
1946	1905		good faith and in a fair, equitable and
1947	1906		nondiscriminatory manner; or has directly or
1948	1907		indirectly coerced, intimidated, threatened or
1949	1908		restrained any new motor vehicle dealer; or has acted
1950	1909		dishonestly, or has failed to act in accordance with
1951	1910		the reasonable standar ds of fair dealing,
1952	1911		b. has failed to compensate its dealers for the work and
1953	1912		services they are required to perform in connection
1954	1913		with the dealer's delivery and preparation obligations
1955	1914		according to the agreements on file with the
1956	1915		Commission which must be fo und by the Commission to be
1957	1916		reasonable, or fail has failed to adequately and
1958	1917		fairly compensate its dealers for labor, parts and
1959	1918		other expenses incurred by such the dealer to perform
1960	1919		under and comply with manufacturer 's warranty
1961	1920
1962		-	SENATE FLOOR VERSION - HB2244 SFLR Page 38
1963		-	(Bold face denotes Committee Amendments) 1
	1921	+	ENGR. H. B. NO. 2244 Page 38 1
1964	1922		2
1965	1923		3
1966	1924		4
1967	1925		5
1968	1926		6
1969	1927		7
1970	1928		8
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1972	1930		10
1973	1931		11
1974	1932		12
1975	1933		13
1976	1934		14
1977	1935		15
1978	1936		16
1979	1937		17
1980	1938		18
1981	1939		19
1982	1940		20
1983	1941		21
1984	1942		22
1985	1943		23
1986	1944		24
1987	1945
1988	1946		agreements and recall repairs w hich shall include
1989	1947		diagnostic work as applicable and assistance requested
1990	1948		by a consumer whose vehicle was subjected to an over -
1991	1949		the-air or remote change, repair , or update to any
1992	1950		part, system, accessory, or function by the
1993	1951		manufacturer and performed by the dealer in order to
1994	1952		satisfy the consumer. Time allowances for the
1995	1953		diagnosis and performance of repair work shall be
1996	1954		reasonable and adequate for the work to be performed.
1997	1955		Adequate and fair compensation, which under this
1998	1956		provision shall be no less than the ra tes customarily
1999	1957		charged for retail consumer repairs as calculated
2000	1958		herein, for parts and/or labor for warranty and recall
2001	1959		repairs shall, at the option of the new motor vehicle
2002	1960		dealer, be established by the new motor vehicle dealer
2003	1961		submitting to the manufact urer or distributor one
2004	1962		hundred sequential nonwarranty customer-paid consumer-
2005	1963		paid service repair orders which contain warranty -like
2006	1964		parts repairs, or ninety (90) consecutive days of
2007	1965		nonwarranty customer-paid consumer-paid service repair
2008	1966		orders which contain warranty -like parts repairs,
2009	1967		whichever is less, covering repairs made no more than
2010	1968		one hundred eighty (180) days before the subm ission
2011	1969		and declaring the average percentage labor rate and/or
2012	1970
2013		-	SENATE FLOOR VERSION - HB2244 SFLR Page 39
2014		-	(Bold face denotes Committee Amendments) 1
	1971	+	ENGR. H. B. NO. 2244 Page 39 1
2015	1972		2
2016	1973		3
2017	1974		4
2018	1975		5
2019	1976		6
2020	1977		7
2021	1978		8
2022	1979		9
2023	1980		10
2024	1981		11
2025	1982		12
2026	1983		13
2027	1984		14
2028	1985		15
2029	1986		16
2030	1987		17
2031	1988		18
2032	1989		19
2033	1990		20
2034	1991		21
2035	1992		22
2036	1993		23
2037	1994		24
2038	1995
2039	1996		markup rate. Adequate and fair compensation for labor
2040	1997		shall be established by the dealer submitting to the
2041	1998		manufacturer or distributor one hundred sequential
2042	1999		customer-paid service repair orders which contain
2043	2000		labor charges, or ninety (90) consecutive days of
2044	2001		customer-paid service repair orders which contain
2045	2002		labor charges, whicheve r is less. A new motor vehicle
2046	2003		dealer may not submit a request to establish its
2047	2004		retail rates more than once in a twel ve-month period.
2048	2005		That request may establish a parts mark-up rate, labor
2049	2006		rate, or both. The new motor vehicle dealer shall
2050	2007		calculate its retail parts rate by determining the
2051	2008		total charges for parts from the qualified repair
2052	2009		orders submitted, dividing that amount by the new
2053	2010		motor vehicle dealer's total cost of the purchase of
2054	2011		those parts, subtracti ng one (1), and multiplying by
2055	2012		one hundred (100) to produce a percentage. The new
2056	2013		motor vehicle dealer shall calculate its retail labor
2057	2014		rate by dividing the amou nt of the new motor vehicl e
2058	2015		dealer's total labor sales from the qualified repair
2059	2016		orders by the total labor hours charged for those
2060	2017		sales. When submitting repair orders to calculate
2061	2018		establish a retail parts and labor rate, a new motor
2062	2019
2063		-	SENATE FLOOR VERSION - HB2244 SFLR Page 40
2064		-	(Bold face denotes Committee Amendments) 1
	2020	+	ENGR. H. B. NO. 2244 Page 40 1
2065	2021		2
2066	2022		3
2067	2023		4
2068	2024		5
2069	2025		6
2070	2026		7
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2073	2029		10
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2080	2036		17
2081	2037		18
2082	2038		19
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2084	2040		21
2085	2041		22
2086	2042		23
2087	2043		24
2088	2044
2089	2045		vehicle dealer need not include repair orders repairs
2090	2046		for:
2091	2047		(1) routine maintenance including, but not limited
2092	2048		to, the replacement of bulbs, fluids, filters,
2093	2049		batteries, and belts that are not provided in the
2094	2050		course of and related to a repair,
2095	2051		(2) factory special events, spec ials, or promotional
2096	2052		discounts for retail consumer repairs,
2097	2053		(3) parts sold or repairs performe d at wholesale,
2098	2054		(4) factory-approved goodwill or policy repairs or
2099	2055		replacements,
2100	2056		(5) repairs with aftermarket parts, when calculating
2101	2057		the retail parts rate but no t the retail labor
2102	2058		rate,
2103	2059		(6) repairs on aftermarket parts,
2104	2060		(7) replacement of or work on t ires including front -
2105	2061		end alignments and wheel or tire rotations,
2106	2062		(8) repairs of motor vehicles owned by the new motor
2107	2063		vehicle dealer or employee thereof at the time of
2108	2064		the repair,
2109	2065		(9) vehicle reconditioning, or
2110	2066		(10) items that do not have individual par t numbers
2111	2067		including, but not limited to, nuts, bolt s and
2112	2068		fasteners.
2113	2069
2114		-	SENATE FLOOR VERSION - HB2244 SFLR Page 41
2115		-	(Bold face denotes Committee Amendments) 1
	2070	+	ENGR. H. B. NO. 2244 Page 41 1
2116	2071		2
2117	2072		3
2118	2073		4
2119	2074		5
2120	2075		6
2121	2076		7
2122	2077		8
2123	2078		9
2124	2079		10
2125	2080		11
2126	2081		12
2127	2082		13
2128	2083		14
2129	2084		15
2130	2085		16
2131	2086		17
2132	2087		18
2133	2088		19
2134	2089		20
2135	2090		21
2136	2091		22
2137	2092		23
2138	2093		24
2139	2094
2140	2095		A manufacturer or distributor may, not later than thirty
2141	2096		(30) forty-five (45) days after submission, rebut that
2142	2097		declared retail parts and labor rate in writing by
2143	2098		reasonably substantiating that the r ate is inaccurate or
2144	2099		unreasonable in light of the pra ctices of all other
2145	2100		franchised motor vehicle dealers in an economically similar
2146	2101		part of the state offering the same line-make vehicles not
2147	2102		accurate or is incomplete pursuant to the provisions of
2148	2103		this section. If the manufacturer or distributor
2149	2104		determines the set of repair orders submitted by the new
2150	2105		motor vehicle dealer pursuant to this section for a retail
2151	2106		labor rate or retail parts markup rate is substantially
2152	2107		higher than the new motor vehicle dealer 's current warranty
2153	2108		rates, the manufacturer or distributor may request, in
2154	2109		writing, within forty-five (45) days after the
2155	2110		manufacturer's or distributor's receipt of the new motor
2156	2111		vehicle dealer's initial submission, all repair orders
2157	2112		closed within the period of thirty (30) days immediately
2158	2113		preceding, or thirty (30) days immediately following, the
2159	2114		set of repair orders initially submitted by the new motor
2160	2115		vehicle dealer. All time periods under this secti on shall
2161	2116		be suspended until the supplemental repair orders are
2162	2117		provided. If the manufacturer or distributor requests
2163	2118		supplemental repair orders, the manufacturer or distributor
2164	2119
2165		-	SENATE FLOOR VERSION - HB2244 SFLR Page 42
2166		-	(Bold face denotes Committee Amendments) 1
	2120	+	ENGR. H. B. NO. 2244 Page 42 1
2167	2121		2
2168	2122		3
2169	2123		4
2170	2124		5
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2172	2126		7
2173	2127		8
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2175	2129		10
2176	2130		11
2177	2131		12
2178	2132		13
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2180	2134		15
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2182	2136		17
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2186	2140		21
2187	2141		22
2188	2142		23
2189	2143		24
2190	2144
2191	2145		may, within thirty (30) days after r eceiving the
2192	2146		supplemental repair orders an d in accordance with the
2193	2147		formula described in this subsection, calculate a proposed
2194	2148		adjusted retail labor rate or retail parts markup rate, as
2195	2149		applicable, based upon any set of the qualified re pair
2196	2150		orders submitted by t he franchisee and following the
2197	2151		formula set forth herein to establish the rate . The retail
2198	2152		rate labor and parts rates shall go into effect thirty (30)
2199	2153		days following the approval by the manufacturer , subject to
2200	2154		audit of the submitted repair orders by the franchisor and
2201	2155		a rebuttal of the decl ared rate as described above or
2202	2156		distributor. If the declared rate is rebutte d, the
2203	2157		manufacturer or distributor shall provide written notice
2204	2158		stating the reasons for the rebuttal, an explanation of the
2205	2159		reasons for the rebuttal, and a copy of all calculation s
2206	2160		used by the franchisor in determining the manufacturer or
2207	2161		distributor's position and propose an adjustment in writing
2208	2162		of the average percentage markup or labor rate based on
2209	2163		that rebuttal not later than thirty (30) da ys after
2210	2164		submission. If the new motor vehicle dealer does not agree
2211	2165		with the proposed average percentage markup or labor rate,
2212	2166		the new motor vehicle dealer may file a protest with the
2213	2167		Commission not later than thirty (30) days af ter receipt of
2214	2168		that proposal by the manufacturer or distributor . In the
2215	2169
2216		-	SENATE FLOOR VERSION - HB2244 SFLR Page 43
2217		-	(Bold face denotes Committee Amendments) 1
	2170	+	ENGR. H. B. NO. 2244 Page 43 1
2218	2171		2
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2238	2191		22
2239	2192		23
2240	2193		24
2241	2194
2242	2195		event a protest is filed, the manufacturer or distributor
2243	2196		shall have the burden of proof to establish the new motor
2244	2197		vehicle dealer's submitted parts markup rate or labor rate
2245	2198		was inaccurate or unreasonable in light of the practices of
2246	2199		all other franchised motor vehicle dealers in an
2247	2200		economically similar part of the state not complete
2248	2201		pursuant to the provisions of this section . A manufacturer
2249	2202		or distributor may not retaliate against any new motor
2250	2203		vehicle dealer seeking to exercise its rights under this
2251	2204		provision section. A manufacturer or distributor may
2252	2205		require a dealer to submit repair orders in accordance with
2253	2206		this section in order to validate the reasonableness of a
2254	2207		dealer's retail rate for parts or labo r not more often than
2255	2208		once every twelve (12) months. A manufacturer or
2256	2209		distributor may not otherwise recover its costs from new
2257	2210		motor vehicle dealers within this state including a
2258	2211		surcharge imposed on a new motor vehicle dealer s olely
2259	2212		intended to recover the cost of reimbursing a new motor
2260	2213		vehicle dealer for parts and labor pursuant to this
2261	2214		section; provided, a manuf acturer or distributor shall not
2262	2215		be prohibited from increasing prices for vehicles or parts
2263	2216		in the normal course of business or from auditing and
2264	2217		charging back claims in accordance w ith this section. All
2265	2218		claims made by dealers for compensation for delivery,
2266	2219
2267		-	SENATE FLOOR VERSION - HB2244 SFLR Page 44
2268		-	(Bold face denotes Committee Amendments) 1
	2220	+	ENGR. H. B. NO. 2244 Page 44 1
2269	2221		2
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2292	2244
2293	2245		preparation and, warranty, or recall repair work shall be
2294	2246		paid within thirty (30) days after approval and shall be
2295	2247		approved or disapproved within thirty (30) days after
2296	2248		receipt. When any claim is disapproved, the dealer shall
2297	2249		be notified in writing of the grounds for disappro val. The
2298	2250		dealer's delivery, preparation and warra nty obligations as
2299	2251		filed with the Commission shall constitute the dealer 's
2300	2252		sole responsibility for product l iability as between the
2301	2253		dealer and manufacturer. A factory may reasonably and
2302	2254		periodically audit a new motor vehicle dealer to determine
2303	2255		the validity of paid claims for new motor vehicle dealer
2304	2256		compensation or any charge -backs for warranty parts or
2305	2257		service compensation. Except in cases o f suspected fraud,
2306	2258		audits of warranty payments shall only be for the one-year
2307	2259		period immediately following the dat e of the payment. A
2308	2260		manufacturer shall reserve the right to reasonable,
2309	2261		periodic audits to determine the va lidity of paid claims
2310	2262		for dealer compensation or any charge-backs for consumer or
2311	2263		dealer incentives. Except in cases of suspected fraud,
2312	2264		audits of incentive payments shall only be for a one -year
2313	2265		period immediately following the date of the payment. A
2314	2266		factory shall not deny a claim or cha rge a new motor
2315	2267		vehicle dealer back subsequent to the payment of the claim
2316	2268		unless the factory can show that the cl aim was false or
2317	2269
2318		-	SENATE FLOOR VERSION - HB2244 SFLR Page 45
2319		-	(Bold face denotes Committee Amendments) 1
	2270	+	ENGR. H. B. NO. 2244 Page 45 1
2320	2271		2
2321	2272		3
2322	2273		4
2323	2274		5
2324	2275		6
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2326	2277		8
2327	2278		9
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2340	2291		22
2341	2292		23
2342	2293		24
2343	2294
2344	2295		fraudulent or that the new motor vehicle dealer failed to
2345	2296		reasonably substantiate the claim by the written reasonable
2346	2297		procedures of the factory. A factory shall not deny a
2347	2298		claim or implement a charge-back against a new motor
2348	2299		vehicle dealer after payment of a claim in the event a
2349	2300		purchaser of a new vehicle that is the subject of a claim
2350	2301		fails to comply with titling or registrati on laws of this
2351	2302		state and is not prevented from compliance by an y action of
2352	2303		the new motor vehicle dealer; provided , that the factory
2353	2304		may require the new motor vehicle dealer to provide, within
2354	2305		thirty (30) days of notice of chargeback, withholding of
2355	2306		payment, or denial of claim, the documentation to
2356	2307		demonstrate the vehicle sale , delivery and customer
2357	2308		qualification for an incentive as reported, including
2358	2309		consumer name and address, and written attestation signed
2359	2310		by the dealer operator or general manager stating the
2360	2311		consumer was not on the export control list and the de aler
2361	2312		did not know or have reason to know the vehicle was being
2362	2313		exported or resold.
2363	2314		The factory shall provide written notice to a dealer of a
2364	2315		proposed charge-back that is the result of an audit along
2365	2316		with the specific audit results and proposed charge-back
2366	2317		amount. A dealer that receives notice of a proposed
2367	2318		charge-back pursuant to a factory's audit has the right to
2368	2319
2369		-	SENATE FLOOR VERSION - HB2244 SFLR Page 46
2370		-	(Bold face denotes Committee Amendments) 1
	2320	+	ENGR. H. B. NO. 2244 Page 46 1
2371	2321		2
2372	2322		3
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2374	2324		5
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2394	2344
2395	2345		file a protest with the Commission within thirty (30) days
2396	2346		after receipt of the notice of the charge-back or audit
2397	2347		results, whichever is later. The factory is prohibited
2398	2348		from implementing the charge -back or debiting the dealer's
2399	2349		account until either the time frame for filing a protest
2400	2350		has passed or a final adjudication is rendered by the
2401	2351		Commission, whichever is later, unless the dealer has
2402	2352		agreed to the charge-back or charge-backs,
2403	2353		c. fails to compensate the new motor v ehicle dealer for a
2404	2354		used motor vehicle:
2405	2355		(1) that is of the same make and model manufa ctured,
2406	2356		imported or distributed by the factory and is a
2407	2357		line-make that the new motor vehicle dealer is
2408	2358		franchised to sell or on which the new motor
2409	2359		vehicle dealer is autho rized to perform recall
2410	2360		repairs,
2411	2361		(2) that is subject to a stop-sale or do-not-drive
2412	2362		order issued by the factory or an authorized
2413	2363		governmental agency,
2414	2364		(3) that is held by the new motor vehicle dealer in
2415	2365		the dealer's inventory at the time the stop -sale
2416	2366		or do-not-drive order is issued or that is ta ken
2417	2367		by the new motor vehicle dealer into the dealer's
2418	2368		inventory after the recall notice as a result of
2419	2369
2420		-	SENATE FLOOR VERSION - HB2244 SFLR Page 47
2421		-	(Bold face denotes Committee Amendments) 1
	2370	+	ENGR. H. B. NO. 2244 Page 47 1
2422	2371		2
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2442	2391		22
2443	2392		23
2444	2393		24
2445	2394
2446	2395		a retail consumer trade-in or a lease return to
2447	2396		the dealer inventory in accordance with an
2448	2397		applicable lease con tract,
2449	2398		(4) that cannot be repaired due to the
2450	2399		unavailability, within thirty (30) days a fter
2451	2400		issuance of the stop-sale or do-not-drive order,
2452	2401		of a remedy or parts necessary for the new motor
2453	2402		vehicle dealer to make the recall repair, and
2454	2403		(5) that is not at least in the prorated amount of
2455	2404		one percent (1.00%) of the value of the vehicle
2456	2405		per month beginning on the date that is thirty
2457	2406		(30) days after the date on which the stop-sale
2458	2407		order was provided to the new motor vehicle
2459	2408		dealer until the earlier of either of the
2460	2409		following:
2461	2410		(a) the date the recall remedy or parts are made
2462	2411		available, or
2463	2412		(b) the date the new motor vehicle dealer sells,
2464	2413		trades, or otherwise disposes of the
2465	2414		affected used motor vehicle.
2466	2415		For the purposes of division (5) of this subparagraph, the val ue
2467	2416		of a used vehicle shall be the average Black Book value for the
2468	2417		year, make, and model of the recalled vehicle.
2469	2418
2470		-	SENATE FLOOR VERSION - HB2244 SFLR Page 48
2471		-	(Bold face denotes Committee Amendments) 1
	2419	+	ENGR. H. B. NO. 2244 Page 48 1
2472	2420		2
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2491	2439		21
2492	2440		22
2493	2441		23
2494	2442		24
2495	2443
2496	2444		A factory may direct the ma nner and method in which a new motor
2497	2445		vehicle dealer must demonstrate the inventory status of an affected
2498	2446		used motor vehicle to determine eligibility under this subparagraph;
2499	2447		provided, that the manner and method may not be unduly burdensome
2500	2448		and may not require information that is unduly burdensome to
2501	2449		provide.
2502	2450		All reimbursement claims made by new motor vehicle dealers
2503	2451		pursuant to this section for recall remedies or repairs, or for
2504	2452		compensation where no part or repair is reasonably available and the
2505	2453		vehicle is subject to a stop-sale or do-not-drive order, shall be
2506	2454		subject to the same limitations and requirements as a warra nty
2507	2455		reimbursement claim made under subparagraph b of this paragraph. In
2508	2456		the alternative, a manufacturer may compensate its franchised new
2509	2457		motor vehicle dealers under a national recall compensation program;
2510	2458		provided, the compensation under the program is e qual to or greater
2511	2459		than that provided under division (5) of this subparagraph, or as
2512	2460		the manufacturer and new motor vehicle dealer otherwise agree.
2513	2461		Nothing in this section shall require a factory to provide total
2514	2462		compensation to a new motor vehicle dealer which would exceed the
2515	2463		total average Black Book value of the affected used motor vehicle as
2516	2464		originally determined under division (5) of this subparagraph.
2517	2465		Any remedy provided to a new motor vehicle dealer under this
2518	2466		subparagraph is exclusive and may not be combined with any other
2519	2467		state or federal compensation remedy.
2520	2468
2521		-	SENATE FLOOR VERSION - HB2244 SFLR Page 49
2522		-	(Bold face denotes Committee Amendments) 1
	2469	+	ENGR. H. B. NO. 2244 Page 49 1
2523	2470		2
2524	2471		3
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2545	2492		24
2546	2493
2547	2494		d. unreasonably fails or refuses to offer to its same
2548	2495		line-make franchised dealers a reasonable supply and
2549	2496		mix of all models manufactured for that line -make, or
2550	2497		unreasonably requires a dealer t o pay any extra fee,
2551	2498		purchase unreasonable advertising displays or other
2552	2499		materials, or enter into a separate agreement which
2553	2500		adversely alters the rights or obligations contained
2554	2501		within the new motor vehicle dealer 's existing
2555	2502		franchise agreement or which wa ives any right of the
2556	2503		new motor vehicle dealer as protected by Section 561
2557	2504		et seq. of this title, or remodel, renovate, or
2558	2505		recondition the new motor vehicle dealer's existing
2559	2506		facilities as a prerequisite to receiving a model or
2560	2507		series of vehicles, except as may be necessary to sell
2561	2508		or service the model or series of vehicles as provided
2562	2509		by subparagraph e of this paragraph. It shall be a
2563	2510		violation of this section for new vehicle allocation
2564	2511		to be withheld subject to any requirement to purchase
2565	2512		or sell any number of used or off-lease vehicles. The
2566	2513		failure to deliver any such new motor vehicle sh all
2567	2514		not be considered a violation of the section if the
2568	2515		failure is not arbitrary or is due to lack of
2569	2516		manufacturing capacity or to a strike or labor
2570	2517		difficulty, a shortage of materials, a freight embargo
2571	2518
2572		-	SENATE FLOOR VERSION - HB2244 SFLR Page 50
2573		-	(Bold face denotes Committee Amendments) 1
	2519	+	ENGR. H. B. NO. 2244 Page 50 1
2574	2520		2
2575	2521		3
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2579	2525		7
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2582	2528		10
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2585	2531		13
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2595	2541		23
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2597	2543
2598	2544		or other cause over which the manufacturer has no
2599	2545		control. However, this subparagraph shall not apply
2600	2546		to recreational vehicles, or limited production model
2601	2547		vehicles, a vehicle not advertised by the factory for
2602	2548		sale in this state, vehicles that are subject to
2603	2549		allocation affected by federal or state environmental
2604	2550		laws, or to vehicles allocated in response to an
2605	2551		unforeseen event or circumstance ,
2606	2552		d.
2607	2553		e. except as necessary to comply with a health or safety
2608	2554		law, or to comply with a technology requirem ent which
2609	2555		is necessary to sell or service a motor vehicle that
2610	2556		the franchised new motor vehicle dealer is authorized
2611	2557		or licensed by the franc hisor to sell or service,
2612	2558		requires a new motor vehicle dealer to construct a new
2613	2559		facility or substantially renovate the new motor
2614	2560		vehicle dealer's existing facility unless the fa cility
2615	2561		construction or renovation is justified by the
2616	2562		economic conditions exis ting at the time, as well as
2617	2563		the reasonably foreseeable projections, in the new
2618	2564		motor vehicle dealer 's market and in the automotive
2619	2565		industry. However, this subparagraph shall no t apply
2620	2566		if the factory provides new motor vehicle dealer
2621	2567		voluntarily agrees to facility construction or
2622	2568
2623		-	SENATE FLOOR VERSION - HB2244 SFLR Page 51
2624		-	(Bold face denotes Committee Amendments) 1
	2569	+	ENGR. H. B. NO. 2244 Page 51 1
2625	2570		2
2626	2571		3
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2628	2573		5
2629	2574		6
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2631	2576		8
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2633	2578		10
2634	2579		11
2635	2580		12
2636	2581		13
2637	2582		14
2638	2583		15
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2640	2585		17
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2645	2590		22
2646	2591		23
2647	2592		24
2648	2593
2649	2594		renovation in exchange for money, credit, allowance,
2650	2595		reimbursement, or additional vehicle all ocation to a
2651	2596		new motor vehicle dealer from the factory to
2652	2597		compensate the new motor vehicle dealer for the cost
2653	2598		of, or a portion of the co st of, the facility
2654	2599		construction or renovation. Except as necessary to
2655	2600		comply with a health or safety law, or to compl y with
2656	2601		a technology or safety requirement which is necessar y
2657	2602		to sell or service a motor vehicle that the franchised
2658	2603		new motor vehicle dea ler is authorized or licensed by
2659	2604		the franchisor to sell or service, a new motor vehicle
2660	2605		dealer which completes a facili ty construction or
2661	2606		renovation pursuant to factory requireme nts shall not
2662	2607		be required to construct a new facility or renovate
2663	2608		the existing facility if the same area of the facility
2664	2609		or premises has been constructed or substantially
2665	2610		altered within the last te n (10) years and the
2666	2611		construction or alteration was approve d by the
2667	2612		manufacturer as a part of a facility upgrade program,
2668	2613		standard, or policy. For purposes of this
2669	2614		subparagraph, "substantially altered" means to perform
2670	2615		an alteration that substantially im pacts the
2671	2616		architectural features, characteristics, or integrity
2672	2617		of a structure or lot. The term shall not include
2673	2618
2674		-	SENATE FLOOR VERSION - HB2244 SFLR Page 52
2675		-	(Bold face denotes Committee Amendments) 1
	2619	+	ENGR. H. B. NO. 2244 Page 52 1
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2681	2625		7
2682	2626		8
2683	2627		9
2684	2628		10
2685	2629		11
2686	2630		12
2687	2631		13
2688	2632		14
2689	2633		15
2690	2634		16
2691	2635		17
2692	2636		18
2693	2637		19
2694	2638		20
2695	2639		21
2696	2640		22
2697	2641		23
2698	2642		24
2699	2643
2700	2644		routine maintenance reaso nably necessary to maintain a
2701	2645		dealership in attractive condition. If a facility
2702	2646		upgrade program, standard, or policy under which the
2703	2647		dealer completed a facility construction or
2704	2648		substantial alteration does not contain a specific
2705	2649		time period during which th e manufacturer or
2706	2650		distributor shall provide pa yments or benefits to a
2707	2651		participating dealer, or the time frame specifie d
2708	2652		under the program is reduced or canceled prematurely
2709	2653		in the unilateral discretion of the manufacturer or
2710	2654		distributor, the manufacturer or distributor shall not
2711	2655		deny the participatin g dealer any payment or benefit
2712	2656		under the terms of the program, standard , or policy as
2713	2657		it existed when the dealer began to perform under the
2714	2658		program, standard, or policy for the balance of the
2715	2659		ten-year period, regardless of whether the
2716	2660		manufacturer's or distributor's program, standard, or
2717	2661		policy has been changed or canceled, unless the
2718	2662		manufacturer and dealer agree, in writing, to the
2719	2663		change in payment or benefit,
2720	2664		e.
2721	2665		f. requires a new motor vehicle dealer to es tablish an
2722	2666		exclusive facility, unless supporte d by reasonable
2723	2667		business, market and economic considerations;
2724	2668
2725		-	SENATE FLOOR VERSION - HB2244 SFLR Page 53
2726		-	(Bold face denotes Committee Amendments) 1
	2669	+	ENGR. H. B. NO. 2244 Page 53 1
2727	2670		2
2728	2671		3
2729	2672		4
2730	2673		5
2731	2674		6
2732	2675		7
2733	2676		8
2734	2677		9
2735	2678		10
2736	2679		11
2737	2680		12
2738	2681		13
2739	2682		14
2740	2683		15
2741	2684		16
2742	2685		17
2743	2686		18
2744	2687		19
2745	2688		20
2746	2689		21
2747	2690		22
2748	2691		23
2749	2692		24
2750	2693
2751	2694		provided, that this provision section shall not
2752	2695		restrict the terms of any agreement for such exclusive
2753	2696		facility voluntarily entered into and support ed by
2754	2697		valuable consideration separate from the new motor
2755	2698		vehicle dealer's right to sell and service motor
2756	2699		vehicles for the franchisor,
2757	2700		f.
2758	2701		g. requires a new motor vehicle dealer to enter into a
2759	2702		site-control agreement covering any or all of the new
2760	2703		motor vehicle dealer's facilities or premises;
2761	2704		provided, that this provision section shall not
2762	2705		restrict the terms of any site -control agreement
2763	2706		voluntarily entered into and supported by valuable
2764	2707		consideration separate from the new motor vehicle
2765	2708		dealer's right to sell and service motor vehicles for
2766	2709		the franchisor. Notwithstanding the foregoing or the
2767	2710		terms of any site-control agreement, a site-control
2768	2711		agreement automatically extinguishes if all of the
2769	2712		factory's franchises that operated from the location
2770	2713		that are the subject of the site-control agreement are
2771	2714		terminated by the factory as part of the
2772	2715		discontinuance of a product line, or
2773	2716		g.
2774	2717
2775		-	SENATE FLOOR VERSION - HB2244 SFLR Page 54
2776		-	(Bold face denotes Committee Amendments) 1
	2718	+	ENGR. H. B. NO. 2244 Page 54 1
2777	2719		2
2778	2720		3
2779	2721		4
2780	2722		5
2781	2723		6
2782	2724		7
2783	2725		8
2784	2726		9
2785	2727		10
2786	2728		11
2787	2729		12
2788	2730		13
2789	2731		14
2790	2732		15
2791	2733		16
2792	2734		17
2793	2735		18
2794	2736		19
2795	2737		20
2796	2738		21
2797	2739		22
2798	2740		23
2799	2741		24
2800	2742
2801	2743		h. refuses to pay, or claims reimbursement from, a new
2802	2744		motor vehicle dealer for sales, incentives or other
2803	2745		payments related to a mot or vehicle sold by the new
2804	2746		motor vehicle dealer because the purchaser of the
2805	2747		motor vehicle exported or resold the moto r vehicle in
2806	2748		violation of the policy of the factory unless the
2807	2749		factory can show that, at the time of the sale, the
2808	2750		new motor vehicle deale r knew or reasonably should
2809	2751		have known of the pu rchaser's intention to export or
2810	2752		resell the motor vehicle. There is a rebuttable
2811	2753		presumption that the new motor vehicle dealer did not
2812	2754		know or could not have known that the vehicle would be
2813	2755		exported if the vehicle is titled and registered in
2814	2756		any state of the United States, or
2815	2757		i. requires a new motor vehicle dealer to purcha se goods
2816	2758		or services for the construction, renovation, or
2817	2759		improvement of the dealer's facility from a vendor
2818	2760		chosen by the factory if good s or services available
2819	2761		from other sources are o f substantially similar
2820	2762		quality and design and comply with all applica ble
2821	2763		laws; provided, however, that such goods are not
2822	2764		subject to the factory's intellectual property or
2823	2765		trademark rights and the new motor vehicle dealer has
2824	2766		received the factory's approval, which approval may
2825	2767
2826		-	SENATE FLOOR VERSION - HB2244 SFLR Page 55
2827		-	(Bold face denotes Committee Amendments) 1
	2768	+	ENGR. H. B. NO. 2244 Page 55 1
2828	2769		2
2829	2770		3
2830	2771		4
2831	2772		5
2832	2773		6
2833	2774		7
2834	2775		8
2835	2776		9
2836	2777		10
2837	2778		11
2838	2779		12
2839	2780		13
2840	2781		14
2841	2782		15
2842	2783		16
2843	2784		17
2844	2785		18
2845	2786		19
2846	2787		20
2847	2788		21
2848	2789		22
2849	2790		23
2850	2791		24
2851	2792
2852	2793		not be unreasonably withheld. Nothing in this
2853	2794		subparagraph may be construed to allow a new motor
2854	2795		vehicle dealer to impair or eliminate a factory 's
2855	2796		intellectual property, trademark righ ts or trade dress
2856	2797		usage guidelines. Nothing in this section prohibits
2857	2798		the enforcement of a voluntary agreement betwee n the
2858	2799		factory and the new motor vehicle dealer where
2859	2800		separate and valuable consideration has been offered
2860	2801		and accepted;
2861	2802		10. Being a factory that:
2862	2803		a. establishes a system of motor vehic le allocation or
2863	2804		distribution which is unfair, inequitable or
2864	2805		unreasonably discriminatory. Upon the request of any
2865	2806		new motor vehicle dealer franchised by it, a factory
2866	2807		shall disclose in writing to the new motor vehicle
2867	2808		dealer the basis upon which new moto r vehicles are
2868	2809		allocated, scheduled and delivered among the new motor
2869	2810		vehicle dealers of the same line-make for that
2870	2811		factory, or
2871	2812		b. changes an established plan or system of motor vehicle
2872	2813		distribution. A new motor vehicle dealer franchise
2873	2814		agreement shall continue in full force and operation
2874	2815		notwithstanding a change, in whole or in part, of an
2875	2816		established plan or system of distributi on of the
2876	2817
2877		-	SENATE FLOOR VERSION - HB2244 SFLR Page 56
2878		-	(Bold face denotes Committee Amendments) 1
	2818	+	ENGR. H. B. NO. 2244 Page 56 1
2879	2819		2
2880	2820		3
2881	2821		4
2882	2822		5
2883	2823		6
2884	2824		7
2885	2825		8
2886	2826		9
2887	2827		10
2888	2828		11
2889	2829		12
2890	2830		13
2891	2831		14
2892	2832		15
2893	2833		16
2894	2834		17
2895	2835		18
2896	2836		19
2897	2837		20
2898	2838		21
2899	2839		22
2900	2840		23
2901	2841		24
2902	2842
2903	2843		motor vehicles offered or previously offered for sale
2904	2844		under such franchise agreement. The appointment of a
2905	2845		new importer or distributor for motor vehicles offered
2906	2846		for sale under such fran chise agreement shall be
2907	2847		deemed to be a change of an established plan or system
2908	2848		of distribution. The discontinuation of a line -make
2909	2849		shall not be deemed to be a change of an established
2910	2850		plan or system of motor vehicle distribution. The
2911	2851		creation of a line-make shall not be deemed to be a
2912	2852		change of an established plan or system of motor
2913	2853		vehicle distribution as long as the new line -make is
2914	2854		not selling the same, or substantially the same ,
2915	2855		vehicle or vehicles previously sold through another
2916	2856		line-make by new motor vehicle dealers with an active
2917	2857		franchise agreement for th e other line-make in the
2918	2858		state if such new motor vehicle dealers are no longer
2919	2859		authorized to sell the comparable vehicle previously
2920	2860		sold through their line -make. Changing a vehicle 's
2921	2861		powertrain is not sufficient to show it is
2922	2862		substantially different. Upon the occurrence of such
2923	2863		change, the manufacturer or distributor shall be
2924	2864		prohibited from obtaining a license to distribute
2925	2865		vehicles under the new plan or system of distribution
2926	2866		unless the manufacturer or distributor offers to each
2927	2867
2928		-	SENATE FLOOR VERSION - HB2244 SFLR Page 57
2929		-	(Bold face denotes Committee Amendments) 1
	2868	+	ENGR. H. B. NO. 2244 Page 57 1
2930	2869		2
2931	2870		3
2932	2871		4
2933	2872		5
2934	2873		6
2935	2874		7
2936	2875		8
2937	2876		9
2938	2877		10
2939	2878		11
2940	2879		12
2941	2880		13
2942	2881		14
2943	2882		15
2944	2883		16
2945	2884		17
2946	2885		18
2947	2886		19
2948	2887		20
2949	2888		21
2950	2889		22
2951	2890		23
2952	2891		24
2953	2892
2954	2893		new motor vehicle dealer who is a party to the
2955	2894		franchise agreement a new franchise agreement
2956	2895		containing substantially the same provisions which
2957	2896		were contained in the previous franchise agreement ;
2958	2897		11. Being a factory that sells directly or indirectly new motor
2959	2898		vehicles to any retail consumer in the state except thr ough a new
2960	2899		motor vehicle dealer holding a f ranchise for the line-make that
2961	2900		includes the new motor vehicle. This paragraph does not apply to
2962	2901		factory sales of new motor vehicles to its employees, family members
2963	2902		of employees, retirees and family members of r etirees, not-for-
2964	2903		profit organizations , or the federal, state, or local governments.
2965	2904		The provisions of this paragraph shall not preclude a factory from
2966	2905		providing information to a consumer for the purpose of marketing or
2967	2906		facilitating a sale of a new motor veh icle or from establishing a
2968	2907		program to sell or offer to sell new motor vehicles through
2969	2908		participating dealers subject to the limitations provided in
2970	2909		paragraph 2 of Section 562 of this title;
2971	2910		12. a. Being a factory which directly or indirectly:
2972	2911		(1) owns any ownership interest or has any financial
2973	2912		interest in a new motor vehicle dealer or any
2974	2913		person who sells products or services pursuant to
2975	2914		the public terms of the franchise agreement,
2976	2915		(2) operates or controls a new motor vehicle dealer,
2977	2916		or
2978	2917
2979		-	SENATE FLOOR VERSION - HB2244 SFLR Page 58
2980		-	(Bold face denotes Committee Amendments) 1
	2918	+	ENGR. H. B. NO. 2244 Page 58 1
2981	2919		2
2982	2920		3
2983	2921		4
2984	2922		5
2985	2923		6
2986	2924		7
2987	2925		8
2988	2926		9
2989	2927		10
2990	2928		11
2991	2929		12
2992	2930		13
2993	2931		14
2994	2932		15
2995	2933		16
2996	2934		17
2997	2935		18
2998	2936		19
2999	2937		20
3000	2938		21
3001	2939		22
3002	2940		23
3003	2941		24
3004	2942
3005	2943		(3) acts in the capacity of a new motor vehicle
3006	2944		dealer.
3007	2945		b. (1) This paragraph does not prohibit a factory from
3008	2946		owning or controlling a new motor vehicle dealer
3009	2947		while in a bona fide relationship with a dealer
3010	2948		development candidate who has made a substantial
3011	2949		initial investment in the franchise and whose
3012	2950		initial investment is subject to potential loss.
3013	2951		The dealer development candidate can reasonably
3014	2952		expect to acquire full ownership of a new motor
3015	2953		vehicle dealer within a reasonable period of time
3016	2954		not to exceed ten (10) years a nd on reasonable
3017	2955		terms and conditions. Th e ten-year acquisition
3018	2956		period may be expanded for good cause shown.
3019	2957		(2) This paragraph does not prohibit a factory fro m
3020	2958		owning, operating, controlling or acting in the
3021	2959		capacity of a new motor vehicle dealer for a
3022	2960		period not to exceed twelve (12) months dur ing
3023	2961		the transition from one independent dealer to
3024	2962		another independent dealer if the dealership is
3025	2963		for sale at a reasonable price and on reasonable
3026	2964		terms and conditions to an independent qualified
3027	2965		buyer. On showing by a factory of good cause,
3028	2966		the Oklahoma New Motor Vehicle Commission may
3029	2967
3030		-	SENATE FLOOR VERSION - HB2244 SFLR Page 59
3031		-	(Bold face denotes Committee Amendments) 1
	2968	+	ENGR. H. B. NO. 2244 Page 59 1
3032	2969		2
3033	2970		3
3034	2971		4
3035	2972		5
3036	2973		6
3037	2974		7
3038	2975		8
3039	2976		9
3040	2977		10
3041	2978		11
3042	2979		12
3043	2980		13
3044	2981		14
3045	2982		15
3046	2983		16
3047	2984		17
3048	2985		18
3049	2986		19
3050	2987		20
3051	2988		21
3052	2989		22
3053	2990		23
3054	2991		24
3055	2992
3056	2993		extend the time limit set forth above; extensions
3057	2994		may be granted for periods not to exceed twelve
3058	2995		(12) months.
3059	2996		(3) This paragraph does not prohibit a factory from
3060	2997		owning, operating or controlling or acting in the
3061	2998		capacity of a new motor vehicle dealer which was
3062	2999		in operation prior to January 1, 2000.
3063	3000		(4) This paragraph does not prohibit a fac tory from
3064	3001		owning, directly or indirectly, a minority
3065	3002		interest in an entity that owns, operates or
3066	3003		controls new motor vehicle dealerships of the
3067	3004		same line-make franchised by the manufacturer,
3068	3005		provided that each of the following conditions
3069	3006		are met:
3070	3007		(a) all of the new motor vehicle dealerships
3071	3008		selling the motor vehicles of that
3072	3009		manufacturer in this state trade exclusively
3073	3010		in the line-make of that manufacturer,
3074	3011		(b) all of the franchise agreements of the
3075	3012		manufacturer confer rights on the dealer of
3076	3013		the line-make to develop and operate, within
3077	3014		a defined geographic territory or area, as
3078	3015		many dealership facilities as the dealer and
3079	3016		manufacturer shall ag ree are appropriate,
3080	3017
3081		-	SENATE FLOOR VERSION - HB2244 SFLR Page 60
3082		-	(Bold face denotes Committee Amendments) 1
	3018	+	ENGR. H. B. NO. 2244 Page 60 1
3083	3019		2
3084	3020		3
3085	3021		4
3086	3022		5
3087	3023		6
3088	3024		7
3089	3025		8
3090	3026		9
3091	3027		10
3092	3028		11
3093	3029		12
3094	3030		13
3095	3031		14
3096	3032		15
3097	3033		16
3098	3034		17
3099	3035		18
3100	3036		19
3101	3037		20
3102	3038		21
3103	3039		22
3104	3040		23
3105	3041		24
3106	3042
3107	3043		(c) at the time the manufacturer first acquires
3108	3044		an ownership interest or assumes operation,
3109	3045		the distance between any dealership thus
3110	3046		owned or operated and the nearest
3111	3047		unaffiliated new motor vehicle dealership
3112	3048		trading in the same line -make is not less
3113	3049		than seventy (70) miles,
3114	3050		(d) during any period in which the manufacturer
3115	3051		has such an ownership interest, the
3116	3052		manufacturer has no more than three
3117	3053		franchise agreements with new motor vehicle
3118	3054		dealers licensed by the Oklahoma Motor
3119	3055		Vehicle Commission to do business within the
3120	3056		state, and
3121	3057		(e) prior to January 1, 2000, the factory shall
3122	3058		have furnished or made available to
3123	3059		prospective new motor vehicle dealers an
3124	3060		offering-circular offering circular in
3125	3061		accordance with the Trade Regulation Rule on
3126	3062		Franchising of the Fe deral Trade Commission,
3127	3063		and any guidelines and exemptions issued
3128	3064		thereunder, which disclose the possibility
3129	3065		that the factory may fro m time to time seek
3130	3066
3131		-	SENATE FLOOR VERSION - HB2244 SFLR Page 61
3132		-	(Bold face denotes Committee Amendments) 1
	3067	+	ENGR. H. B. NO. 2244 Page 61 1
3133	3068		2
3134	3069		3
3135	3070		4
3136	3071		5
3137	3072		6
3138	3073		7
3139	3074		8
3140	3075		9
3141	3076		10
3142	3077		11
3143	3078		12
3144	3079		13
3145	3080		14
3146	3081		15
3147	3082		16
3148	3083		17
3149	3084		18
3150	3085		19
3151	3086		20
3152	3087		21
3153	3088		22
3154	3089		23
3155	3090		24
3156	3091
3157	3092		to own or acquire, directly or indirectly,
3158	3093		ownership interests in retail dealerships;
3159	3094		13. Being a factory which directly or indirectly makes
3160	3095		available for public disclosure any proprietary information provided
3161	3096		to the factory by a new m otor vehicle dealer, other than in
3162	3097		composite form to new motor vehicle dealers in the same line -make or
3163	3098		in response to a sub poena or order of the Commission or a court.
3164	3099		Proprietary information includes, but is not limited to,
3165	3100		information:
3166	3101		a. derived from monthly financial statements provided to
3167	3102		the factory, and
3168	3103		b. regarding any aspect of the profitability of a
3169	3104		particular new motor vehicle dealer;
3170	3105		14. Being a factory which does not provide or direct leads in a
3171	3106		fair, equitable and timely manner. Nothing in this paragraph shall
3172	3107		be construed to require a factory to disregard the preference of a
3173	3108		consumer in providing or directing a lead;
3174	3109		15. Being a factory which used the customer consumer list of a
3175	3110		new motor vehicle dealer for the purpose of unfairly competi ng with
3176	3111		dealers;
3177	3112		16. Being a factory which prohibits a new motor vehicle dealer
3178	3113		from relocating after a written request by such new motor vehicle
3179	3114		dealer if:
3180	3115
3181		-	SENATE FLOOR VERSION - HB2244 SFLR Page 62
3182		-	(Bold face denotes Committee Amendments) 1
	3116	+	ENGR. H. B. NO. 2244 Page 62 1
3183	3117		2
3184	3118		3
3185	3119		4
3186	3120		5
3187	3121		6
3188	3122		7
3189	3123		8
3190	3124		9
3191	3125		10
3192	3126		11
3193	3127		12
3194	3128		13
3195	3129		14
3196	3130		15
3197	3131		16
3198	3132		17
3199	3133		18
3200	3134		19
3201	3135		20
3202	3136		21
3203	3137		22
3204	3138		23
3205	3139		24
3206	3140
3207	3141		a. the facility and the proposed new location satisfies
3208	3142		or meets the written reasonable guidelines of the
3209	3143		factory. Reasonable guidelines do not include
3210	3144		exclusivity or site control unless agreed to as set
3211	3145		forth in subparagraphs e f and f g of paragraph 9 of
3212	3146		this subsection,
3213	3147		b. the proposed new location is within the area of
3214	3148		responsibility of the new mo tor vehicle dealer
3215	3149		pursuant to Section 578.1 of this title, and
3216	3150		c. the factory has sixty (60) days from receipt of the
3217	3151		new motor vehicle dealer's relocation request to
3218	3152		approve or deny the request. The failure to approve
3219	3153		or deny the request within the sixty -day time frame
3220	3154		shall constitute approval of the request;
3221	3155		17. Being a factory which prohibits a new motor vehicle dealer
3222	3156		from adding additional line-makes to its existing facility, if,
3223	3157		after adding the additional line -makes, the facility satisfies the
3224	3158		written reasonable capitalization standards and facility guidelines
3225	3159		of each factory. Reasonable facility guidelines do not in clude a
3226	3160		requirement to maintain exclusivity or site control unless agreed to
3227	3161		by the dealer as set forth in subparagraphs e f and f g of paragraph
3228	3162		9 of this subsection;
3229	3163		18. Being a factory that increases prices of new motor vehicles
3230	3164		which the new motor veh icle dealer had ordered for retail consumers
3231	3165
3232		-	SENATE FLOOR VERSION - HB2244 SFLR Page 63
3233		-	(Bold face denotes Committee Amendments) 1
	3166	+	ENGR. H. B. NO. 2244 Page 63 1
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3258	3191		and notified the factory pr ior to the new motor vehicle dealer's
3259	3192		receipt of the written official price increa se notification. A
3260	3193		sales contract signed by a retail consumer accompanied with proof of
3261	3194		order submission to the factory shall constitute evidence of each
3262	3195		such order, provided that the vehicle is in fact delivered to the
3263	3196		customer consumer. Price differences applicable to new models or
3264	3197		series motor vehicles at the time of the introduction of new models
3265	3198		or series shall not b e considered a price increase for purposes of
3266	3199		this paragraph. Price cha nges caused by any of the following shall
3267	3200		not be subject to the provisions of this paragraph:
3268	3201		a. the addition to a motor vehicle of required or
3269	3202		optional equipment pursuant to state or federal law,
3270	3203		b. revaluation of the United States dollar in the case of
3271	3204		foreign-made vehicles or components, or
3272	3205		c. an increase in transpo rtation charges due to increased
3273	3206		rates imposed by common or contract carriers;
3274	3207		19. Being a factory that requires a new motor vehicle dealer to
3275	3208		participate monetarily in an advertising campaig n or contest, or
3276	3209		purchase any promotional materials, showroom or other display
3277	3210		decoration or materials at the expense of the new motor vehicle
3278	3211		dealer without consent of the new motor vehicle dealer, which
3279	3212		consent shall not be unreasonably withheld;
3280	3213		20. Being a factory that denies any new motor vehicle dealer
3281	3214		the right of free association with any other new motor vehicle
3282	3215
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3308	3240
3309	3241		dealer for any lawful purpose, unless otherwise permitted by this
3310	3242		chapter; or
3311	3243		21. Being a factory that requires a new motor vehicle dealer to
3312	3244		sell, offer to sell or sell exclusively an extended service
3313	3245		contract, extended maintenance plan or similar product , such as gap
3314	3246		products offered, endorsed or sponsored by the factory by the
3315	3247		following means:
3316	3248		a. by an act or statement from the factory that will in
3317	3249		any manner adversely impact the new motor vehicle
3318	3250		dealer,
3319	3251		b. by measuring the new motor vehicle dealer's
3320	3252		performance under the franchise based on the sale of
3321	3253		extended service contracts, exte nded maintenance plans
3322	3254		or similar products offered, endorsed or sponsore d by
3323	3255		the manufacturer or distributor.
3324	3256		B. Notwithstanding the terms of any franchise agreement, in th e
3325	3257		event of a proposed sale or transfer of a dealership, the
3326	3258		manufacturer or distrib utor shall be permitted to exercise a right
3327	3259		of first refusal to acquire the assets or ownership interest of the
3328	3260		dealer of the new motor vehicle dealership, if such sale or transfe r
3329	3261		is conditioned upon the manufacturer or dealer entering into a
3330	3262		dealer agreement with the proposed new owner or transferee, only if
3331	3263		all the following requ irements are met:
3332	3264
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3359	3290		1. To exercise its ri ght of first refusal, the factory must
3360	3291		notify the new motor vehicle dealer in writing within sixty (60)
3361	3292		days of receipt of the completed proposal for the pr oposed sale
3362	3293		transfer;
3363	3294		2. The exercise of the right of first refusal will resu lt in
3364	3295		the new motor vehicle dealer and the owner of the dealership
3365	3296		receiving the same or greater consideration as they have contracted
3366	3297		to receive in connection with the proposed change of ownershi p or
3367	3298		transfer;
3368	3299		3. The proposed sale or transfer of the assets of the
3369	3300		dealership does not involve the transfer or sale to a member or
3370	3301		members of the family of one or more dealer o wners, or to a
3371	3302		qualified manager or a partnership or corporation controlled b y such
3372	3303		persons; and
3373	3304		4. The factory agrees to pay the reasonable expenses, inc luding
3374	3305		attorney fees which do not exceed the usual, customary a nd
3375	3306		reasonable fees charged for similar work done for other clients
3376	3307		incurred by the proposed new owner and transfere e prior to the
3377	3308		exercise by the factory of its right of first refusal in negoti ating
3378	3309		and implementing the contract for the proposed sale or tr ansfer of
3379	3310		the dealership or dealership assets. Notwithstanding the foregoing,
3380	3311		no payment of expenses and attorney fees shall be required if the
3381	3312		proposed new dealer or transferee has not submit ted or caused to be
3382	3313		submitted an accounting of those expenses w ithin thirty (30) days of
3383	3314
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3409	3339
3410	3340		receipt of the written request of the factory for such an
3411	3341		accounting. The accounting may be requested by a factory before
3412	3342		exercising its right of first refusal.
3413	3343		C. Nothing in this section shall prohibit, limit, restrict or
3414	3344		impose conditions on:
3415	3345		1. Business activiti es, including without limitation the
3416	3346		dealings with motor vehicle manufacturer s and the representatives
3417	3347		and affiliates of motor vehicle manufacturers, of an y person that is
3418	3348		primarily engaged in the business of short -term, not to exceed
3419	3349		twelve (12) months, r ental of motor vehicles and industrial and
3420	3350		construction equipment and activit ies incidental to that business,
3421	3351		provided that:
3422	3352		a. any motor vehicle sold by t hat person is limited to
3423	3353		used motor vehicles that have been pre viously used
3424	3354		exclusively and regularly by that person in the
3425	3355		conduct of business and used motor vehicles traded in
3426	3356		on motor vehicles sold by that person,
3427	3357		b. warranty repairs performed by that p erson on motor
3428	3358		vehicles are limited to those motor vehicles tha t it
3429	3359		the person owns, previously owned or takes i n trade,
3430	3360		and
3431	3361		c. motor vehicle financing provided by that person to
3432	3362		retail consumers for motor vehicles is limited to used
3433	3363
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3460	3389		vehicles sold by that pers on in the conduct of
3461	3390		business; or
3462	3391		2. The direct or indirect ownership , affiliation or control of
3463	3392		a person described in paragraph 1 of this subsection.
3464	3393		D. As used in this section:
3465	3394		1. "Substantially relates" means the nature of criminal conduct
3466	3395		for which the person was convicted has a direct bearing on the
3467	3396		fitness or ability to perform one or more of the duties or
3468	3397		responsibilities necessarily related to the occupation; and
3469	3398		2. "Poses a reasonable threat" means the nature of criminal
3470	3399		conduct for which the p erson was convicted involved an act or threat
3471	3400		of harm against another and has a bearing on the fitness or ab ility
3472	3401		to serve the public or work with others in the occupation.
3473	3402		E. Nothing in this section shall prohibit a manuf acturer or
3474	3403		distributor from requiring a dealer to be in compliance with the
3475	3404		franchise agreement and authorized to sell a make and model based on
3476	3405		applicable reasonable standards and requirements that include, but
3477	3406		are not limited to, any facility, technology , or training
3478	3407		requirements necessary to sell or service such vehicle, in order to
3479	3408		be eligible for delivery or allotment o f a make or model of a new
3480	3409		motor vehicle or an incentive.
3481	3410		SECTION 10. AMENDATORY 47 O.S. 2021, Section 565.1, is
3482	3411		amended to read as follows:
3483	3412
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3509	3437
3510	3438		Section 565.1 A. For the purposes of this section, "designated
3511	3439		successor" means a person who the new motor vehicle dealer has
3512	3440		designated to take over operation of the dealership or a legal heir
3513	3441		or devisee under the will of a new motor vehicle dealer or und er the
3514	3442		laws of descent and distribution of this state .
3515	3443		B. Notwithstanding the terms of any franchise agreement, and
3516	3444		subject to the following conditions contained in paragraphs 1
3517	3445		through 5 of this section subsection, any manufacturer or
3518	3446		distributor who prevents or refuses to honor the succession to the
3519	3447		operation of a dealership by any legal heir or devisee under the
3520	3448		will of a new motor vehicle dealer or under the laws of descent and
3521	3449		distribution of this state a designated successor, without good
3522	3450		cause or good faith, as defined in this section, shall be subject to
3523	3451		the following procedure:
3524	3452		1. Within one hundr ed twenty (120) days after the death or
3525	3453		departure of the new motor vehicle dealer, the manufacturer shall
3526	3454		receive a written notice from any legal heir or devisee the
3527	3455		dealership of the designated successor who intends to establish a
3528	3456		become the successor dealership operator. If timely notice is not
3529	3457		so received, then this paragraph shall not apply, and any succession
3530	3458		shall be governed solely by the terms of the franchise;
3531	3459		2. Within thirty (30) days of receipt of the legal heir's or
3532	3460		devisee's dealership's timely written notice , the manufacturer may
3533	3461		request, and the legal heir or devisee designated successor shall,
3534	3462
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3560	3487
3561	3488		within a reasonable time, provide any information which is
3562	3489		reasonably necessary for the manufacturer to evaluate the proposed
3563	3490		designated successor dealer and dealership, including , but not
3564	3491		limited to, applications, proposals for facilities and financing;
3565	3492		3. Within sixty (60) days of receipt of such information, the
3566	3493		manufacturer shall approve or disapprove the proposed designated
3567	3494		successor dealership dealer, and in case of disapproval shall
3568	3495		communicate in writing such disapproval and grounds for disapproval
3569	3496		to the legal heir or devisee dealership;
3570	3497		4. Failure of the manufacturer to act in a timely manner with
3571	3498		respect to any time period described above shall constitute a wai ver
3572	3499		of the manufacturer's right to disapprove the proposed succession;
3573	3500		and
3574	3501		5. Within ten (10) days of its the dealership's receipt of the
3575	3502		manufacturer's notice of disapproval, the legal heir or devisee
3576	3503		dealership may file a protest of the manufacturer 's decision with
3577	3504		the Oklahoma New Motor Vehicle Commission and request a hearing.
3578	3505		Such hearing shall be heard in a substantially similar manner as
3579	3506		provided by Section 566 of this title, except that the Commission
3580	3507		shall render a final decision within sixty (60 ) days of the filing
3581	3508		of the protest. The manufacturer shall have the burden of proof to
3582	3509		show that its disapproval was for a good cause and in good faith. A
3583	3510		denial shall not be for good cause and in good faith unless the
3584	3511		factory establishes that the legal heir or devisee, or the legal
3585	3512
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3611	3537
3612	3538		heir or devisee's controlling executive management, designated
3613	3539		successor is not of good moral character or fails to meet the
3614	3540		written, reasonable and uniformly applied requirements of the
3615	3541		manufacturer or distributor relating to financial qualifications,
3616	3542		general business experience, and other requirements relating to
3617	3543		prospective franchisees. However, a legal heir that designated
3618	3544		successor who is a family member and who is of good moral character
3619	3545		in accordance with the factory's reasonable factory qualifications
3620	3546		and meets the factory's financial qualifications may rely on
3621	3547		controlling executive manage ment that is of good moral character and
3622	3548		meets the factory's qualifications for general business experience
3623	3549		and other requirements relating to prospective franchi ses. Any
3624	3550		denial of the designated successor based upon a failure to agree to
3625	3551		terms other than those contained in the existing franchise
3626	3552		agreement, related addendums and agreements, and any writ ten notice
3627	3553		provided to the existing de aler prior to the manufacturer's or
3628	3554		distributor's receipt of any written notice from the existing dealer
3629	3555		of the proposed transfer shall not be considered good cause for such
3630	3556		denial. However, any proposed change to the franchise pursuant to
3631	3557		written notice from the manufacturer or distributor, to be valid,
3632	3558		shall be in compliance with existing law. The disapproval by the
3633	3559		manufacturer shall be final if the legal heir or devisee dealership
3634	3560		fails to file a timely protest of such the disapproval. In the
3635	3561		event that the Commission finds that the manufacturer's disapproval
3636	3562
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3662	3587
3663	3588		was not made for good cause, then it shall issue a final order
3664	3589		requiring the manufacturer to honor the successor designated in the
3665	3590		notice sent by the legal heir or devisee dealership.
3666	3591		Notwithstanding anything to the contrary in this section, a new
3667	3592		motor vehicle dealer may designate any person as successor by filing
3668	3593		a written instrument pursuant to the franchise with the manufacturer
3669	3594		during the new motor vehicle dealer's lifetime. In such a case, the
3670	3595		written instrument and franchise shall govern the dealership
3671	3596		succession.
3672	3597		The suspension, revocation or refusal to issue or renew a
3673	3598		license or the imposition of any other penalty by the Commission
3674	3599		shall be in addition to any penalty wh ich might be imposed upon any
3675	3600		licensee upon judgment or conviction in a court of competent
3676	3601		jurisdiction for any violation of the provisions of Sections 561
3677	3602		through 567, 572, 578.1, 579 and 579.1 of this title.
3678	3603		SECTION 11. AMENDATORY 47 O.S. 2021, Section 565.2, is
3679	3604		amended to read as follows:
3680	3605		Section 565.2 A. Irrespective of the terms, provisions or
3681	3606		conditions of any franchise, or the terms or provisions of any
3682	3607		waiver, no manufacturer shall terminate, cancel or fail to renew any
3683	3608		franchise with a licensed new motor vehicle dealer unless the
3684	3609		manufacturer has satisfied the notice requirements as provided in
3685	3610		this section and has good cause for cancellation, termination or
3686	3611		nonrenewal. The manufacturer shall not attempt to cancel or fail to
3687	3612
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3713	3637
3714	3638		renew the franchise agreement of a new motor vehicle dealer in this
3715	3639		state unfairly and without just provocation or without due regard to
3716	3640		the equities of the dealer or without good faith as defined herein.
3717	3641		As used herein, "good faith" means the duty of each party to any
3718	3642		franchise agreement to act in a fair and equitable manner toward
3719	3643		each other, with freedom from coercion or intimidation or threats
3720	3644		thereof from each other.
3721	3645		B. Irrespective of the terms, provisions or conditions of any
3722	3646		franchise, or the terms or provisions of any waiver, good cause
3723	3647		shall exist for the purpose of a termination, cancellation, or
3724	3648		nonrenewal when:
3725	3649		1. The new motor vehicle dealer has failed to comply with a
3726	3650		provision of the franchise, which provision is both reasonable and
3727	3651		of material significance to the franchise relationship, or the new
3728	3652		motor vehicle dealer has failed to comply with reasonable
3729	3653		performance criteria for sales or service established by the
3730	3654		manufacturer, and the new motor vehicle dealer has been notified by
3731	3655		written notice from th e manufacturer; and
3732	3656		2. The new motor vehicle dealer has received written
3733	3657		notification of failure to comply with the manufacturer's reasonable
3734	3658		sales performance standards, capita lization requirements, facility
3735	3659		commitments, business-related equipment acquis itions or other such
3736	3660		remediable failings exclusive of those reasons enumerated in
3737	3661		paragraph 1 of subsection C of this section, and the new motor
3738	3662
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3759	3682		20
3760	3683		21
3761	3684		22
3762	3685		23
3763	3686		24
3764	3687
3765	3688		vehicle dealer has been afforded a reasonable opportunity of not
3766	3689		less than six (6) months to comply with such a provision or
3767	3690		criteria.
3768	3691		C. Irrespective of the terms, provisions or conditions of any
3769	3692		franchise agreement prior to the termination, cancellation or
3770	3693		nonrenewal of any franchise, the manufacturer shall furnish
3771	3694		notification of such termination, cancellation or nonrenewal to the
3772	3695		new motor vehicle dealer and the Oklahoma New Motor Vehicle
3773	3696		Commission as follows:
3774	3697		1. Not less than ninety (90) days prior to the effective date
3775	3698		of such the termination, cancellation or nonrenewal unless for a
3776	3699		cause described in paragraph 2 o f this subsection;
3777	3700		2. Not less than fifteen (15) days prior to the effective date
3778	3701		of such the termination, cancellation or nonrenewal with respect to
3779	3702		any of the following:
3780	3703		a. insolvency of the new motor vehicle dealer, or the
3781	3704		filing of any petition by or agai nst the new motor
3782	3705		vehicle dealer under any bankruptcy or receivership
3783	3706		law,
3784	3707		b. failure of the new motor vehicle dealer to conduct its
3785	3708		customary sales and service operations during its
3786	3709		customary business hours for seven (7) consecutive
3787	3710		business days, provided th at such failure to conduct
3788	3711		business shall not be due to an act of God or
3789	3712
3790		-	SENATE FLOOR VERSION - HB2244 SFLR Page 74
3791		-	(Bold face denotes Committee Amendments) 1
	3713	+	ENGR. H. B. NO. 2244 Page 74 1
3792	3714		2
3793	3715		3
3794	3716		4
3795	3717		5
3796	3718		6
3797	3719		7
3798	3720		8
3799	3721		9
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3803	3725		13
3804	3726		14
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3813	3735		23
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3815	3737
3816	3738		circumstances beyond the direct control of the new
3817	3739		motor vehicle dealer, or
3818	3740		c. conviction of the new moto r vehicle dealer of any
3819	3741		felony which is punishable by imprisonment or a
3820	3742		violation of the Federal Odometer Act; and
3821	3743		3. Not less than one hundred eighty (180) days prior to the
3822	3744		effective date of such the termination or cancellation where the
3823	3745		manufacturer or distributor is discontinuing the sale of the product
3824	3746		line.
3825	3747		The notification requi red by this subsection shall be by
3826	3748		certified mail, return receipt requested, and shall contain a
3827	3749		statement of intent to terminate, to cancel or to not renew the
3828	3750		franchise, a statement of the reasons for the termination,
3829	3751		cancellation or nonrenewal and the d ate the termination shall take
3830	3752		effect.
3831	3753		D. Upon the affected new motor vehicle dealer's receipt of the
3832	3754		aforementioned notice of termination, cancellation or nonrenewal,
3833	3755		the new motor vehicle dealer shall have the right to file a protest
3834	3756		of such threatened termination, cancellation or nonrenewal with the
3835	3757		Commission within thirty (30) days and request a hearing. Such
3836	3758		hearing shall be held within one hundred eighty (180) days of the
3837	3759		date of the dealer's timely protest in accordance with the
3838	3760		provisions of the Ad ministrative Procedures Act, Sections 301 250
3839	3761		through 326 323 of Title 75 of the Oklahoma Statutes, to determine
3840	3762
3841		-	SENATE FLOOR VERSION - HB2244 SFLR Page 75
3842		-	(Bold face denotes Committee Amendments) 1
	3763	+	ENGR. H. B. NO. 2244 Page 75 1
3843	3764		2
3844	3765		3
3845	3766		4
3846	3767		5
3847	3768		6
3848	3769		7
3849	3770		8
3850	3771		9
3851	3772		10
3852	3773		11
3853	3774		12
3854	3775		13
3855	3776		14
3856	3777		15
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3865	3786		24
3866	3787
3867	3788		if the threatened cancellation, termination or nonrenewal of the
3868	3789		franchise has been for good cause and if the factory has complied
3869	3790		with its obligations pursuant to subsections A, B and C of this
3870	3791		section and the factory sh all have the burden of proof. Either
3871	3792		party may request an additional one-hundred-eighty-day extension
3872	3793		from the Commission. Approval of the requested extension may not be
3873	3794		unreasonably withheld or delayed. If the Commission finds that the
3874	3795		threatened cancellation, termination or nonrenewal of the franchise
3875	3796		has not been for good cause or violates subsec tion A, B or C of this
3876	3797		section, then it shall issue a final order stating that the
3877	3798		threatened termination is wrongful. A factory shall have the right
3878	3799		to appeal such order. During the pendency of the hearing and after
3879	3800		the decision, the franchise shall rem ain in full force and effect,
3880	3801		including the right to transfer the franchise. If the Commission
3881	3802		finds that the threatened cancellation, termination or nonrenewal is
3882	3803		for good cause and does not violate subsection A, B or C of this
3883	3804		section, the new motor veh icle dealer shall have the right to an
3884	3805		appeal. During the pendency of the act ion, including the final
3885	3806		decision or appeal, the franchise shall remain in full force and
3886	3807		effect, including the right to transfer the franchise. If the new
3887	3808		motor vehicle dealer prevails in the threatened termination action,
3888	3809		the Commission shall award to t he new motor vehicle dealer the
3889	3810		attorney fees and costs incurred to defend the action.
3890	3811
3891		-	SENATE FLOOR VERSION - HB2244 SFLR Page 76
3892		-	(Bold face denotes Committee Amendments) 1
	3812	+	ENGR. H. B. NO. 2244 Page 76 1
3893	3813		2
3894	3814		3
3895	3815		4
3896	3816		5
3897	3817		6
3898	3818		7
3899	3819		8
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3916	3836
3917	3837		E. If the factory prevails in an action to terminate, cancel or
3918	3838		not renew any franchise, t he new motor vehicle dealer shall be
3919	3839		allowed fair and reasonable compensation by the manufacturer for:
3920	3840		1. New current and previous model year vehicle inventory which
3921	3841		has been acquired from the manufacturer, and which is unused and has
3922	3842		not been damaged or altered while in the new motor vehicle dealer's
3923	3843		possession;
3924	3844		2. Supplies and parts which have be en acquired from the
3925	3845		manufacturer, for the purpose of this section, limited to any and
3926	3846		all supplies and parts that are listed on the current parts price
3927	3847		sheet available to the new motor vehicle dealer;
3928	3848		3. Equipment and furnishings, provided the new motor vehicle
3929	3849		dealer purchased them from the manufacturer or its approved sources;
3930	3850		and
3931	3851		4. Special tools, with such fair and reasonable compensation to
3932	3852		be paid by the manufacturer within ninety (90) day s of the effective
3933	3853		date of the termination, cancellation or nonrenewal, provid ed the
3934	3854		new motor vehicle dealer has clear title to the inventory and other
3935	3855		items and is in a position to convey that title to the manufacturer.
3936	3856		a. For the purposes of paragraph 1 of this subsection,
3937	3857		fair and reasonable compensation shall be no less than
3938	3858		the net acquisition price of the vehicle paid by the
3939	3859		new motor vehicle dealer.
3940	3860
3941		-	SENATE FLOOR VERSION - HB2244 SFLR Page 77
3942		-	(Bold face denotes Committee Amendments) 1
	3861	+	ENGR. H. B. NO. 2244 Page 77 1
3943	3862		2
3944	3863		3
3945	3864		4
3946	3865		5
3947	3866		6
3948	3867		7
3949	3868		8
3950	3869		9
3951	3870		10
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3953	3872		12
3954	3873		13
3955	3874		14
3956	3875		15
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3962	3881		21
3963	3882		22
3964	3883		23
3965	3884		24
3966	3885
3967	3886		b. For the purposes of paragraphs 2, 3 and 4 of this
3968	3887		subsection, fair and reasonable compensation sha ll be
3969	3888		the net acquisition price paid by the new motor
3970	3889		vehicle dealer less a tw enty-percent (20%) straight-
3971	3890		line depreciation for each year following the dealer's
3972	3891		acquisition of the supplies, parts, equipment,
3973	3892		furnishings and/or special tools.
3974	3893		F. If a factory prevails in an action to terminate, cancel or
3975	3894		not renew any franchise and t he new motor vehicle dealer is leasing
3976	3895		the dealership facilities, the manufacturer shall pay a reasonable
3977	3896		rent to the lessor in accordance with and subject to the provisions
3978	3897		of subsection G of this section. Nothing in this section shall be
3979	3898		construed to relieve a new motor vehicle dealer of its duty to
3980	3899		mitigate damages.
3981	3900		G. 1. Such reasonable rental value shall be paid only to the
3982	3901		extent the dealership premises are recognized in the franchise and
3983	3902		only if they are:
3984	3903		a. used solely for performance in accordance with the
3985	3904		franchise. If the facility is used for the operation
3986	3905		of more than one franchise, the reasonable rent shall
3987	3906		be paid based upon the portion of the facility
3988	3907		utilized by the franchise bei ng terminated, canceled
3989	3908		or nonrenewed, and
3990	3909
3991		-	SENATE FLOOR VERSION - HB2244 SFLR Page 78
3992		-	(Bold face denotes Committee Amendments) 1
	3910	+	ENGR. H. B. NO. 2244 Page 78 1
3993	3911		2
3994	3912		3
3995	3913		4
3996	3914		5
3997	3915		6
3998	3916		7
3999	3917		8
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4001	3919		10
4002	3920		11
4003	3921		12
4004	3922		13
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4008	3926		17
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4014	3932		23
4015	3933		24
4016	3934
4017	3935		b. not substantially in excess of f acilities recommended
4018	3936		by the manufacturer.
4019	3937		2. If the facilities are owned by the new motor vehicle dealer,
4020	3938		within ninety (90) days following the effective date of the
4021	3939		termination, cancellation or nonrenewal the manufacturer will
4022	3940		either:
4023	3941		a. locate a qualified purchaser who will offer to
4024	3942		purchase the dealership facilities at a reasonable
4025	3943		price,
4026	3944		b. locate a qualified lessee who will offer to lease the
4027	3945		premises for the remaining leas e term at the rent set
4028	3946		forth in the lease, or
4029	3947		c. failing the foregoing, lease the dealership facilities
4030	3948		at a reasonable rental value for the portion of the
4031	3949		facility that is recognized in the franchise agreement
4032	3950		for one (1) year.
4033	3951		3. If the facilities are l eased by the new motor vehicle
4034	3952		dealer, within ninety (90) days following the e ffective date of the
4035	3953		termination, cancellation or nonrenewal the manufacturer will
4036	3954		either:
4037	3955		a. locate a tenant or tenants satisfactory to the lessor,
4038	3956		who will sublet or assume the balance of the lease,
4039	3957
4040		-	SENATE FLOOR VERSION - HB2244 SFLR Page 79
4041		-	(Bold face denotes Committee Amendments) 1
	3958	+	ENGR. H. B. NO. 2244 Page 79 1
4042	3959		2
4043	3960		3
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4045	3962		5
4046	3963		6
4047	3964		7
4048	3965		8
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4062	3979		22
4063	3980		23
4064	3981		24
4065	3982
4066	3983		b. arrange with the lessor for the cancellation of the
4067	3984		lease without penalty to the new motor vehicle dealer,
4068	3985		or
4069	3986		c. failing the foregoing, lease the dealership facilities
4070	3987		at a reasonable rent for the portion of the facility
4071	3988		that is recognized in the f ranchise agreement for one
4072	3989		(1) year.
4073	3990		4. The manufacturer shall not be obligat ed to provide
4074	3991		assistance under this section if the new motor vehicle dealer:
4075	3992		a. fails to accept a bona fide offer from a prospective
4076	3993		purchaser, subleases sublessee or assignee,
4077	3994		b. refuses to execute a settlement agreement with the
4078	3995		lessor if such agreement with the l essor would be
4079	3996		without cost to the new motor vehicle dealer, or
4080	3997		c. fails to make written request for assistance under
4081	3998		this section within ninety (90) days after the
4082	3999		effective date of the terminati on, cancellation or
4083	4000		nonrenewal.
4084	4001		5. The manufacturer shall be entitled to occu py and use any
4085	4002		space for which it pays rent required by this section.
4086	4003		H. In addition to the repurchase requirements set forth in
4087	4004		subsections E and G of this section, in the even t the termination or
4088	4005		cancellation is the result of a discontinuance of a produ ct line,
4089	4006		the manufacturer or distributor shall compensate the new motor
4090	4007
4091		-	SENATE FLOOR VERSION - HB2244 SFLR Page 80
4092		-	(Bold face denotes Committee Amendments) 1
	4008	+	ENGR. H. B. NO. 2244 Page 80 1
4093	4009		2
4094	4010		3
4095	4011		4
4096	4012		5
4097	4013		6
4098	4014		7
4099	4015		8
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4104	4020		13
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4114	4030		23
4115	4031		24
4116	4032
4117	4033		vehicle dealer in an amount equivalent to the fair market value of
4118	4034		the terminated franchise as of the date of immediately preceding the
4119	4035		manufacturer's or distributor's announcement or provide the new
4120	4036		motor vehicle dealer with a replacement franchise on substantially
4121	4037		similar terms and conditions as those offered to other same line-
4122	4038		make dealers. The new motor vehicle dealer may immediately request
4123	4039		payment under this provision section following the announcement in
4124	4040		exchange for cancelling canceling any further franchise rights,
4125	4041		except payments owed to the new motor vehicle dealer in the ordinary
4126	4042		course of business, or may request payment under this provision
4127	4043		section upon the final termination, cancellation or nonrenewal of
4128	4044		the franchise. In either case, payment under this provision section
4129	4045		shall be made not later than ninety (90) days after the fair market
4130	4046		value is determined. If the factory and new motor vehicle dealer
4131	4047		cannot agree on the fair market value of the terminated franchise or
4132	4048		agree to a process to determine the fair market value, then the
4133	4049		factory and new motor vehicle dealer shall utilize a neutral third
4134	4050		party third-party mediator to resolve the disagreement.
4135	4051		SECTION 12. AMENDATORY 47 O.S. 2021, Section 565.3, is
4136	4052		amended to read as follows:
4137	4053		Section 565.3 A. A franchised vehicle dealer proposing a sale,
4138	4054		transfer, or assignment of a franchise agreement or the business and
4139	4055		assets of a dealership or an interes t in a dealership to another
4140	4056		person, hereinafter transferee, shall notify the manufacturer or
4141	4057
4142		-	SENATE FLOOR VERSION - HB2244 SFLR Page 81
4143		-	(Bold face denotes Committee Amendments) 1
	4058	+	ENGR. H. B. NO. 2244 Page 81 1
4144	4059		2
4145	4060		3
4146	4061		4
4147	4062		5
4148	4063		6
4149	4064		7
4150	4065		8
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4155	4070		13
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4157	4072		15
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4159	4074		17
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4163	4078		21
4164	4079		22
4165	4080		23
4166	4081		24
4167	4082
4168	4083		distributor whose vehicles the dealer is franchised to sell of the
4169	4084		proposed action of the dealer. The manufacturer or distributor may
4170	4085		make written request to the proposed transferee to submit completed
4171	4086		application forms and related information generall y utilized by a
4172	4087		manufacturer to evaluate such a proposal and a copy of all
4173	4088		agreements related to the proposed sale, transfer, or assignment.
4174	4089		B. The approval by the manufacturer or distributor of the sale,
4175	4090		transfer, or assignment shall not be unreasonably withheld unless
4176	4091		the proposed transferee is not of good moral character or fails to
4177	4092		meet the written, reasonable, and uniformly applied requirements of
4178	4093		the manufacturer or distributor relating to prospective franchisees.
4179	4094		Approval of the transfer shall not be made contingent upon the
4180	4095		transferee meeting unreasonable facility requirements or performance
4181	4096		standards, but may be made contingent upon the transferee meeting
4182	4097		reasonable written requirements different than those contained in
4183	4098		the transferor's franchise agreement and related addendum a nd
4184	4099		agreements, and any written notices provided to the existing dealer
4185	4100		prior to the manufacturer's or distributor's receipt of any written
4186	4101		notice from the existing dealer of the proposed t ransfer. However,
4187	4102		to be valid, any proposed change to the franchise pursuant to
4188	4103		written notice from the manufacturer or distributor shall be in
4189	4104		compliance with existing law. The burden of proof shall be upon the
4190	4105		manufacturer or distributor to show good cause existed to withhold
4191	4106		approval. The manufacturer or distributor that has made such a
4192	4107
4193		-	SENATE FLOOR VERSION - HB2244 SFLR Page 82
4194		-	(Bold face denotes Committee Amendments) 1
	4108	+	ENGR. H. B. NO. 2244 Page 82 1
4195	4109		2
4196	4110		3
4197	4111		4
4198	4112		5
4199	4113		6
4200	4114		7
4201	4115		8
4202	4116		9
4203	4117		10
4204	4118		11
4205	4119		12
4206	4120		13
4207	4121		14
4208	4122		15
4209	4123		16
4210	4124		17
4211	4125		18
4212	4126		19
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4214	4128		21
4215	4129		22
4216	4130		23
4217	4131		24
4218	4132
4219	4133		determination shall send a letter by certified mail to the dealer
4220	4134		and the applicant of its refusal to approve the proposal, which
4221	4135		shall include a statement of the specific grounds for refusal,
4222	4136		within sixty (60) days after the later of:
4223	4137		1. Receipt by the manufacturer or distributor of the notice of
4224	4138		the proposed sale, transfer, or assignment; or
4225	4139		2. Receipt by the manufacturer or distributor of the
4226	4140		information requested from the proposed transferee pursuant to
4227	4141		subsection A of this sectio n if the manufacturer or distributor has
4228	4142		requested such information within fifteen (15) days of receipt of
4229	4143		written notice of the proposed sale, transfer, or assignment.
4230	4144		C. Failure of the manufacturer or distributor to send its
4231	4145		notice of refusal pursuant t o subsection B of this section shall
4232	4146		mean that the application for the proposed sale, transfer, or
4233	4147		assignment is approved.
4234	4148		D. If the proposed sale, transfer, or assignment is to an
4235	4149		existing owner's family member or other existing owner, the
4236	4150		manufacturer or distributor's evaluation of the proposal is limited
4237	4151		to the written, reasonable, and uniformly applied requirements of
4238	4152		the manufacturer or distributor relating to good moral character and
4239	4153		financial qualifications. Notwithstanding the foregoing, a change
4240	4154		in dealer operator shall be addressed pursuant to the provisions of
4241	4155		Section 565.1 of this title.
4242	4156
4243		-	SENATE FLOOR VERSION - HB2244 SFLR Page 83
4244		-	(Bold face denotes Committee Amendments) 1
	4157	+	ENGR. H. B. NO. 2244 Page 83 1
4245	4158		2
4246	4159		3
4247	4160		4
4248	4161		5
4249	4162		6
4250	4163		7
4251	4164		8
4252	4165		9
4253	4166		10
4254	4167		11
4255	4168		12
4256	4169		13
4257	4170		14
4258	4171		15
4259	4172		16
4260	4173		17
4261	4174		18
4262	4175		19
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4264	4177		21
4265	4178		22
4266	4179		23
4267	4180		24
4268	4181
4269	4182		E. A dealer dealership or dealershi p owner receiving notice of
4270	4183		refusal of the sale, transfer, or assignment shall have the right to
4271	4184		file a protest with the Oklahoma New Motor Vehicle Commission within
4272	4185		thirty (30) days of receipt of the refusal. A dealer receiving
4273	4186		notice that the sale, transfer or assignment is contingent upon the
4274	4187		transferee meeting facility and/or performance standards shall have
4275	4188		the right to file a protest with the Commission within thirty (30)
4276	4189		days of receipt of the notice. In the event a protest is filed, the
4277	4190		manufacturer or distributor shall have the burden of proof to
4278	4191		establish the proposed transferee or the proposed transferee's
4279	4192		controlling executive management is not of good moral character or
4280	4193		fails to meet the written reasonable and uniformly applied
4281	4194		requirements of the manufacturer or distributor relating to
4282	4195		prospective franchisees or that the facility requirements are not
4283	4196		reasonable based on the reasons set forth in subparagraph d of
4284	4197		paragraph 9 of Section 565 of this title different than those
4285	4198		contained in the transferor's franchise agreement.
4286	4199		F. Notwithstanding any other provision of this sec tion, the
4287	4200		dealer shall submit a signed copy of the Deale r Sales and Service
4288	4201		Agreement resulting from any completed sale, transfer, or assignment
4289	4202		of a franchise to the Oklahoma New Motor Vehicle Commission within
4290	4203		fifteen (15) business days.
4291	4204		SECTION 13. AMENDATORY 47 O.S. 20 21, Section 566, is
4292	4205		amended to read as follows:
4293	4206
4294		-	SENATE FLOOR VERSION - HB2244 SFLR Page 84
4295		-	(Bold face denotes Committee Amendments) 1
	4207	+	ENGR. H. B. NO. 2244 Page 84 1
4296	4208		2
4297	4209		3
4298	4210		4
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4302	4214		8
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4309	4221		15
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4311	4223		17
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4317	4229		23
4318	4230		24
4319	4231
4320	4232		Section 566. The Oklahoma New Motor Vehicle Commission may deny
4321	4233		any application for license, or suspend or revoke a lic ense issued
4322	4234		or impose a fine, only after a hearing of which the applicant, or
4323	4235		licensee affected, shall be given at least ten (10) da ys' written
4324	4236		notice specifying the reas on for denying the applicant a license,
4325	4237		or, in the case of a revocation or suspension or imposition of a
4326	4238		fine, the offenses of which the licensee is charged. Such notices
4327	4239		may be served as provided by law for the servi ce of notices, or
4328	4240		mailing a copy by re gistered mail to the last -known residence or
4329	4241		business address of such applicant or lic ensee. The hearing on such
4330	4242		charges shall be at such time and place as the Commission may
4331	4243		prescribe and the aforementioned notice sh all further specify the
4332	4244		time and place. If such applicant or licensee is a motor vehicl e
4333	4245		salesperson, factory representativ e or distributor representative,
4334	4246		the Commission shall in like manner also notify the perso n, firm,
4335	4247		association, corporation or trust with whom he or she is associated,
4336	4248		or in whose association he or she is about to enter. The Commission
4337	4249		shall have the power to compel the production of all records, papers
4338	4250		and other documents which may be deemed relevant to the proceeding
4339	4251		bearing upon the complaints. The Commission shall ha ve the power to
4340	4252		subpoena and bring before it any p erson, or take testimony of any
4341	4253		such person by deposition, with the same fees and mileage and in the
4342	4254		same manner as prescribed in proceedings before courts of the state
4343	4255		in civil cases. Any party to such he aring shall have the right to
4344	4256
4345		-	SENATE FLOOR VERSION - HB2244 SFLR Page 85
4346		-	(Bold face denotes Committee Amendments) 1
	4257	+	ENGR. H. B. NO. 2244 Page 85 1
4347	4258		2
4348	4259		3
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4350	4261		5
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4352	4263		7
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4368	4279		23
4369	4280		24
4370	4281
4371	4282		the attendance of wi tnesses in his or her behalf upon designati ng to
4372	4283		the Commission the person or persons sought to be subpoenaed.
4373	4284		SECTION 14. AMENDATORY 47 O.S. 2021, Section 566.1, is
4374	4285		amended to read as follows:
4375	4286		Section 566.1 All rulings, orders, decision s, procedures or
4376	4287		acts of the Oklahoma New Motor Vehicle Commission shall be subject
4377	4288		to the provisions of the Administrative Procedures Act, Sections 301
4378	4289		through 326 of Title 75 of the Oklahoma Statutes.
4379	4290		SECTION 15. AMENDATORY 47 O.S. 2021, Section 567, is
4380	4291		amended to read as follows:
4381	4292		Section 567. The Oklahoma New Motor Vehicle Commission is
4382	4293		hereby authorized, without cost bond or deposit, to institute
4383	4294		injunctive actions in courts of competent jurisd iction, in the name
4384	4295		of the State of Oklahoma on the relation of the C ommission, to
4385	4296		enforce the provisions of Sections 561 through 567, 572, 578.1, 579
4386	4297		and 579.1 of this title. Any licensee or other person who violates
4387	4298		or threatens to violate any provision of this chapter or rule
4388	4299		promulgated thereunder or order of the Commi ssion may be enjoined
4389	4300		from so doing.
4390	4301		SECTION 16. AMENDATORY 47 O.S. 2021, Section 576, is
4391	4302		amended to read as follows:
4392	4303		Section 576. There is hereby created a petty cash fund not to
4393	4304		exceed One Hundred Dollars ($100.00) for the Okla homa New Motor
4394	4305
4395		-	SENATE FLOOR VERSION - HB2244 SFLR Page 86
4396		-	(Bold face denotes Committee Amendments) 1
	4306	+	ENGR. H. B. NO. 2244 Page 86 1
4397	4307		2
4398	4308		3
4399	4309		4
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4416	4326		21
4417	4327		22
4418	4328		23
4419	4329		24
4420	4330
4421	4331		Vehicle Commission, which may be expended for small authorized
4422	4332		expenses of the Commission.
4423	4333		SECTION 17. AMENDATORY 47 O.S. 2021, Section 578.1, is
4424	4334		amended to read as follows:
4425	4335		Section 578.1 A. Notwithstanding the terms of a franchise and
4426	4336		notwithstanding the terms of a waiver, i f a factory intends or
4427	4337		proposes to enter into a franchise to establish an additional new
4428	4338		motor vehicle dealer or to relocate an existing new motor vehicle
4429	4339		dealer within or into a relevant market area in which the same line-
4430	4340		make of motor vehicle is currently represented, the factory shall
4431	4341		provide at least sixty (60) days advance written notice to the
4432	4342		Commission and to each new motor vehicle dealer of the same line-
4433	4343		make in the relevant market area, of the intention of the factory to
4434	4344		establish an additional ne w motor vehicle dealer or to relocate an
4435	4345		existing new motor vehicle dealer within or into the relevant market
4436	4346		area. For purposes of this section, the "relevant market area"
4437	4347		means the area within a radius of fifteen (15) miles of around the
4438	4348		site of the proposed new motor vehicle dealership measured from the
4439	4349		property boundary of the primary deale rship property. The notice
4440	4350		shall be sent by certified mail to each party and shall include the
4441	4351		following information:
4442	4352		1. The specific location at which the additional or relocated
4443	4353		new motor vehicle dealer will be established;
4444	4354
4445		-	SENATE FLOOR VERSION - HB2244 SFLR Page 87
4446		-	(Bold face denotes Committee Amendments) 1
	4355	+	ENGR. H. B. NO. 2244 Page 87 1
4447	4356		2
4448	4357		3
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4450	4359		5
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4470	4379
4471	4380		2. The date on or after which the additional or relocated new
4472	4381		motor vehicle dealer intends to commence business at the proposed
4473	4382		location;
4474	4383		3. The identity of all new motor vehicle dealers who are
4475	4384		franchised to sell the same line-make vehicles as the proposed new
4476	4385		motor vehicle dealer and who have licensed locations within the
4477	4386		relevant market area;
4478	4387		4. The names and addresses of the person intended to be
4479	4388		franchised as the proposed additional or relocated new motor vehicle
4480	4389		dealership, the principal investors in the propos ed additional or
4481	4390		relocated new motor vehicle dealership, and the proposed dealer
4482	4391		operator of the proposed additional or relocated new motor vehicle
4483	4392		dealership; and
4484	4393		5. The specific grounds or reasons for the proposed
4485	4394		establishment of an additional new motor vehicle dealer or
4486	4395		relocation of an existing new motor vehicle dealer.
4487	4396		B. This section does not apply The notice provisions and
4488	4397		hearing opportunities prescribed in subsection A of this section
4489	4398		shall not apply if any of the following are true :
4490	4399		1. To the relocation of an existing new motor vehicle dealer
4491	4400		within the relevant market area of that dealer; provided, that the
4492	4401		relocation not be at a site within ten (10) miles of a licensed new
4493	4402		motor vehicle dealer for the same line-make of motor vehicle;
4494	4403
4495		-	SENATE FLOOR VERSION - HB2244 SFLR Page 88
4496		-	(Bold face denotes Committee Amendments) 1
	4404	+	ENGR. H. B. NO. 2244 Page 88 1
4497	4405		2
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4520	4428
4521	4429		2. To a proposed additional new motor vehicle dealer which is
4522	4430		to be established at or within two (2) miles of a location at which
4523	4431		a former licensed new motor vehicle dealer for the same line-make of
4524	4432		new motor vehicle had ceased operating within the previous two (2)
4525	4433		years;
4526	4434		3. To the relocation of an existing new motor vehicle dealer
4527	4435		within two (2) miles of the existing site of the new motor vehicle
4528	4436		dealership; or
4529	4437		4. To the relocation of an existing new motor vehicle dealer if
4530	4438		the proposed site of the relocated new motor vehicle dealership is
4531	4439		farther away from all other new motor vehicle dealers of the same
4532	4440		line-make in that relevant market area.
4533	4441		C. Within thirty (30) days after receipt of the notice, or
4534	4442		within thirty (30) days after the end of an appeal procedure
4535	4443		provided by the factory, whichever is greater, a new motor vehicle
4536	4444		dealer so notified or entitled to notice may file a petition with
4537	4445		the Commission protesting the proposed establishment or relocation.
4538	4446		The petition shall contain a short statement setting forth the
4539	4447		reasons for the objection of the new motor vehicle dealer to the
4540	4448		proposed establishment or relocation. Upon filing of a protest, the
4541	4449		Commission shall promptly notify the factory that a timely protest
4542	4450		has been filed and shall schedule a hearing, which shall be held
4543	4451		within one hundred twenty (120) days of the filing of a timely
4544	4452		protest. The factory shall not establish or relocate the new motor
4545	4453
4546		-	SENATE FLOOR VERSION - HB2244 SFLR Page 89
4547		-	(Bold face denotes Committee Amendments) 1
	4454	+	ENGR. H. B. NO. 2244 Page 89 1
4548	4455		2
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4571	4478
4572	4479		vehicle dealer until the Commission has held a hearing and has
4573	4480		determined that there is good cause for permitting the proposed
4574	4481		establishment or relocation. When more than one protest is filed
4575	4482		against the establishment or relocation of the same dealer, the
4576	4483		Commission shall consolidate the hearings to expedite disposition of
4577	4484		the matter.
4578	4485		D. The burden of proof to establish that good cause exists for
4579	4486		permitting the proposed establishment of a new motor vehicle dealer
4580	4487		or relocating an existing new motor vehicle dealership shall be on
4581	4488		the applicant who seeks to establish a new motor vehicle dealership
4582	4489		or the relocation of an existing new motor vehicle dealership.
4583	4490		SECTION 18. AMENDATORY 47 O.S. 2021, Secti on 579, is
4584	4491		amended to read as follows:
4585	4492		Section 579. In determining whether good cause has been
4586	4493		established for permitting the proposed establishment or relocation
4587	4494		of an additional franchise for the s ame line-make, the Oklahoma New
4588	4495		Motor Vehicle Commission shall take into consideration, and must be
4589	4496		persuaded, that good cause exists for entering into or relocating an
4590	4497		additional franchise for the same line -make by the greater weight of
4591	4498		facts and the existing circumstances, including, but not limited to:
4592	4499		1. Permanency of the investment of the proposed dealership ;
4593	4500		2. Effect on the retail new motor vehicle business and the
4594	4501		consuming public in the relevant market area;
4595	4502
4596		-	SENATE FLOOR VERSION - HB2244 SFLR Page 90
4597		-	(Bold face denotes Committee Amendments) 1
	4503	+	ENGR. H. B. NO. 2244 Page 90 1
4598	4504		2
4599	4505		3
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4609	4515		13
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4619	4525		23
4620	4526		24
4621	4527
4622	4528		3. Whether it is injurious to the public welfare for an
4623	4529		additional new motor vehicle dealersh ip to be established;
4624	4530		4. Whether the new motor vehicl e dealers of the same line -make
4625	4531		in that relevant market area are providing adequate competition and
4626	4532		convenient consumer care for the motor vehicle sal es and service
4627	4533		facilities, equipment, supply of moto r vehicle parts, and qualified
4628	4534		service personnel; and
4629	4535		5. Whether the establishment of an additional new motor vehicle
4630	4536		dealership would increase competition, and therefore be in the
4631	4537		public interest.
4632	4538		SECTION 19. AMENDATORY 47 O.S. 2021, Section 580.2, is
4633	4539		amended to read as follows:
4634	4540		Section 580.2 During the time a person is operating a motor
4635	4541		vehicle with the express or implied permission of an authorized a
4636	4542		new motor vehicle dealer, as defined in Section 562 of this title,
4637	4543		such person's motor vehicle liability policy shall have primary
4638	4544		coverage with the motor vehicle liability policy of the new motor
4639	4545		vehicle dealer having secondary coverage until the vehicle is
4640	4546		returned. As used herein, "motor vehicle liability policy" means
4641	4547		motor vehicle insurance against legal liability for the death,
4642	4548		injury, or disability of any human being, or for damage to real or
4643	4549		personal property. The motor vehicle liability policy of any person
4644	4550		who has been loaned a vehicle by a new motor vehicle dealer pursuant
4645	4551		to the terms of this section shall provide primary coverage for any
4646	4552
4647		-	SENATE FLOOR VERSION - HB2244 SFLR Page 91
4648		-	(Bold face denotes Committee Amendments) 1
	4553	+	ENGR. H. B. NO. 2244 Page 91 1
4649	4554		2
4650	4555		3
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4652	4557		5
4653	4558		6
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4672	4577
4673	4578		death or injury of any h uman being or for any real or personal
4674	4579		property damage, including damage to the loaned vehicle, with the
4675	4580		motor vehicle insurance policy of the new motor vehicle dealer
4676	4581		having secondary coverage for any death or injury of any human being
4677	4582		or for any real or personal property damage, including damage to the
4678	4583		loaned vehicle. The change in financial responsibility shall be
4679	4584		evidenced by a release signed by the person operating the vehicle
4680	4585		with the express or implied pe rmission of the new motor vehicle
4681	4586		dealer with the release to be returned to the person upon the return
4682	4587		of the motor vehicle to the new motor vehicle dealer. The motor
4683	4588		vehicle liability policy of such person shall meet the minimum
4684	4589		financial responsibility requirements found in Section 7-324 of this
4685	4590		title.
4686	4591		This section shall apply only to the loan of a motor vehicle by
4687	4592		an authorized a new motor vehicle dealer which loan occurs without
4688	4593		financial remuneration in the form of a fee or lease charge.
4689	4594		SECTION 20. AMENDATORY 47 O.S. 2021, Section 583, as
4690	4595		amended by Section 3, Chapter 107, O.S.L. 2022 (47 O .S. Supp. 2022,
4691	4596		Section 583), is amended to read as follo ws:
4692	4597		Section 583. A. 1. It shall be unlawful and constitute a
4693	4598		misdemeanor for any p erson to engage in business as, or serve in the
4694	4599		capacity of, or act as a used motor vehicle dealer, wholesale used
4695	4600		motor vehicle dealer, manufactured home dealer, restricted
4696	4601		manufactured home park dealer, manufactured home installer, or
4697	4602
4698		-	SENATE FLOOR VERSION - HB2244 SFLR Page 92
4699		-	(Bold face denotes Committee Amendments) 1
	4603	+	ENGR. H. B. NO. 2244 Page 92 1
4700	4604		2
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4723	4627
4724	4628		manufactured home manufacturer selling directly to a licensed
4725	4629		manufactured home dealer in this state without first obtaining a
4726	4630		license or following other requirements theref or as provided in this
4727	4631		section.
4728	4632		2. a. Any person engaging, acting, or serving in the
4729	4633		capacity of a used motor vehicle dealer, a
4730	4634		manufactured home dealer, r estricted manufactured home
4731	4635		park dealer, a manufactured home installer, or a
4732	4636		manufactured home manufa cturer, or having more than
4733	4637		one place where any suc h business, or combination of
4734	4638		businesses, is carri ed on or conducted shall be
4735	4639		required to obtain and hol d a current license for each
4736	4640		such business, in which engaged.
4737	4641		b. If after a hearing in accordance wit h the provisions
4738	4642		of Section 585 of this title, the Oklahoma Used Motor
4739	4643		Vehicle, Dismantler, and Manufactured Housing
4740	4644		Commission shall find any person installing a mobile
4741	4645		or manufactured home to be in violation of any of the
4742	4646		provisions of this act, such person may be subject to
4743	4647		an administrative fine of not more than Five Hundred
4744	4648		Dollars ($500.00) for each violation. Each day a
4745	4649		person is in violati on of this act may constitute a
4746	4650		separate violation. All administrative fines
4747	4651		collected pursuant to th e provisions of this
4748	4652
4749		-	SENATE FLOOR VERSION - HB2244 SFLR Page 93
4750		-	(Bold face denotes Committee Amendments) 1
	4653	+	ENGR. H. B. NO. 2244 Page 93 1
4751	4654		2
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4774	4677
4775	4678		subparagraph shall be deposited in the fund
4776	4679		established in Section 582 of this title.
4777	4680		Administrative fines imposed pursuant to this
4778	4681		subparagraph may be enforceable in the district courts
4779	4682		of this state.
4780	4683		3. Any person, except persons penalized by administrative fine,
4781	4684		violating the provisions of this section shall, upon conviction, be
4782	4685		punished by a fine not to exceed Five Hundred Dollars ($500.00). A
4783	4686		second or subsequent conviction shall be punished by a fine not to
4784	4687		exceed One Thousand Dollars ($1,000.00); provi ded that each day such
4785	4688		unlicensed person violates this section shall constitute a separate
4786	4689		offense, and any vehicle involved in a violation of this subsection
4787	4690		shall be considered a separate offense.
4788	4691		B. 1. Applications for licens es required to be obtained under
4789	4692		the provisions of the Oklahoma Used Motor Vehicle, Dismantler, and
4790	4693		Manufactured Housing Commission shall be verified by the oath or
4791	4694		affirmation of the applicant and shall be on forms prescribed by the
4792	4695		Commission and furnished to the applicants, and shall contain such
4793	4696		information as the Commission deems necessary to enable it to fully
4794	4697		determine the qualifications an d eligibility of the several
4795	4698		applicants to receive the license or licenses applied for . The
4796	4699		Commission shall require in the application, or otherwise,
4797	4700		information relating to:
4798	4701		a. the applicant's financial standing,
4799	4702
4800		-	SENATE FLOOR VERSION - HB2244 SFLR Page 94
4801		-	(Bold face denotes Committee Amendments) 1
	4703	+	ENGR. H. B. NO. 2244 Page 94 1
4802	4704		2
4803	4705		3
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4807	4709		7
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4821	4723		21
4822	4724		22
4823	4725		23
4824	4726		24
4825	4727
4826	4728		b. the applicant's business integrity,
4827	4729		c. whether the applicant has an established place of
4828	4730		business and is engaged in the pursuit, avocation, or
4829	4731		business for which a license, or licenses, is applied
4830	4732		for,
4831	4733		d. whether the applicant is able to properly conduct the
4832	4734		business for which a license, or l icenses, is applied
4833	4735		for, and
4834	4736		e. such other pertinent information consistent with the
4835	4737		safeguarding of the public interest and the public
4836	4738		welfare.
4837	4739		2. All applications for license or licenses shall be
4838	4740		accompanied by the appropriate fee or fees in accordance with the
4839	4741		schedule hereinafter provided. In the event any application is
4840	4742		denied and the license applied for is not issued, the entire lice nse
4841	4743		fee shall be returned to the applicant.
4842	4744		3. All bonds and licenses issued under the prov isions of this
4843	4745		act shall expire on December 31, following the date of issue and
4844	4746		shall be nontransferable . All applications for r enewal of licenses
4845	4747		shall be submitted by November 1 of each ye ar of expiration, and
4846	4748		licenses for completed renewals received by November 1 shall be
4847	4749		issued by January 10. If applications have not been made for
4848	4750		renewal of licenses, such licenses shall expir e on December 31 and
4849	4751		it shall be illegal for any person to rep resent himself or herself
4850	4752
4851		-	SENATE FLOOR VERSION - HB2244 SFLR Page 95
4852		-	(Bold face denotes Committee Amendments) 1
	4753	+	ENGR. H. B. NO. 2244 Page 95 1
4853	4754		2
4854	4755		3
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4857	4758		6
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4872	4773		21
4873	4774		22
4874	4775		23
4875	4776		24
4876	4777
4877	4778		and act as a dealer thereafter . Tag agents shall be notified not to
4878	4779		accept dealers' titles until such time as licenses have been issued.
4879	4780		Beginning January 1, 2016, al l licenses shall be issued for a pe riod
4880	4781		of two (2) years and t he appropriate fees shall be assessed. The
4881	4782		Commission shall adop t rules necessary to imple ment the two-year
4882	4783		licensing provisions.
4883	4784		4. A certificate of registration shall permit the registered
4884	4785		person to engage in the activities of a used motor vehicle
4885	4786		salesperson. A salesperson shall be deemed to be temporarily
4886	4787		approved and allowed to sell vehi cles when applications and fees are
4887	4788		on file with the Commission.
4888	4789		C. The schedule of license and inspection fees to be charged
4889	4790		and received by the Commission for t he licenses and inspections
4890	4791		issued hereunder shall be as follows:
4891	4792		1. For each used motor veh icle dealer's license and each
4892	4793		wholesale used motor vehicle dealer's license, Six Hundred Dollars
4893	4794		($600.00). If a used motor vehicle d ealer or a wholesale used motor
4894	4795		vehicle dealer has once been licensed by the Commission in the
4895	4796		classification for which h e or she applies for a renewal of the
4896	4797		license, the fee for each subsequent renewal shall be Three Hundr ed
4897	4798		Dollars ($300.00); provided, if an applicant holds a license to
4898	4799		conduct business as an automotive dismantler and parts recyc ler
4899	4800		issued pursuant to Sec tion 591.1 et seq. of this title, the initial
4900	4801		fee shall be Two Hundred Dollars ($200.00) and the renewa l fee shall
4901	4802
4902		-	SENATE FLOOR VERSION - HB2244 SFLR Page 96
4903		-	(Bold face denotes Committee Amendments) 1
	4803	+	ENGR. H. B. NO. 2244 Page 96 1
4904	4804		2
4905	4805		3
4906	4806		4
4907	4807		5
4908	4808		6
4909	4809		7
4910	4810		8
4911	4811		9
4912	4812		10
4913	4813		11
4914	4814		12
4915	4815		13
4916	4816		14
4917	4817		15
4918	4818		16
4919	4819		17
4920	4820		18
4921	4821		19
4922	4822		20
4923	4823		21
4924	4824		22
4925	4825		23
4926	4826		24
4927	4827
4928	4828		be Two Hundred Dolla rs ($200.00). If an applicant is applying
4929	4829		simultaneously for a license under this paragraph an d a license
4930	4830		under paragraph 1 of Section 591.5 of this title, the initial
4931	4831		application fee shall be Four Hundred Dollars ($400.00) . For the
4932	4832		reinstatement of a us ed motor vehicle dealer's license after
4933	4833		revocation for cancellation or expiration of insurance pursuant to
4934	4834		subsection F of this section, the fee shall be Two Hundred Dollars
4935	4835		($200.00);
4936	4836		2. For a used motor vehicle dealer 's license, for each place of
4937	4837		business in addition to the principal place of business, Two Hundred
4938	4838		Dollars ($200.00);
4939	4839		3. For each holder who possesses a valid new motor vehicle
4940	4840		dealer's license from the Oklahoma New Motor Vehicle Commission, Two
4941	4841		Hundred Dollars ($200.00) shall be the initial fee for a used motor
4942	4842		vehicle license and the fee for each subsequent renewal shall be Two
4943	4843		Hundred Dollars ($200.00);
4944	4844		4. a. For each manufactured home dealer's license or a
4945	4845		restricted manufactured home park dealer 's license,
4946	4846		Six Hundred Dollars ($600.00), and for each place of
4947	4847		business in addition to the principal place of
4948	4848		business, Four Hundred Do llars ($400.00), and
4949	4849		b. For each renewal of a manufactured home dealer's
4950	4850		license or a restricted manufactured home park
4951	4851		dealer's license, and renewal for each pl ace of
4952	4852
4953		-	SENATE FLOOR VERSION - HB2244 SFLR Page 97
4954		-	(Bold face denotes Committee Amendments) 1
	4853	+	ENGR. H. B. NO. 2244 Page 97 1
4955	4854		2
4956	4855		3
4957	4856		4
4958	4857		5
4959	4858		6
4960	4859		7
4961	4860		8
4962	4861		9
4963	4862		10
4964	4863		11
4965	4864		12
4966	4865		13
4967	4866		14
4968	4867		15
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4970	4869		17
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4974	4873		21
4975	4874		22
4976	4875		23
4977	4876		24
4978	4877
4979	4878		business in addition to the principal place of
4980	4879		business, Three Hundred Dollars ($300.00) ;
4981	4880		5. a. For each manufactured home installer's license, Four
4982	4881		Hundred Dollars ($400.00), and
4983	4882		b. For each renewal of a manufactured hom e installer's
4984	4883		license, Four Hundred Dollars ($400.00);
4985	4884		6. a. For each manufactured home manufacturer selling
4986	4885		directly to a licensed manufactured home dea ler in
4987	4886		this state, One Thousand Five Hundred Dollars
4988	4887		($1,500.00), and
4989	4888		b. For each renewal of a manufactured home manufacturer 's
4990	4889		license, One Thousand Five Hundred Dollars
4991	4890		($1,500.00);
4992	4891		7. Any manufactured home manufacturer who sells a new
4993	4892		manufactured home to be shipped to or sited in the State of Oklahoma
4994	4893		shall pay an installation inspection fee of Seventy -five Dollars
4995	4894		($75.00) for each new single-wide manufactured home and One Hundred
4996	4895		Twenty-five Dollars ($125.00) for each ne w multi-floor manufactured
4997	4896		home; and
4998	4897		8. A used manufactured home inspection fee of Seventy-five
4999	4898		Dollars ($75.00) shall be paid by th e installer at or befo re the
5000	4899		time of installation of any used manufactured home sited and
5001	4900		installed in the State of Oklahom a.
5002	4901
5003		-	SENATE FLOOR VERSION - HB2244 SFLR Page 98
5004		-	(Bold face denotes Committee Amendments) 1
	4902	+	ENGR. H. B. NO. 2244 Page 98 1
5005	4903		2
5006	4904		3
5007	4905		4
5008	4906		5
5009	4907		6
5010	4908		7
5011	4909		8
5012	4910		9
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5024	4922		21
5025	4923		22
5026	4924		23
5027	4925		24
5028	4926
5029	4927		D. 1. The license issued to each used motor vehicle dealer,
5030	4928		each wholesale used motor vehicle dealer, each restricted
5031	4929		manufactured home park dealer a nd each manufactured home dealer
5032	4930		shall specify the location of the place of business . If the
5033	4931		business location is changed, the Oklahoma Used Motor Vehicle,
5034	4932		Dismantler, and Manufactured Housing Commission shall be notified
5035	4933		immediately of the change and the Commiss ion may endorse the change
5036	4934		of location on the license. The fee for a change of location shall
5037	4935		be One Hundred Dollars ($100.00), and the fee for a change of name,
5038	4936		Twenty-five Dollars ($25.00). The license of each lice nsee shall be
5039	4937		posted in a conspicuous place in the place or places of business of
5040	4938		the licensee.
5041	4939		2. The license issued to each manuf actured home install er and
5042	4940		each manufactured home manufacturer shall specify the location of
5043	4941		the place of business . If the business location is changed, the
5044	4942		Oklahoma Used Motor Vehicle, Dismantler, and Manufactured Housing
5045	4943		Commission shall be notified imm ediately of the change and the
5046	4944		Commission may endorse the change of location on the license without
5047	4945		charge. The license of each licensee shall be posted in a
5048	4946		conspicuous place in the place or places of business of the
5049	4947		licensee.
5050	4948		3. Every manufactured home installer shall have the license
5051	4949		available for inspection at the primary place of business of the
5052	4950		licensee. This license shall be valid for the licensee and all o f
5053	4951
5054		-	SENATE FLOOR VERSION - HB2244 SFLR Page 99
5055		-	(Bold face denotes Committee Amendments) 1
	4952	+	ENGR. H. B. NO. 2244 Page 99 1
5056	4953		2
5057	4954		3
5058	4955		4
5059	4956		5
5060	4957		6
5061	4958		7
5062	4959		8
5063	4960		9
5064	4961		10
5065	4962		11
5066	4963		12
5067	4964		13
5068	4965		14
5069	4966		15
5070	4967		16
5071	4968		17
5072	4969		18
5073	4970		19
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5075	4972		21
5076	4973		22
5077	4974		23
5078	4975		24
5079	4976
5080	4977		the employees of the licensee. Any person who is not an employee of
5081	4978		the licensee must obt ain a separate manufactured home installer
5082	4979		license regardless of whether such person is acting in the capacity
5083	4980		of a contractor or subcontractor.
5084	4981		E. 1. a. Each applicant for a used motor vehicle dealer's
5085	4982		license shall procure and file with the Commission a
5086	4983		good and sufficient bond in the amount of Twenty-five
5087	4984		Thousand Dollars ($25,000.00). Each new applicant for
5088	4985		a used motor vehicle dealer's license for the purpose
5089	4986		of conducting a used motor vehicle auction shall
5090	4987		procure and file with the Commission a good and
5091	4988		sufficient bond in the amount of Fifty Thousand
5092	4989		Dollars ($50,000.00). An applicant who intends to
5093	4990		conduct a used motor vehicle auction who provides
5094	4991		proof that the applicant has check and title insurance
5095	4992		in an amount not less than Fifty Thousand Dollar s
5096	4993		($50,000.00) shall only be required to have a bond in
5097	4994		the amount of Twenty-five Thousand Dollars
5098	4995		($25,000.00).
5099	4996		b. Each new applicant for a used motor vehicle dea ler
5100	4997		license for the purpose of conducting a used motor
5101	4998		vehicle business which will consist pr imarily of non-
5102	4999		auction consignment sales which are projected to equal
5103	5000		Five Hundred Thousand Dollars ($500,000.00) o r more in
5104	5001
5105		-	SENATE FLOOR VERSION - HB2244 SFLR Page 100
5106		-	(Bold face denotes Committee Amendments) 1
	5002	+	ENGR. H. B. NO. 2244 Page 100 1
5107	5003		2
5108	5004		3
5109	5005		4
5110	5006		5
5111	5007		6
5112	5008		7
5113	5009		8
5114	5010		9
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5119	5015		14
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5121	5017		16
5122	5018		17
5123	5019		18
5124	5020		19
5125	5021		20
5126	5022		21
5127	5023		22
5128	5024		23
5129	5025		24
5130	5026
5131	5027		gross annual sales shall procure and f ile with the
5132	5028		Commission a good and sufficient bond in the amount of
5133	5029		Fifty Thousand Dollars ($ 50,000.00). The Commission
5134	5030		shall prescribe by rule the method of operation of the
5135	5031		non-auction consignment dealer i n order to properly
5136	5032		protect the interests of all parties to the
5137	5033		transaction and to provide sanctions against dealers
5138	5034		who fail to comply with the rules.
5139	5035		c. Each applicant for a wholesale used motor vehicle
5140	5036		dealer's license shall procure and file with the
5141	5037		Commission a good and sufficient bond in the amoun t of
5142	5038		Twenty-five Thousand Dollars ($25,000.00).
5143	5039		d. Any used motor vehicle dealer who, for the purpose of
5144	5040		being a rebuilder, applies for a rebuilder
5145	5041		certificate, as provided in Section 591.5 of this
5146	5042		title, whether as a new application or renewal, shall
5147	5043		procure and file with the Commission a good and
5148	5044		sufficient bond in the amount of Fifteen Thousand
5149	5045		Dollars ($15,000.00), in addition to any other bonds
5150	5046		required.
5151	5047		e. Each applicant for a manufactured home dealer 's
5152	5048		license or a restricted manufactured home park
5153	5049		dealer's license shall procure and file with the
5154	5050
5155		-	SENATE FLOOR VERSION - HB2244 SFLR Page 101
5156		-	(Bold face denotes Committee Amendments) 1
	5051	+	ENGR. H. B. NO. 2244 Page 101 1
5157	5052		2
5158	5053		3
5159	5054		4
5160	5055		5
5161	5056		6
5162	5057		7
5163	5058		8
5164	5059		9
5165	5060		10
5166	5061		11
5167	5062		12
5168	5063		13
5169	5064		14
5170	5065		15
5171	5066		16
5172	5067		17
5173	5068		18
5174	5069		19
5175	5070		20
5176	5071		21
5177	5072		22
5178	5073		23
5179	5074		24
5180	5075
5181	5076		Commission a good and sufficient bond in the amount of
5182	5077		Thirty Thousand Dollars ($30,000.00).
5183	5078		f. Each manufactured home manufacturing facility selling
5184	5079		directly to a licensed manufactured home dealer or
5185	5080		restricted manufactured home park dealer in this state
5186	5081		shall procure and file with the Commission a good and
5187	5082		sufficient bond in the amount of Thirty Thousand
5188	5083		Dollars ($30,000.00). In addition to all other
5189	5084		conditions and requirements set forth herein, the bond
5190	5085		shall require the availability of prompt and full
5191	5086		warranty service by the manufacturer to compl y with
5192	5087		all warranties expressed or implied in connection with
5193	5088		each manufactured home which is manufactured for
5194	5089		resale or use in this state. A manufacturer may not
5195	5090		sell, exchange, or lease-purchase with an option to
5196	5091		own in any form a manufactured home to a person in
5197	5092		this state directly or indirectly through a
5198	5093		distributor or third party who is not a licensed
5199	5094		manufactured home dealer or a restricted manufactured
5200	5095		home park dealer.
5201	5096		g. The bond shall be approved as to form by the Attorney
5202	5097		General and conditioned that the applicant shall not
5203	5098		practice fraud, make any fraudulent representation, or
5204	5099		violate any of the provisions of this act in the
5205	5100
5206		-	SENATE FLOOR VERSION - HB2244 SFLR Page 102
5207		-	(Bold face denotes Committee Amendments) 1
	5101	+	ENGR. H. B. NO. 2244 Page 102 1
5208	5102		2
5209	5103		3
5210	5104		4
5211	5105		5
5212	5106		6
5213	5107		7
5214	5108		8
5215	5109		9
5216	5110		10
5217	5111		11
5218	5112		12
5219	5113		13
5220	5114		14
5221	5115		15
5222	5116		16
5223	5117		17
5224	5118		18
5225	5119		19
5226	5120		20
5227	5121		21
5228	5122		22
5229	5123		23
5230	5124		24
5231	5125
5232	5126		conduct of the business for w hich the applicant is
5233	5127		licensed. One of the purposes of the bond is to
5234	5128		provide reimbursement for any loss or damage suffered
5235	5129		by any person by reason of issuance of a certificate
5236	5130		of title by a used motor vehic le dealer, a wholesale
5237	5131		used motor vehicle dealer , a restricted manufactured
5238	5132		home park dealer or a manufactured home dealer.
5239	5133		2. The bonds as required by this section shall be maintained
5240	5134		throughout the period of licensure. Should the bond be canceled for
5241	5135		any reason, the license shall be revoked as of th e date of
5242	5136		cancellation unless a new bond is furnished prior to such date.
5243	5137		F. Any used motor vehicle dealer or wholesale used motor
5244	5138		vehicle dealer is required to furnish and keep in force a minimum of
5245	5139		Twenty-five Thousand Dollars ($25,000.00) of single lia bility
5246	5140		insurance coverage on all vehicles offered for sale or used in any
5247	5141		other capacity in demonstrating or utilizing the streets and
5248	5142		roadways in accordance with the financial responsibility laws of
5249	5143		this state.
5250	5144		G. Any manufactured home dealer or restrict ed manufactured home
5251	5145		park dealer is required to furnish and keep in force a minimum of
5252	5146		One Hundred Thousand Dollars ($100,000.00) of garage liability or
5253	5147		general liability with products and completed operation s insurance
5254	5148		coverage.
5255	5149
5256		-	SENATE FLOOR VERSION - HB2244 SFLR Page 103
5257		-	(Bold face denotes Committee Amendments) 1
	5150	+	ENGR. H. B. NO. 2244 Page 103 1
5258	5151		2
5259	5152		3
5260	5153		4
5261	5154		5
5262	5155		6
5263	5156		7
5264	5157		8
5265	5158		9
5266	5159		10
5267	5160		11
5268	5161		12
5269	5162		13
5270	5163		14
5271	5164		15
5272	5165		16
5273	5166		17
5274	5167		18
5275	5168		19
5276	5169		20
5277	5170		21
5278	5171		22
5279	5172		23
5280	5173		24
5281	5174
5282	5175		H. Any manufactured home installer is required to furnish and
5283	5176		keep in force a minimum of Twenty-five Thousand Dollars ($25,000.00)
5284	5177		of general liability with products and completed operations
5285	5178		insurance coverage.
5286	5179		SECTION 21. AMENDATORY 47 O.S. 2021, Section 583.1, as
5287	5180		amended by Section 4, Ch apter 107, O.S.L. 2022 (47 O.S. Supp. 2022,
5288	5181		Section 583.1), is amended to read as follows:
5289	5182		Section 583.1 A. It shall be punishable by an administrative
5290	5183		fine not to exceed Five Hundred Dollars ($500.00) for any person,
5291	5184		firm, association, corporation or trust to engage in business as, or
5292	5185		serve in the capacity of, a used motor vehicle salesperson in this
5293	5186		state without first obtaining a certificate of registrat ion with the
5294	5187		Oklahoma Used Motor Vehicle, Dismantler, and Manufactured Housing
5295	5188		Commission. However, a person may sell used motor vehicles without
5296	5189		obtaining a separate used motor vehicle salesperson 's certificate of
5297	5190		registration if the person has a certificate of registration from
5298	5191		the Oklahoma New Motor Vehicle Commission to sell new or unused
5299	5192		motor vehicles at a new motor vehicle dealer's licensed franchise
5300	5193		location which also sells used vehicles; provided, such a person
5301	5194		shall only be authorized to s ell used motor vehicles for the dealer
5302	5195		at the new motor vehicle dealer's licensed franchise location and to
5303	5196		represent the new motor vehicle dealer at used motor ve hicle
5304	5197		auctions. The cost of the registration for each salesperson shall
5305	5198		be Fifty Dollars ($5 0.00) to be renewed biennially and, for a
5306	5199
5307		-	SENATE FLOOR VERSION - HB2244 SFLR Page 104
5308		-	(Bold face denotes Committee Amendments) 1
	5200	+	ENGR. H. B. NO. 2244 Page 104 1
5309	5201		2
5310	5202		3
5311	5203		4
5312	5204		5
5313	5205		6
5314	5206		7
5315	5207		8
5316	5208		9
5317	5209		10
5318	5210		11
5319	5211		12
5320	5212		13
5321	5213		14
5322	5214		15
5323	5215		16
5324	5216		17
5325	5217		18
5326	5218		19
5327	5219		20
5328	5220		21
5329	5221		22
5330	5222		23
5331	5223		24
5332	5224
5333	5225		transfer, Twenty-five Dollars ($25.00). The cost of registration is
5334	5226		to be borne by the employing entity of the salesperson. The
5335	5227		Oklahoma Used Motor Vehicle , Dismantler, and Manufactured Housing
5336	5228		Commission shall promulgate rules and procedures necessary for the
5337	5229		implementation and creation of a registry of salespersons and the
5338	5230		issuance of certificates of registrati on.
5339	5231		B. It shall be punishable by an administrative fi ne not to
5340	5232		exceed Five Hundred Dollars ( $500.00) for any person, firm,
5341	5233		association, corpora tion or trust to engage in business as, or serve
5342	5234		in the capacity of, a manufactured home salesperson in this st ate
5343	5235		without first obtaining a certificate of registrati on with the
5344	5236		Oklahoma Used Motor Vehicle , Dismantler, and Manufactured Housing
5345	5237		Commission. The cost of the registration for each salesperson shall
5346	5238		be Fifty Dollars ($50.00) to be renewed biennially and, for a
5347	5239		transfer, Twenty-five Dollars ($25.00). The cost of registration is
5348	5240		to be borne by the employing entity of the salesperson. The
5349	5241		Commission shall promul gate rules and procedures necessary for the
5350	5242		implementation and creation of a registry of salespersons and the
5351	5243		issuance of certificates of registration.
5352	5244		SECTION 22. AMENDATORY 47 O.S. 2021, Section 596.1, is
5353	5245		amended to read as follows:
5354	5246		Section 596.1 As used in this act:
5355	5247		1. "Area of sales responsibility" means a geographical area
5356	5248		agreed to by a dealer and the manufacturer in a dealer agreement in
5357	5249
5358		-	SENATE FLOOR VERSION - HB2244 SFLR Page 105
5359		-	(Bold face denotes Committee Amendments) 1
	5250	+	ENGR. H. B. NO. 2244 Page 105 1
5360	5251		2
5361	5252		3
5362	5253		4
5363	5254		5
5364	5255		6
5365	5256		7
5366	5257		8
5367	5258		9
5368	5259		10
5369	5260		11
5370	5261		12
5371	5262		13
5372	5263		14
5373	5264		15
5374	5265		16
5375	5266		17
5376	5267		18
5377	5268		19
5378	5269		20
5379	5270		21
5380	5271		22
5381	5272		23
5382	5273		24
5383	5274
5384	5275		which the dealer has the exclusive right to display or sell the new
5385	5276		recreational vehicles of a manufac turer of a particular line -make to
5386	5277		the public;
5387	5278		2. "Camping trailer" means a vehicular unit that is mounted on
5388	5279		wheels and constructed with collapsible partial side walls that fold
5389	5280		for towing by another vehicle and unfold at the campsi te to provide
5390	5281		temporary living quarters for recreational , camping or travel use;
5391	5282		3. "Commission" means the Okla homa New Motor Vehicle
5392	5283		Commission;
5393	5284		4. "Dealer" means any person, firm, corporation, or business
5394	5285		entity licensed or required to be licensed pursuant to the
5395	5286		provisions of this act to sell new recreatio nal vehicles;
5396	5287		4. 5. "Dealer agreement" means a written agreemen t or contract
5397	5288		entered into between a manufacturer and a dealer that establishes
5398	5289		the legal rights and obligations of the parties to that agreement or
5399	5290		contract and pursuant to which the dealer i s authorized to sell new
5400	5291		recreational vehicles manufactured or d istributed by the
5401	5292		manufacturer;
5402	5293		5. 6. "Established place of business " means a permanently
5403	5294		enclosed building or structure, easily accessible to the public,
5404	5295		with a paved or graveled lot for cus tomer parking and for the
5405	5296		showing and storage of vehicles. Estab lished place of business
5406	5297		shall not mean tents, temporary stands, lots, or other temporary
5407	5298		quarters. The established place of business shall have a sign
5408	5299
5409		-	SENATE FLOOR VERSION - HB2244 SFLR Page 106
5410		-	(Bold face denotes Committee Amendments) 1
	5300	+	ENGR. H. B. NO. 2244 Page 106 1
5411	5301		2
5412	5302		3
5413	5303		4
5414	5304		5
5415	5305		6
5416	5306		7
5417	5307		8
5418	5308		9
5419	5309		10
5420	5310		11
5421	5311		12
5422	5312		13
5423	5313		14
5424	5314		15
5425	5315		16
5426	5316		17
5427	5317		18
5428	5318		19
5429	5319		20
5430	5320		21
5431	5321		22
5432	5322		23
5433	5323		24
5434	5324
5435	5325		visible from the outside of the busine ss which identifies the
5436	5326		recreational vehicle dealership. The est ablished place of business
5437	5327		shall have an indoor office with public areas sufficient to conduct
5438	5328		sales transactions with customers and have restroom facilities
5439	5329		available for the public. The es tablished place of business shall
5440	5330		include a service and parts are a, separated from the public areas,
5441	5331		equipped with tools, equipment, and replacement parts necessary for
5442	5332		reasonably expected warranty and service needs;
5443	5333		6. 7. "Factory campaign" means an effort by a warrantor to
5444	5334		contact recreational vehicle owners or recrea tional vehicle dealers
5445	5335		in order to address an issue concerning a recreational vehicle
5446	5336		problem, defective part or equipment;
5447	5337		7. 8. "Factory representative" means any officer or agent
5448	5338		engaged as a representative of a manufacturer of recreational
5449	5339		vehicles or a factory branch for the purpose of making or promoting
5450	5340		the sale of recreational vehicles of the manufacturer or for
5451	5341		supervising or contacting dealers or p rospective dealers of the
5452	5342		manufacturer;
5453	5343		8. 9. "Family member" means any of the following:
5454	5344		a. a spouse of an individual,
5455	5345		b. a child, grandchild, parent, sibling, niece, or nephew
5456	5346		of an individual, or
5457	5347		c. the spouse of a child, grandchild, parent, sibling,
5458	5348		niece, or nephew of an individual;
5459	5349
5460		-	SENATE FLOOR VERSION - HB2244 SFLR Page 107
5461		-	(Bold face denotes Committee Amendments) 1
	5350	+	ENGR. H. B. NO. 2244 Page 107 1
5462	5351		2
5463	5352		3
5464	5353		4
5465	5354		5
5466	5355		6
5467	5356		7
5468	5357		8
5469	5358		9
5470	5359		10
5471	5360		11
5472	5361		12
5473	5362		13
5474	5363		14
5475	5364		15
5476	5365		16
5477	5366		17
5478	5367		18
5479	5368		19
5480	5369		20
5481	5370		21
5482	5371		22
5483	5372		23
5484	5373		24
5485	5374
5486	5375		9. 10. "Fifth wheel trailer" means a vehicular unit mounted on
5487	5376		wheels that is designed to provide temporary living quarters for
5488	5377		recreational, camping or travel use of such size and weight as to
5489	5378		not require a special highw ay movement permit and is designed to be
5490	5379		towed by a motorized vehicle that contains a towing mechanism that
5491	5380		is mounted above or forward of the rear axle of the tow vehicle;
5492	5381		10. 11. "Line-make" means a specific series of recreational
5493	5382		vehicle products that meet all of the following:
5494	5383		a. are identified by a common series trade name or
5495	5384		trademark,
5496	5385		b. are targeted to a particular market segment based on
5497	5386		the decor, features, equipment, size, weight, and
5498	5387		price range,
5499	5388		c. have dimensions and interior floor plans that
5500	5389		distinguish the recreational vehi cles from
5501	5390		recreational vehicles that have substantially the same
5502	5391		decor, features, equipment, weight, and price,
5503	5392		d. belong to a single, distinct classification of
5504	5393		recreational vehicle product type that has a
5505	5394		substantial degree of commonality in the construc tion
5506	5395		of the chassis, frame, and body, and
5507	5396		e. are authorized for sale b y the dealer in the dealer
5508	5397		agreement;
5509	5398
5510		-	SENATE FLOOR VERSION - HB2244 SFLR Page 108
5511		-	(Bold face denotes Committee Amendments) 1
	5399	+	ENGR. H. B. NO. 2244 Page 108 1
5512	5400		2
5513	5401		3
5514	5402		4
5515	5403		5
5516	5404		6
5517	5405		7
5518	5406		8
5519	5407		9
5520	5408		10
5521	5409		11
5522	5410		12
5523	5411		13
5524	5412		14
5525	5413		15
5526	5414		16
5527	5415		17
5528	5416		18
5529	5417		19
5530	5418		20
5531	5419		21
5532	5420		22
5533	5421		23
5534	5422		24
5535	5423
5536	5424		11. 12. "Manufacturer" means a person that manufactures or
5537	5425		wholesales recreational vehicles or that distributes o r wholesales
5538	5426		recreational vehicles to dealers;
5539	5427		12. 13. "Motor home" means a motorized, vehicular unit des igned
5540	5428		to provide temporary living quarters for recreational, camping or
5541	5429		travel use;
5542	5430		13. "OMVC" means the Oklahoma Motor Vehicle Commission;
5543	5431		14. "Person" means an individual, partners hip, corporation,
5544	5432		limited liability company, association, trust, estate, or other
5545	5433		legal entity;
5546	5434		15. "Proprietary part" means a recreational vehicle part
5547	5435		manufactured by or for a manufacturer and sold exclusively by a
5548	5436		manufacturer;
5549	5437		16. "Recreational vehic le" means a vehicle that:
5550	5438		a. is primarily designed as a vehicle that als o provides
5551	5439		temporary living quarters for noncommercial,
5552	5440		recreational or camping use,
5553	5441		b. is built to the standards of the National Fire
5554	5442		Protection Association for recreational vehicles,
5555	5443		c. has its own motive power or is mounted on or towed by
5556	5444		another vehicle,
5557	5445		d. is regulated by the National Highway Traffic Safety
5558	5446		Administration as a vehicle or vehicle equipment,
5559	5447
5560		-	SENATE FLOOR VERSION - HB2244 SFLR Page 109
5561		-	(Bold face denotes Committee Amendments) 1
	5448	+	ENGR. H. B. NO. 2244 Page 109 1
5562	5449		2
5563	5450		3
5564	5451		4
5565	5452		5
5566	5453		6
5567	5454		7
5568	5455		8
5569	5456		9
5570	5457		10
5571	5458		11
5572	5459		12
5573	5460		13
5574	5461		14
5575	5462		15
5576	5463		16
5577	5464		17
5578	5465		18
5579	5466		19
5580	5467		20
5581	5468		21
5582	5469		22
5583	5470		23
5584	5471		24
5585	5472
5586	5473		e. does not require a special highway use permit for
5587	5474		operation on the highwa ys, and
5588	5475		f. an individual can easily transport and set up on a
5589	5476		daily basis.
5590	5477		Recreational vehicles includes motor homes, travel trailers, fifth
5591	5478		wheel travel trailers, folding camping trailers and truck campers;
5592	5479		17. "Recreational vehicle salesperson" means a ny person who,
5593	5480		for gain or compensation of any kind, either directly or indirectly,
5594	5481		regularly or occasionally, by any form of agreement or arrangement,
5595	5482		sells or negotiates for the sale of any new recreational vehicle for
5596	5483		any new recreational vehicle dealer to any one or more third
5597	5484		parties;
5598	5485		18. "Transient customer" means a person who:
5599	5486		a. owns a recreational vehicle,
5600	5487		b. is temporarily traveling through the area of sales
5601	5488		responsibility of a dealer,
5602	5489		c. engages the dealer to pe rform service work on that
5603	5490		recreational vehicle, and
5604	5491		d. requires repairs that relate to the safe operation s of
5605	5492		that recreational vehicle or, if not undertaken, are
5606	5493		of a nature that would render that recreational
5607	5494		vehicle unusable;
5608	5495		19. "Travel trailer" mean s a vehicular unit mounted on whee ls
5609	5496		that is designed to provide temporary living quarters for
5610	5497
5611		-	SENATE FLOOR VERSION - HB2244 SFLR Page 110
5612		-	(Bold face denotes Committee Amendments) 1
	5498	+	ENGR. H. B. NO. 2244 Page 110 1
5613	5499		2
5614	5500		3
5615	5501		4
5616	5502		5
5617	5503		6
5618	5504		7
5619	5505		8
5620	5506		9
5621	5507		10
5622	5508		11
5623	5509		12
5624	5510		13
5625	5511		14
5626	5512		15
5627	5513		16
5628	5514		17
5629	5515		18
5630	5516		19
5631	5517		20
5632	5518		21
5633	5519		22
5634	5520		23
5635	5521		24
5636	5522
5637	5523		recreational, camping or travel use of such size and weight as to
5638	5524		not require a special highway movement permit when towed by a
5639	5525		motorized vehicle;
5640	5526		20. "Truck camper" means a portable unit that i s constructed to
5641	5527		provide temporary living quarters for recreational, cam ping or
5642	5528		travel use and consists of a roof, floor and sides and is designed
5643	5529		to be loaded onto and unloaded from the back of a pickup truck; and
5644	5530		21. "Warrantor" means a manufacturer or any other person that
5645	5531		provides a warranty to the consumer in connection with a new
5646	5532		recreational vehicle or parts, accessories, or components of a new
5647	5533		recreational vehicle. The term does not include a person that
5648	5534		provides a service contract, mechanical or other insurance, or an
5649	5535		extended warranty sold for separate consideration by a dealer or
5650	5536		other person not controlled by a warrantor.
5651	5537		SECTION 23. AMENDATORY 47 O.S. 2021, Section 596.2, is
5652	5538		amended to read as follows:
5653	5539		Section 596.2 A. It shall be unlawful for any person, firm,
5654	5540		association, corporation or trust to engage in business as, or serve
5655	5541		in the capacity of, or act as a new recreational vehicle dealer, new
5656	5542		recreational vehicle manufacturer, new recreational vehicle factory
5657	5543		representative or new recreational vehicle salesperson in this state
5658	5544		without first obtaining a license or salesperson registration as
5659	5545		provided for by law.
5660	5546
5661		-	SENATE FLOOR VERSION - HB2244 SFLR Page 111
5662		-	(Bold face denotes Committee Amendments) 1
	5547	+	ENGR. H. B. NO. 2244 Page 111 1
5663	5548		2
5664	5549		3
5665	5550		4
5666	5551		5
5667	5552		6
5668	5553		7
5669	5554		8
5670	5555		9
5671	5556		10
5672	5557		11
5673	5558		12
5674	5559		13
5675	5560		14
5676	5561		15
5677	5562		16
5678	5563		17
5679	5564		18
5680	5565		19
5681	5566		20
5682	5567		21
5683	5568		22
5684	5569		23
5685	5570		24
5686	5571
5687	5572		B. The Oklahoma New Motor Vehicle Commission (OMVC) shall issue
5688	5573		new recreational vehicle dealer, manufac turer and factory
5689	5574		representative licenses and recreational vehicle salesperson
5690	5575		registrations upon application . The Commission shall promulgate
5691	5576		rules and forms to implement and enforce t he provisions of this
5692	5577		section.
5693	5578		C. The schedule of license fees and salesperson registration
5694	5579		fees to be charged and received by th e Oklahoma Motor Vehicle
5695	5580		Commission for the licenses issued hereunder shall be as follows:
5696	5581		1. For each manufacturer or distri butor of new recreational
5697	5582		vehicles, an initial fee of Four Hundred Dol lars ($400.00) with an
5698	5583		annual renewal fee of Three Hundred Dollars ($300.00);
5699	5584		2. For each factory representative, an initial fee of One
5700	5585		Hundred Dollars ($100.00) with an annual renewal fee of One Hundred
5701	5586		Dollars ($100.00);
5702	5587		3. For each new motor home deal er, an initial fee of Three
5703	5588		Hundred Dollars ($300.00) per franchise sold at each licensed
5704	5589		location with an annual renewal fee of One Hundred Dollars ($100.00)
5705	5590		per franchise sold at each licensed location;
5706	5591		4. For each fifth wheel trailer, travel trailer, c amping
5707	5592		trailer and truck camper dealer, an initial fee of Three Hundred
5708	5593		Dollars ($300.00) per manufacturer represented at each licensed
5709	5594		location with an annual renewal fee of One Hundred Dollars ($100.00)
5710	5595		per manufacturer represented at each location; and
5711	5596
5712		-	SENATE FLOOR VERSION - HB2244 SFLR Page 112
5713		-	(Bold face denotes Committee Amendments) 1
	5597	+	ENGR. H. B. NO. 2244 Page 112 1
5714	5598		2
5715	5599		3
5716	5600		4
5717	5601		5
5718	5602		6
5719	5603		7
5720	5604		8
5721	5605		9
5722	5606		10
5723	5607		11
5724	5608		12
5725	5609		13
5726	5610		14
5727	5611		15
5728	5612		16
5729	5613		17
5730	5614		18
5731	5615		19
5732	5616		20
5733	5617		21
5734	5618		22
5735	5619		23
5736	5620		24
5737	5621
5738	5622		5. For each salesperson registration, an initial fee of Twenty -
5739	5623		five Dollars ($25.00) with an annual renewal fee of Twenty -five
5740	5624		Dollars ($25.00).
5741	5625		D. A manufacturer shall not sell or dis play for sale a
5742	5626		recreational vehicle in this state except to a dealer or through a
5743	5627		dealer that is licensed by th e Commission to sell recreational
5744	5628		vehicles in the State of Oklahoma . The manufacturer shall also be
5745	5629		required to have a dealer agreement with th e dealer that meets the
5746	5630		requirements of the Recreational Vehicle Franc hise Act and is signed
5747	5631		by both parties.
5748	5632		E. A dealer shall not sell or display for sale a new
5749	5633		recreational vehicle in this state unless the deale r is licensed by
5750	5634		the Commission to sell recreational vehicles in the State of
5751	5635		Oklahoma. The dealer shall also be required to have a dealer
5752	5636		agreement with the manufacturer of the recreational vehicle that
5753	5637		meets the requirements of this act and is signed by both parties.
5754	5638		SECTION 24. AMENDATORY 47 O.S. 2021, Section 596.3, is
5755	5639		amended to read as follows:
5756	5640		Section 596.3 A. All of the following conditions shall apply
5757	5641		to the area of sales responsibility of a dealer included in a dealer
5758	5642		agreement between a manufacturer and a dealer:
5759	5643		1. The manufacturer shall desi gnate in the dealer agreement the
5760	5644		area of sales responsibility exclusively ass igned to the dealer;
5761	5645
5762		-	SENATE FLOOR VERSION - HB2244 SFLR Page 113
5763		-	(Bold face denotes Committee Amendments) 1
	5646	+	ENGR. H. B. NO. 2244 Page 113 1
5764	5647		2
5765	5648		3
5766	5649		4
5767	5650		5
5768	5651		6
5769	5652		7
5770	5653		8
5771	5654		9
5772	5655		10
5773	5656		11
5774	5657		12
5775	5658		13
5776	5659		14
5777	5660		15
5778	5661		16
5779	5662		17
5780	5663		18
5781	5664		19
5782	5665		20
5783	5666		21
5784	5667		22
5785	5668		23
5786	5669		24
5787	5670
5788	5671		2. The manufacturer shall not change the area of sales
5789	5672		responsibility of a dealer or establish another dealer for the same
5790	5673		line-make in that area during the term of the dealer agreement; and
5791	5674		3. The area of sales responsibility may no t be reviewed or
5792	5675		changed without the consent of both parties until one (1) year after
5793	5676		the execution of the dealer agreement.
5794	5677		B. A dealer may not conduct sales activity or displa y for sale
5795	5678		recreational vehicles outside of its designated area of sales
5796	5679		responsibility.
5797	5680		C. A dealer may sell off -premise within the area of sales
5798	5681		responsibility of the dealer under the following circumstances:
5799	5682		1. At sanctioned recreational vehicle shows where the sales
5800	5683		event is held off-premise and at least sixty-seven percent (67%) of
5801	5684		the recreational vehicle dealers that are located within a sixty -
5802	5685		mile radius of the location of the show participate in the show. A
5803	5686		sanctioned recreational vehicle show m ay be held only under the
5804	5687		following conditions:
5805	5688		a. the sponsoring entity of th e sales event shall obtain
5806	5689		a permit from the OMVC Oklahoma New Motor Vehicle
5807	5690		Commission at the rate of Two Hundred Dollars
5808	5691		($200.00) per event. The permit shall be for a period
5809	5692		not to exceed ten (10) consecutive days,
5810	5693		b. dealer permits for a sanctioned re creational vehicle
5811	5694		show described in this paragraph shall be obtained
5812	5695
5813		-	SENATE FLOOR VERSION - HB2244 SFLR Page 114
5814		-	(Bold face denotes Committee Amendments) 1
	5696	+	ENGR. H. B. NO. 2244 Page 114 1
5815	5697		2
5816	5698		3
5817	5699		4
5818	5700		5
5819	5701		6
5820	5702		7
5821	5703		8
5822	5704		9
5823	5705		10
5824	5706		11
5825	5707		12
5826	5708		13
5827	5709		14
5828	5710		15
5829	5711		16
5830	5712		17
5831	5713		18
5832	5714		19
5833	5715		20
5834	5716		21
5835	5717		22
5836	5718		23
5837	5719		24
5838	5720
5839	5721		from the OMVC Commission at a rate of Fifteen Dollars
5840	5722		($15.00) for each motor home per sanctioned
5841	5723		recreational vehicle show,
5842	5724		c. new recreational vehicle dealers whose manufacturer-
5843	5725		approved area of responsibility includes the event
5844	5726		location shall be eligible to participate in the
5845	5727		sanctioned recreational vehicle show,
5846	5728		d. new recreational vehicle dealers shall obta in written
5847	5729		approval from the manuf acturer or distributor to
5848	5730		participate in the sanctioned recreational vehicle
5849	5731		show, and
5850	5732		e. the sanctioned recreational vehicle show shall be
5851	5733		conducted within municipal, county, or state -owned or
5852	5734		controlled facilities or wit hin the grounds of any
5853	5735		county, district, or state fair; and
5854	5736		2. At nonsanctioned recreational vehicle shows where one or
5855	5737		more dealers may sell recreational vehicles off -premise under the
5856	5738		following conditions:
5857	5739		a. dealer permits for a nonsanctioned recreatio nal
5858	5740		vehicle show described in this paragraph shall be
5859	5741		obtained from the OMVC Commission at a rate of Fifteen
5860	5742		Dollars ($15.00) for each recreational vehicle per
5861	5743		nonsanctioned recreational vehicle show,
5862	5744
5863		-	SENATE FLOOR VERSION - HB2244 SFLR Page 115
5864		-	(Bold face denotes Committee Amendments) 1
	5745	+	ENGR. H. B. NO. 2244 Page 115 1
5865	5746		2
5866	5747		3
5867	5748		4
5868	5749		5
5869	5750		6
5870	5751		7
5871	5752		8
5872	5753		9
5873	5754		10
5874	5755		11
5875	5756		12
5876	5757		13
5877	5758		14
5878	5759		15
5879	5760		16
5880	5761		17
5881	5762		18
5882	5763		19
5883	5764		20
5884	5765		21
5885	5766		22
5886	5767		23
5887	5768		24
5888	5769
5889	5770		b. the location of the nonsanctioned recreational vehic le
5890	5771		show shall be within the manufa cturer-approved area of
5891	5772		responsibility,
5892	5773		c. the nonsanctioned recreational vehicle show shall
5893	5774		occur no more than five (5) consecutive days per
5894	5775		event, excluding county, district, or state fairs,
5895	5776		d. each dealer may participat e in no more than eight
5896	5777		nonsanctioned recreational vehicle shows per calendar
5897	5778		year, and
5898	5779		e. nonsanctioned recreational vehicle shows shall be held
5899	5780		on privately owned property no closer than two and
5900	5781		one-half (2 1/2) miles to any other nonparticipating
5901	5782		recreational vehicle dealer; provided, h owever a
5902	5783		nonsanctioned recreational vehicle show may be held on
5903	5784		county or municipally owned property with no mileage
5904	5785		barrier restriction.
5905	5786		D. A dealer may display a recreational vehicle within the
5906	5787		designated area of respon sibility of the dealer for promoti onal
5907	5788		purposes. At an off-premise display event, no sales activities
5908	5789		shall be conducted including, but not limited to, negotiations,
5909	5790		financing and accepting credit applications. Sales or finance
5910	5791		personnel shall not be per mitted to participate at an off -premise
5911	5792		display event. A permit for the off -premise display event shall not
5912	5793		be required.
5913	5794
5914		-	SENATE FLOOR VERSION - HB2244 SFLR Page 116
5915		-	(Bold face denotes Committee Amendments) 1
	5795	+	ENGR. H. B. NO. 2244 Page 116 1
5916	5796		2
5917	5797		3
5918	5798		4
5919	5799		5
5920	5800		6
5921	5801		7
5922	5802		8
5923	5803		9
5924	5804		10
5925	5805		11
5926	5806		12
5927	5807		13
5928	5808		14
5929	5809		15
5930	5810		16
5931	5811		17
5932	5812		18
5933	5813		19
5934	5814		20
5935	5815		21
5936	5816		22
5937	5817		23
5938	5818		24
5939	5819
5940	5820		E. A dealer agreement shall include a designated principal of
5941	5821		the dealer. A dealer agreement may identify a family member as the
5942	5822		successor of the principal or include a succession plan of the
5943	5823		dealer. A dealer may at any time change a designation or succession
5944	5824		plan made in the dealer agreement by providing written notice to the
5945	5825		manufacturer.
5946	5826		SECTION 25. AMENDATORY 47 O.S. 2021, Section 596.5, is
5947	5827		amended to read as follows:
5948	5828		Section 596.5 A. A manufacturer, directly or through any
5949	5829		officer, agent, or employee, may terminate or n ot renew a dealer
5950	5830		agreement without good cause. If the ma nufacturer terminates or
5951	5831		does not renew the dealer agreement without good cause, the
5952	5832		manufacturer shall comply with the provisions of subsections D and E
5953	5833		of this section. If the manufacturer termin ates or does not renew
5954	5834		the dealer agreement with good caus e, the provisions of subsections
5955	5835		D and E of this section shal l not apply.
5956	5836		B. A manufacturer has the burden of showing good cause for
5957	5837		terminating or not renewin g a dealer agreement. All of the
5958	5838		following factors shall be considered in determining whether t here
5959	5839		is good cause for a pro posed termination or nonrenewal o f a dealer
5960	5840		agreement by a manufacturer:
5961	5841		1. The extent of the penetration of the dealer in the rele vant
5962	5842		market area;
5963	5843
5964		-	SENATE FLOOR VERSION - HB2244 SFLR Page 117
5965		-	(Bold face denotes Committee Amendments) 1
	5844	+	ENGR. H. B. NO. 2244 Page 117 1
5966	5845		2
5967	5846		3
5968	5847		4
5969	5848		5
5970	5849		6
5971	5850		7
5972	5851		8
5973	5852		9
5974	5853		10
5975	5854		11
5976	5855		12
5977	5856		13
5978	5857		14
5979	5858		15
5980	5859		16
5981	5860		17
5982	5861		18
5983	5862		19
5984	5863		20
5985	5864		21
5986	5865		22
5987	5866		23
5988	5867		24
5989	5868
5990	5869		2. The extent and q uality of the service of the dealer under
5991	5870		recreational vehicle warranties;
5992	5871		3. The nature and extent of the investment of the dealer in
5993	5872		business of the dealer;
5994	5873		4. The adequacy of the service facilities, equipment, par ts,
5995	5874		supplies, and personnel of the dea ler;
5996	5875		5. The effect of the proposed action on the communit y;
5997	5876		6. Whether the dealer fa ils to follow agreed-upon procedures or
5998	5877		standards related to the overall operation of the dealership; and
5999	5878		7. The performance by the dealer under the terms of dealer
6000	5879		agreement.
6001	5880		C. Except as otherwise provided in this section, a manufacturer
6002	5881		shall provide a dealer with written notice of a termination or
6003	5882		nonrenewal of a dealer agreement. All of the following conditions
6004	5883		apply to a notice described in this subsection:
6005	5884		1. Except as provided in paragraph 4 or 5 of this subsection,
6006	5885		the manufacturer shall provid e written notice at least ninety (90)
6007	5886		days before the effective date of the termination or nonrenewal of
6008	5887		the dealer agreement;
6009	5888		2. The notice shall state all of the reaso ns for the
6010	5889		termination or nonrenewal of the dealer agreeme nt;
6011	5890		3. The notice shall sta te that if the dealer provides to the
6012	5891		manufacturer a written notification of the intent of the dealer to
6013	5892		cure all claimed deficienci es within thirty (30) days after the
6014	5893
6015		-	SENATE FLOOR VERSION - HB2244 SFLR Page 118
6016		-	(Bold face denotes Committee Amendments) 1
	5894	+	ENGR. H. B. NO. 2244 Page 118 1
6017	5895		2
6018	5896		3
6019	5897		4
6020	5898		5
6021	5899		6
6022	5900		7
6023	5901		8
6024	5902		9
6025	5903		10
6026	5904		11
6027	5905		12
6028	5906		13
6029	5907		14
6030	5908		15
6031	5909		16
6032	5910		17
6033	5911		18
6034	5912		19
6035	5913		20
6036	5914		21
6037	5915		22
6038	5916		23
6039	5917		24
6040	5918
6041	5919		dealer receives the notice, the dealer shall have one hundr ed twenty
6042	5920		(120) days after the date of the notice to correct the claimed
6043	5921		deficiencies. If all of the deficiencies are corrected within the
6044	5922		one-hundred-twenty-day time period, the notice shall be de emed void
6045	5923		and the manufacturer shall not terminate or not renew the dealer
6046	5924		agreement because of the claimed deficiencie s stated in the notice.
6047	5925		If the dealer does not provide a notification of intent to cure
6048	5926		deficiencies within the thirty -day time period, the termination or
6049	5927		nonrenewal of the dealer agreement shal l take effect sixty (60) day s
6050	5928		after the dealer received the n otice from the manufacturer;
6051	5929		4. A manufacturer may reduce the notice period described in
6052	5930		paragraph 1 of this subsection from ninety (90) days to thirty (30)
6053	5931		days and shall not be required to all ow the dealer an opportunity to
6054	5932		correct the deficiencies if t he grounds for termination or
6055	5933		nonrenewal of the dealer agreement by the manufacturer are any of
6056	5934		the specific categories of good cause des cribed in subsection F of
6057	5935		this section; and
6058	5936		5. A manufacturer shall not be required t o provide notice or an
6059	5937		opportunity to correct deficiencies under this subsection if the
6060	5938		grounds for termination or nonrenewal of the dealer agreement by the
6061	5939		manufacturer includes one of the following:
6062	5940		a. the dealer becomes insol vent,
6063	5941		b. the dealer is bankrupt, or
6064	5942
6065		-	SENATE FLOOR VERSION - HB2244 SFLR Page 119
6066		-	(Bold face denotes Committee Amendments) 1
	5943	+	ENGR. H. B. NO. 2244 Page 119 1
6067	5944		2
6068	5945		3
6069	5946		4
6070	5947		5
6071	5948		6
6072	5949		7
6073	5950		8
6074	5951		9
6075	5952		10
6076	5953		11
6077	5954		12
6078	5955		13
6079	5956		14
6080	5957		15
6081	5958		16
6082	5959		17
6083	5960		18
6084	5961		19
6085	5962		20
6086	5963		21
6087	5964		22
6088	5965		23
6089	5966		24
6090	5967
6091	5968		c. the dealer makes an as signment for the benefit of
6092	5969		creditors.
6093	5970		D. If a manufacturer terminates or does not renew a dealer
6094	5971		agreement for good cause under this se ction the dealer, at its
6095	5972		option, may require the manufactu rer to repurchase any of the
6096	5973		following from the dealer:
6097	5974		1. All new, untitled recreational vehicles that were acquired
6098	5975		from the manufacturer within eighteen (18 ) months before the
6099	5976		effective date of the notice of termination of the dealer agreement
6100	5977		that have not been used, except for demonstration purposes and have
6101	5978		not been altered or damaged, may be repurchased at one hundred
6102	5979		percent (100%) of the net invoice cos t of the recreational vehicles,
6103	5980		including transportation, less applicable rebates and discounts to
6104	5981		the dealer;
6105	5982		2. All current and undamaged accessories and proprietary parts
6106	5983		sold to the dealer for resale within the eighteen (18) months prior
6107	5984		to the effective date of the termination of the dea ler agreement
6108	5985		that are accompanied by the original invoice may be repurchased at
6109	5986		one hundred five percent (105%) of the original net price paid to
6110	5987		the manufacturer to compensate the dealer for handling, packing, and
6111	5988		shipping the accessories and parts; and
6112	5989		3. Any properly functioning diagnostic equipment, special
6113	5990		tools, current signage, and other equipment and machinery, p urchased
6114	5991		by the dealer within the five (5) years prior to the effective date
6115	5992
6116		-	SENATE FLOOR VERSION - HB2244 SFLR Page 120
6117		-	(Bold face denotes Committee Amendments) 1
	5993	+	ENGR. H. B. NO. 2244 Page 120 1
6118	5994		2
6119	5995		3
6120	5996		4
6121	5997		5
6122	5998		6
6123	5999		7
6124	6000		8
6125	6001		9
6126	6002		10
6127	6003		11
6128	6004		12
6129	6005		13
6130	6006		14
6131	6007		15
6132	6008		16
6133	6009		17
6134	6010		18
6135	6011		19
6136	6012		20
6137	6013		21
6138	6014		22
6139	6015		23
6140	6016		24
6141	6017
6142	6018		of the termination of the dealer agreement at the request of the
6143	6019		manufacturer, if such equipment or machinery cannot b e used in the
6144	6020		normal course of the ongoing business of the de aler, may be
6145	6021		repurchased at one hundred percent (100%) of the net cost of the
6146	6022		dealer, plus freight, destination, delivery, and distributi on
6147	6023		charges and sales taxes.
6148	6024		E. The dealer shall promptly return or arrange for the re turn
6149	6025		of all of the items the manu facturer is required to repurchase under
6150	6026		subsection D of this section at the expense of the manufac turer.
6151	6027		F. As used in this section, "good cause" includes, but is not
6152	6028		limited to, any of the fol lowing:
6153	6029		1. A conviction of a felony or a plea of guilty or n olo
6154	6030		contendere to a felony by a dealer or an owner of a dealership of a
6155	6031		crime that was committed du ring the time frame of the current dea ler
6156	6032		agreement; provided, there is full disclosure, in writ ing, of any
6157	6033		felony conviction or plea of guilty or nolo conte ndere to any such
6158	6034		felony crime that occurred within ten (10) years of entering into
6159	6035		such dealer agreement;
6160	6036		2. Abandonment or permanent c losing of the business operations
6161	6037		of a dealer for twenty -one (21) consecutive business days without
6162	6038		contacting the manufacturer prior to the closing unless the closing
6163	6039		is due to an act of God, strike, labor difficulty, or other cause
6164	6040		over which the dealer has no control;
6165	6041
6166		-	SENATE FLOOR VERSION - HB2244 SFLR Page 121
6167		-	(Bold face denotes Committee Amendments) 1
	6042	+	ENGR. H. B. NO. 2244 Page 121 1
6168	6043		2
6169	6044		3
6170	6045		4
6171	6046		5
6172	6047		6
6173	6048		7
6174	6049		8
6175	6050		9
6176	6051		10
6177	6052		11
6178	6053		12
6179	6054		13
6180	6055		14
6181	6056		15
6182	6057		16
6183	6058		17
6184	6059		18
6185	6060		19
6186	6061		20
6187	6062		21
6188	6063		22
6189	6064		23
6190	6065		24
6191	6066
6192	6067		3. A material misrepresentation to a manu facturer by a dealer
6193	6068		that severely affects the business relat ionship between the dealer
6194	6069		and the manufacturer;
6195	6070		4. Suspension or revocation of the license of a d ealer or
6196	6071		refusal to renew the license of the dealer by the OMVC Oklahoma New
6197	6072		Motor Vehicle Commission;
6198	6073		5. A material violat ion of any of the provisions of t he
6199	6074		Recreational Vehicle Franchise Act by a dealer; or
6200	6075		6. The dealer becomes insolvent, is bankrupt , or makes an
6201	6076		assignment for the benef it of creditors.
6202	6077		SECTION 26. AMENDATORY 47 O.S. 2021, Section 596.7, is
6203	6078		amended to read as fo llows:
6204	6079		Section 596.7 The OMVC Oklahoma New Motor V ehicle Commission
6205	6080		may not prohibit a dealer from selling the remaining in stock
6206	6081		inventory of a particular line -make after a dealer agreement has
6207	6082		been terminated or not renew ed pursuant to the provisions of Section
6208	6083		7 or 8 of this act 596.5 or 596.6 of this title . If recreational
6209	6084		vehicles of a line-make are not returned or required to be returned
6210	6085		to the manufacturer, the dealer may continue to sell all line -makes
6211	6086		that were subject to the dealer agreement and are currently in stock
6212	6087		until those line-makes are no longer in the dealer inventory.
6213	6088		SECTION 27. AMENDATORY 47 O.S. 2021, Sectio n 596.8, is
6214	6089		amended to read as follows:
6215	6090
6216		-	SENATE FLOOR VERSION - HB2244 SFLR Page 122
6217		-	(Bold face denotes Committee Amendments) 1
	6091	+	ENGR. H. B. NO. 2244 Page 122 1
6218	6092		2
6219	6093		3
6220	6094		4
6221	6095		5
6222	6096		6
6223	6097		7
6224	6098		8
6225	6099		9
6226	6100		10
6227	6101		11
6228	6102		12
6229	6103		13
6230	6104		14
6231	6105		15
6232	6106		16
6233	6107		17
6234	6108		18
6235	6109		19
6236	6110		20
6237	6111		21
6238	6112		22
6239	6113		23
6240	6114		24
6241	6115
6242	6116		Section 596.8 A. All of the following conditions shall apply
6243	6117		to a proposed sale of the business assets, transfer of the stock, or
6244	6118		other transaction that will result in a change of o wnership of a
6245	6119		dealer, except a transa ction described in subsection B of this
6246	6120		section:
6247	6121		1. The dealer shall provide written notice to th e manufacturer
6248	6122		at least ninety (90) days prior to the proposed closing of the
6249	6123		transaction;
6250	6124		2. If the dealer is not in br each of the dealer agreement or in
6251	6125		violation of the provisions of this act at the time the dealer
6252	6126		provides the notice described in para graph 1 of this subsection, the
6253	6127		manufacturer shall not object to the proposed transaction, unless
6254	6128		the prospective transfe ree meets one or more of the followin g:
6255	6129		a. the prospective transferee was previously a party to a
6256	6130		dealer agreement with the manufacture r that the
6257	6131		manufacturer terminated,
6258	6132		b. in the preceding ten (10) years, the prospective
6259	6133		transferee was convicted of a fel ony crime or any
6260	6134		crime of fraud, dece it or moral turpitude,
6261	6135		c. the prospective transferee does not have an
6262	6136		application for a recreation al vehicle dealer license
6263	6137		pending with the OMVC Oklahoma New Motor V ehicle
6264	6138		Commission or a tentative dealer agreement wit h a
6265	6139
6266		-	SENATE FLOOR VERSION - HB2244 SFLR Page 123
6267		-	(Bold face denotes Committee Amendments) 1
	6140	+	ENGR. H. B. NO. 2244 Page 123 1
6268	6141		2
6269	6142		3
6270	6143		4
6271	6144		5
6272	6145		6
6273	6146		7
6274	6147		8
6275	6148		9
6276	6149		10
6277	6150		11
6278	6151		12
6279	6152		13
6280	6153		14
6281	6154		15
6282	6155		16
6283	6156		17
6284	6157		18
6285	6158		19
6286	6159		20
6287	6160		21
6288	6161		22
6289	6162		23
6290	6163		24
6291	6164
6292	6165		recreational vehicle manufacturer to conduct business
6293	6166		as a dealer in this state,
6294	6167		d. the prospective transferee does not have an act ive
6295	6168		line of credit sufficient to purchase recreational
6296	6169		vehicles from the manufacturer according to the terms
6297	6170		of the dealer agreement, or
6298	6171		e. in the preceding ten (10) years, the prospective
6299	6172		transferee was bankrupt or insolven t, made a general
6300	6173		assignment for the benefit of creditors, or a
6301	6174		receiver, trustee, or conservator was appointed to
6302	6175		take possession of the business or pro perty of the
6303	6176		prospective transferee;
6304	6177		3. If the manufacturer objects to the proposed transaction, the
6305	6178		manufacturer shall give written n otice of an objection, including
6306	6179		the reasons by the manufacturer for objecting, to the dealer within
6307	6180		thirty (30) days aft er receiving the notice described in p aragraph 1
6308	6181		of this subsection. If th e manufacturer does not give notice of an
6309	6182		objection within the thirty-day time period, the proposed
6310	6183		transaction shall be considered approved by the manufacturer; and
6311	6184		4. For purposes of paragraph 3 of this subsection, t he
6312	6185		manufacturer has the burden of dem onstrating why the manufactu rer
6313	6186		objects to the proposed tran saction.
6314	6187		B. All of the following conditions apply concerning the death,
6315	6188		incapacity, or retirement of the designated prin cipal of a dealer:
6316	6189
6317		-	SENATE FLOOR VERSION - HB2244 SFLR Page 124
6318		-	(Bold face denotes Committee Amendments) 1
	6190	+	ENGR. H. B. NO. 2244 Page 124 1
6319	6191		2
6320	6192		3
6321	6193		4
6322	6194		5
6323	6195		6
6324	6196		7
6325	6197		8
6326	6198		9
6327	6199		10
6328	6200		11
6329	6201		12
6330	6202		13
6331	6203		14
6332	6204		15
6333	6205		16
6334	6206		17
6335	6207		18
6336	6208		19
6337	6209		20
6338	6210		21
6339	6211		22
6340	6212		23
6341	6213		24
6342	6214
6343	6215		1. The manufacturer shall provide the dealer an opportu nity to
6344	6216		designate, in writin g, a family member as a successo r to the dealer
6345	6217		in the event of the death, incapacity, or retirement of the
6346	6218		designated principal;
6347	6219		2. The manufacturer s hall not prevent or refuse to honor th e
6348	6220		succession to a dealership by a fam ily member of the deceased,
6349	6221		incapacitated, or retired design ated principal of that dealer unless
6350	6222		the manufacturer previously provided written notice to the dealer of
6351	6223		any objections to the succession plan of the dealer w ithin thirty
6352	6224		(30) days after receivin g the succession plan of the dealer or any
6353	6225		modification of the succession plan of the dealer;
6354	6226		3. Except as provided in paragraph 5 of this subsection, unless
6355	6227		the dealer is in breac h of the dealer agreement, a manufactu rer
6356	6228		shall not object to the successio n to a dealership by a famil y
6357	6229		member of the deceased, incapa citated, or retired designated
6358	6230		principal, unless the successor meets one or more of the following:
6359	6231		a. in the preceding ten (10) years, the successor was
6360	6232		convicted of a felony crime or any crime of fraud,
6361	6233		deceit or moral turp itude,
6362	6234		b. in the preceding ten ( 10) years, the successor was
6363	6235		bankrupt, insolvent, or made an assignment for the
6364	6236		benefit of creditors,
6365	6237
6366		-	SENATE FLOOR VERSION - HB2244 SFLR Page 125
6367		-	(Bold face denotes Committee Amendments) 1
	6238	+	ENGR. H. B. NO. 2244 Page 125 1
6368	6239		2
6369	6240		3
6370	6241		4
6371	6242		5
6372	6243		6
6373	6244		7
6374	6245		8
6375	6246		9
6376	6247		10
6377	6248		11
6378	6249		12
6379	6250		13
6380	6251		14
6381	6252		15
6382	6253		16
6383	6254		17
6384	6255		18
6385	6256		19
6386	6257		20
6387	6258		21
6388	6259		22
6389	6260		23
6390	6261		24
6391	6262
6392	6263		c. the successor was previously a party to a dealer
6393	6264		agreement with the manufacturer that the manufacturer
6394	6265		terminated for a breach of a dealer agreement,
6395	6266		d. the successor does not have an active line of credit
6396	6267		sufficient to purchase recreational vehicles from the
6397	6268		manufacturer according to the terms of the deale r
6398	6269		agreement, or
6399	6270		e. the successor does not have an application for a
6400	6271		recreational vehicle dealer li cense pending with the
6401	6272		OMVC or a tentative dealer agreement with a
6402	6273		recreational vehicle manufacturer to conduct business
6403	6274		as a dealer in this state;
6404	6275		4. The manufacturer has the burden of proof r egarding any
6405	6276		objection to the succession to a dealership by a family member of
6406	6277		the deceased, incapacitated, or retired designated principal; and
6407	6278		5. The consent of the manufacturer shall be required for the
6408	6279		succession to a dealership by a family member of the deceased,
6409	6280		incapacitated, or retired designated principal if the succession
6410	6281		involves a relocation of the business or an alteration of the terms
6411	6282		and conditions of the dealer agree ment.
6412	6283		SECTION 28. AMENDATORY 47 O.S. 2021, Section 596.14, is
6413	6284		amended to read as follows:
6414	6285		Section 596.14 The Oklahoma New Motor Vehicle Commission may
6415	6286		deny an application for a license, revoke or suspend a license,
6416	6287
6417		-	SENATE FLOOR VERSION - HB2244 SFLR Page 126
6418		-	(Bold face denotes Committee Amendments) 1
	6288	+	ENGR. H. B. NO. 2244 Page 126 1
6419	6289		2
6420	6290		3
6421	6291		4
6422	6292		5
6423	6293		6
6424	6294		7
6425	6295		8
6426	6296		9
6427	6297		10
6428	6298		11
6429	6299		12
6430	6300		13
6431	6301		14
6432	6302		15
6433	6303		16
6434	6304		17
6435	6305		18
6436	6306		19
6437	6307		20
6438	6308		21
6439	6309		22
6440	6310		23
6441	6311		24
6442	6312
6443	6313		impose a fine against a manufacturer or distributor in an amount not
6444	6314		to exceed Ten Thousand Dollars ( $10,000.00) per occurrence, or
6445	6315		impose a fine against a dealer in an amount not to exceed One
6446	6316		Thousand Dollars ($1,000.00) per occurrence if any provision of the
6447	6317		Recreational Vehicle Franchise Ac t is violated or for any of the
6448	6318		following reasons:
6449	6319		1. On satisfactory proof of unfitness of the applicant in any
6450	6320		application for any license under the provisions of the Recreational
6451	6321		Vehicle Franchise Act;
6452	6322		2. For any material misstatement made by an applicant in any
6453	6323		application for any license under the provisions o f the Recreational
6454	6324		Vehicle Franchise Act;
6455	6325		3. For any failure to comply with any provision of the
6456	6326		Recreational Vehicle Franchise Act or any rule promulgated by the
6457	6327		Commission under authority vested to the OMVC Commission pursuant to
6458	6328		the Recreational Vehicle Franchise Act;
6459	6329		4. A change of condition after a license is granted resulting
6460	6330		in the failure to mai ntain the qualifications for a license;
6461	6331		5. Being a new recreational vehicle dealer who:
6462	6332		a. has required a purchaser of a new recreational
6463	6333		vehicle, as a condition of sale and delivery thereof,
6464	6334		to also purchase special features, appliances,
6465	6335		accessories or equipment not desired or requested by
6466	6336		the purchaser and installed by the dealer,
6467	6337
6468		-	SENATE FLOOR VERSION - HB2244 SFLR Page 127
6469		-	(Bold face denotes Committee Amendments) 1
	6338	+	ENGR. H. B. NO. 2244 Page 127 1
6470	6339		2
6471	6340		3
6472	6341		4
6473	6342		5
6474	6343		6
6475	6344		7
6476	6345		8
6477	6346		9
6478	6347		10
6479	6348		11
6480	6349		12
6481	6350		13
6482	6351		14
6483	6352		15
6484	6353		16
6485	6354		17
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6487	6356		19
6488	6357		20
6489	6358		21
6490	6359		22
6491	6360		23
6492	6361		24
6493	6362
6494	6363		b. uses any false or misleading advertising in connection
6495	6364		with business as a new recre ational vehicle dealer or
6496	6365		vehicle salesperson,
6497	6366		c. has committed any unlawful act which res ulted in the
6498	6367		revocation of any similar license in another state,
6499	6368		d. has failed or refused to perform any written agreement
6500	6369		with any retail buyer involving the sale of a
6501	6370		recreational vehicle,
6502	6371		e. has been convicted of a crime involving moral
6503	6372		turpitude,
6504	6373		f. has committed a fraudulent act in selling, purchasing
6505	6374		or otherwise dealing in new recreational vehicles or
6506	6375		has misrepresented the terms and conditions of a sale,
6507	6376		purchase or contract for sale or purchase o f a new
6508	6377		recreational vehicle or any interest therein including
6509	6378		an option to purchase such vehicle,
6510	6379		g. has failed to meet or maintain the conditions and
6511	6380		requirements necessary to qualify for the issuance of
6512	6381		a license, or
6513	6382		h. has employed an unregistered new recreational vehicle
6514	6383		salesperson;
6515	6384		6. Being a new recreational vehicle dealer who:
6516	6385		a. does not have an establ ished place of business,
6517	6386
6518		-	SENATE FLOOR VERSION - HB2244 SFLR Page 128
6519		-	(Bold face denotes Committee Amendments) 1
	6387	+	ENGR. H. B. NO. 2244 Page 128 1
6520	6388		2
6521	6389		3
6522	6390		4
6523	6391		5
6524	6392		6
6525	6393		7
6526	6394		8
6527	6395		9
6528	6396		10
6529	6397		11
6530	6398		12
6531	6399		13
6532	6400		14
6533	6401		15
6534	6402		16
6535	6403		17
6536	6404		18
6537	6405		19
6538	6406		20
6539	6407		21
6540	6408		22
6541	6409		23
6542	6410		24
6543	6411
6544	6412		b. does not provide for a suitable repair shop separate
6545	6413		from the display room with ample space to repair or
6546	6414		recondition one or more recreational vehicles at the
6547	6415		same time and equipped with tools, equipment, and
6548	6416		replacement parts as may be necessary for the
6549	6417		servicing of recreational vehicles in such a manner as
6550	6418		to make such vehicles compl y with the safety laws of
6551	6419		this state and properly fulfill the warranty
6552	6420		obligation of the de aler or manufacturer,
6553	6421		c. does not hold a dealer agreeme nt in effect with a
6554	6422		manufacturer or distributor of new or unused
6555	6423		recreational vehicles for the sale of the sam e and is
6556	6424		not authorized by the manufac turer or distributor to
6557	6425		render predelivery preparatio n of such vehicles sold
6558	6426		to purchasers and perform autho rized postsale work
6559	6427		pursuant to the warranty of the manufacturer or
6560	6428		distributor,
6561	6429		d. employs unregistered salespersons or employs or
6562	6430		utilizes the services of used recreational vehicle
6563	6431		lots, dealers or other unregistered persons in
6564	6432		connection with the sale of new recreational vehicles;
6565	6433		7. Being a factory that has:
6566	6434		a. induced or attempted to induce by means of coer cion or
6567	6435		intimidation any new recreatio nal vehicle dealer:
6568	6436
6569		-	SENATE FLOOR VERSION - HB2244 SFLR Page 129
6570		-	(Bold face denotes Committee Amendments) 1
	6437	+	ENGR. H. B. NO. 2244 Page 129 1
6571	6438		2
6572	6439		3
6573	6440		4
6574	6441		5
6575	6442		6
6576	6443		7
6577	6444		8
6578	6445		9
6579	6446		10
6580	6447		11
6581	6448		12
6582	6449		13
6583	6450		14
6584	6451		15
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6586	6453		17
6587	6454		18
6588	6455		19
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6590	6457		21
6591	6458		22
6592	6459		23
6593	6460		24
6594	6461
6595	6462		(1) to accept delivery of any rec reational vehicle or
6596	6463		vehicles, parts or accessories for recreational
6597	6464		vehicles, or any other commodities including
6598	6465		advertising material which shall not have been
6599	6466		ordered by the new recreational vehicle de aler,
6600	6467		(2) to order or accept delivery of any recreati onal
6601	6468		vehicle with special features, appliances,
6602	6469		accessories or equipment not included in the list
6603	6470		price of the recreational vehicles as publicly
6604	6471		advertised by the ma nufacturer of the
6605	6472		recreational vehicle , or
6606	6473		(3) to order or accept delivery of any parts,
6607	6474		accessories, equipment, machinery, tools,
6608	6475		appliances or any commodity whatsoever,
6609	6476		b. induced under threat or discrimination by the
6610	6477		withholding from delivery to a recre ational vehicle
6611	6478		dealer certain models of recreational vehicles,
6612	6479		changing or amending unilat erally the allotment of
6613	6480		recreational vehicles of a dealer or withholding and
6614	6481		delaying delivery of such vehicles out of the ordinary
6615	6482		course of business, in order to i nduce a dealer by
6616	6483		such coercion to par ticipate or contribute to any
6617	6484		local or national adver tising fund controlled directly
6618	6485		or indirectly by the factory or for any other purposes
6619	6486
6620		-	SENATE FLOOR VERSION - HB2244 SFLR Page 130
6621		-	(Bold face denotes Committee Amendments) 1
	6487	+	ENGR. H. B. NO. 2244 Page 130 1
6622	6488		2
6623	6489		3
6624	6490		4
6625	6491		5
6626	6492		6
6627	6493		7
6628	6494		8
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6642	6508		22
6643	6509		23
6644	6510		24
6645	6511
6646	6512		including contests, giveaways, other sales promotional
6647	6513		devices, or change of q uotas in any sales contest, or
6648	6514		c. required recreational vehicle dealers, as a condition
6649	6515		of receiving the vehicle allotment of the dealer, to
6650	6516		order a certain percentage of the recreational
6651	6517		vehicles with optional equipment not specified by the
6652	6518		new recreational vehicle dealer; however, nothing in
6653	6519		this paragraph shall prohibit a factory from
6654	6520		supporting an advertising association which is open to
6655	6521		all dealers on the same basis ; or
6656	6522		8. Has employed unlicensed factory representatives .
6657	6523		The Commission may deny any ap plication for license, or suspend
6658	6524		or revoke a license issued, or impose a fine, only after a hearing
6659	6525		for which the applicant or licensee affected shall be given at least
6660	6526		ten (10) days' written notice specifying the reason for denying the
6661	6527		applicant a license, or, in the case of a revocation or suspension
6662	6528		or imposition of a fine, the offense which the licensee is alleged
6663	6529		to have committed. The notice may be served as provided by law for
6664	6530		the service of notices or mailing a copy by registered mail to the
6665	6531		last-known residence or business address of the applicant or
6666	6532		licensee. The hearing on alleged v iolations shall be at such time
6667	6533		and place as the Commission may prescribe and the aforementioned
6668	6534		notice shall further specify the time and place . If the applicant
6669	6535		or licensee is a motor vehicle salesper son, factory representative
6670	6536
6671		-	SENATE FLOOR VERSION - HB2244 SFLR Page 131
6672		-	(Bold face denotes Committee Amendments) 1
	6537	+	ENGR. H. B. NO. 2244 Page 131 1
6673	6538		2
6674	6539		3
6675	6540		4
6676	6541		5
6677	6542		6
6678	6543		7
6679	6544		8
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6682	6547		11
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6692	6557		21
6693	6558		22
6694	6559		23
6695	6560		24
6696	6561
6697	6562		or distributor representa tive, the Commission shall in like manner
6698	6563		additionally notify the person, firm, association, corporation or
6699	6564		trust with whom he or she is associated, or in whose asso ciation he
6700	6565		or she is about to enter . The Commission shall have the power to
6701	6566		compel the production of all records, papers and other docu ments
6702	6567		which may be deemed relevant to the proceeding bearing upon the
6703	6568		complaints. The Commission shall have the power t o subpoena and
6704	6569		bring before it any per son, or take testimony of any person by
6705	6570		deposition, with the same fees and mileage and in the same manner as
6706	6571		prescribed in the proceedings before courts of the state in civil
6707	6572		cases. Any party to the hearing shall have the right to the
6708	6573		attendance of witnes ses on his or her behalf upon designating to the
6709	6574		Commission the person or persons sought to be sub poenaed.
6710	6575		SECTION 29. AMENDATORY 47 O.S. 2021, Section 596.15 , is
6711	6576		amended to read as follows:
6712	6577		Section 596.15 A. A dealer, manufactur er, or warrantor injured
6713	6578		by another party who has violated a provision of this act may bring
6714	6579		a civil action in court for the recovery of actua l damages. The
6715	6580		court shall award att orney fees and costs to the prevailing party in
6716	6581		a civil action under this sec tion.
6717	6582		B. Venue for a civil action filed pursuant to this section
6718	6583		shall be the county in which the busin ess of the dealer is located.
6719	6584		In an action involving more than one dealer, any county in which the
6720	6585
6721		-	SENATE FLOOR VERSION - HB2244 SFLR Page 132
6722		-	(Bold face denotes Committee Amendments) 1
	6586	+	ENGR. H. B. NO. 2244 Page 132 1
6723	6587		2
6724	6588		3
6725	6589		4
6726	6590		5
6727	6591		6
6728	6592		7
6729	6593		8
6730	6594		9
6731	6595		10
6732	6596		11
6733	6597		12
6734	6598		13
6735	6599		14
6736	6600		15
6737	6601		16
6738	6602		17
6739	6603		18
6740	6604		19
6741	6605		20
6742	6606		21
6743	6607		22
6744	6608		23
6745	6609		24
6746	6610
6747	6611		business of any dealer that is party to the action i s located is a
6748	6612		proper venue for that action.
6749	6613		C. Before bringing a civil action under this section, the party
6750	6614		bringing suit for an alleged vio lation of this act shall serve a
6751	6615		written demand for mediation on the offending party . The demand for
6752	6616		mediation shall include a brief statement of the dispute and the
6753	6617		relief sought by the party making the demand. The party making the
6754	6618		demand for mediation shall serve the demand by certified m ail to one
6755	6619		of the following addresses:
6756	6620		1. In an action between a dealer and a manufacturer, the
6757	6621		address stated in the dealer agreement between the parties;
6758	6622		2. In an action between a dealer and a warrantor that is not a
6759	6623		manufacturer, the address stated in any agreement between the
6760	6624		parties; or
6761	6625		3. In an action between two dealers, the address of the
6762	6626		offending dealer in the records of the OMVC Oklahoma New Motor
6763	6627		Vehicle Commission.
6764	6628		D. Within twenty (20) days after a dema nd for mediation is
6765	6629		served under subsection C of this section, the parties shall
6766	6630		mutually select an independent me diator who is approved by the OMVC
6767	6631		Commission, and meet with that mediator for the purpose of
6768	6632		attempting to resolve the dispute at a location in this state
6769	6633		selected by the mediator. The mediator may extend the date of the
6770	6634
6771		-	SENATE FLOOR VERSION - HB2244 SFLR Page 133
6772		-	(Bold face denotes Committee Amendments) 1
	6635	+	ENGR. H. B. NO. 2244 Page 133 1
6773	6636		2
6774	6637		3
6775	6638		4
6776	6639		5
6777	6640		6
6778	6641		7
6779	6642		8
6780	6643		9
6781	6644		10
6782	6645		11
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6784	6647		13
6785	6648		14
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6787	6650		16
6788	6651		17
6789	6652		18
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6792	6655		21
6793	6656		22
6794	6657		23
6795	6658		24
6796	6659
6797	6660		meeting for good cause shown by e ither party or if the parties agree
6798	6661		to the extension.
6799	6662		E. The service of a demand for mediation under su bsection C of
6800	6663		this section tolls the t ime for the filing of any complaint,
6801	6664		petition, protest, or other action under this a ct until
6802	6665		representatives of bo th parties have met with the mediator selected
6803	6666		pursuant to subsection D of this section for the purpose of
6804	6667		attempting to resolve the dispute. If a complaint, petition,
6805	6668		protest, or other action is filed before that meeting, th e court
6806	6669		shall enter an order s uspending the proceeding or action until the
6807	6670		mediation meeting has occurred and may, if all of the parti es to the
6808	6671		proceeding or action stipula te in writing that they wish to continue
6809	6672		to mediate under this section, enter an ord er suspending the
6810	6673		proceeding or action for as long a period as the court considers
6811	6674		appropriate. The court may modify, extend, or revo ke a suspension
6812	6675		order issued under thi s subsection if it considers that action
6813	6676		appropriate.
6814	6677		F. Each of the parties to the mediation under this section is
6815	6678		responsible for its own attorney fees. The parties shall equally
6816	6679		divide the cost of the mediator.
6817	6680		SECTION 30. AMENDATORY 47 O.S. 2021, Section 596.16, is
6818	6681		amended to read as follows:
6819	6682		Section 596.16 A. In addition to any remed y available under
6820	6683		the provisions of this act or otherwise avail able by law, a
6821	6684
6822		-	SENATE FLOOR VERSION - HB2244 SFLR Page 134
6823		-	(Bold face denotes Committee Amendments) 1
	6685	+	ENGR. H. B. NO. 2244 Page 134 1
6824	6686		2
6825	6687		3
6826	6688		4
6827	6689		5
6828	6690		6
6829	6691		7
6830	6692		8
6831	6693		9
6832	6694		10
6833	6695		11
6834	6696		12
6835	6697		13
6836	6698		14
6837	6699		15
6838	6700		16
6839	6701		17
6840	6702		18
6841	6703		19
6842	6704		20
6843	6705		21
6844	6706		22
6845	6707		23
6846	6708		24
6847	6709
6848	6710		manufacturer, warrantor, or dealer may apply to the court for the
6849	6711		grant, after a hearing and for cause shown, of a temporary o r
6850	6712		permanent injunction or other equitable relief res training any
6851	6713		person from doing any of the following:
6852	6714		1. Acting as a dealer without a proper license;
6853	6715		2. Violating or continuing to violate the provisions of this
6854	6716		act. A single violation of the provisio ns of this act shall be a
6855	6717		sufficient basis for the c ourt to grant equitable relief under this
6856	6718		section; or
6857	6719		3. Failing or refusing to comply with any requirement of the
6858	6720		provisions of this act.
6859	6721		B. The court may not require a bond as a condition to the grant
6860	6722		of equitable relief un der this section.
6861	6723		C. If, on January 1, 2011, a dealership does not meet the
6862	6724		requirements of the definition of established place of business as
6863	6725		defined in Section 3 of this act 596.1 of this title, the dealership
6864	6726		shall be eligible for licensing by the OMVC Oklahoma New Motor
6865	6727		Vehicle Commission for that location. If the dealership moves the
6866	6728		dealership to a new location, the new dealership shall comply with
6867	6729		the requirements of the definition of established place of business
6868	6730		as defined in Section 3 of this act 596.1 of this title.
6869	6731		SECTION 31. AMENDATORY 47 O.S. 2021, Section 1116.1, is
6870	6732		amended to read as follows:
6871	6733
6872		-	SENATE FLOOR VERSION - HB2244 SFLR Page 135
6873		-	(Bold face denotes Committee Amendments) 1
	6734	+	ENGR. H. B. NO. 2244 Page 135 1
6874	6735		2
6875	6736		3
6876	6737		4
6877	6738		5
6878	6739		6
6879	6740		7
6880	6741		8
6881	6742		9
6882	6743		10
6883	6744		11
6884	6745		12
6885	6746		13
6886	6747		14
6887	6748		15
6888	6749		16
6889	6750		17
6890	6751		18
6891	6752		19
6892	6753		20
6893	6754		21
6894	6755		22
6895	6756		23
6896	6757		24
6897	6758
6898	6759		Section 1116.1 A license plate or decal bearing an expiration
6899	6760		date of four (4) months from the date of registration shall b e
6900	6761		issued for a vehicle regis tered in the name of a manufacturer or
6901	6762		dealer of new motor vehicles. Such license plate or decal shall be
6902	6763		issued if the vehicle so registe red is exempt from the vehicle
6903	6764		excise tax pursuant to the provisions of subsection (k) paragraph 12
6904	6765		of Section 2105 of Title 68 of the Oklahoma Statutes. It shall be
6905	6766		unlawful for any person other than a manufacturer, licensed dealer,
6906	6767		person contemplating p urchase of the vehicle or person holdi ng a
6907	6768		valid salesman's license issued by the Oklaho ma New Motor Vehicle
6908	6769		Commission to operate the vehicle after the expiration of the
6909	6770		four-month registration period.
6910	6771		SECTION 32. AMENDATORY 47 O.S. 2021, Section 1128, as
6911	6772		amended by Section 142, Chapter 282, O.S.L. 2022 (47 O.S. Supp .
6912	6773		2022, Section 1128), is am ended to read as follows:
6913	6774		Section 1128. A. Every person manufacturing or having a
6914	6775		contract to sell new vehicles in this state shall file a verified
6915	6776		application for a general di stinctive number for all new vehicles
6916	6777		owned or controlled by the manufacturer or dealer; provided, Service
6917	6778		Oklahoma shall issue a license to sell such new motor vehicles only
6918	6779		for those types of new vehicles for which the applica nt has a sales
6919	6780		contract or franchise; provided, further, that no license shall be
6920	6781		issued to any applicant that has not complied with the provisions of
6921	6782		Sections 561 through 568 of this title and does not hold a current
6922	6783
6923		-	SENATE FLOOR VERSION - HB2244 SFLR Page 136
6924		-	(Bold face denotes Committee Amendments) 1
	6784	+	ENGR. H. B. NO. 2244 Page 136 1
6925	6785		2
6926	6786		3
6927	6787		4
6928	6788		5
6929	6789		6
6930	6790		7
6931	6791		8
6932	6792		9
6933	6793		10
6934	6794		11
6935	6795		12
6936	6796		13
6937	6797		14
6938	6798		15
6939	6799		16
6940	6800		17
6941	6801		18
6942	6802		19
6943	6803		20
6944	6804		21
6945	6805		22
6946	6806		23
6947	6807		24
6948	6808
6949	6809		license issued by the Oklahoma New Motor Vehicle Commission pursuant
6950	6810		thereto. A separate manufacturer's or dealer's license shall be
6951	6811		required for each separate county within which such manufacturer or
6952	6812		dealer has an established place of business and upon payment of a
6953	6813		license fee of Ten Dollars ($1 0.00) there shall be assigned and
6954	6814		issued to such manufacturer or dealer a Certificate of Registration
6955	6815		and one license plate which shall be displayed upon each vehicle of
6956	6816		such manufacturer or dealer when same is operated, driven, or
6957	6817		displayed on any street, road, or highway, in the same manner as
6958	6818		hereinbefore provided for vehicles owned by other persons. Such a
6959	6819		manufacturer or dealer in new vehicles may obtain as many additional
6960	6820		license plates as may be desired, upon the payment of the sum of Ten
6961	6821		Dollars ($10.00) for each additional plate; provided that no such
6962	6822		license plate issued to any manufacturer or dealer shall be used or
6963	6823		displayed upon any secondhand or used vehicle, or upon any new
6964	6824		vehicle which is used for a service car, or private use, or for
6965	6825		hire. Any person, with consent of the dealer, may operate a motor
6966	6826		vehicle, with the dealer's tag affixed, while contemplating
6967	6827		purchase, so long as this intent is limited to a consecutive
6968	6828		seventy-two-hour period, or a weekend . An individual holding a
6969	6829		valid salesman's license issued by the Oklahoma New Motor Vehicle
6970	6830		Commission shall not be subject to this limitation. If such person
6971	6831		also buys and sells used vehicles, he or she shall, after obtaining
6972	6832		his or her new motor vehicle dealer's license from the Oklahoma New
6973	6833
6974		-	SENATE FLOOR VERSION - HB2244 SFLR Page 137
6975		-	(Bold face denotes Committee Amendments) 1
	6834	+	ENGR. H. B. NO. 2244 Page 137 1
6976	6835		2
6977	6836		3
6978	6837		4
6979	6838		5
6980	6839		6
6981	6840		7
6982	6841		8
6983	6842		9
6984	6843		10
6985	6844		11
6986	6845		12
6987	6846		13
6988	6847		14
6989	6848		15
6990	6849		16
6991	6850		17
6992	6851		18
6993	6852		19
6994	6853		20
6995	6854		21
6996	6855		22
6997	6856		23
6998	6857		24
6999	6858
7000	6859		Motor Vehicle Commission, also obtain a used motor vehicle dealer's
7001	6860		license, from the Oklahoma Used Motor Vehicle and Parts, Dismantler,
7002	6861		and Manufactured Housing Commission, the cost of which shall be as
7003	6862		prescribed in Section 1101 et seq. of this title.
7004	6863		B. Each dealer and used motor vehicle dealer shall keep a
7005	6864		record of the purchase and sale of each motor vehicle he or she buys
7006	6865		or sells, which shall show the name of the seller or buyer as the
7007	6866		case may be, and a complete description of the vehicle purchased or
7008	6867		sold, and such other information a s Service Oklahoma may prescribe.
7009	6868		C. Application for manufacturer's or dealer's license must show
7010	6869		that such dealer or manufacturer has not violated any of the
7011	6870		provisions of this section; and such license shall be nonassignable;
7012	6871		and any such license may be suspended tempora rily or revoked by
7013	6872		Service Oklahoma for violation or failure to comply with this
7014	6873		section; provided, the holder of such license shall be given ten
7015	6874		(10) days' notice of hearing to suspend or cancel such license . If
7016	6875		any such person subject to any of the licenses required in this
7017	6876		section fails to obtain it when due, a penalty of twenty-five cents
7018	6877		($0.25) per day on each such license shall be charged in the same
7019	6878		manner as is now provided on delinquent motor vehicle registrations,
7020	6879		and after a period of thirty (30) days such penalty shall be equal
7021	6880		to the license fee. It shall be the duty of every person licensed
7022	6881		to sell new or used motor vehicles to advise each purchaser in
7023	6882		writing about his or her title requirements and payment of any taxes
7024	6883
7025		-	SENATE FLOOR VERSION - HB2244 SFLR Page 138
7026		-	(Bold face denotes Committee Amendments) 1
	6884	+	ENGR. H. B. NO. 2244 Page 138 1
7027	6885		2
7028	6886		3
7029	6887		4
7030	6888		5
7031	6889		6
7032	6890		7
7033	6891		8
7034	6892		9
7035	6893		10
7036	6894		11
7037	6895		12
7038	6896		13
7039	6897		14
7040	6898		15
7041	6899		16
7042	6900		17
7043	6901		18
7044	6902		19
7045	6903		20
7046	6904		21
7047	6905		22
7048	6906		23
7049	6907		24
7050	6908
7051	6909		due. Each used motor vehicle must display a proper Oklahoma license
7052	6910		plate or a used dealer's license plate.
7053	6911		D. Every person engaged in the business of transporting and
7054	6912		delivering new or used vehicles by driving, either singly or by
7055	6913		towbar, saddle mount or full mount method, engaging in drive-away
7056	6914		operations as defined in Section 3 of Title 85 of the Oklahoma
7057	6915		Statutes, or any combination thereof, from the manufacturer or
7058	6916		shipper to the dealer or consignee and using the public highways of
7059	6917		this state shall file wit h Service Oklahoma a verified application
7060	6918		for in-transit license plates to identify such vehicles. The
7061	6919		application shall provide for a general distinctive number for all
7062	6920		vehicles so transported. Upon payment of a license fee of Ten
7063	6921		Dollars ($10.00) there shall be assigned and issued to such person
7064	6922		one in-transit plate. Such in-transit plate shall be used by such
7065	6923		person only on vehicles when so transported. Such person may obtain
7066	6924		as many additional in-transit plates as desired upon payment of a
7067	6925		fee of Ten Dollars ($10.00) for each additional plate. Provided, a
7068	6926		used motor vehicle dealer shall use a used dealer license plate in
7069	6927		lieu of the in-transit license plate for transporting a used motor
7070	6928		vehicle and, in such cases, shall be exempt from makin g application
7071	6929		for an in-transit license plate. Provided further, only a person
7072	6930		who possesses a valid motor carrier authority issued by the Federal
7073	6931		Motor Carrier Safety Administration, or a valid for-hire authority
7074	6932		issued by the Corporation Commission may use the in-transit license
7075	6933
7076		-	SENATE FLOOR VERSION - HB2244 SFLR Page 139
7077		-	(Bold face denotes Committee Amendments) 1
	6934	+	ENGR. H. B. NO. 2244 Page 139 1
7078	6935		2
7079	6936		3
7080	6937		4
7081	6938		5
7082	6939		6
7083	6940		7
7084	6941		8
7085	6942		9
7086	6943		10
7087	6944		11
7088	6945		12
7089	6946		13
7090	6947		14
7091	6948		15
7092	6949		16
7093	6950		17
7094	6951		18
7095	6952		19
7096	6953		20
7097	6954		21
7098	6955		22
7099	6956		23
7100	6957		24
7101	6958
7102	6959		plates obtained by them as herein authorized for transporting new or
7103	6960		used manufactured homes from one location to another location within
7104	6961		Oklahoma or from a point in another state to a point in this state .
7105	6962		Nothing contained in t his section shall relieve any person from the
7106	6963		payment of license fees otherwise provided by law. When Service
7107	6964		Oklahoma deems it advisable and in the public interest, it may
7108	6965		require the holder of any in-transit license, or any person making
7109	6966		application therefor, to file a proper surety bond in any amount it
7110	6967		deems proper, not to exceed Ten Thou sand Dollars ($10,000.00).
7111	6968		E. Service Oklahoma shall issue dealer licenses to new and used
7112	6969		manufactured home dealers, new a nd used travel trailer dealers and
7113	6970		new and used commercial trailer dealers.
7114	6971		F. All licenses provided for i n this section shall expire on
7115	6972		December 31 of each year.
7116	6973		SECTION 33. AMENDATORY 47 O.S. 2021, Section 1137.3, as
7117	6974		amended by Section 172, Chapter 282, O.S.L. 20 22 (47 O.S. Supp.
7118	6975		2022, Section 1137.3), is amend ed to read as follows:
7119	6976		Section 1137.3 The purchaser of every new motor vehicle, travel
7120	6977		trailer or commercial trailer shall register or license the same
7121	6978		within thirty (30) days from the date of purchase. It shall be the
7122	6979		responsibility of the selling dealer to place a temporary license
7123	6980		plate, in size similar to the permanent Oklahoma license plate but
7124	6981		of a weatherproof plastic-impregnated substance approved by the
7125	6982		Oklahoma New Motor Vehicle Commission, upon a new motor vehicle,
7126	6983
7127		-	SENATE FLOOR VERSION - HB2244 SFLR Page 140
7128		-	(Bold face denotes Committee Amendments) 1
	6984	+	ENGR. H. B. NO. 2244 Page 140 1
7129	6985		2
7130	6986		3
7131	6987		4
7132	6988		5
7133	6989		6
7134	6990		7
7135	6991		8
7136	6992		9
7137	6993		10
7138	6994		11
7139	6995		12
7140	6996		13
7141	6997		14
7142	6998		15
7143	6999		16
7144	7000		17
7145	7001		18
7146	7002		19
7147	7003		20
7148	7004		21
7149	7005		22
7150	7006		23
7151	7007		24
7152	7008
7153	7009		travel trailer or commercial trailer when a transaction is completed
7154	7010		for the sale of said vehicle or trailer. Except for cab and chassis
7155	7011		trucks, the temporary license plate under this section shall be
7156	7012		placed at the location provided for the permanent motor vehicle
7157	7013		license plate. The purchaser of a new cab and chassis truck may
7158	7014		place the temporary license plate under this section in the rear
7159	7015		window. Said temporary license plate shall show the dealer's
7160	7016		license number which is issued to him or her each year by Service
7161	7017		Oklahoma, the date the new motor vehicle, travel trailer or
7162	7018		commercial trailer was purchased and the company name of the selling
7163	7019		dealer. The Oklahoma Motor Vehicle Commission is hereby directed to
7164	7020		develop a temporary license plate design to incorporate these
7165	7021		requirements in a manner that will permit law enforcement personnel
7166	7022		to readily identify the dealer license number and date of the
7167	7023		vehicle purchase. The Motor Vehicle Commission is further
7168	7024		authorized to develop additional requirements and parameters
7169	7025		designed to discourage or prevent illegal duplication and use of the
7170	7026		temporary license plate. On or before thirty (30) days from the
7171	7027		date of purchase of a new motor vehicle, travel trailer or
7172	7028		commercial trailer, said temporary license plate shall be removed
7173	7029		and replaced with a permanent, current Oklahoma license plate. Use
7174	7030		of said temporary license plate by a licensed dealer for other than
7175	7031		the purpose of normally doing business shall constitute grounds for
7176	7032		revocation of the dealer's license.
7177	7033
7178		-	SENATE FLOOR VERSION - HB2244 SFLR Page 141
7179		-	(Bold face denotes Committee Amendments) 1
	7034	+	ENGR. H. B. NO. 2244 Page 141 1
7180	7035		2
7181	7036		3
7182	7037		4
7183	7038		5
7184	7039		6
7185	7040		7
7186	7041		8
7187	7042		9
7188	7043		10
7189	7044		11
7190	7045		12
7191	7046		13
7192	7047		14
7193	7048		15
7194	7049		16
7195	7050		17
7196	7051		18
7197	7052		19
7198	7053		20
7199	7054		21
7200	7055		22
7201	7056		23
7202	7057		24
7203	7058
7204	7059		It shall be unlawful for any licensed dealer of new motor
7205	7060		vehicles, travel trailers or commercial trailers to procure the
7206	7061		registration and licensing of any new motor vehicle, travel trailer
7207	7062		or commercial trailer sold by such licensed dealer or to act as the
7208	7063		agent for such purchaser in the procurement of said registration and
7209	7064		licensing. The license of any licensed dealer of new motor
7210	7065		vehicles, travel trailers or commercial trailers violating the
7211	7066		provisions of this section shall be revoked.
7212	7067		SECTION 34. AMENDATORY 6 2 O.S. 2021, Section 15 5, is
7213	7068		amended to read as follows:
7214	7069		Section 155. A. There is hereby created in the State Treasury
7215	7070		a revolving fund for each of the following state boards, commissions
7216	7071		and departments:
7217	7072		1. The Board of Governors of the Licens ed Architects, Landscape
7218	7073		Architects and Registered Interi or Designers of Oklahoma;
7219	7074		2. Oklahoma Funeral Board;
7220	7075		3. Board of Podiatric Medical Examine rs;
7221	7076		4. Board of Chiropractic Examiners;
7222	7077		5. State Board of Registration for Foresters;
7223	7078		6. State Board of Medical Licensure and Supervisio n;
7224	7079		7. Oklahoma Board of Nursing;
7225	7080		8. State Board of Osteopathic Examiners;
7226	7081		9. State Board of Pharmacy;
7227	7082		10. State Board of Licensed Social Workers;
7228	7083
7229		-	SENATE FLOOR VERSION - HB2244 SFLR Page 142
7230		-	(Bold face denotes Committee Amendments) 1
	7084	+	ENGR. H. B. NO. 2244 Page 142 1
7231	7085		2
7232	7086		3
7233	7087		4
7234	7088		5
7235	7089		6
7236	7090		7
7237	7091		8
7238	7092		9
7239	7093		10
7240	7094		11
7241	7095		12
7242	7096		13
7243	7097		14
7244	7098		15
7245	7099		16
7246	7100		17
7247	7101		18
7248	7102		19
7249	7103		20
7250	7104		21
7251	7105		22
7252	7106		23
7253	7107		24
7254	7108
7255	7109		11. Oklahoma New Motor Vehicle Commission;
7256	7110		12. Oklahoma Peanut Commission;
7257	7111		13. Oklahoma Real Estate Com mission; and
7258	7112		14. Santa Claus Commission.
7259	7113		B. Each revolving fund shall consist of all monies received by
7260	7114		the boards, commissions and departments, pursuant to statutory
7261	7115		authority, but not including appropriated funds. These rev olving
7262	7116		funds shall be contin uing funds, not subject t o fiscal year
7263	7117		limitations and shall be under the contr ol and management of the
7264	7118		administrative authorities of the respective boards, commissions or
7265	7119		departments.
7266	7120		C. Expenditures from the revolving funds s hall be made pursuant
7267	7121		to the laws of the state and th e statutes relating to said boards,
7268	7122		commissions and departments, and without legislative app ropriation.
7269	7123		Warrants for expenditures from said revolving funds shall be drawn
7270	7124		by the State Treasurer, based o n claims signed by an author ized
7271	7125		employee or employee s of the respective boards, commissions or
7272	7126		departments and approved for payment by the Direc tor of the Office
7273	7127		of Management and Enterprise Services.
7274	7128		SECTION 35. AMENDATORY 74 O.S. 202 1, Section 3601.1, as
7275	7129		amended by Section 24, Chapter 107, O.S.L. 2022 (74 O.S. Supp. 2022,
7276	7130		Section 3601.1), is amended to read as follows:
7277	7131		Section 3601.1 A. For purposes of Sections 3601.1 through 3603
7278	7132		of this title, the term "employee" means a full-time employee or any
7279	7133
7280		-	SENATE FLOOR VERSION - HB2244 SFLR Page 143
7281		-	(Bold face denotes Committee Amendments) 1
	7134	+	ENGR. H. B. NO. 2244 Page 143 1
7282	7135		2
7283	7136		3
7284	7137		4
7285	7138		5
7286	7139		6
7287	7140		7
7288	7141		8
7289	7142		9
7290	7143		10
7291	7144		11
7292	7145		12
7293	7146		13
7294	7147		14
7295	7148		15
7296	7149		16
7297	7150		17
7298	7151		18
7299	7152		19
7300	7153		20
7301	7154		21
7302	7155		22
7303	7156		23
7304	7157		24
7305	7158
7306	7159		number of part-time employees whose combined weekly hours of
7307	7160		employment equal those of a full-time employee, but shall not
7308	7161		include temporary employees wo rking on a seasonal basis between May
7309	7162		1 and October 31.
7310	7163		B. Beginning July 1, 2008, the maximum number of full-time-
7311	7164		equivalent employees for each of the following agencies, boards,
7312	7165		commissions, departments, or programs shall not exceed the numbers
7313	7166		specified in this section, except as may be authorized pursuant to
7314	7167		the provisions of Section 3603 of this title.
7315	7168		MAXIMUM NUMBER OF
7316	7169		FULL-TIME-EQUIVALENT
7317	7170		EMPLOYEES
7318	7171		Oklahoma Employment Security Com mission 1150
7319	7172		Oklahoma Accountancy Bo ard 11
7320	7173		Board of Governors of the Licensed Architects,
7321	7174		Landscape Architects and Registered Interior
7322	7175		Designers of Oklahoma 4
7323	7176		Board of Chiropractic Examiners 3
7324	7177		State Board of Cosmetology and Barbering 16
7325	7178		Board of Dentistry 10
7326	7179		Oklahoma State Board of Embalmers and Funeral
7327	7180		Directors 5
7328	7181		State Board of Licensure for Professional
7329	7182		Engineers and Land Surveyors 10
7330	7183
7331		-	SENATE FLOOR VERSION - HB2244 SFLR Page 144
7332		-	(Bold face denotes Committee Amendments) 1
	7184	+	ENGR. H. B. NO. 2244 Page 144 1
7333	7185		2
7334	7186		3
7335	7187		4
7336	7188		5
7337	7189		6
7338	7190		7
7339	7191		8
7340	7192		9
7341	7193		10
7342	7194		11
7343	7195		12
7344	7196		13
7345	7197		14
7346	7198		15
7347	7199		16
7348	7200		17
7349	7201		18
7350	7202		19
7351	7203		20
7352	7204		21
7353	7205		22
7354	7206		23
7355	7207		24
7356	7208
7357	7209		State Board of Medical Licensure and Supervision/
7358	7210		Board of Podiatric Medical Examiners/State
7359	7211		Board of Examiners of Perfus ionists 29
7360	7212		Oklahoma Energy Resources Board 5
7361	7213		Oklahoma New Motor Vehicle Commission 6
7362	7214		Oklahoma Board of Nursing 35
7363	7215		Oklahoma State Board of Examiners for Long-Term
7364	7216		Care Administrators 4
7365	7217		Board of Examiners in Optometry 3
7366	7218		State Board of Osteopathic Examiners 7
7367	7219		Oklahoma State Board of Pharmacy 15
7368	7220		State Board of Examiners of Psychologists 2
7369	7221		Oklahoma Real Estate Commission 26
7370	7222		Board of Examiners f or Speech-Language Pathology
7371	7223		and Audiology 2
7372	7224		Oklahoma Used Motor Vehicle, Dismantler, and
7373	7225		Manufactured Housing Commission 15
7374	7226		State Board of Veterin ary Medical Examiners 6
7375	7227		Oklahoma Firefighters Pension and Retirement
7376	7228		System 13
7377	7229		Oklahoma Police Pension and R etirement System 12
7378	7230		Teachers' Retirement System of Oklahoma 52
7379	7231		Oklahoma Public Employees Retirement System 63
7380	7232		Oklahoma Student Loan Authority 85
7381	7233
7382		-	SENATE FLOOR VERSION - HB2244 SFLR Page 145
7383		-	(Bold face denotes Committee Amendments) 1
	7234	+	ENGR. H. B. NO. 2244 Page 145 1
7384	7235		2
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7407	7258
7408	7259		Oklahoma Industrial Finance Author ity/Oklahoma
7409	7260		Development Finance A uthority 10
7410	7261		State and Education Employees G roup Insurance
7411	7262		Board 178
7412	7263		Oklahoma Capital Investment Board 4
7413	7264		State Board of Licensed Social Workers 1
7414	7265		Oklahoma State Employees Benefits Council 38
7415	7266		Oklahoma State Banking Departmen t 46
7416	7267		Liquefied Petroleum Gas Administration 10
7417	7268		C. The duties and compensatio n of employees, not otherwise
7418	7269		prescribed by law, necessary to pe rform the duties imposed upon the
7419	7270		Oklahoma Public Employees Retirement System Board of Trustees by law
7420	7271		shall be set by the Board of Trustees.
7421	7272		D. Temporary employees of the Oklahoma Used Motor Vehicle,
7422	7273		Dismantler, and Manufactured Housing Commission between the dates of
7423	7274		November 1 and January 31 annually shall not be counted toward the
7424	7275		maximum number of full-time-equivalent employees provided for in
7425	7276		this section.
7426	7277		SECTION 36. REPEALER 47 O.S. 2021, Section 1128, as
7427	7278		amended by Section 21, Chapter 107, O.S.L. 2022 (47 O.S. Supp. 2022,
7428	7279		Section 1128), is hereby repealed.
7429	7280		SECTION 37. This act shall become effective November 1, 2023.
7430		-	COMMITTEE REPORT BY: COMMITTEE ON BUSINESS AND COMMERCE
7431		-	April 10, 2023 - DO PASS
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	7307	+
	7308	+	Passed the House of Representatives the 21st day of March, 2023.
	7309	+
	7310	+
	7311	+
	7312	+
	7313	+	Presiding Officer of the House
	7314	+	of Representatives
	7315	+
	7316	+
	7317	+
	7318	+	Passed the Senate the ___ day of __________, 2023.
	7319	+
	7320	+
	7321	+
	7322	+
	7323	+	Presiding Officer of the Senate
	7324	+
	7325	+