Oklahoma 2023 Regular Session

Oklahoma Senate Bill SB643 Compare Versions

Version 1 (Old)

Version 2 (New)

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3		-	SENATE FLOOR VERSION - SB643 SFLR Page 1
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29		-	SENATE FLOOR VERSION
30		-	February 20, 2023
31		-
32		-
33		-	SENATE BILL NO. 643 By: Coleman
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	53	+	STATE OF OKLAHOMA
	54	+
	55	+	1st Session of the 59th Legislature (2023)
	56	+
	57	+	SENATE BILL 643 By: Coleman
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	63	+	AS INTRODUCED
38	64
39	65		An Act relating to motor vehicles; amending 47 O.S.
40	66		2021, Sections 562, 563, 564, 564.1, 564.2, 565, as
41	67		amended by Section 3, Chapter 19 2, O.S.L. 2022,
42	68		565.1, 565.2, 565.3, 566, 566.1, 567, 576, 578.1,
43	69		579, 596.1, 596.2, 596.3, 596.5, 596.7, 596. 8,
44	70		596.14, 596.15, 596.16, 1116.1, 1128, as last amended
45	71		by Section 142, Chapter 282, O.S.L. 20 22, and 1137.3,
46	72		as amended by Section 172, Chapter 282, O.S.L. 2022
47	73		(47 O.S. Supp. 2022, Sections 565, 1128, and 1137.3),
48	74		which relates to the Oklahoma Motor Vehicle
49	75		Commission; updating name of Commission; modifying
50	76		powers and duties of the Commission; updating
51	77		statutory references; amending 21 O.S. 2021, Section
52	78		918, which relates to sale, barter, or exchange of
53	79		motor vehicles on Sunday prohibited ; updating
54	80		reference; repealing 47 O.S. 202 1, Section 1128, as
55	81		last amended by Section 21, Chapter 107, O.S .L. 2022
56	82		(47 O.S. Supp. 2022, Section 1128), which relates to
57	83		manufacturer of new vehicles; and providing an
58	84		effective date.
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63	89		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
64	90		SECTION 1. AMENDATORY 47 O.S. 2021, Sectio n 562, is
65	91		amended to read as follows:
66	92		Section 562. The following words, terms a nd phrases, when used
67	93		in Sections 561 through 567, 572, 578.1, 579 and 579.1 of this
68	94		title, shall have the meanings respective ly ascribed to them in this
69	95
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96	146		section, except where the context clearly indicates a different
97	147		meaning:
98	148		1. “Motor vehicle” means any motor-driven vehicle required to
99	149		be registered under the Oklahoma Vehicle License and Registration
100	150		Act. The term “motor vehicle” does not include:
101	151		a. recreational vehicles, a s defined in the Recreational
102	152		Vehicle Franchise Act , or
103	153		b. all-terrain vehicles, utility vehicles, and
104	154		motorcycles used exclusively for off -road use which
105	155		are sold by a retail implement dealer ;
106	156		2. “New motor vehicle dealer” means any person, firm,
107	157		association, corporation or trust not excluded by this par agraph who
108	158		sells, offers for sale, advertises to sell, leases or displays new
109	159		motor vehicles or powersports vehicles and holds a bona fide
110	160		contract or franchise in effect with a manufacturer or distributor
111	161		authorized by the manufacturer to make predelivery preparation of
112	162		such vehicles sold to purchasers and to perform post -sale work
113	163		pursuant to the manufacturer ’s or distributor’s warranty. As used
114	164		herein, “authorized predelivery preparation ” means the rendition by
115	165		the dealer of services and safety adjustme nts on each new motor
116	166		vehicle in accordance with the procedure and safety standards
117	167		required by the manufacturer of the vehicle to be made before its
118	168		delivery to the purchaser. “Performance of authorized post-sale
119	169		work pursuant to the warranty”, as used herein, means the rendition
120	170
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147	221		of services which are required by the terms of the warranty that
148	222		stands extended to the vehicle at the time of its sale and are to be
149	223		made in accordance with the safety standards prescribed by the
150	224		manufacturer. The term includes premises or facilities at wh ich a
151	225		person engages only in the repair of motor vehicles if repairs are
152	226		performed pursuant to the terms of a franchise and mo tor vehicle
153	227		manufacturer’s warranty. However, the term shall not include
154	228		premises or facilities at w hich a new motor vehicle deal er or
155	229		dealers within the area of responsibility of such dealer or dealers
156	230		as defined in the manufacturer ’s franchise agreement of such dealer
157	231		or dealers performs motor vehicle repairs pursuant to the terms of a
158	232		franchise and motor vehicle manufacturer ’s warranty. For the
159	233		purpose of Sections 561 through 567, 572, 578.1, 579 and 579.1 of
160	234		this title, the terms “new motor vehicle de aler” and “new motor
161	235		vehicle dealership” shall be synonymous. The term “new motor
162	236		vehicle dealer” does not include:
163	237		a. receivers, trustees, administrators, executors,
164	238		guardians or other persons appointed by or acting
165	239		under judgment or order of any court,
166	240		b. public officers while performing or in operatio n of
167	241		their duties, or
168	242		c. employees of persons, corp orations or associations
169	243		enumerated in subparagraph a of this paragraph when
170	244
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197	295		engaged in the specific performance of their duties as
198	296		such employees;
199	297		3. “Motor vehicle salesperson” means any person who, for gain
200	298		or compensation of any kind, either directly or indirectly,
201	299		regularly or occasionally, by any form of agreement or arrangement,
202	300		sells or negotiates for the sale of any new motor vehicle for any
203	301		new motor vehicle dealer to any one or more third partie s;
204	302		4. “Commission” means the Oklahoma New Motor Vehicle
205	303		Commission;
206	304		5. “Manufacturer” means any person, firm, association,
207	305		corporation or trust, resident or nonresident, who manufactures or
208	306		assembles new and unused motor vehicles or who engages in the
209	307		fabrication or assembly of motorized vehicles of a ty pe required to
210	308		be registered in the State of Oklahoma;
211	309		6. “Distributor” means any person, firm, association,
212	310		corporation or trust, resident or nonresident , who, being authorized
213	311		by the original manufactur er, in whole or in part sells or
214	312		distributes new and unused motor vehicles to mo tor vehicle dealers,
215	313		or who maintains distributor representatives;
216	314		7. “Factory branch” means any branch office maintained by a
217	315		person, firm, association, corporation or trust who manufactures or
218	316		assembles motor vehicles for th e sale of motor vehicles to
219	317		distributors, or for the sale of motor vehicles to motor vehicle
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247	369		dealers, or for directing or supervising, in whole or in part, its
248	370		representatives;
249	371		8. “Distributor branch” means any branch office similarly
250	372		maintained by a dist ributor for the same purposes a factory branch
251	373		is maintained;
252	374		9. “Factory representative ” means any officer or agent engaged
253	375		as a representative of a manu facturer of motor vehicles or by a
254	376		factory branch, for the purpose of making or promoting the sale of
255	377		its motor vehicles, or for s upervising or contacting its dealers or
256	378		prospective dealers;
257	379		10. “Distributor representative ” means any person, firm,
258	380		association, corporation or trust and each officer and em ployee
259	381		thereof engaged as a representative of a dis tributor or distributor
260	382		branch of motor vehicles, for the purpose of making or promoting the
261	383		sale of its motor vehicles, or for supervising or contacting i ts
262	384		dealers or prospective dealers;
263	385		11. “Franchise” means any contract or agreement between a motor
264	386		vehicle dealer and a manufactu rer of a new motor vehicle or its
265	387		distributor or factory branch by which the dealer is authorized to
266	388		engage in the business of selling any specified make or makes of new
267	389		motor vehicles;
268	390		12. “New or unused motor vehicle” means a vehicle which is in
269	391		the possession of the manufacturer or distributor or has been sold
270	392		only to the holder of a valid selling agreement, franchise or
271	393
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298	444		contract, granted by the manufacturer or distributor f or the sale of
299	445		that make of new vehicle so long as the manufacturer’s statement of
300	446		origin has not been assigned to anyone other than a licensed
301	447		franchised new motor vehicle dealer of the same line -make;
302	448		13. “Area of responsibility” means the geographical area, as
303	449		designated by the manufacturer, factory br anch, factory
304	450		representative, distributor, distributor branch or distributor
305	451		representative, in which the new motor vehicle dealer is held
306	452		responsible for the promotion and development of sales and renderi ng
307	453		of service for the make of motor vehicle for whi ch the motor vehicle
308	454		dealer holds a franchise or selling agreement;
309	455		14. “Off premises” means at a location other than the address
310	456		designated on the new mo tor vehicle dealer’s license;
311	457		15. “Sponsoring entity” means any person, firm, association,
312	458		corporation or trust which has control , either permanently or
313	459		temporarily, over the real property upon which the off -premise sale
314	460		or display is conducted;
315	461		16. “Product” means new motor vehicles and new motor vehic le
316	462		parts;
317	463		17. “Service” means motor vehicle warran ty repairs including
318	464		both parts and labor;
319	465		18. “Lead” means a consumer contact in response to a factory
320	466		program designed to generate interest in purchasin g or leasing a new
321	467		motor vehicle;
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349	519		19. “Sell or sale” means to sell or lease;
350	520		20. “Factory” means a manufacturer, distributor, fa ctory
351	521		branch, distributor branch, factory representative or distributor
352	522		representative, which manufactures or distributes vehi cle products;
353	523		21. “Powersports vehicle” means motorcycles, scooters, mopeds,
354	524		all-terrain vehicles, and utility vehicles. Powersports vehicle
355	525		shall mean the same as motor vehicle; and
356	526		22. “Powersports vehicle dealer ” means any person, firm, or
357	527		corporation who is in the business of selling any new powers ports
358	528		vehicles except for retail implement dealers ; and
359	529		23. “Retail implement dealer ” means a business engaged
360	530		primarily in the sale of farm tractors as defined in Section 1 -118
361	531		of this title or implements of husbandry as defined in Section 1-125
362	532		of this title or a combination thereof . The term powersports
363	533		vehicle dealer shall mean the same as new motor vehicle dealer.
364	534		SECTION 2. AMENDATORY 47 O.S. 2021, Section 563, is
365	535		amended to read as follow s:
366	536		Section 563. A. There is hereby created the Oklahoma New Motor
367	537		Vehicle Commission, to be composed of nine (9) members. Seven of
368	538		the members shall have been engaged in the manufacture, distribution
369	539		or sale of new motor vehicle s and two members shall be lay members,
370	540		all to be appointed by the Governor of the State of Oklahoma, with
371	541		the advice and consent of the State Senate. Such appointments sha ll
372	542		be made within thirty (30) days after the effective date of this
373	543
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400	594		section. Each of the Commissioners thus appointed shall, at the
401	595		time of the appointment, be a resident in good faith of the State of
402	596		Oklahoma, shall be of good moral character, and each o f the industry
403	597		related Commissioners shall have been actually e ngaged in the
404	598		manufacture, distribution or sale of such new motor vehicles for n ot
405	599		less than ten (10) years next preceding suc h appointment. The
406	600		members of the Commission shall serve at the pl easure of the
407	601		Governor.
408	602		B. 1. The Commissioners shall elect a Chairman from amongst
409	603		them whose term shall be for one (1) year with the right to succeed
410	604		him or herself.
411	605		2. There shall be three at large members of the Commission.
412	606		Six members of the Commi ssion shall be appointed from the following
413	607		geographical areas with at least one me mber from each area:
414	608		a. four areas of the state shall be the northwest,
415	609		northeast, southwest and southeast sections designated
416	610		by Interstate 35 dividing the state east and w est and
417	611		Interstate 40 dividing the state north and south,
418	612		excluding Oklahoma County and Tulsa County, and
419	613		b. two additional areas shall be Okla homa County and
420	614		Tulsa County.
421	615		There shall not be more than two members of the Commission from any
422	616		one area.
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445	663		21
446	664		22
447	665		23
448	666		24
449	667
450	668		C. The terms of office of the members first appointed to the
451	669		Commission shall be as fol lows:
452	670		1. The members appointed from the northwest, northeas t and
453	671		southwest areas shall serve until June 3 0, 1987;
454	672		2. The members appointed from the southeast area and Okla homa
455	673		County and Tulsa County shall serve until June 30, 1989; a nd
456	674		3. The members appointed at large shall serve until June 30,
457	675		1991.
458	676		Each member shall serve until a successor is appointed and
459	677		qualifies. Thereafter, the term of office of each member of th e
460	678		Commission shall be for six (6) years. The term of office of any
461	679		member will automatically expire if the member moves out of the
462	680		geographical area from which the member was appointed. I n event of
463	681		death, resignation, removal, or term automatically expir ing, of any
464	682		person serving on the Commission, the vacancy shall be filled by
465	683		appointment as provided for the unexpired portion of the term. Th e
466	684		Commission shall meet at Oklahoma City and c omplete its organization
467	685		immediately after the membership thereof h as been appointed and has
468	686		qualified. The Chairman and each mem ber of the Commissio n shall
469	687		take and subscribe to the oath of office required of public
470	688		officers.
471	689		D. The members of the Commi ssion shall receive reimbursement
472	690		for subsistence and traveling exp enses necessarily incurred in the
473	691
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499	741
500	742		performance of their duties a s provided by the St ate Travel
501	743		Reimbursement Act.
502	744		E. The Commission shall appoi nt a qualified person to serve as
503	745		Executive Director thereof, which person shall have had not less
504	746		than ten (10) years of experience in the motor vehicle industry.
505	747		The Executive Director shall be appointed for a term of six (6)
506	748		years, and shall not be sub ject to dismissal or removal without
507	749		cause. The Commission shall fix the salary and prescribe the duties
508	750		of the Executive Director. The Executive Director shall devote such
509	751		time as necessary to fulfill the duties thereof, and before entering
510	752		upon such duties shall take and subscribe to the oath of o ffice.
511	753		The Executive Director may employ such clerical, technical and other
512	754		help and legal services and incur such expenses as ma y be necessary
513	755		for the proper discharge of the duties of the Executive Director
514	756		under this act. The Commission shall maintain its office and
515	757		transact its business in Oklahoma City, and it is a uthorized to
516	758		adopt and use a seal. The Executive Director is h ereby authorized
517	759		to hire, retain or otherwise acquire the services of an attorne y to
518	760		represent the Commission in any and all s tate and federal courts,
519	761		and assist the Commission in any and all b usiness or legal matters
520	762		that may come before it. The attorney so representing the
521	763		Commission shall discharge the duties under the direction o f the
522	764		Executive Director.
523	765
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549	815
550	816		F. The Commission i s hereby vested with the powers necessary to
551	817		enable it to fully and effectively carry out the provisions and
552	818		objects of this act, and is hereby author ized and empowered to make
553	819		and enforce all reasonable rules and to adopt and prescribe all
554	820		forms necessary to accomplish such purpose. All forms used by a new
555	821		motor vehicle dealer to facilitate the delivery of a vehicle pending
556	822		approval of financing shall be approved by the Commission . Spot
557	823		delivery agreement forms shall be required for all new motor vehicle
558	824		deliveries subject to dealers finding lending institutions to
559	825		purchase the retail installment contracts executed by the purchasin g
560	826		and selling parties.
561	827		G. All fees, charges and fines collected under t he provisions
562	828		of this act shall be deposited by the Ex ecutive Director in the
563	829		State Treasury in accordance with the depos itory laws of this state
564	830		in a special fund to be known as the “Oklahoma New Motor Vehicle
565	831		Commission Fund”, which is hereby created, an d except as hereinafter
566	832		provided the monies in the fun d shall be used by the Commission for
567	833		the purpose of carrying out a nd enforcing the provisions of this
568	834		act. Expenditures fro m the fund shall be made upon vouchers
569	835		approved by the Commission or its auth orized officers.
570	836		At the close of each fiscal year, the Commission shall file with
571	837		the Governor and the State Auditor and Inspector a true and correct
572	838		report of all fees, fines and charges collected and received by it
573	839		during the preceding fiscal year and sh all at the same time pay into
574	840
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600	890
601	891		the General Revenue Fund of the state a sum equal to ten percent
602	892		(10%) of the fees, fines a nd charges so collected and received.
603	893		All expenses incurre d by the Commission in carrying out the
604	894		provisions of this act, including but not limited to per diem,
605	895		wages, salaries, rent, posta ge, advertising, supplies, bond
606	896		premiums, travel and subsistence fo r the Commissioners, the
607	897		Executive Director, employees, an d legal counsel, and printing and
608	898		utilities, shall be a proper charge against such fund, exclusive of
609	899		the portion thereof to be pai d into the General Revenue Fund as
610	900		above set out. In no event shal l liability ever accrue hereunder
611	901		against this state in an y sum whatsoever, or against the Oklahoma
612	902		New Motor Vehicle Commission Fund, in excess of the ninety percent
613	903		(90%) of the fees, fin es and charges deposited therein.
614	904		SECTION 3. AMENDATORY 47 O .S. 2021, Section 564, is
615	905		amended to read as follows:
616	906		Section 564. A. It shall be unlawful for any perso n, firm,
617	907		association, corporation, or trust to engage in business a s, or
618	908		serve in the capacity of, or act as a motor vehicle dealer ,
619	909		powersports dealer, or manufacturer or distributor of new motor
620	910		vehicles, or powersports vehic les or factory branch, distributor
621	911		branch or factory representative or distributor representativ e, as
622	912		such, in this state without first obtaining a license therefor as
623	913		provided for by law. Any person, firm, association, corporation or
624	914		trust engaging in more than one of such capacities or having more
625	915
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651	965
652	966		than one place where such business is carried on o r conducted shall
653	967		be required to obtain and hold a current license for each thereof.
654	968		Provided that, a new motor vehicle dealer ’s license shall authorize
655	969		one person to sell in the event such person shall be the owner of a
656	970		proprietorship, or the person desi gnated as principal in the
657	971		dealer’s franchise or the managi ng officer or one partner if no
658	972		principal person is named in the franchise.
659	973		B. Applications for lic enses required to be obtained under
660	974		provisions of Section 561 et seq. of this title shall be veri fied by
661	975		the oath or affirmation of the applicant and shall be on forms
662	976		prescribed by the Oklahoma New Motor Vehicle Commission and
663	977		furnished to such applicants , and shall contain s uch information as
664	978		the Commission deems necessary to enable it to fully dete rmine the
665	979		qualifications and eligibility of the several app licants to receive
666	980		the license or licenses applied for. The Commission shall require
667	981		in such application, or otherwise, information relating to the
668	982		applicant’s financial standing, the applicant ’s business integrity,
669	983		whether the applicant has an establishe d place of business and is
670	984		primarily engaged in the pursuit, avocation or business for which a
671	985		license, or licenses, are applied for, and whether the applicant is
672	986		able to properly conduct the busin ess for which a license, or
673	987		licenses, are applied for, and such other pertinent information
674	988		consistent with the safeguarding of the public interest and the
675	989		public welfare. All suc h applications for license or licenses shall
676	990
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702	1040
703	1041		be accompanied by the appropria te fee or fees therefor in accordance
704	1042		with the schedule the reof hereinafter set out. In the event any
705	1043		such application is denied and the license applied for i s not
706	1044		issued, the entire license fee shall be returned to the applicant.
707	1045		All licenses issued und er the provisions of Section 561 et seq. of
708	1046		this title shall expire on June 30, following the date of issue and
709	1047		shall be nontransferable. All applications for renewal of a license
710	1048		for a new motor vehicle dealer, manufacturer, distributor or
711	1049		manufacturer’s or distributor’s representative shall be submitted by
712	1050		June 1 of each year, and such license or licenses will be issued by
713	1051		July 1. If applications have not be en made for renewal o f licenses
714	1052		at the times described in this subsection, it shall be illegal fo r
715	1053		any person to represent himself or herself and act as a d ealer,
716	1054		manufacturer, distributor or manufacturer ’s or distributor’s
717	1055		representative. Motor license a gents will be notifie d not to accept
718	1056		such dealers’ titles until such time as licenses have been i ssued by
719	1057		the Commission.
720	1058		C. The schedule of license fees t o be charged and received by
721	1059		the Commission for the licenses issued hereunder shall be as
722	1060		follows:
723	1061		1. For each factory b ranch or distributor branch, Four Hundred
724	1062		Dollars ($400.00) initial fee with annual renewal fee of Three
725	1063		Hundred Dollars ($300.00);
726	1064
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752	1114
753	1115		2. For each manufacturer or distributor of new motor vehicles,
754	1116		Four Hundred Dollars ($400.00) initial fee with annual renew al fee
755	1117		of Three Hundred Dollars ($300.00);
756	1118		3. For each factory representati ve or distributor
757	1119		representative, One Hundred Dollars ($100 .00) annually;
758	1120		4. For each new motor vehicle dealer, except powersports
759	1121		vehicle dealers, initial fe e of Three Hundred Do llars ($300.00) per
760	1122		franchise sold at each location licensed, with an annual renewal fee
761	1123		of One Hundred Dollars ($100.00) per franchise sold at each location
762	1124		per year; and
763	1125		5. For each powersports vehicle dealer, initial fee of Three
764	1126		Hundred Dollars ($300. 00) per manufacturer represented by the dealer
765	1127		at each location licensed, wi th an annual renewal fee of One Hundred
766	1128		Dollars ($100.00) per manufacturer represented by the dealer at each
767	1129		location licensed per year .
768	1130		D. The licenses issue d to each new motor v ehicle dealer,
769	1131		manufacturer, distributor, factory branch, distributor branch or
770	1132		representative, if a corporation, shall specify the loc ation of the
771	1133		factory, office or branch thereof. In case such location is
772	1134		changed, the Commission ma y endorse the change of location on the
773	1135		license without charge unless the change of address trigg ers a
774	1136		relocation of a new motor vehicle dealer pursuant to the provisions
775	1137		of Section 578.1 of this title. The license of each dealer shall be
776	1138
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802	1188
803	1189		posted in a conspicuous place in the dealer’s place or places of
804	1190		business.
805	1191		Every motor vehicle factory representa tive or distributor
806	1192		representative if an individual shall p hysically possess the license
807	1193		when engaged in business, and shall display same upon request. The
808	1194		name of the employer of such factory representative or distributor
809	1195		representative shall be stated o n the license and, in case of a
810	1196		change of employer, the hol der of such license shall immediately
811	1197		mail same to the Commission for its endorsement of such change
812	1198		thereon. The Commis sion shall endorse each such change of employer
813	1199		on licenses for a fee of Ten Dollars ($10.00).
814	1200		E. The powersports dealer license shall only allow the sale of
815	1201		the specific types of powersports vehicles authorized by the
816	1202		manufacturer and agreed to by the po wersports dealer.
817	1203		SECTION 4. AMENDATORY 47 O.S. 2021, Section 564.1, is
818	1204		amended to read as follows:
819	1205		Section 564.1. Licensing of off-premises displays of new motor
820	1206		vehicles and off-premise sales of new motorized recreational
821	1207		vehicles.
822	1208		A. The Oklahoma New Motor Vehicle Commission shall provide for
823	1209		off-premise displays of new motor vehicles by currently li censed new
824	1210		motor vehicle dealers . An off-premise event may be held for display
825	1211		purposes only under the following conditions:
826	1212
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852	1262
853	1263		1. The motor vehicles are for display purposes only and not for
854	1264		sale at the off-premise display event;
855	1265		2. No selling activities shall be conducted;
856	1266		3. The display is in dealer ’s factory-approved area of sales
857	1267		and service responsibility;
858	1268		4. The dealer must obtain written approval fr om the
859	1269		manufacturer or distributor ; and
860	1270		5. The dealer is required to obtain approval for the displa y
861	1271		location from the sponsoring entity.
862	1272		B. The Oklahoma Motor Vehic le Commission is authorized to
863	1273		provide a variance to the di stance requirements and the area of
864	1274		sales and service responsibility requirements specified in this
865	1275		section, for any off -premise display event if:
866	1276		1. The the off-premise display is conducted withi n municipal,
867	1277		county, or state-owned or controlled facilities or within the
868	1278		grounds of any county, district, or state fair ; and
869	1279		2. The request for the variance must be in writing to the
870	1280		Commission no less than thirty (30) days prior to the off-premise
871	1281		display event.
872	1282		SECTION 5. AMENDATORY 47 O.S. 2021, Section 564.2, i s
873	1283		amended to read as follows:
874	1284		Section 564.2. It shall be punishable by an administrative fine
875	1285		not to exceed Five Hundred Dollars ($500.00) for any person, firm,
876	1286		association, corporatio n or trust to engage in busin ess as, or serve
877	1287
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903	1337
904	1338		in the capacity of, a new motor vehicle salesperson in this state
905	1339		without first obtaining a certificate of registration with the
906	1340		Oklahoma New Motor Vehicle Commission . The cost of registration for
907	1341		each new salesperson shall be set at Twenty -five Dollars ($25.00) to
908	1342		be renewed annually. The cost of registration and any
909	1343		administrative fine is to be borne by the employing entity of the
910	1344		new salesperson. The Commission shall promulgate rules and
911	1345		procedures necessary for the implementation and cre ation of the
912	1346		registry and the issu ance of certificates of registration.
913	1347		SECTION 6. AMENDATORY 47 O.S. 2021, Section 565, as
914	1348		amended by Section 3, Chapter 1 92, O.S.L. 2022 (47 O.S. Supp. 2022,
915	1349		Section 565), is amended to read as follows:
916	1350		Section 565. A. The Oklahoma New Motor Vehicle Commission may
917	1351		deny an application for a license, or revoke or suspend a license or
918	1352		impose a fine not to exceed Ten Thousand Dollars ($10,000.00) per
919	1353		occurrence against a dealer, manufacturer, or distributor or a fine
920	1354		not to exceed One Thousand Dollars ($1,000.00) against a dealer per
921	1355		occurrence that violates any provision of Sections 561 through 567,
922	1356		572, 578.1, 579, and 579.1 of this title is violated or for any of
923	1357		the following reasons:
924	1358		1. On satisfactory proof of unfitness of the applicant in any
925	1359		application for any license under th e provisions of Section 561 et
926	1360		seq. of this title;
927	1361
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953	1411
954	1412		2. For any material misstatement made by an applicant in any
955	1413		application for any license under the provisions of Section 561 et
956	1414		seq. of this title;
957	1415		3. For any failure to comply with any provision of Se ction 561
958	1416		et seq. of this title or any rule promulgated by the Commission
959	1417		under authority vested in it by Section 561 et seq. of this title;
960	1418		4. A change of condition after license is granted resulting in
961	1419		failure to maintain the qualifications for license ;
962	1420		5. Being a new motor vehicle dealer who:
963	1421		a. has required a purchaser of a new motor ve hicle, as a
964	1422		condition of sale and deliv ery thereof, to also
965	1423		purchase special features, appliances, accessories or
966	1424		equipment not desired or requested by the purchaser
967	1425		and installed by the dealer,
968	1426		b. uses any false or misleading advertising in connection
969	1427		with business as a new motor vehicle deal er,
970	1428		c. has committed any unlawful act which resulted in the
971	1429		revocation of any similar license in another state,
972	1430		d. has failed or refused to perform any written agreement
973	1431		with any retail buyer involving the sale of a motor
974	1432		vehicle,
975	1433		e. has been convicted of a felony crime that
976	1434		substantially relates to the occupation of a motor
977	1435
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1004	1486		vehicle dealer and poses a reasonable threat to public
1005	1487		safety,
1006	1488		f. has committed a fraudulent act in selling, purchasing
1007	1489		or otherwise dealing in new motor v ehicles or has
1008	1490		misrepresented the terms an d conditions of a sale,
1009	1491		purchase or contract for sale or purchase of a new
1010	1492		motor vehicle or any interest therein including an
1011	1493		option to purchase such vehicle,
1012	1494		g. has failed to meet or maintain the conditions and
1013	1495		requirements necessary to qualify for the is suance of
1014	1496		a license, or
1015	1497		h. completes any sale or transaction of an extended
1016	1498		service contract, extended maintenance plan, or
1017	1499		similar product using contract forms that do not
1018	1500		conspicuously disclose the identity of the service
1019	1501		contract provider;
1020	1502		6. Being a new motor vehicle salesperson who is not employed as
1021	1503		such by a licensed new motor vehicle dealer;
1022	1504		7. Being a new motor vehicle dealer who:
1023	1505		a. does not have an established place of business,
1024	1506		b. does not provide for a suitable repair shop separate
1025	1507		from the display room with ample space to repair or
1026	1508		recondition one or more vehicles at the same time, and
1027	1509		which is equipped with such parts, tools and equipment
1028	1510
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1055	1561		as may be requisite for the servicing of motor
1056	1562		vehicles in such a manner as to make them comply with
1057	1563		the safety laws of this state and to properly fulfill
1058	1564		the dealer’s or manufacturer’s warranty obligation,
1059	1565		c. does not hold a franchise in effect with a
1060	1566		manufacturer or distributor of new or unused motor
1061	1567		vehicles for the sale of the same and is not
1062	1568		authorized by the manufacturer or distributor to
1063	1569		render predelivery preparation of such vehicles sold
1064	1570		to purchasers and to perform any authorized post-sale
1065	1571		work pursuant to the manufacturer’s or distributor’s
1066	1572		warranty,
1067	1573		d. employs a person without obtaining a certific ate of
1068	1574		registration for the person, or utilizes the services
1069	1575		of used motor vehicle lots or dealers or other
1070	1576		unlicensed persons in connection with the sale of new
1071	1577		motor vehicles,
1072	1578		e. does not properly servic e a new motor vehicle before
1073	1579		delivery of same to th e original purchaser thereof, or
1074	1580		f. fails to order and stock a reasonable number of new
1075	1581		motor vehicles necessary to meet customer demand for
1076	1582		each of the new motor vehicles included in the new
1077	1583		motor vehicle dealer’s franchise agreement, unless the
1078	1584
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1105	1635		new motor vehicles are not readily available from the
1106	1636		manufacturer or distributor due to limited production;
1107	1637		8. Being a factory that has:
1108	1638		a. either induced or attempted to induce by means of
1109	1639		coercion or intimidation, any new motor vehicle
1110	1640		dealer:
1111	1641		(1) to accept delivery of any motor vehicle or
1112	1642		vehicles, parts or accessories therefor, or any
1113	1643		other commodities including advertising material
1114	1644		which shall not have been ordered by the new
1115	1645		motor vehicle dealer,
1116	1646		(2) to order or accept deli very of any motor vehicle
1117	1647		with special features, appliances, accessories or
1118	1648		equipment not included in the list price of the
1119	1649		motor vehicles as publicly advertised by the
1120	1650		manufacturer thereof, or
1121	1651		(3) to order or accept delivery of any p arts,
1122	1652		accessories, equipment, machinery, tools,
1123	1653		appliances or any commodity whatsoever, or
1124	1654		b. induced under threat or discrimination by the
1125	1655		withholding from delivery to a motor vehicle dealer
1126	1656		certain models of motor vehicles, changing or a mending
1127	1657		unilaterally the dealer’s allotment of motor vehicles
1128	1658		and/or withholding and delaying delivery of such
1129	1659
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1156	1710		vehicles out of the ordinary course of business, in
1157	1711		order to induce by such coercion any such dealer to
1158	1712		participate or contribute to any local or national
1159	1713		advertising fund controlled d irectly or indirectly by
1160	1714		the factory or for any other purposes such as contest,
1161	1715		“give-aways” or other so-called sales promotional
1162	1716		devices and/or change of quotas in any sales contest;
1163	1717		or has required motor vehicle dealers, as a condi tion
1164	1718		to receiving their vehicle allotment, to order a
1165	1719		certain percentage of the vehicles with optional
1166	1720		equipment not specified by the new motor vehicle
1167	1721		dealer; however, nothing in this section shall
1168	1722		prohibit a factory from supporting an advertising
1169	1723		association which is open to a ll dealers on the same
1170	1724		basis;
1171	1725		9. Being a factory that:
1172	1726		a. has attempted to coerce or has coerced any new motor
1173	1727		vehicle dealer to enter into any agreement or to
1174	1728		cancel any agreement, or fails to act in good faith
1175	1729		and in a fair, equitable and nondiscriminat ory manner;
1176	1730		or has directly or indi rectly coerced, intimidated,
1177	1731		threatened or restrained any motor vehicle dealer; or
1178	1732		has acted dishonestly, or has failed to act in
1179	1733
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1206	1784		accordance with the reasonable standards of fair
1207	1785		dealing,
1208	1786		b. has failed to compensate its d ealers for the work and
1209	1787		services they are required to perform in connection
1210	1788		with the dealer’s delivery and preparation obligations
1211	1789		according to the agreements on file with the
1212	1790		Commission which must be found by the Commission to be
1213	1791		reasonable, or fail to ad equately and fairly
1214	1792		compensate its dealers for labor, parts and other
1215	1793		expenses incurred by such dealer to perform under and
1216	1794		comply with manufacturer’s warranty agreements.
1217	1795		Adequate and fair compensation for parts shall be
1218	1796		established by the dealer submitt ing to the
1219	1797		manufacturer or distribu tor one hundred sequential
1220	1798		nonwarranty customer-paid service repair orders which
1221	1799		contain warranty-like parts, or ninety (90)
1222	1800		consecutive days of nonwarranty customer -paid service
1223	1801		repair orders which contain warranty-like parts,
1224	1802		whichever is less, covering repairs made no more than
1225	1803		one hundred eighty (180) days before the submission
1226	1804		and declaring the average percentage markup. Adequate
1227	1805		and fair compensation for labor shall be established
1228	1806		by the dealer submitting to the man ufacturer or
1229	1807		distributor one hundre d sequential customer-paid
1230	1808
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1257	1859		service repair orders which contain labor charges, or
1258	1860		ninety (90) consecutive days of customer-paid service
1259	1861		repair orders which contain labor charges, whichever
1260	1862		is less. When submitting repair orders to calculate a
1261	1863		labor rate, a dealer need not include repair orders
1262	1864		for routine maintenance. A manufacturer or
1263	1865		distributor may, not later than thirty (30) days after
1264	1866		submission, rebut that declared rate in writing by
1265	1867		reasonably substantiating that t he rate is inaccurate
1266	1868		or unreasonable in light of the practices of all other
1267	1869		franchised motor vehicle dealers in an economically
1268	1870		similar part of the state offering the same line-make
1269	1871		vehicles. The retail rate shall go into effect thirty
1270	1872		(30) days following the approval by the manufacturer,
1271	1873		subject to audit of the submitted repair orders by the
1272	1874		franchisor and a rebuttal of the declared rate as
1273	1875		described above. If the declared rate is rebutted,
1274	1876		the manufacturer or distributor shall propose an
1275	1877		adjustment in writing of the average percentage m arkup
1276	1878		based on that rebuttal not later than thirty (30) days
1277	1879		after submission. If the dealer does not agree with
1278	1880		the proposed average percentage markup, the dealer may
1279	1881		file a protest with the Co mmission not later than
1280	1882		thirty (30) days after receipt of tha t proposal by the
1281	1883
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1288	1914		6
1289	1915		7
1290	1916		8
1291	1917		9
1292	1918		10
1293	1919		11
1294	1920		12
1295	1921		13
1296	1922		14
1297	1923		15
1298	1924		16
1299	1925		17
1300	1926		18
1301	1927		19
1302	1928		20
1303	1929		21
1304	1930		22
1305	1931		23
1306	1932		24
1307	1933
1308	1934		manufacturer or distributor. In the event a protest
1309	1935		is filed, the manufacturer or distributor shall have
1310	1936		the burden of proof to establish the new motor vehicle
1311	1937		dealer’s submitted rate was inaccurate or unreasonable
1312	1938		in light of the practi ces of all other franchised
1313	1939		motor vehicle dealers in an economically similar part
1314	1940		of the state. A manufacturer or distributor may not
1315	1941		retaliate against any new motor vehicle dealer seeking
1316	1942		to exercise its rights under th is provision. A
1317	1943		manufacturer or distributor may require a dealer to
1318	1944		submit repair orders in accordance with this section
1319	1945		in order to validate a dealer’s retail rate for parts
1320	1946		or labor not more often than once every twelve (12)
1321	1947		months. All claims made by dealers for compensation
1322	1948		for delivery, preparation and warranty work shall be
1323	1949		paid within thirty (30) days after approval and shall
1324	1950		be approved or disapproved within thirty (30) days
1325	1951		after receipt. When any claim is disapproved, the
1326	1952		dealer shall be notifi ed in writing of the groun ds for
1327	1953		disapproval. The dealer’s delivery, preparation and
1328	1954		warranty obligations as filed with the Commission
1329	1955		shall constitute the dealer’s sole responsibility for
1330	1956		product liability as between the dealer and
1331	1957		manufacturer. A factory may reasonably and
1332	1958
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1334		-	(Bold face denotes Committee Amendments) 1
	1959	+
	1960	+	Req. No. 74 Page 27 1
	1961	+	2
	1962	+	3
	1963	+	4
	1964	+	5
	1965	+	6
	1966	+	7
	1967	+	8
	1968	+	9
	1969	+	10
	1970	+	11
	1971	+	12
	1972	+	13
	1973	+	14
	1974	+	15
	1975	+	16
	1976	+	17
	1977	+	18
	1978	+	19
	1979	+	20
	1980	+	21
	1981	+	22
	1982	+	23
	1983	+	24
	1984	+	1
1335	1985		2
1336	1986		3
1337	1987		4
1338	1988		5
1339	1989		6
1340	1990		7
1341	1991		8
1342	1992		9
1343	1993		10
1344	1994		11
1345	1995		12
1346	1996		13
1347	1997		14
1348	1998		15
1349	1999		16
1350	2000		17
1351	2001		18
1352	2002		19
1353	2003		20
1354	2004		21
1355	2005		22
1356	2006		23
1357	2007		24
1358	2008
1359	2009		periodically audit a new motor vehicle dealer to
1360	2010		determine the validity of paid claims for dealer
1361	2011		compensation or any charge-backs for warranty parts or
1362	2012		service compensation . Except in cases of suspected
1363	2013		fraud, audits of warranty pay ments shall only be for
1364	2014		the one-year period immediately following the date of
1365	2015		the payment. A manufacturer shall reserve the right
1366	2016		to reasonable, periodic audits to determine the
1367	2017		validity of paid claims for dealer compensation or any
1368	2018		charge-backs for consumer or dealer incentives .
1369	2019		Except in cases of suspected fraud, audits of
1370	2020		incentive payments shall only be for a one-year period
1371	2021		immediately following the date of the payment. A
1372	2022		factory shall not deny a claim or charge a new motor
1373	2023		vehicle dealer back subse quent to the payment of the
1374	2024		claim unless the factory can show that the claim was
1375	2025		false or fraudulent or that the new motor vehicle
1376	2026		dealer failed to reasonably substantiate the claim by
1377	2027		the written reasonable procedures of the fact ory. The
1378	2028		factory shall provide written notice to a dealer of a
1379	2029		proposed charge-back that is the result of an audit
1380	2030		along with the specific audit results and proposed
1381	2031		charge-back amount. A dealer that receives notice of
1382	2032		a proposed charge-back pursuant to a factory’s audit
1383	2033
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1385		-	(Bold face denotes Committee Amendments) 1
	2034	+
	2035	+	Req. No. 74 Page 28 1
	2036	+	2
	2037	+	3
	2038	+	4
	2039	+	5
	2040	+	6
	2041	+	7
	2042	+	8
	2043	+	9
	2044	+	10
	2045	+	11
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	2047	+	13
	2048	+	14
	2049	+	15
	2050	+	16
	2051	+	17
	2052	+	18
	2053	+	19
	2054	+	20
	2055	+	21
	2056	+	22
	2057	+	23
	2058	+	24
	2059	+	1
1386	2060		2
1387	2061		3
1388	2062		4
1389	2063		5
1390	2064		6
1391	2065		7
1392	2066		8
1393	2067		9
1394	2068		10
1395	2069		11
1396	2070		12
1397	2071		13
1398	2072		14
1399	2073		15
1400	2074		16
1401	2075		17
1402	2076		18
1403	2077		19
1404	2078		20
1405	2079		21
1406	2080		22
1407	2081		23
1408	2082		24
1409	2083
1410	2084		has the right to file a protest with the Co mmission
1411	2085		within thirty (30) days after receipt of the notice of
1412	2086		the charge-back or audit results, whichever is later.
1413	2087		The factory is prohibited from implementing the
1414	2088		charge-back or debiting the dealer’s account until
1415	2089		either the time frame for filing a pro test has passed
1416	2090		or a final adjudication is rendered by the Commission,
1417	2091		whichever is later, unless the dealer has agreed to
1418	2092		the charge-back or charge-backs,
1419	2093		c. unreasonably fails or refuses to of fer to its same
1420	2094		line-make franchised dealers all models manufa ctured
1421	2095		for that line-make, or unreasonably requires a dealer
1422	2096		to pay any extra fee, purchase unreasonable
1423	2097		advertising displays or other materials, or remodel,
1424	2098		renovate, or recondition the dealer ’s existing
1425	2099		facilities as a prerequisite to receiving a model o r
1426	2100		series of vehicles. The failure to deliver any such
1427	2101		new motor vehicle shall not be considered a violation
1428	2102		of the section if the failure is not arbitrary or is
1429	2103		due to lack of manufacturing cap acity or to a strike
1430	2104		or labor difficulty, a shortage of materi als, a
1431	2105		freight embargo or other cause over which the
1432	2106		manufacturer has no control. However, this
1433	2107
1434		-	SENATE FLOOR VERSION - SB643 SFLR Page 29
1435		-	(Bold face denotes Committee Amendments) 1
	2108	+
	2109	+	Req. No. 74 Page 29 1
	2110	+	2
	2111	+	3
	2112	+	4
	2113	+	5
	2114	+	6
	2115	+	7
	2116	+	8
	2117	+	9
	2118	+	10
	2119	+	11
	2120	+	12
	2121	+	13
	2122	+	14
	2123	+	15
	2124	+	16
	2125	+	17
	2126	+	18
	2127	+	19
	2128	+	20
	2129	+	21
	2130	+	22
	2131	+	23
	2132	+	24
	2133	+	1
1436	2134		2
1437	2135		3
1438	2136		4
1439	2137		5
1440	2138		6
1441	2139		7
1442	2140		8
1443	2141		9
1444	2142		10
1445	2143		11
1446	2144		12
1447	2145		13
1448	2146		14
1449	2147		15
1450	2148		16
1451	2149		17
1452	2150		18
1453	2151		19
1454	2152		20
1455	2153		21
1456	2154		22
1457	2155		23
1458	2156		24
1459	2157
1460	2158		subparagraph shall not apply to recreational vehicles
1461	2159		or limited production model vehicles,
1462	2160		d. except as necessary to comply with a health or safety
1463	2161		law, or to comply with a technology requirement which
1464	2162		is necessary to sell or service a motor vehicle that
1465	2163		the franchised motor vehicle dealer is authorized or
1466	2164		licensed by the franchisor to sell or servi ce,
1467	2165		requires a new motor veh icle dealer to construct a new
1468	2166		facility or substantially renovate the new motor
1469	2167		vehicle dealer’s existing facility unless the facility
1470	2168		construction or renovation is justified by the
1471	2169		economic conditions existing at the time, as w ell as
1472	2170		the reasonably forese eable projections, in the
1473	2171		automotive industry. However, this subparagraph shall
1474	2172		not apply if the factory provides money, credit,
1475	2173		allowance, reimbursement, or additional vehicle
1476	2174		allocation to a dealer to compensate the dealer fo r
1477	2175		the cost of, or a portion of the cost of, the facility
1478	2176		construction or renovation,
1479	2177		e. requires a new motor vehicle dealer to establish an
1480	2178		exclusive facility, unless supported by reasonable
1481	2179		business, market and economic considerations;
1482	2180		provided, that this provision shall not restric t the
1483	2181		terms of any agreement for su ch exclusive facility
1484	2182
1485		-	SENATE FLOOR VERSION - SB643 SFLR Page 30
1486		-	(Bold face denotes Committee Amendments) 1
	2183	+
	2184	+	Req. No. 74 Page 30 1
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	2187	+	4
	2188	+	5
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	2208	+	1
1487	2209		2
1488	2210		3
1489	2211		4
1490	2212		5
1491	2213		6
1492	2214		7
1493	2215		8
1494	2216		9
1495	2217		10
1496	2218		11
1497	2219		12
1498	2220		13
1499	2221		14
1500	2222		15
1501	2223		16
1502	2224		17
1503	2225		18
1504	2226		19
1505	2227		20
1506	2228		21
1507	2229		22
1508	2230		23
1509	2231		24
1510	2232
1511	2233		voluntarily entered into and supported by valuable
1512	2234		consideration separate from the new motor vehicle
1513	2235		dealer’s right to sell and service motor vehicles for
1514	2236		the franchisor,
1515	2237		f. requires a new motor vehi cle dealer to enter into a
1516	2238		site-control agreement covering any or all of the new
1517	2239		motor vehicle dealer’s facilities or premises;
1518	2240		provided, that this provision shall not restrict the
1519	2241		terms of any site-control agreement voluntari ly
1520	2242		entered into and supported by valuable consideration
1521	2243		separate from the new motor vehicle dealer’s right to
1522	2244		sell and service motor vehicles for the franchisor.
1523	2245		Notwithstanding the foregoing or the terms of any
1524	2246		site-control agreement, a site -control agreement
1525	2247		automatically extinguish es if all of the factory ’s
1526	2248		franchises that operated from the location that are
1527	2249		the subject of the site-control agreement are
1528	2250		terminated by the factory as part of the
1529	2251		discontinuance of a product line, or
1530	2252		g. requires a new motor vehicle dealer to purchase go ods
1531	2253		or services for the constructio n, renovation, or
1532	2254		improvement of the dealer’s facility from a vendor
1533	2255		chosen by the factory if goods or services available
1534	2256		from other sources are of substantially similar
1535	2257
1536		-	SENATE FLOOR VERSION - SB643 SFLR Page 31
1537		-	(Bold face denotes Committee Amendments) 1
	2258	+
	2259	+	Req. No. 74 Page 31 1
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1538	2284		2
1539	2285		3
1540	2286		4
1541	2287		5
1542	2288		6
1543	2289		7
1544	2290		8
1545	2291		9
1546	2292		10
1547	2293		11
1548	2294		12
1549	2295		13
1550	2296		14
1551	2297		15
1552	2298		16
1553	2299		17
1554	2300		18
1555	2301		19
1556	2302		20
1557	2303		21
1558	2304		22
1559	2305		23
1560	2306		24
1561	2307
1562	2308		quality and design a nd comply with all applicable
1563	2309		laws; provided, however, that such g oods are not
1564	2310		subject to the factory’s intellectual property or
1565	2311		trademark rights and the new motor vehicle dealer has
1566	2312		received the factory’s approval, which approval may
1567	2313		not be unreasonably w ithheld. Nothing in this
1568	2314		subparagraph may be construed to allow a new motor
1569	2315		vehicle dealer to impair or eliminate a factory’s
1570	2316		intellectual property, trademark rights or trade dress
1571	2317		usage guidelines. Nothing in this section prohibits
1572	2318		the enforcement of a voluntary agreement between the
1573	2319		factory and the new motor vehicle dealer where
1574	2320		separate and valuable consideration has been offered
1575	2321		and accepted;
1576	2322		10. Being a factory that establishes a system of motor vehicle
1577	2323		allocation or distribution which is unfair, i nequitable or
1578	2324		unreasonably discriminatory. Upon the request of any dealer
1579	2325		franchised by it, a factory shall disclose in writing to the dealer
1580	2326		the basis upon which new motor vehicles are allocated, scheduled and
1581	2327		delivered among the dealers of the same line -make for that factory;
1582	2328		11. Being a factory that sells directly or indirectly new motor
1583	2329		vehicles to any retail consumer in the state except through a new
1584	2330		motor vehicle dealer holding a franchise for the line-make that
1585	2331		includes the new motor vehicle . This paragraph does not apply to
1586	2332
1587		-	SENATE FLOOR VERSION - SB643 SFLR Page 32
1588		-	(Bold face denotes Committee Amendments) 1
	2333	+
	2334	+	Req. No. 74 Page 32 1
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1589	2359		2
1590	2360		3
1591	2361		4
1592	2362		5
1593	2363		6
1594	2364		7
1595	2365		8
1596	2366		9
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1598	2368		11
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1600	2370		13
1601	2371		14
1602	2372		15
1603	2373		16
1604	2374		17
1605	2375		18
1606	2376		19
1607	2377		20
1608	2378		21
1609	2379		22
1610	2380		23
1611	2381		24
1612	2382
1613	2383		factory sales of new motor vehicles to its employees, family members
1614	2384		of employees, retirees and family members of retirees, not-for-
1615	2385		profit organizations or the federal, state or local governments .
1616	2386		The provisions of this parag raph shall not preclude a factory from
1617	2387		providing information to a co nsumer for the purpose of marketing or
1618	2388		facilitating a sale of a new motor vehicle or from establishing a
1619	2389		program to sell or offer to sell new motor vehicles through
1620	2390		participating dealers;
1621	2391		12. a. Being a factory which dire ctly or indirectly:
1622	2392		(1) owns any ownership interest or has any financial
1623	2393		interest in a new motor vehicle dealer or any
1624	2394		person who sells products or services to the
1625	2395		public,
1626	2396		(2) operates or controls a new motor vehicle dea ler,
1627	2397		or
1628	2398		(3) acts in the capacity of a new motor vehicle
1629	2399		dealer.
1630	2400		b. (1) This paragraph does not prohibit a factory from
1631	2401		owning or controlling a new motor vehicle dealer
1632	2402		while in a bona fide relationship with a dealer
1633	2403		development candidate who has made a s ubstantial
1634	2404		initial investment in the f ranchise and whose
1635	2405		initial investment is subject to potential loss.
1636	2406		The dealer development candidate can reasonably
1637	2407
1638		-	SENATE FLOOR VERSION - SB643 SFLR Page 33
1639		-	(Bold face denotes Committee Amendments) 1
	2408	+
	2409	+	Req. No. 74 Page 33 1
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	2411	+	3
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	2433	+	1
1640	2434		2
1641	2435		3
1642	2436		4
1643	2437		5
1644	2438		6
1645	2439		7
1646	2440		8
1647	2441		9
1648	2442		10
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1659	2453		21
1660	2454		22
1661	2455		23
1662	2456		24
1663	2457
1664	2458		expect to acquire full ownership of a new motor
1665	2459		vehicle dealer within a reasonable period of time
1666	2460		not to exceed ten (10) years and on reaso nable
1667	2461		terms and conditions . The ten-year acquisition
1668	2462		period may be expanded for good cause shown.
1669	2463		(2) This paragraph does not prohibit a factory from
1670	2464		owning, operating, controlling or acting in the
1671	2465		capacity of a motor vehicle dealer for a period
1672	2466		not to exceed twelve (12) months during the
1673	2467		transition from one dealer to another dealer if
1674	2468		the dealership is for sale at a reasonable price
1675	2469		and on reasonable terms and conditions to an
1676	2470		independent qualified buyer . On showing by a
1677	2471		factory of good cause, the Oklaho ma New Motor
1678	2472		Vehicle Commission may ext end the time limit set
1679	2473		forth above; extensions may be granted for
1680	2474		periods not to exceed twelve (12) months.
1681	2475		(3) This paragraph does not prohibit a factory from
1682	2476		owning, operating or controlling or acting in the
1683	2477		capacity of a motor vehicle dealer which was i n
1684	2478		operation prior to January 1, 2000.
1685	2479		(4) This paragraph does not prohibit a factory from
1686	2480		owning, directly or indirectly, a minority
1687	2481		interest in an entity that owns, operates or
1688	2482
1689		-	SENATE FLOOR VERSION - SB643 SFLR Page 34
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1691	2509		2
1692	2510		3
1693	2511		4
1694	2512		5
1695	2513		6
1696	2514		7
1697	2515		8
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1712	2530		23
1713	2531		24
1714	2532
1715	2533		controls motor vehicle dealerships of the s ame
1716	2534		line-make franchised by the man ufacturer,
1717	2535		provided that each of the following conditions
1718	2536		are met:
1719	2537		(a) all of the motor vehicle dealerships selling
1720	2538		the motor vehicles of that manufacturer in
1721	2539		this state trade exc lusively in the line-
1722	2540		make of that manufact urer,
1723	2541		(b) all of the franchise agre ements of the
1724	2542		manufacturer confer rights on the dealer of
1725	2543		the line-make to develop and operate, within
1726	2544		a defined geographic territory or area, as
1727	2545		many dealership facilities as th e dealer and
1728	2546		manufacturer shall agree are a ppropriate,
1729	2547		(c) at the time the manufacturer first acquires
1730	2548		an ownership interest or assumes operation,
1731	2549		the distance between any dealership thus
1732	2550		owned or operated and the nearest
1733	2551		unaffiliated motor vehicle dealer ship
1734	2552		trading in the same line -make is not less
1735	2553		than seventy (70) miles,
1736	2554		(d) during any period in which the manufacturer
1737	2555		has such an ownership interest, the
1738	2556		manufacturer has no more than three
1739	2557
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1760	2602		20
1761	2603		21
1762	2604		22
1763	2605		23
1764	2606		24
1765	2607
1766	2608		franchise agreements with new motor vehicle
1767	2609		dealers licensed by the Oklahoma New Motor
1768	2610		Vehicle Commission to do business within the
1769	2611		state, and
1770	2612		(e) prior to January 1, 2000, the factory shall
1771	2613		have furnished or made available to
1772	2614		prospective motor vehicle dealers an
1773	2615		offering-circular in accordance with the
1774	2616		Trade Regulation Rule on Franchising of the
1775	2617		Federal Trade Commission, and any guidelines
1776	2618		and exemptions issued thereunder, which
1777	2619		disclose the possibility that the factory
1778	2620		may from time to time seek to own or
1779	2621		acquire, directly or indirectly, ownership
1780	2622		interests in retail de alerships;
1781	2623		13. Being a factory which directly or indirectly makes
1782	2624		available for public disclosure any proprietary inf ormation provided
1783	2625		to the factory by a new motor vehicle dealer, other than in
1784	2626		composite form to dealers in the same line -make or in response to a
1785	2627		subpoena or order of the Commission or a court. Proprietary
1786	2628		information includes, but is not limited to, info rmation:
1787	2629		a. derived from monthly financial statements provided to
1788	2630		the factory, and
1789	2631
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1793	2659		3
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1812	2678		22
1813	2679		23
1814	2680		24
1815	2681
1816	2682		b. regarding any aspect of the profitability of a
1817	2683		particular new motor vehicle dealer;
1818	2684		14. Being a factory which does not provide or direct leads in a
1819	2685		fair, equitable and t imely manner. Nothing in this paragraph shall
1820	2686		be construed to require a factory to disregard the preference of a
1821	2687		consumer in providin g or directing a lead;
1822	2688		15. Being a factory which used the customer list of a new motor
1823	2689		vehicle dealer for the purpose of unfairly competing with dealers;
1824	2690		16. Being a factory which prohibits a new motor vehicle dealer
1825	2691		from relocating after a written req uest by such new motor vehicle
1826	2692		dealer if:
1827	2693		a. the facility and the proposed new loc ation satisfies
1828	2694		or meets the written reaso nable guidelines of the
1829	2695		factory. Reasonable guidelines do not include site
1830	2696		control unless agreed to as set forth in subparagraphs
1831	2697		e and f of paragraph 9 of this subsection,
1832	2698		b. the proposed new location is within the area of
1833	2699		responsibility of the new motor vehicle dealer
1834	2700		pursuant to Section 578.1 of this title, and
1835	2701		c. the factory has sixty (60) days from receipt of the
1836	2702		new motor vehicle dealer’s relocation request to
1837	2703		approve or deny the request. The failure to approve
1838	2704		or deny the request within the sixty-day time frame
1839	2705		shall constitute approval of the request;
1840	2706
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1862	2752		21
1863	2753		22
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1865	2755		24
1866	2756
1867	2757		17. Being a factory which prohibits a new motor vehicle dealer
1868	2758		from adding additional line-makes to its existing facility, if,
1869	2759		after adding the additional line-makes, the facility satisfies the
1870	2760		written reasonable capitalization standards and facility guidelines
1871	2761		of each factory. Reasonable facility guidelines do not include a
1872	2762		requirement to maintain site control unless agreed to b y the dealer
1873	2763		as set forth in subparagraphs e and f of paragraph 9 of thi s
1874	2764		subsection;
1875	2765		18. Being a factory that increases prices of new motor vehicles
1876	2766		which the new motor vehicle dealer had ordered f or retail consumers
1877	2767		and notified the factory prior to the dealer’s receipt of the
1878	2768		written official price increase notification. A sales contract
1879	2769		signed by a retail consumer accompanied with proof of order
1880	2770		submission to the factory shall constitute evidenc e of each such
1881	2771		order, provided that the vehicle is in fac t delivered to the
1882	2772		customer. Price differences applicable to new models or series
1883	2773		motor vehicles at the time of the introduction of new models or
1884	2774		series shall not be considered a price increase for purposes of this
1885	2775		paragraph. Price changes caused by any of the following shall not
1886	2776		be subject to the provisions of this paragrap h:
1887	2777		a. the addition to a motor vehicle of required or
1888	2778		optional equipment pursuant to state or federal law,
1889	2779		b. revaluation of the United States dollar in the case of
1890	2780		foreign-made vehicles or components, or
1891	2781
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1915	2829		23
1916	2830		24
1917	2831
1918	2832		c. an increase in transportation charges due to incr eased
1919	2833		rates imposed by common or contract carriers;
1920	2834		19. Being a factory that requires a new motor vehicle dealer to
1921	2835		participate monetarily in an advertising campaign or contest, or
1922	2836		purchase any promotional materials, showroom or other display
1923	2837		decoration or materials at the expense of the new motor vehicle
1924	2838		dealer without consent of the dealer, which consent shall not be
1925	2839		unreasonably withheld;
1926	2840		20. Being a factory that denies any new mot or vehicle dealer
1927	2841		the right of free association with any other new motor vehicle
1928	2842		dealer for any lawful purpose, unless otherwise permitted by this
1929	2843		chapter; or
1930	2844		21. Being a factory that requires a new motor vehicle dealer to
1931	2845		sell, offer to sell or sell excl usively an extended service
1932	2846		contract, extended maintenance plan or simil ar product, such as gap
1933	2847		products offered, endorsed or sponsored by the factory by the
1934	2848		following means:
1935	2849		a. by an act or statement from the factory that will in
1936	2850		any manner adversely impa ct the dealer,
1937	2851		b. by measuring the dealer’s performance under the
1938	2852		franchise based on the sale of extended service
1939	2853		contracts, extended maintenance plans or similar
1940	2854		products offered, endorsed o r sponsored by the
1941	2855		manufacturer or distributor.
1942	2856
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1964	2902		21
1965	2903		22
1966	2904		23
1967	2905		24
1968	2906
1969	2907		B. Notwithstanding the terms of any franchise agreement, in the
1970	2908		event of a proposed sale or transfer of a dealership, the
1971	2909		manufacturer or distributor shall be permitted to exercise a right
1972	2910		of first refusal to acquire the assets or ownership interest of the
1973	2911		dealer of the new vehicle dealership, if such sale or transfer is
1974	2912		conditioned upon the manufacturer or dealer entering into a dealer
1975	2913		agreement with the proposed new owner or transferee, only if all the
1976	2914		following requirements are met:
1977	2915		1. To exercise its right of first re fusal, the factory must
1978	2916		notify the dealer in writing within sixty (60) d ays of receipt of
1979	2917		the completed proposal for the proposed sale transfer;
1980	2918		2. The exercise of the right of first refu sal will result in
1981	2919		the dealer and the owner of the dealership receiv ing the same or
1982	2920		greater consideration as they have contracted to receive in
1983	2921		connection with the proposed change of ownership or transfer;
1984	2922		3. The proposed sale or transfer of the assets o f the
1985	2923		dealership does not involve the transfer or sale to a member or
1986	2924		members of the family of one or mo re dealer owners, or to a
1987	2925		qualified manager or a partnership or corporation controlled by such
1988	2926		persons; and
1989	2927		4. The factory agrees to pay the reasonabl e expenses, including
1990	2928		attorney fees which do not exceed the usual, cus tomary and
1991	2929		reasonable fees charged for similar work done for other clien ts
1992	2930		incurred by the proposed new owner and transferee prior to the
1993	2931
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1996	2958		2
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2000	2962		6
2001	2963		7
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2009	2971		15
2010	2972		16
2011	2973		17
2012	2974		18
2013	2975		19
2014	2976		20
2015	2977		21
2016	2978		22
2017	2979		23
2018	2980		24
2019	2981
2020	2982		exercise by the factory of its right of first re fusal in negotiating
2021	2983		and implementing the contract for the proposed sa le or transfer of
2022	2984		the dealership or dealership assets. Notwithstanding the foregoing,
2023	2985		no payment of expenses and attorney fees shall be required if the
2024	2986		proposed new dealer or transferee has not submitted or caused to be
2025	2987		submitted an accounting of those ex penses within thirty (30) days of
2026	2988		receipt of the written request of the factory for such an
2027	2989		accounting. The accounting may be requested by a factory before
2028	2990		exercising its right of first refusal.
2029	2991		C. Nothing in this section shall prohibit, limit, restrict or
2030	2992		impose conditions on:
2031	2993		1. Business activities, including without limi tation the
2032	2994		dealings with motor vehicle manufacturers and the representatives
2033	2995		and affiliates of motor vehicle man ufacturers, of any person that is
2034	2996		primarily engaged in the business of s hort-term, not to exceed
2035	2997		twelve (12) months, rental of motor vehicles an d industrial and
2036	2998		construction equipment and activities incidental to that business,
2037	2999		provided that:
2038	3000		a. any motor vehicle sold by that person is limited to
2039	3001		used motor vehicles that have been previously used
2040	3002		exclusively and regularly by that person in the
2041	3003		conduct of business and used motor vehicles traded in
2042	3004		on motor vehicles sold by that person,
2043	3005
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2068	3054		24
2069	3055
2070	3056		b. warranty repairs performed by that person on motor
2071	3057		vehicles are limited to those motor vehi cles that it
2072	3058		owns, previously owned or takes in trade, and
2073	3059		c. motor vehicle financing provided by that person to
2074	3060		retail consumers for motor vehicles is limited to used
2075	3061		vehicles sold by that person in the conduct of
2076	3062		business; or
2077	3063		2. The direct or indirect o wnership, affiliation or control of
2078	3064		a person described in paragraph 1 of this subsection.
2079	3065		D. As used in this section:
2080	3066		1. “Substantially relates” means the nature of criminal conduct
2081	3067		for which the person was convicted has a direct bearing on the
2082	3068		fitness or ability to perform one or more of the duties or
2083	3069		responsibilities neces sarily related to the occupation; and
2084	3070		2. “Poses a reasonable threat” means the nature of criminal
2085	3071		conduct for which the person was convicted involved an act or threat
2086	3072		of harm against another and has a bearing on the fitness or ability
2087	3073		to serve the public or work with others in the occupation.
2088	3074		SECTION 7. AMENDATORY 47 O.S. 2021, Section 565.1, is
2089	3075		amended to read as follows:
2090	3076		Section 565.1. Notwithstanding the terms of any franchise
2091	3077		agreement, and subject to the following condit ions contained in
2092	3078		paragraphs 1 through 5 of this section, a ny manufacturer or
2093	3079		distributor who prevents or refuses to hon or the succession to a
2094	3080
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2097	3107		2
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2119	3129		24
2120	3130
2121	3131		dealership by any legal heir or devisee under the will of a new
2122	3132		motor vehicle dealer or under the laws of descent and distribution
2123	3133		of this state without good cause or good faith, as defined in this
2124	3134		section, shall be subject to the fo llowing procedure:
2125	3135		1. Within one hundred twenty (120) days after the death of the
2126	3136		new motor vehicle dealer, the manufacturer shall rece ive a written
2127	3137		notice from any legal heir or devisee who int ends to establish a
2128	3138		successor dealership. If timely notice i s not so received, then
2129	3139		this paragraph shall not apply, and any succession shall be governed
2130	3140		solely by the terms of the franchise;
2131	3141		2. Within thirty (30) days of receipt of the legal heir’s or
2132	3142		devisee’s timely written notice, the manufacturer may request, and
2133	3143		the legal heir or devisee shall, within a reasonable time, provide
2134	3144		any information which is reasonably necessary for the manufacture r
2135	3145		to evaluate the proposed successor dealer and dealership, including,
2136	3146		but not limited to, applications, proposals for f acilities and
2137	3147		financing;
2138	3148		3. Within sixty (60) days of receipt of such information, the
2139	3149		manufacturer shall approve or disapprove the pro posed successor
2140	3150		dealership, and in case of disapproval shall communicate in writing
2141	3151		such disapproval and grounds for dis approval to the legal heir or
2142	3152		devisee;
2143	3153
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2170	3204		4. Failure of the manufacturer to act in a timely manner with
2171	3205		respect to any time period describ ed above shall constitute a waiver
2172	3206		of the manufacturer’s right to disapprove the proposed succession;
2173	3207		5. Within ten (10) days of its receipt of the manufacturer ’s
2174	3208		notice of disapproval, the legal heir or devisee may file a protest
2175	3209		of the manufacturer’s decision with the Oklahoma New Motor Vehicle
2176	3210		Commission and request a hearing. Such hearing shall be heard in a
2177	3211		substantially similar manner as provided by Section 566 of this
2178	3212		title, except that the Commission shall render a final decision
2179	3213		within sixty (60) day s of the filing of the protest. The
2180	3214		manufacturer shall have the burden of proof to show that its
2181	3215		disapproval was for a good cause and in good faith. A denial shall
2182	3216		not be for good cause and in good faith unless the factory
2183	3217		establishes that the legal heir or devisee, or the legal heir or
2184	3218		devisee’s controlling executive management, is not of good moral
2185	3219		character or fails to meet the written, reasonable and uniformly
2186	3220		applied requirements of the manufacturer or distributor relating to
2187	3221		financial qualifications , general business experience, and other
2188	3222		requirements relating to prospective franchisees. However, a legal
2189	3223		heir that is of good moral character in accordance with the
2190	3224		factory’s qualifications and meets the factory ’s financial
2191	3225		qualifications may rely on c ontrolling executive management that is
2192	3226		of good moral character and meets the factory’s qualifications for
2193	3227		general business experience and other requirements relating to
2194	3228
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2221	3279		prospective franchises. The disapproval by the manufacturer shall
2222	3280		be final if the legal heir or devisee fails to file a timely protest
2223	3281		of such disapproval. In the event that the Commission finds that
2224	3282		the manufacturer’s disapproval was not made for good cause, then it
2225	3283		shall issue a final order requiring the manufacturer to honor the
2226	3284		successor designated in the notice sent by the legal heir or
2227	3285		devisee. Notwithstanding anything to the contrary in this se ction,
2228	3286		a new motor vehicle dealer may designate any person as successor by
2229	3287		filing a written instrument pursuant to the franchise with the
2230	3288		manufacturer during the new motor vehicle dealer’s lifetime. In
2231	3289		such a case, the written instrument and franchise sha ll govern the
2232	3290		dealership succession.
2233	3291		The suspension, revocation or refusal to issue or renew a
2234	3292		license or the imposition of any other penalt y by the Commission
2235	3293		shall be in addition to any penalty which might be imposed upon any
2236	3294		licensee upon judgment or co nviction in a court of competent
2237	3295		jurisdiction for any violation of the provisions of Sections 561
2238	3296		through 567, 572, 578.1, 579 and 579.1 of this title.
2239	3297		SECTION 8. AMENDATORY 47 O.S. 2021, Sec tion 565.2, is
2240	3298		amended to read as follows:
2241	3299		Section 565.2. A. Irrespective of the terms, provisions or
2242	3300		conditions of any franchise, or the terms or provisions of any
2243	3301		waiver, no manufacturer sha ll terminate, cancel or fail to renew any
2244	3302		franchise with a licensed new motor vehicle dealer unless the
2245	3303
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2272	3354		manufacturer has satisfied the notice requirements as provided in
2273	3355		this section and has good cause for cancellation, termination or
2274	3356		nonrenewal. The manu facturer shall not attempt to cancel or fail to
2275	3357		renew the franchise agreement of a new motor vehicle dea ler in this
2276	3358		state unfairly and without just provocation or without due regard to
2277	3359		the equities of the dealer or without good faith as defined herein.
2278	3360		As used herein, “good faith” means the duty of each party to any
2279	3361		franchise agreement to act in a fair and equitable manner toward
2280	3362		each other, with freedom from coercion or intimidation or threats
2281	3363		thereof from each other.
2282	3364		B. Irrespective of the terms, provis ions or conditions of any
2283	3365		franchise, or the terms or provisions of any waiver, good cause
2284	3366		shall exist for the purpose of a termination, cancellation, or
2285	3367		nonrenewal when:
2286	3368		1. The new motor vehicle dealer has failed to comply with a
2287	3369		provision of the franchis e, which provision is both reasonable and
2288	3370		of material significance to the franchise relationship, or the new
2289	3371		motor vehicle dealer has failed to comply with reasonable
2290	3372		performance criteria for sales or service established by the
2291	3373		manufacturer, and the dealer has been notified by written notice
2292	3374		from the manufacturer; and
2293	3375		2. The new motor vehicle dealer has rec eived written
2294	3376		notification of failure to comply with the manufacturer ’s reasonable
2295	3377		sales performance standards, capitalization requirements, facility
2296	3378
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2323	3429		commitments, business related equipment acquisitions or other such
2324	3430		remediable failings exclusive of those reasons enumerated in
2325	3431		paragraph 1 of subsection C of this section, and the new motor
2326	3432		vehicle dealer has been afforded a reasonable opportunity of not
2327	3433		less than six (6) months to comply with such a provision or criteria
2328	3434		the manufacturer’s reasonable sales performance standards and
2329	3435		business related equipment acquisitions and not less than three ( 3)
2330	3436		months to comply with the manufacturer ’s reasonable capitaliz ation
2331	3437		requirements.
2332	3438		C. Irrespective of t he terms, provisions or conditions of any
2333	3439		franchise agreement prior to the termination, cancellation or
2334	3440		nonrenewal of any franchise, the manufacturer shall furnish
2335	3441		notification of such termination , cancellation or nonrenewal to the
2336	3442		new motor vehicle dealer and the Oklahoma New Motor Vehicle
2337	3443		Commission as follows:
2338	3444		1. Not less than ninety (90) days prior to the effective date
2339	3445		of such termination, cancellation or nonrenewal unless for a cause
2340	3446		described in paragraph 2 of this subsection;
2341	3447		2. Not less than fift een (15) days prior to the effective date
2342	3448		of such termination, canc ellation or nonrenewal with respect to any
2343	3449		of the following:
2344	3450		a. insolvency of the new motor vehicle dealer, or the
2345	3451		filing of any petition by or against the motor vehicle
2346	3452		dealer under any bankruptcy or receivership law,
2347	3453
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2374	3504		b. failure of the new motor vehicle d ealer to conduct its
2375	3505		customary sales and service operations during its
2376	3506		customary business hours for seven (7) consecutive
2377	3507		business days, provided that such failure to conduct
2378	3508		business shall not be due to an act of God or
2379	3509		circumstances beyond the direct con trol of the new
2380	3510		motor vehicle dealer, or
2381	3511		c. conviction of the new motor vehicle dealer of any
2382	3512		felony which is punishable by imprisonm ent or a
2383	3513		violation of the Federal Odometer Act; and
2384	3514		3. Not less than one hundred eighty (180) days prior to the
2385	3515		effective date of such termination or cancellation where the
2386	3516		manufacturer or distributor is discontinuing the sale of the product
2387	3517		line.
2388	3518		The notification required by this subsection shall be by
2389	3519		certified mail, return receipt requested, and shall contain a
2390	3520		statement of intent to terminate, to cancel or to not renew the
2391	3521		franchise, a statement of the reasons for the termination,
2392	3522		cancellation or nonre newal and the date the termination shall take
2393	3523		effect.
2394	3524		D. Upon the affected new motor vehicle dealer ’s receipt of the
2395	3525		aforementioned notice of termination, cancellation or nonrenewal,
2396	3526		the new motor vehicle dealer shall have the right to file a protest
2397	3527		of such threatened termination, cancellation or nonrenewal w ith the
2398	3528
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2425	3579		Commission within thirty (30) days and request a hearing. Such
2426	3580		hearing shall be held within one hundred eighty (180) days of the
2427	3581		date of the dealer’s timely protest and in accordance with the
2428	3582		provisions of the Administrative Procedures Act, Sectio ns 301
2429	3583		through 326 of Title 75 of the Oklahoma Statutes, to determi ne if
2430	3584		the threatened cancellatio n, termination or nonrenewal of the
2431	3585		franchise has been for good cause and if the factory has complied
2432	3586		with its obligations pursuant to subsections A, B and C of this
2433	3587		section and the factory shall have the burden of proof. I f the
2434	3588		Commission finds that the threatened cancellation, termination or
2435	3589		nonrenewal of the franchise has not been for good cause or violates
2436	3590		subsection A, B or C of this section, then it sha ll issue a final
2437	3591		order stating that the threatened termination is w rongful. A
2438	3592		factory shall have t he right to appeal such order. During the
2439	3593		pendency of the hearing and after the decision, the franchise shall
2440	3594		remain in full force and effect, including the right to transfer the
2441	3595		franchise. If the Commission finds that the threatened
2442	3596		cancellation, termin ation or nonrenewal is for good cause and does
2443	3597		not violate subsection A, B or C of this section, the new motor
2444	3598		vehicle dealer shall have the right to an appe al. During the
2445	3599		pendency of the action, including the final decisio n or appeal, the
2446	3600		franchise shall remain in full force and effect, including the right
2447	3601		to transfer the franchise. If the new motor vehicle dealer pr evails
2448	3602		in the threatened termination acti on, the Commission shall award to
2449	3603
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2476	3654		the new motor vehicle dealer the attorney fees and costs incurred to
2477	3655		defend the action.
2478	3656		E. If the factory prevails in an action to terminate, cancel or
2479	3657		not renew any franchise, the new motor vehicle dealer shall be
2480	3658		allowed fair and reasonable compensation by the manufacturer for:
2481	3659		1. New current and previous model year vehicle inventory which
2482	3660		has been acquired from the manufacturer, and which is unused and has
2483	3661		not been damaged or al tered while in the dealer’s possession;
2484	3662		2. Supplies and parts which have been acquired from the
2485	3663		manufacturer, for the purpose of this secti on, limited to any and
2486	3664		all supplies and parts that are listed on the current parts price
2487	3665		sheet available to the deal er;
2488	3666		3. Equipment and furnishings, provid ed the new motor vehicle
2489	3667		dealer purchased them from the manufacture r or its approved sources;
2490	3668		and
2491	3669		4. Special tools, with such fair and reasonable compensation to
2492	3670		be paid by the manufacturer within ninety (90) days of the effective
2493	3671		date of the termination, cancellation or nonrenewal, provided the
2494	3672		new motor vehicle dealer has clear title to the inventory and other
2495	3673		items and is in a position to convey that title to the manufacturer.
2496	3674		a. For the purposes of paragraph 1 o f this subsection,
2497	3675		fair and reasonable co mpensation shall be no less than
2498	3676		the net acquisition price of the v ehicle paid by the
2499	3677		new motor vehicle dealer.
2500	3678
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2527	3729		b. For the purposes of paragraphs 2, 3 and 4 of this
2528	3730		subsection, fair and reasonable compensation shall be
2529	3731		the net acquisition price paid by the new motor
2530	3732		vehicle dealer less a twenty-percent (20%) straight -
2531	3733		line depreciation for each year foll owing the dealer’s
2532	3734		acquisition of the supplies, parts, equipment,
2533	3735		furnishings and/or special tools.
2534	3736		F. If a factory prevails in an action to terminate, canc el or
2535	3737		not renew any franchise and the new motor vehicle dealer is l easing
2536	3738		the dealership facilities , the manufacturer shall pay a reasonable
2537	3739		rent to the lessor in accordance with and subject to the provisions
2538	3740		of subsection G of this section. Nothing in th is section shall be
2539	3741		construed to relieve a dealer of its duty to mi tigate damages.
2540	3742		G. 1. Such reasonable rental value shall be paid only to the
2541	3743		extent the dealership premises are recognized in the franchise and
2542	3744		only if they are:
2543	3745		a. used solely for perfor mance in accordance with the
2544	3746		franchise. If the facility is used fo r the operation
2545	3747		of more than one franchise, the reasonable rent shall
2546	3748		be paid based upon the portion of the facility
2547	3749		utilized by the franchise being terminated, canceled
2548	3750		or nonrenewed, and
2549	3751		b. not substantially in excess of facilities recommended
2550	3752		by the manufacturer.
2551	3753
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2577	3803
2578	3804		2. If the facilities are owned by the new motor vehicle dealer,
2579	3805		within ninety (90) days following the effective date of the
2580	3806		termination, cancellation or nonrenewal the manufactu rer will
2581	3807		either:
2582	3808		a. locate a qualified purchaser who will offer to
2583	3809		purchase the dealership faciliti es at a reasonable
2584	3810		price,
2585	3811		b. locate a qualified lessee who will offer to lease the
2586	3812		premises for the remaining lease term at the rent set
2587	3813		forth in the lease, or
2588	3814		c. failing the foregoing, lease the dealership facilities
2589	3815		at a reasonable rental value for the p ortion of the
2590	3816		facility that is recognized in the franchise agreement
2591	3817		for one (1) year.
2592	3818		3. If the facilities are lea sed by the new motor vehicle
2593	3819		dealer, within ninety (90) days following the effective date of the
2594	3820		termination, cancellation or nonrenewal the manufacturer will
2595	3821		either:
2596	3822		a. locate a tenant or tenants satisfactory to the lessor,
2597	3823		who will sublet or assume the b alance of the lease,
2598	3824		b. arrange with the lessor for the cancellation of the
2599	3825		lease without penalty to the dea ler, or
2600	3826		c. failing the foregoing , lease the dealership facilities
2601	3827		at a reasonable rent for the portion of the facility
2602	3828
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2628	3878
2629	3879		that is recognized in the fra nchise agreement for one
2630	3880		(1) year.
2631	3881		4. The manufacturer shall not be obligated to provide
2632	3882		assistance under this section if the new motor veh icle dealer:
2633	3883		a. fails to accept a bona fide offer from a prospective
2634	3884		purchaser, subleases or assignee,
2635	3885		b. refuses to execute a settlement agreement with the
2636	3886		lessor if such agreement with the lessor would be
2637	3887		without cost to the dealer, or
2638	3888		c. fails to make written request for assistance under
2639	3889		this section within ninety (90) days after the
2640	3890		effective date of the termination , cancellation or
2641	3891		nonrenewal.
2642	3892		5. The manufacturer shall be entitled to occupy and use any
2643	3893		space for which it pays rent required by this sec tion.
2644	3894		H. In addition to the repurchase requirements set forth in
2645	3895		subsections E and G of this section, in the event the termination or
2646	3896		cancellation is the re sult of a discontinuance of a product line,
2647	3897		the manufacturer or distributor shall compensate the ne w motor
2648	3898		vehicle dealer in an amount equivalent to the fair market value of
2649	3899		the terminated franchise as of the date o f the manufacturer’s or
2650	3900		distributor’s announcement or provide the new motor vehicle dealer
2651	3901		with a replacement franchise on substantially sim ilar terms and
2652	3902		conditions as those offered to other same line -make dealers. The
2653	3903
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2679	3953
2680	3954		dealer may immediately request paym ent under this provision
2681	3955		following the announcement in exchange for cancelling any further
2682	3956		franchise rights, except payments owed to the dea ler in the ordinary
2683	3957		course of business, or may request payment under this provision upon
2684	3958		the final termination, canc ellation or nonrenewal of the franchise.
2685	3959		In either case, payment under this provision shall be made not lat er
2686	3960		than ninety (90) days after t he fair market value is determined. If
2687	3961		the factory and dealer cannot agree on the fair market value of the
2688	3962		terminated franchise or agree to a process to det ermine the fair
2689	3963		market value, then the factory and dealer shall uti lize a neutral
2690	3964		third party mediator to resolve the disagreement.
2691	3965		SECTION 9. AMENDATORY 47 O.S. 2021, Section 565.3, is
2692	3966		amended to read as follows:
2693	3967		Section 565.3. A. A franchised vehicle dealer proposing a
2694	3968		sale, transfer, or assignment of a franchise agreem ent or the
2695	3969		business and assets of a dealership or an i nterest in a dealership
2696	3970		to another person, hereinafter transfe ree, shall notify the
2697	3971		manufacturer or distributor whose vehicles the dealer is franchised
2698	3972		to sell of the proposed action of the dealer. The manufacturer or
2699	3973		distributor may make written request to the transferee to submit
2700	3974		completed application forms and re lated information generally
2701	3975		utilized by a manufacturer to evaluate such a proposal and a copy of
2702	3976		all agreements related to the proposed sale , transfer, or
2703	3977		assignment.
2704	3978
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2730	4028
2731	4029		B. The approval by the man ufacturer or distributor of the sale,
2732	4030		transfer, or assignment shall not be unreasonably withheld unless
2733	4031		the transferee is not of good moral character or fails to meet the
2734	4032		written, reasonable, and unifor mly applied requirements of the
2735	4033		manufacturer or distri butor relating to prospective franchisees .
2736	4034		Approval of the transfer shall not be made contingent upon the
2737	4035		transferee meeting unreasonable facility requirements or
2738	4036		performance standards, but may be made contingent upon the
2739	4037		transferee meeting reasonable wri tten requirements. The burden of
2740	4038		proof shall be upon the manu facturer or distributor to show good
2741	4039		cause existed to withhold approval. The manufacturer or distributor
2742	4040		that has made such a determination shall send a letter by certified
2743	4041		mail to the dealer a nd the applicant of its refusal to approve the
2744	4042		proposal, which shall include a statement of the specific grounds
2745	4043		for refusal, within sixty (60) days after the later of:
2746	4044		1. Receipt by the manufacturer o r distributor of the notice of
2747	4045		the proposed sale, tran sfer, or assignment; or
2748	4046		2. Receipt by the manufacturer or dis tributor of the
2749	4047		information requested from the transferee pursuant to subsection A
2750	4048		of this section if the ma nufacturer or distributor has re quested
2751	4049		such information within fifteen (15) days of r eceipt of written
2752	4050		notice of the proposed sale, transfer, or as signment.
2753	4051		C. Failure of the manufacturer or distributor to send its
2754	4052		notice of refusal pursuant to subsectio n B of this section shall
2755	4053
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2781	4103
2782	4104		mean that the application for the proposed sale, transfer, o r
2783	4105		assignment is approved.
2784	4106		D. A dealer receiving notice of ref usal of the sale, transfer,
2785	4107		or assignment shall have the right to file a protest with the
2786	4108		Oklahoma New Motor Vehicle Commission within thirt y (30) days of
2787	4109		receipt of the refusal. A dealer receiving notice that the sale,
2788	4110		transfer or assignment is contingen t upon the transferee meeting
2789	4111		facility and/or performance standards shall have the right to file a
2790	4112		protest with the Commission within thirty (30) days of receipt of
2791	4113		the notice. In the event a protest is filed, the manufacturer or
2792	4114		distributor shall have th e burden of proof to establish the
2793	4115		transferee or the transferee’s controlling executive management is
2794	4116		not of good moral character or fails t o meet the written reasonable
2795	4117		and uniformly applied requirements of the manufactu rer or
2796	4118		distributor relating to pros pective franchisees or that the facility
2797	4119		requirements are not reasonable based on the reasons set forth in
2798	4120		subparagraph d of paragraph 9 of Section 565 of this title.
2799	4121		E. Notwithstanding any other pro vision of this section, the
2800	4122		manufacturer shall submit a signed copy of the Dealer Sales and
2801	4123		Service Agreement resulting from any completed sale, transfer, or
2802	4124		assignment of a franchise to the Oklahoma New Motor Vehicle
2803	4125		Commission within fifteen (15) days.
2804	4126		SECTION 10. AMENDATORY 47 O.S. 2021, Section 566, is
2805	4127		amended to read as follows:
2806	4128
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2832	4178
2833	4179		Section 566. The Oklahoma New Motor Vehicle Commission may deny
2834	4180		any application for license, or suspend or r evoke a license issued
2835	4181		or impose a fine, only after a hearing of which the applicant, or
2836	4182		licensee affected, shall be given at least ten (10) days ’ written
2837	4183		notice specifying the reason for d enying the applicant a license,
2838	4184		or, in the case of a revocation or suspension or imposition of a
2839	4185		fine, the offenses of which the li censee is charged. Such notices
2840	4186		may be served as provided by law for the service o f notices, or
2841	4187		mailing a copy by registered mail to the last-known residence or
2842	4188		business address of such appli cant or licensee. The hearing on such
2843	4189		charges shall be at such time and place as the Commission may
2844	4190		prescribe and the aforementioned notice shall further specify the
2845	4191		time and place. If su ch applicant or licensee is a motor vehicle
2846	4192		salesperson, factory re presentative or distributor representative,
2847	4193		the Commission shall in like manner also notify the perso n, firm,
2848	4194		association, corporation or trust wit h whom he or she is associated,
2849	4195		or in whose association he or she is about to enter. The Commission
2850	4196		shall have the power to compel the production of all records, papers
2851	4197		and other documents which may be deemed relevant to the proceeding
2852	4198		bearing upon the complaints. The Commission shall have the p ower to
2853	4199		subpoena and bring before it any person, or take testimony of any
2854	4200		such person by deposition, with the same fees and mileage and in the
2855	4201		same manner as prescribed in proceedings before courts of the state
2856	4202		in civil cases. Any party to such hearing sh all have the right to
2857	4203
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2883	4253
2884	4254		the attendance of witnesses in his behalf upo n designating to the
2885	4255		Commission the person or persons sought to be subpoenaed.
2886	4256		SECTION 11. AMENDATORY 47 O.S. 2021, Section 566.1, is
2887	4257		amended to read as follows:
2888	4258		Section 566.1. All rulings, orders, decisions, procedures or
2889	4259		acts of the Oklahoma New Motor Vehicle Commission shall be subject
2890	4260		to the provisions of the Administrative Procedures Act, Sections 301
2891	4261		through 326 of Title 75 of the Oklahoma Statutes.
2892	4262		SECTION 12. AMENDATORY 47 O.S. 2021, Section 567, is
2893	4263		amended to read as follows:
2894	4264		Section 567. The Oklahoma New Motor Vehicle Commission is
2895	4265		hereby authorized, with out cost bond or deposit, to institute
2896	4266		injunctive actions in courts of competent jurisdiction, in the name
2897	4267		of the State of Oklahoma on th e relation of the Commission, t o
2898	4268		enforce the provisions of Sections 561 through 567, 572, 578.1, 579
2899	4269		and 579.1 of this title. Any licensee or other person who violates
2900	4270		or threatens to violate any provision of this chapter or rule
2901	4271		promulgated thereunder or order of the Commission may be enjoined
2902	4272		from so doing.
2903	4273		SECTION 13. AMENDATORY 47 O.S. 20 21, Section 576, is
2904	4274		amended to read as follows:
2905	4275		Section 576. There is hereby created a petty cash fund not to
2906	4276		exceed One Hundred Dollars ($100.00) for th e Oklahoma New Motor
2907	4277
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2933	4327
2934	4328		Vehicle Commission, which may be expended f or small authorized
2935	4329		expenses of the Commiss ion.
2936	4330		SECTION 14. AMENDATORY 47 O.S. 2021, Section 578.1, is
2937	4331		amended to read as follows:
2938	4332		Section 578.1. A. Notwithstanding the terms of a franchise and
2939	4333		notwithstanding the terms of a waiver, if a factory intends or
2940	4334		proposes to enter into a franchise to establish an additional new
2941	4335		motor vehicle dealer or to relocate an existing new motor vehicle
2942	4336		dealer within or into a r elevant market area in which the same line -
2943	4337		make of motor vehicle is currently represented, the factory shall
2944	4338		provide at least sixty (60) days advance written notice to the
2945	4339		Commission and to each new motor vehicle dealer of the same line -
2946	4340		make in the relevant market area, of the intention of the fac tory to
2947	4341		establish an additional new motor vehicle dealer or to relo cate an
2948	4342		existing new motor vehicle dealer within or into the relevant market
2949	4343		area. For purposes of this section, the “relevant market area ”
2950	4344		means the area within a radius of fifteen (15) m iles of the site of
2951	4345		the proposed new motor vehicle dealership. The notice shall be sent
2952	4346		by certified mail to each party an d shall include the following
2953	4347		information:
2954	4348		1. The specific location at which the additiona l or relocated
2955	4349		motor vehicle dealer will b e established;
2956	4350		2. The date on or after which the additional or rel ocated motor
2957	4351		vehicle intends to commence business at the proposed location;
2958	4352
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2984	4402
2985	4403		3. The identity of all moto r vehicle dealers who are franchised
2986	4404		to sell the same line-make vehicles as the propo sed dealer and who
2987	4405		have licensed locations within the relevant mark et area;
2988	4406		4. The names and addresses of the person inten ded to be
2989	4407		franchised as the proposed additional or relocated motor vehicle
2990	4408		dealership, the principal investors in the proposed additi onal or
2991	4409		relocated motor vehicle dealership, and the proposed dealer operator
2992	4410		of the proposed additional or relocated motor vehicle dealership;
2993	4411		and
2994	4412		5. The specific grounds or reasons for the proposed
2995	4413		establishment of an additional motor vehicle dealer or r elocation of
2996	4414		an existing dealer.
2997	4415		B. This section does not apply The notice provisions and
2998	4416		hearing opportunities prescribed in subsection A of this section
2999	4417		shall not apply if any of the following are true:
3000	4418		1. To the relocation of an exis ting new motor vehicle dealer
3001	4419		within the relevant market area of that dealer; provide d, that the
3002	4420		relocation not be at a site within ten (10) miles of a licensed new
3003	4421		motor vehicle dealer for the same line-make of motor vehicle;
3004	4422		2. To a proposed additional new motor vehicle dealer which is
3005	4423		to be established at or within two (2) miles of a l ocation at which
3006	4424		a former licensed new motor vehicle dea ler for the same line -make of
3007	4425		new motor vehicle had ceased operating within the previous tw o (2)
3008	4426		years;
3009	4427
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3035	4477
3036	4478		3. To the relocation of an existing new motor vehicle dealer
3037	4479		within two (2) miles of the existi ng site of the new motor vehicle
3038	4480		dealership; or
3039	4481		4. To the relocation of an existing new motor vehicle d ealer if
3040	4482		the proposed site of the relocated new motor vehicle deale rship is
3041	4483		farther away from all other new motor vehicle dealers of the same
3042	4484		line-make in that relevant market area.
3043	4485		C. Within thirty (30) day s after receipt of the notice, or
3044	4486		within thirty (30) days after the end of an appeal proced ure
3045	4487		provided by the fact ory, whichever is greater, a new motor vehicle
3046	4488		dealer so notified or entitled to noti ce may file a petition with
3047	4489		the Commission protesting th e proposed establishment or relocation.
3048	4490		The petition shall contain a short statement setti ng forth the
3049	4491		reasons for the objection of the dealer to the proposed
3050	4492		establishment or relocation. Upon filin g of a protest, the
3051	4493		Commission shall promptly notify the factory that a timely protest
3052	4494		has been filed and shall schedule a hearing, which shall be held
3053	4495		within one hundred twenty (120) days of the filing of a timely
3054	4496		protest. The factory shall not establish or relocate the new motor
3055	4497		vehicle dealer until the Comm ission has held a hearing and has
3056	4498		determined that there is good cause for permitting the pr oposed
3057	4499		establishment or relocation. When more than one protest is filed
3058	4500		against the establishment or relocat ion of the same dealer, the
3059	4501
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3085	4551
3086	4552		Commission shall consolidate the hearings to expedite disposition of
3087	4553		the matter.
3088	4554		D. The burden of proof to establish t hat good cause exists fo r
3089	4555		permitting the proposed establishment of a new motor vehicle dealer
3090	4556		or relocating an existing new motor vehicle dealership shall be on
3091	4557		the applicant who seeks to establish a new motor veh icle dealership
3092	4558		or the relocation of an exi sting new motor vehicle dealership.
3093	4559		SECTION 15. AMENDATORY 47 O.S. 2021, Section 579, is
3094	4560		amended to read as follows:
3095	4561		Section 579. In determining whether good cause has been
3096	4562		established for permitting the proposed establishment or relocation
3097	4563		of an additional franchise for the s ame line-make, the Oklahoma New
3098	4564		Motor Vehicle Commission shall take into consideration, and must be
3099	4565		persuaded, that good cause exists for entering into or relocating an
3100	4566		additional franchise for the same line -make by the greater weight of
3101	4567		facts and the existing circumstances, including, but no t limited to:
3102	4568		1. Permanency of the investment of the proposed dealership;
3103	4569		2. Effect on the retail new motor vehicle business and the
3104	4570		consuming public in the relevant market area;
3105	4571		3. Whether it is injurious to the public welfare for an
3106	4572		additional new motor vehicle dealership to be es tablished;
3107	4573		4. Whether the new motor vehicle dealer s of the same line-make
3108	4574		in that relevant market area are providing adequate competition and
3109	4575		convenient consumer care for the motor vehicle sal es and service
3110	4576
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3136	4626
3137	4627		facilities, equipment, supply of motor vehicle p arts, and qualified
3138	4628		service personnel; and
3139	4629		5. Whether the establishment of an addition al new motor vehicle
3140	4630		dealership would increase competition, and therefore be in the
3141	4631		public interest.
3142	4632		SECTION 16. AMENDATORY 47 O.S. 2021, Sectio n 596.1, is
3143	4633		amended to read as follows:
3144	4634		Section 596.1. As used in this act:
3145	4635		1. “Area of sales responsibility” means a geographical area
3146	4636		agreed to by a dealer and the manufacturer in a dealer agreement in
3147	4637		which the dealer has the exclusive right to displa y or sell the new
3148	4638		recreational vehicles of a manufa cturer of a particular line -make to
3149	4639		the public;
3150	4640		2. “Camping trailer” means a vehicular unit that is mo unted on
3151	4641		wheels and constructed with collapsible partial side walls that fold
3152	4642		for towing by another ve hicle and unfold at the campsi te to provide
3153	4643		temporary living quarters for recreational, camping or travel use;
3154	4644		3. “Commission” means the Oklahoma New Mot or Vehicle
3155	4645		Commission;
3156	4646		4. “Dealer” means any person, firm, corporation, or business
3157	4647		entity licensed or required to be licensed pursuant to the
3158	4648		provisions of this act to sell new recreation al vehicles;
3159	4649		4. 5. “Dealer agreement” means a written agreement or contract
3160	4650		entered into between a manufacturer and a dealer that establishes
3161	4651
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3187	4701
3188	4702		the legal rights and oblig ations of the parties to that agreement or
3189	4703		contract and pursuant to which the dealer is authorized to sell new
3190	4704		recreational vehicles manufactured or distr ibuted by the
3191	4705		manufacturer;
3192	4706		5. 6. “Established place of business ” means a permanently
3193	4707		enclosed building or structure, easily accessible to the public,
3194	4708		with a paved or graveled lot for cust omer parking and for the
3195	4709		showing and storage of vehicles. Establis hed place of business
3196	4710		shall not mean tents, temporary stands, lots, or other temporary
3197	4711		quarters. The established place of business shall have a sign
3198	4712		visible from the outside of the busines s which identifies the
3199	4713		recreational vehicle dealership. The establ ished place of business
3200	4714		shall have an indoor office with public areas sufficient to conduct
3201	4715		sales transactions with customers and have restroom facilitie s
3202	4716		available for the public. The est ablished place of business shall
3203	4717		include a service and parts area, separated from the public areas,
3204	4718		equipped with tools, equipment, and replacement parts necessary for
3205	4719		reasonably expected warranty and service needs;
3206	4720		6. 7. “Factory campaign” means an effort by a warrantor to
3207	4721		contact recreational vehicle owners or recreati onal vehicle dealers
3208	4722		in order to address an issue concerning a recreational vehicle
3209	4723		problem, defective part or equipment;
3210	4724		7. 8. “Factory representative ” means any officer or agent
3211	4725		engaged as a representative of a manufacturer of recreational
3212	4726
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3238	4776
3239	4777		vehicles or a factory branch for the purpose of making or promoting
3240	4778		the sale of recreational vehicles of the manufa cturer or for
3241	4779		supervising or contacting dealers or prospective dealers of the
3242	4780		manufacturer;
3243	4781		8. 9. “Family member” means any of the following:
3244	4782		a. a spouse of an individual,
3245	4783		b. a child, grandchild, parent, sibling, niece, or nephew
3246	4784		of an individual, or
3247	4785		c. the spouse of a child, grandchild, parent, sibling,
3248	4786		niece, or nephew of an individual;
3249	4787		9. 10. “Fifth wheel trailer” means a vehicular unit mounted on
3250	4788		wheels that is designed to provide temporary living quarters for
3251	4789		recreational, camping or travel use of su ch size and weight as to
3252	4790		not require a special high way movement permit and is designed to be
3253	4791		towed by a motorized vehicle that contains a towing mechanism that
3254	4792		is mounted above or forward of the rear axle of the tow vehicle;
3255	4793		10. 11. “Line-make” means a specific series of recreational
3256	4794		vehicle products that meet all of the following:
3257	4795		a. are identified by a common series trade name or
3258	4796		trademark,
3259	4797		b. are targeted to a particular market segment based on
3260	4798		the decor, features, equipment, size, weight, and
3261	4799		price range,
3262	4800
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3265	4827		2
3266	4828		3
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3268	4830		5
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3288	4850
3289	4851		c. have dimensions and interior floor plans tha t
3290	4852		distinguish the recreational vehic les from
3291	4853		recreational vehicles t hat have substantially the same
3292	4854		decor, features, equipment, weight, and price,
3293	4855		d. belong to a single, distinct classification of
3294	4856		recreational vehicle product type that has a
3295	4857		substantial degree of commonality in the construct ion
3296	4858		of the chassis, frame, and b ody, and
3297	4859		e. are authorized for sale by the dealer in the dealer
3298	4860		agreement;
3299	4861		11. 12. “Manufacturer” means a person that manufactures or
3300	4862		wholesales recreational vehicles or that distributes or wholesales
3301	4863		recreational vehicles to dealers;
3302	4864		12. 13. “Motor home” means a motorized, vehicular unit designed
3303	4865		to provide temporary living quarters for recreational, camping or
3304	4866		travel use;
3305	4867		13. “OMVC” means the Oklahoma Motor Vehicle Commission;
3306	4868		14. “Person” means an individual, partnersh ip, corporation,
3307	4869		limited liability compa ny, association, trust, est ate, or other
3308	4870		legal entity;
3309	4871		15. “Proprietary part” means a recreational vehicle part
3310	4872		manufactured by or for a manufacturer and sold exclusively by a
3311	4873		manufacturer;
3312	4874		16. “Recreational vehicle” means a vehicle that:
3313	4875
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3339	4925
3340	4926		a. is primarily designed as a vehicle that also provides
3341	4927		temporary living quarters for noncommercial,
3342	4928		recreational or camping use,
3343	4929		b. is built to the standards of the National Fire
3344	4930		Protection Association for recreational vehicles,
3345	4931		c. has its own motive power or is mounte d on or towed by
3346	4932		another vehicle,
3347	4933		d. is regulated by the National Highway Traffic Safety
3348	4934		Administration as a vehicle or vehicle e quipment,
3349	4935		e. does not require a special highway use permit for
3350	4936		operation on the highway s, and
3351	4937		f. an individual can easily trans port and set up on a
3352	4938		daily basis.
3353	4939		Recreational vehicles includes motor homes, travel trailers,
3354	4940		fifth wheel travel trailers, foldi ng camping trailers and truck
3355	4941		campers;
3356	4942		17. “Recreational vehicle salesperson ” means any person who,
3357	4943		for gain or compensation o f any kind, either directly or indirectly,
3358	4944		regularly or occasionally, by any form of agreement or arrangement,
3359	4945		sells or negotiates for the sale of any new recreational vehicle for
3360	4946		any new recreational vehicle dealer to any one or more third
3361	4947		parties;
3362	4948		18. “Transient customer” means a person who:
3363	4949		a. owns a recreational vehicle,
3364	4950
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3366		-	(Bold face denotes Committee Amendments) 1
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	4976	+	1
3367	4977		2
3368	4978		3
3369	4979		4
3370	4980		5
3371	4981		6
3372	4982		7
3373	4983		8
3374	4984		9
3375	4985		10
3376	4986		11
3377	4987		12
3378	4988		13
3379	4989		14
3380	4990		15
3381	4991		16
3382	4992		17
3383	4993		18
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3386	4996		21
3387	4997		22
3388	4998		23
3389	4999		24
3390	5000
3391	5001		b. is temporarily traveling through the area of sales
3392	5002		responsibility of a dealer,
3393	5003		c. engages the dealer to p erform service work on that
3394	5004		recreational vehicle, and
3395	5005		d. requires repairs that relate to the safe opera tions of
3396	5006		that recreational vehicle or, if not undertaken, are
3397	5007		of a nature that would render that recre ational
3398	5008		vehicle unusable;
3399	5009		19. “Travel trailer” means a vehicular unit mounted on wheel s
3400	5010		that is designed to provide temporary living quarters for
3401	5011		recreational, camping or travel use of such size and weight as to
3402	5012		not require a special highway movement perm it when towed by a
3403	5013		motorized vehicle;
3404	5014		20. “Truck camper” means a portable unit that is constructed to
3405	5015		provide temporary living quarters for recreational, camping or
3406	5016		travel use and consists of a roof, floor and sides and is designed
3407	5017		to be loaded onto and u nloaded from the back of a pickup truck; and
3408	5018		21. “Warrantor” means a manufacturer or a ny other person that
3409	5019		provides a warranty to the consumer in connect ion with a new
3410	5020		recreational vehicle or parts, accessories, or components of a new
3411	5021		recreational vehicle . The term does not include a person that
3412	5022		provides a service contract, mechanical or o ther insurance, or an
3413	5023		extended warranty sold for separate considera tion by a dealer or
3414	5024		other person not controlled by a warrantor.
3415	5025
3416		-	SENATE FLOOR VERSION - SB643 SFLR Page 68
3417		-	(Bold face denotes Committee Amendments) 1
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	5051	+	1
3418	5052		2
3419	5053		3
3420	5054		4
3421	5055		5
3422	5056		6
3423	5057		7
3424	5058		8
3425	5059		9
3426	5060		10
3427	5061		11
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3429	5063		13
3430	5064		14
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3434	5068		18
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3437	5071		21
3438	5072		22
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3440	5074		24
3441	5075
3442	5076		SECTION 17. AMENDATORY 47 O.S. 2021, Sectio n 596.2, is
3443	5077		amended to read as follows:
3444	5078		Section 596.2. A. It shall be unlawful for any person, firm,
3445	5079		association, corporation or trust to engage in business as, or serve
3446	5080		in the capacity of, or act as a new recreational vehicle dealer, new
3447	5081		recreational vehicle manufacturer, n ew recreational vehicle factory
3448	5082		representative or new recreational vehicle salesperson in this state
3449	5083		without first obtaining a license or salesperson registration as
3450	5084		provided for by law.
3451	5085		B. The Oklahoma New Motor Vehicle Commission (OMVC) shall issue
3452	5086		new recreational vehicle dealer, manufacturer and fa ctory
3453	5087		representative licenses and recreati onal vehicle salesperson
3454	5088		registrations upon application . The Commission shall promulgate
3455	5089		rules and forms to implement and enforce the provisions of this
3456	5090		section.
3457	5091		C. The schedule of license fees and salesperson registration
3458	5092		fees to be charged and received by the Oklahoma Motor Vehicle
3459	5093		Commission for the licenses issued hereund er shall be as follows:
3460	5094		1. For each manufacturer or distributor of new recreational
3461	5095		vehicles, an initial fee of Four Hundred Dollars ($400.0 0) with an
3462	5096		annual renewal fee of Three Hun dred Dollars ($300.00);
3463	5097		2. For each factory representative, an initial f ee of One
3464	5098		Hundred Dollars ($100.00) with an annual renewal fee of One Hundred
3465	5099		Dollars ($100.00);
3466	5100
3467		-	SENATE FLOOR VERSION - SB643 SFLR Page 69
3468		-	(Bold face denotes Committee Amendments) 1
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3469	5127		2
3470	5128		3
3471	5129		4
3472	5130		5
3473	5131		6
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3490	5148		23
3491	5149		24
3492	5150
3493	5151		3. For each new motor home dealer, an initi al fee of Three
3494	5152		Hundred Dollars ($300.00) per franchise sold at each licensed
3495	5153		location with an annual renewal fee o f One Hundred Dollars ($100.00)
3496	5154		per franchise sold at each licensed location;
3497	5155		4. For each fifth wheel trailer, travel trailer, camping
3498	5156		trailer and truck camper dealer, an initial fee of Three Hundred
3499	5157		Dollars ($300.00) per manufacturer represented at each licensed
3500	5158		location with an annual renewal f ee of One Hundred Dollars ($100.00)
3501	5159		per manufacturer represented at each location; and
3502	5160		5. For each salesperson registration, an initial fee of Twenty-
3503	5161		five Dollars ($25.00) with an annual renewal fee of Twenty -five
3504	5162		Dollars ($25.00).
3505	5163		D. A manufacturer shall not sell or display for sale a
3506	5164		recreational vehicle in this state except to a dealer or through a
3507	5165		dealer that is licensed by th e Commission to sell recreational
3508	5166		vehicles in the State of Oklahoma . The manufacturer shall also be
3509	5167		required to have a dealer agreement with the dealer that meets the
3510	5168		requirements of the Recreational Vehicle Franchise Act and is signed
3511	5169		by both parties.
3512	5170		E. A dealer shall not sell or display for sale a new
3513	5171		recreational vehicle in this stat e unless the dealer is licensed by
3514	5172		the Commission to sell recreational vehicles in the State of
3515	5173		Oklahoma. The dealer shall also be required to have a dealer
3516	5174
3517		-	SENATE FLOOR VERSION - SB643 SFLR Page 70
3518		-	(Bold face denotes Committee Amendments) 1
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3519	5201		2
3520	5202		3
3521	5203		4
3522	5204		5
3523	5205		6
3524	5206		7
3525	5207		8
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3539	5221		22
3540	5222		23
3541	5223		24
3542	5224
3543	5225		agreement with the manufa cturer of the recreational vehicle that
3544	5226		meets the requirements of this ac t and is signed by both parties.
3545	5227		SECTION 18. AMENDATORY 47 O.S. 2021 , Section 596.3, is
3546	5228		amended to read as follows:
3547	5229		Section 596.3. A. All of the following conditions shall apply
3548	5230		to the area of sales responsibility of a dealer included in a dealer
3549	5231		agreement between a manu facturer and a dealer:
3550	5232		1. The manufacturer shall d esignate in the dealer agreement the
3551	5233		area of sales responsibility exclusively assi gned to the dealer;
3552	5234		2. The manufacturer shall not change the area of sales
3553	5235		responsibility of a dealer or establish another dealer for the same
3554	5236		line-make in that area during the term of the dealer agreement; and
3555	5237		3. The area of sales responsibility may not be reviewed or
3556	5238		changed without the consent of both parties until one (1) year after
3557	5239		the execution of the dealer agreement.
3558	5240		B. A dealer may not conduct sales activity or dis play for sale
3559	5241		recreational vehicles outside of i ts designated area of sales
3560	5242		responsibility.
3561	5243		C. A dealer may sell off -premise within the area of sales
3562	5244		responsibility of the dealer under the following circu mstances:
3563	5245		1. At sanctioned recreational vehicle sh ows where the sales
3564	5246		event is held off-premise and at least sixty-seven percent (67%) of
3565	5247		the recreational vehicle dealers that are located within a sixty -
3566	5248		mile radius of the location of the show participate in the show. A
3567	5249
3568		-	SENATE FLOOR VERSION - SB643 SFLR Page 71
3569		-	(Bold face denotes Committee Amendments) 1
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	5270	+	20
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	5272	+	22
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	5274	+	24
	5275	+	1
3570	5276		2
3571	5277		3
3572	5278		4
3573	5279		5
3574	5280		6
3575	5281		7
3576	5282		8
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3591	5297		23
3592	5298		24
3593	5299
3594	5300		sanctioned recreational vehicle sho w may be held only under the
3595	5301		following conditions:
3596	5302		a. the sponsoring entity of the sales event shall obtain
3597	5303		a permit from the OMVC Oklahoma New Motor Vehicle
3598	5304		Commission at the rate of Two Hundred Dollars
3599	5305		($200.00) per event. The permit shall be for a peri od
3600	5306		not to exceed ten (10) consecutive days,
3601	5307		b. dealer permits for a sanctioned rec reational vehicle
3602	5308		show described in this paragraph shall be obtained
3603	5309		from the OMVC Commission at a rate of Fifteen Dollars
3604	5310		($15.00) for each motor home per sanctioned
3605	5311		recreational vehicle show,
3606	5312		c. new recreational vehicle dealers whose manufactu rer-
3607	5313		approved area of responsibility includes the event
3608	5314		location shall be eligible to participate in the
3609	5315		sanctioned recreational vehicl e show,
3610	5316		d. new recreational vehicle dealers shall o btain written
3611	5317		approval from the manufacturer or distributor to
3612	5318		participate in the sanctioned recreational vehicle
3613	5319		show, and
3614	5320		e. the sanctioned recreational vehicle show shall be
3615	5321		conducted within municipal, county, or state-owned or
3616	5322		controlled facilities or within the grounds of any
3617	5323		county, district, or s tate fair; and
3618	5324
3619		-	SENATE FLOOR VERSION - SB643 SFLR Page 72
3620		-	(Bold face denotes Committee Amendments) 1
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3625	5355		6
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3643	5373		24
3644	5374
3645	5375		2. At nonsanctioned recreational vehicle shows where one or
3646	5376		more dealers may sell recreational vehicles off -premise under the
3647	5377		following conditions:
3648	5378		a. dealer permits for a nonsanctioned recrea tional
3649	5379		vehicle show described in this paragraph shall be
3650	5380		obtained from the OMVC Commission at a rate of Fifteen
3651	5381		Dollars ($15.00) for each recreational vehicle per
3652	5382		nonsanctioned recreational vehicle show,
3653	5383		b. the location of the nonsanctioned recreational ve hicle
3654	5384		show shall be within the manufacturer -approved area of
3655	5385		responsibility,
3656	5386		c. the nonsanctioned recreational vehicle show shall
3657	5387		occur no more than five (5) consecutive days per
3658	5388		event, excluding county, d istrict, or state fairs,
3659	5389		d. each dealer may partici pate in no more than eight
3660	5390		nonsanctioned recreat ional vehicle shows per calendar
3661	5391		year, and
3662	5392		e. nonsanctioned recreational vehicle shows shall be held
3663	5393		on privately owned property no closer than two and
3664	5394		one-half (2 1/2) miles to any other nonparticipating
3665	5395		recreational vehicle dealer; provided, however a
3666	5396		nonsanctioned recreational vehicle s how may be held on
3667	5397		county or municipally owned property with no mileage
3668	5398		barrier restriction.
3669	5399
3670		-	SENATE FLOOR VERSION - SB643 SFLR Page 73
3671		-	(Bold face denotes Committee Amendments) 1
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3676	5430		6
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3694	5448		24
3695	5449
3696	5450		D. A dealer may display a rec reational vehicle within the
3697	5451		designated area of res ponsibility of the dealer for promotional
3698	5452		purposes. At an off-premise display event, no sales activities
3699	5453		shall be conducted including, but not limited to, negotiations,
3700	5454		financing and accepting credit appl ications. Sales or finance
3701	5455		personnel shall not be permitted to participate at an off-premise
3702	5456		display event. A permit for the off -premise display event shall not
3703	5457		be required.
3704	5458		E. A dealer agreement shall include a designated principal of
3705	5459		the dealer. A dealer agreement may identify a family member as the
3706	5460		successor of the principal or include a successi on plan of the
3707	5461		dealer. A dealer may at any time change a designation or succession
3708	5462		plan made in the dealer agreement by providing written notice to the
3709	5463		manufacturer.
3710	5464		SECTION 19. AMENDATORY 47 O.S. 2021, Sectio n 596.5, is
3711	5465		amended to read as follows:
3712	5466		Section 596.5. A. A manufacturer, dir ectly or through any
3713	5467		officer, agent, or employee, may terminate or not renew a dealer
3714	5468		agreement without good cause. If the manufacturer terminates or
3715	5469		does not renew the dealer agreement without goo d cause, the
3716	5470		manufacturer shall comply with the provisions of subsections D and E
3717	5471		of this section. If the manufacturer terminate s or does not renew
3718	5472		the dealer agreement with good cause, the provisions of subsections
3719	5473		D and E of this section shall not apply .
3720	5474
3721		-	SENATE FLOOR VERSION - SB643 SFLR Page 74
3722		-	(Bold face denotes Committee Amendments) 1
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3724	5502		3
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3744	5522		23
3745	5523		24
3746	5524
3747	5525		B. A manufacturer has the burden of showing good cause for
3748	5526		terminating or not renewing a dealer agreement. All of the
3749	5527		following factors shall be consider ed in determining whether there
3750	5528		is good cause for a proposed termination or nonrenewal of a dealer
3751	5529		agreement by a manufacturer:
3752	5530		1. The extent of the penetra tion of the dealer in the relevant
3753	5531		market area;
3754	5532		2. The extent and qual ity of the service of the de aler under
3755	5533		recreational vehicle warranties;
3756	5534		3. The nature and extent of the investment of the deal er in
3757	5535		business of the dealer;
3758	5536		4. The adequacy of the serv ice facilities, equipment, parts,
3759	5537		supplies, and personnel of the dealer ;
3760	5538		5. The effect of the prop osed action on the community;
3761	5539		6. Whether the deale r fails to follow agreed -upon procedures or
3762	5540		standards related to the overall operation of the dealership; and
3763	5541		7. The performance by the dealer under the terms of dealer
3764	5542		agreement.
3765	5543		C. Except as otherwise provided in this section, a manufacturer
3766	5544		shall provide a dealer with written notice of a terminatio n or
3767	5545		nonrenewal of a dealer agreement. All of the followi ng conditions
3768	5546		apply to a notice described in this subsection:
3769	5547		1. Except as provided in paragraph 4 or 5 of this subsection,
3770	5548		the manufacturer shall pr ovide written notice at least ninety (90)
3771	5549
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3774	5576		2
3775	5577		3
3776	5578		4
3777	5579		5
3778	5580		6
3779	5581		7
3780	5582		8
3781	5583		9
3782	5584		10
3783	5585		11
3784	5586		12
3785	5587		13
3786	5588		14
3787	5589		15
3788	5590		16
3789	5591		17
3790	5592		18
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3792	5594		20
3793	5595		21
3794	5596		22
3795	5597		23
3796	5598		24
3797	5599
3798	5600		days before the effective date of the termination or nonrenewal of
3799	5601		the dealer agreement;
3800	5602		2. The notice shall state all of the reasons for the
3801	5603		termination or nonre newal of the dealer agreement;
3802	5604		3. The notice shall state that if the dealer provides to the
3803	5605		manufacturer a written notification of the intent of the dealer to
3804	5606		cure all claimed deficiencies within thirty (30) days after the
3805	5607		dealer receives the notice, the dealer shall have one hundred twenty
3806	5608		(120) days after the date of the notice to correct the claimed
3807	5609		deficiencies. If all of the deficiencies are corrected w ithin the
3808	5610		one-hundred-twenty-day time period, the notice shall be deeme d void
3809	5611		and the manufacturer shall not terminate or not renew the dealer
3810	5612		agreement because of the claimed deficiencies stated in the notice.
3811	5613		If the dealer does not provide a notificatio n of intent to cure
3812	5614		deficiencies within the thirty -day time period, the termination or
3813	5615		nonrenewal of the dealer agreement shall take effect sixty (60) days
3814	5616		after the dealer received the notice from the manufacturer;
3815	5617		4. A manufacturer may reduce the notice period described in
3816	5618		paragraph 1 of this subsection from ninety (90) da ys to thirty (30)
3817	5619		days and shall not be required to allow the dealer an opportu nity to
3818	5620		correct the deficiencies if the grounds for termination or
3819	5621		nonrenewal of the dealer agreement by t he manufacturer are any of
3820	5622		the specific categories of good cause descri bed in subsection F of
3821	5623		this section; and
3822	5624
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	5633	+	8
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3825	5651		2
3826	5652		3
3827	5653		4
3828	5654		5
3829	5655		6
3830	5656		7
3831	5657		8
3832	5658		9
3833	5659		10
3834	5660		11
3835	5661		12
3836	5662		13
3837	5663		14
3838	5664		15
3839	5665		16
3840	5666		17
3841	5667		18
3842	5668		19
3843	5669		20
3844	5670		21
3845	5671		22
3846	5672		23
3847	5673		24
3848	5674
3849	5675		5. A manufacturer shall not be requir ed to provide notice or an
3850	5676		opportunity to correc t deficiencies under this subsection if the
3851	5677		grounds for termination or nonrenewal of the dealer agreement by the
3852	5678		manufacturer includes one of the following:
3853	5679		a. the dealer becomes insolvent,
3854	5680		b. the dealer is bankrupt, or
3855	5681		c. the dealer makes an assignment fo r the benefit of
3856	5682		creditors.
3857	5683		D. If a manufacturer terminat es or does not renew a dealer
3858	5684		agreement for good cause under this secti on the dealer, at its
3859	5685		option, may require the manufacturer to repurchase any of the
3860	5686		following from the dealer:
3861	5687		1. All new, untitled recreational vehicles that were acquired
3862	5688		from the manufacturer within eighteen (18) months before the
3863	5689		effective date of the notice of termination of th e dealer agreement
3864	5690		that have not been used, except for demonstration purposes and have
3865	5691		not been altered or damaged, may be repurchased at one hundred
3866	5692		percent (100%) of the net invoice cost of the recreational vehicles,
3867	5693		including transportation, less applic able rebates and discounts to
3868	5694		the dealer;
3869	5695		2. All current and undamaged accessories and proprietary parts
3870	5696		sold to the dealer for resale within the eighteen ( 18) months prior
3871	5697		to the effective date of the termination of the dealer agreement
3872	5698		that are accompanied by the original invoice may be repurchased at
3873	5699
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	5702	+	2
	5703	+	3
	5704	+	4
	5705	+	5
	5706	+	6
	5707	+	7
	5708	+	8
	5709	+	9
	5710	+	10
	5711	+	11
	5712	+	12
	5713	+	13
	5714	+	14
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	5719	+	19
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	5722	+	22
	5723	+	23
	5724	+	24
	5725	+	1
3876	5726		2
3877	5727		3
3878	5728		4
3879	5729		5
3880	5730		6
3881	5731		7
3882	5732		8
3883	5733		9
3884	5734		10
3885	5735		11
3886	5736		12
3887	5737		13
3888	5738		14
3889	5739		15
3890	5740		16
3891	5741		17
3892	5742		18
3893	5743		19
3894	5744		20
3895	5745		21
3896	5746		22
3897	5747		23
3898	5748		24
3899	5749
3900	5750		one hundred five percent (105%) of the original n et price paid to
3901	5751		the manufacturer to compensate the dealer for handling, packing, and
3902	5752		shipping the accessories and parts; and
3903	5753		3. Any properly functioning di agnostic equipment, special
3904	5754		tools, current signage, and other equipment and machinery, purchased
3905	5755		by the dealer within the five (5) years prior to the effecti ve date
3906	5756		of the termination of the dealer agreement at the request of th e
3907	5757		manufacturer, if such equi pment or machinery cannot be used in the
3908	5758		normal course of the ongoing business of the dealer, may b e
3909	5759		repurchased at one hundred percent (100%) of the net cos t of the
3910	5760		dealer, plus freight, destination, delivery, and distribution
3911	5761		charges and sales taxes.
3912	5762		E. The dealer shall promptly return or arrange for th e return
3913	5763		of all of the items the manufacturer is required to repurchase under
3914	5764		subsection D of this section at the expense of the manufacturer.
3915	5765		F. As used in this section, “good cause” includes, but is not
3916	5766		limited to, any of the following:
3917	5767		1. A conviction of a felony or a plea of guilty or nolo
3918	5768		contendere to a felony by a dealer or an owner of a dealership of a
3919	5769		crime that was committed during the time frame of the current dealer
3920	5770		agreement; provided, there is full disclosure, in writing, of any
3921	5771		felony conviction or plea of guilty or nolo contendere to an y such
3922	5772		felony crime that occurred within ten (10) years of entering into
3923	5773		such dealer agreement;
3924	5774
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	5799	+	24
	5800	+	1
3927	5801		2
3928	5802		3
3929	5803		4
3930	5804		5
3931	5805		6
3932	5806		7
3933	5807		8
3934	5808		9
3935	5809		10
3936	5810		11
3937	5811		12
3938	5812		13
3939	5813		14
3940	5814		15
3941	5815		16
3942	5816		17
3943	5817		18
3944	5818		19
3945	5819		20
3946	5820		21
3947	5821		22
3948	5822		23
3949	5823		24
3950	5824
3951	5825		2. Abandonment or permanent clos ing of the business operatio ns
3952	5826		of a dealer for twenty-one (21) consecutive busi ness days without
3953	5827		contacting the manufacturer pr ior to the closing unless the closing
3954	5828		is due to an act of God, strike, labor difficulty, or other cause
3955	5829		over which the dealer has no control;
3956	5830		3. A material misrepresentation to a manufacturer by a dealer
3957	5831		that severely affects the business relationship bet ween the dealer
3958	5832		and the manufacturer;
3959	5833		4. Suspension or re vocation of the license of a dealer or
3960	5834		refusal to renew the license of the dealer by the OMVC Oklahoma New
3961	5835		Motor Vehicle Commission ;
3962	5836		5. A material violation of any of the provisions of the
3963	5837		Recreational Vehicle Franchise Act by a dealer; or
3964	5838		6. The dealer becomes insolvent, is bankrupt, or makes an
3965	5839		assignment for the benefit of creditors.
3966	5840		SECTION 20. AMENDATORY 47 O.S. 2021, Sec tion 596.7, is
3967	5841		amended to read as follows:
3968	5842		Section 596.7. The OMVC Oklahoma New Motor Vehicle Commission
3969	5843		may not prohibit a dealer from selling the remaining in stock
3970	5844		inventory of a particular line -make after a dealer agreement has
3971	5845		been terminated or not renewed pursuant to the pro visions of Section
3972	5846		7 or 8 of this act 596.5 or 596.6 of this title . If recreational
3973	5847		vehicles of a line-make are not returned or required to be returned
3974	5848		to the manufacturer, the dealer may continue to sell all line-makes
3975	5849
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	5875	+	1
3978	5876		2
3979	5877		3
3980	5878		4
3981	5879		5
3982	5880		6
3983	5881		7
3984	5882		8
3985	5883		9
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3987	5885		11
3988	5886		12
3989	5887		13
3990	5888		14
3991	5889		15
3992	5890		16
3993	5891		17
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3995	5893		19
3996	5894		20
3997	5895		21
3998	5896		22
3999	5897		23
4000	5898		24
4001	5899
4002	5900		that were subject to the dealer agreement and are curren tly in stock
4003	5901		until those line-makes are no longer in the dealer inventory.
4004	5902		SECTION 21. AMENDATORY 47 O.S. 2021, Section 596.8, is
4005	5903		amended to read as follows:
4006	5904		Section 596.8. A. All of the following conditions shall apply
4007	5905		to a proposed sale of the business assets, transfer of the stock, or
4008	5906		other transaction tha t will result in a change of ownership of a
4009	5907		dealer, except a transa ction described in subsection B of this
4010	5908		section:
4011	5909		1. The dealer shall provide written notice to the manufact urer
4012	5910		at least ninety (90) days prior to the proposed closing of the
4013	5911		transaction;
4014	5912		2. If the dealer is not in breach of the dealer agreement or in
4015	5913		violation of the provisions of this act at the time the dealer
4016	5914		provides the notice described in paragraph 1 of this subsection, the
4017	5915		manufacturer shall not object to the proposed transaction, unless
4018	5916		the prospective transferee meets one or more of the followin g:
4019	5917		a. the prospective transferee was previously a party to a
4020	5918		dealer agreement with the manufacturer that the
4021	5919		manufacturer terminated,
4022	5920		b. in the preceding ten (10) years, the prospective
4023	5921		transferee was convicted of a felony crime or any
4024	5922		crime of fraud, dece it or moral turpitude,
4025	5923
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	5926	+	2
	5927	+	3
	5928	+	4
	5929	+	5
	5930	+	6
	5931	+	7
	5932	+	8
	5933	+	9
	5934	+	10
	5935	+	11
	5936	+	12
	5937	+	13
	5938	+	14
	5939	+	15
	5940	+	16
	5941	+	17
	5942	+	18
	5943	+	19
	5944	+	20
	5945	+	21
	5946	+	22
	5947	+	23
	5948	+	24
	5949	+	1
4028	5950		2
4029	5951		3
4030	5952		4
4031	5953		5
4032	5954		6
4033	5955		7
4034	5956		8
4035	5957		9
4036	5958		10
4037	5959		11
4038	5960		12
4039	5961		13
4040	5962		14
4041	5963		15
4042	5964		16
4043	5965		17
4044	5966		18
4045	5967		19
4046	5968		20
4047	5969		21
4048	5970		22
4049	5971		23
4050	5972		24
4051	5973
4052	5974		c. the prospective transferee does no t have an
4053	5975		application for a recreational vehicle dealer license
4054	5976		pending with the OMVC Oklahoma New Motor Vehicle
4055	5977		Commission or a tentative dealer agreement with a
4056	5978		recreational vehicle manufacturer to cond uct business
4057	5979		as a dealer in this state,
4058	5980		d. the prospective transferee does not have an active
4059	5981		line of credit sufficient to purchase recreational
4060	5982		vehicles from the manufacturer accor ding to the terms
4061	5983		of the dealer agreement, or
4062	5984		e. in the preceding ten (10) years, the prospective
4063	5985		transferee was bankrupt or in solvent, made a general
4064	5986		assignment for the benef it of creditors, or a
4065	5987		receiver, trustee, or conservator was appointed to
4066	5988		take possession of the business or property of the
4067	5989		prospective transferee;
4068	5990		3. If the manufacturer objects to the proposed transaction, the
4069	5991		manufacturer shall give written notice of a n objection, including
4070	5992		the reasons by the manufacturer for objecting, to the deal er within
4071	5993		thirty (30) days after receiving the notice described in paragrap h 1
4072	5994		of this subsection. If th e manufacturer does no t give notice of an
4073	5995		objection within the thirty -day time period, the proposed
4074	5996		transaction shall be considered approved by the man ufacturer; and
4075	5997
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	6000	+	2
	6001	+	3
	6002	+	4
	6003	+	5
	6004	+	6
	6005	+	7
	6006	+	8
	6007	+	9
	6008	+	10
	6009	+	11
	6010	+	12
	6011	+	13
	6012	+	14
	6013	+	15
	6014	+	16
	6015	+	17
	6016	+	18
	6017	+	19
	6018	+	20
	6019	+	21
	6020	+	22
	6021	+	23
	6022	+	24
	6023	+	1
4078	6024		2
4079	6025		3
4080	6026		4
4081	6027		5
4082	6028		6
4083	6029		7
4084	6030		8
4085	6031		9
4086	6032		10
4087	6033		11
4088	6034		12
4089	6035		13
4090	6036		14
4091	6037		15
4092	6038		16
4093	6039		17
4094	6040		18
4095	6041		19
4096	6042		20
4097	6043		21
4098	6044		22
4099	6045		23
4100	6046		24
4101	6047
4102	6048		4. For purposes of paragraph 3 of this subsection, the
4103	6049		manufacturer has the burden of dem onstrating why the man ufacturer
4104	6050		objects to the proposed transaction.
4105	6051		B. All of the following conditions apply concerning the death,
4106	6052		incapacity, or retirement of the designated principal of a dealer:
4107	6053		1. The manufacturer shall provide the dealer an opportu nity to
4108	6054		designate, in writing, a family member as a successor to the d ealer
4109	6055		in the event of the death, incapacity, or retirement of the
4110	6056		designated principal;
4111	6057		2. The manufacturer shall not prevent or refuse to honor the
4112	6058		succession to a dealership by a family member of the decea sed,
4113	6059		incapacitated, or retired designated princi pal of that dealer unless
4114	6060		the manufacturer previously provided written notice to the dealer of
4115	6061		any objections to the succession plan of the dealer within t hirty
4116	6062		(30) days after receiving the succession plan o f the dealer or any
4117	6063		modification of the successi on plan of the dealer;
4118	6064		3. Except as provided in paragraph 5 of this subsection, unless
4119	6065		the dealer is in breach of the dealer agreement, a manufacturer
4120	6066		shall not object to the succession to a dealership by a family
4121	6067		member of the deceased, incapacitated, or retired designated
4122	6068		principal, unless the successor meets one or more of the fol lowing:
4123	6069		a. in the preceding ten (10) years, the successor was
4124	6070		convicted of a felony crime or any crime of fraud,
4125	6071		deceit or moral turpitude,
4126	6072
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	6076	+	3
	6077	+	4
	6078	+	5
	6079	+	6
	6080	+	7
	6081	+	8
	6082	+	9
	6083	+	10
	6084	+	11
	6085	+	12
	6086	+	13
	6087	+	14
	6088	+	15
	6089	+	16
	6090	+	17
	6091	+	18
	6092	+	19
	6093	+	20
	6094	+	21
	6095	+	22
	6096	+	23
	6097	+	24
	6098	+	1
4129	6099		2
4130	6100		3
4131	6101		4
4132	6102		5
4133	6103		6
4134	6104		7
4135	6105		8
4136	6106		9
4137	6107		10
4138	6108		11
4139	6109		12
4140	6110		13
4141	6111		14
4142	6112		15
4143	6113		16
4144	6114		17
4145	6115		18
4146	6116		19
4147	6117		20
4148	6118		21
4149	6119		22
4150	6120		23
4151	6121		24
4152	6122
4153	6123		b. in the preceding ten (10) years, the successor was
4154	6124		bankrupt, insolvent, or made an assignment for the
4155	6125		benefit of creditors,
4156	6126		c. the successor was previously a party to a dealer
4157	6127		agreement with the manufacturer that the manufacturer
4158	6128		terminated for a breach of a dealer agreement,
4159	6129		d. the successor does not have an active line of credit
4160	6130		sufficient to purchase recreationa l vehicles from the
4161	6131		manufacturer according to the terms of the dealer
4162	6132		agreement, or
4163	6133		e. the successor does not have an application for a
4164	6134		recreational vehicle dealer license pendin g with the
4165	6135		OMVC Commission or a tentative dealer agreement with a
4166	6136		recreational vehicle manufacturer to conduct business
4167	6137		as a dealer in this state;
4168	6138		4. The manufacturer has the burden of proof r egarding any
4169	6139		objection to the succession to a dealership by a f amily member of
4170	6140		the deceased, incapacitated, or retired designated principal; and
4171	6141		5. The consent of the manufacturer shall be required for the
4172	6142		succession to a dealership by a family member of the deceased,
4173	6143		incapacitated, or retired designated principal if the succession
4174	6144		involves a relocation of the business or an alteration of the terms
4175	6145		and conditions of the dealer agreement.
4176	6146
4177		-	SENATE FLOOR VERSION - SB643 SFLR Page 83
4178		-	(Bold face denotes Committee Amendments) 1
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4202	6196
4203	6197		SECTION 22. AMENDATORY 47 O.S. 2021, Section 596.14, is
4204	6198		amended to read as follows:
4205	6199		Section 596.14. The Oklahoma New Motor Vehicle Commission may
4206	6200		deny an application for a license, revoke or suspend a license,
4207	6201		impose a fine against a manufacturer or distributor i n an amount not
4208	6202		to exceed Ten Thousand Dollars ( $10,000.00) per occurrence, or
4209	6203		impose a fine against a dealer in an amount not to exceed One
4210	6204		Thousand Dollars ($1,000.00) per occurrence if any provision of the
4211	6205		Recreational Vehicle Franchise Act is violated or for any of the
4212	6206		following reasons:
4213	6207		1. On satisfactory proof of unfitness of the applicant in any
4214	6208		application for any license under the provisio ns of the Recreational
4215	6209		Vehicle Franchise Act;
4216	6210		2. For any material misstatement made by an applicant in any
4217	6211		application for any license under the provisions o f the Recreational
4218	6212		Vehicle Franchise Act;
4219	6213		3. For any failure to comply with any provision of the
4220	6214		Recreational Vehicle Franchise Act or any rule promulgated by the
4221	6215		Commission under authority vested to the OMVC Commission pursuant to
4222	6216		the Recreational Vehicle F ranchise Act;
4223	6217		4. A change of condition after a license is granted resulting
4224	6218		in the failure to maintain the qualifications for a license;
4225	6219		5. Being a new recreational vehicle dealer who:
4226	6220
4227		-	SENATE FLOOR VERSION - SB643 SFLR Page 84
4228		-	(Bold face denotes Committee Amendments) 1
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4252	6270
4253	6271		a. has required a purchaser of a new recreational
4254	6272		vehicle, as a condition of sale and delivery thereof,
4255	6273		to also purchase special features, appliances,
4256	6274		accessories or equipment not desired or requested by
4257	6275		the purchaser and installed by the dealer,
4258	6276		b. uses any false or mislea ding advertising in connection
4259	6277		with business as a n ew recreational vehicle dealer or
4260	6278		vehicle salesperson,
4261	6279		c. has committed any unlawful act which resulted in the
4262	6280		revocation of any similar license in another state,
4263	6281		d. has failed or refused to perform any wr itten agreement
4264	6282		with any retail buyer involving the sale of a
4265	6283		recreational vehicle,
4266	6284		e. has been convicted of a crime involving moral
4267	6285		turpitude,
4268	6286		f. has committed a fraudulent act in selling, purchasing
4269	6287		or otherwise dealing in new recreational vehicles or
4270	6288		has misrepresented the terms and conditions of a sale ,
4271	6289		purchase or contract for sale or purchase of a new
4272	6290		recreational vehicle or any interest there in including
4273	6291		an option to purchase such vehicle,
4274	6292		g. has failed to meet or maintain the conditions and
4275	6293		requirements necessary to qualify for the issuance of
4276	6294		a license, or
4277	6295
4278		-	SENATE FLOOR VERSION - SB643 SFLR Page 85
4279		-	(Bold face denotes Committee Amendments) 1
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4303	6345
4304	6346		h. has employed an unregistered new recreational vehicle
4305	6347		salesperson;
4306	6348		6. Being a new recreational vehicle dealer who:
4307	6349		a. does not have an establ ished place of busin ess,
4308	6350		b. does not provide for a suitable repair shop separate
4309	6351		from the display room with ample space to repair or
4310	6352		recondition one or more recreational vehicles at the
4311	6353		same time and equipped with tools, equipment, and
4312	6354		replacement parts as may be necessary fo r the
4313	6355		servicing of recreational vehicles in such a manner as
4314	6356		to make such vehicles comply with the safety laws of
4315	6357		this state and properly fulfill the warranty
4316	6358		obligation of the dealer or manufacturer,
4317	6359		c. does not hold a dealer agreeme nt in effect with a
4318	6360		manufacturer or distributor of ne w or unused
4319	6361		recreational vehicles for the sale of t he same and is
4320	6362		not authorized by the manufacturer or distributor to
4321	6363		render predelivery prepara tion of such vehicles sold
4322	6364		to purchasers and perform autho rized postsale work
4323	6365		pursuant to the warranty of the m anufacturer or
4324	6366		distributor,
4325	6367		d. employs unregistered salespersons or employs or
4326	6368		utilizes the services of used recreational vehicle
4327	6369
4328		-	SENATE FLOOR VERSION - SB643 SFLR Page 86
4329		-	(Bold face denotes Committee Amendments) 1
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4353	6419
4354	6420		lots, dealers or other unregistered persons in
4355	6421		connection with the sale of new recreational veh icles;
4356	6422		7. Being a factory that has:
4357	6423		a. induced or attempted to induce by means of coercion or
4358	6424		intimidation any new recreational vehicle dealer:
4359	6425		(1) to accept delivery of any recreational vehicle or
4360	6426		vehicles, parts or accessories for recreational
4361	6427		vehicles, or any other commodities inclu ding
4362	6428		advertising material which shall not have been
4363	6429		ordered by the new recreational vehicle dealer,
4364	6430		(2) to order or accept delivery of any recre ational
4365	6431		vehicle with special features, appliances,
4366	6432		accessories or equipment not included in the list
4367	6433		price of the recreational vehicles as publicly
4368	6434		advertised by the manufacturer of the
4369	6435		recreational vehicle, or
4370	6436		(3) to order or accept delivery of any parts,
4371	6437		accessories, equipment, machinery, tools,
4372	6438		appliances or any commodity whatsoeve r,
4373	6439		b. induced under threat or di scrimination by the
4374	6440		withholding from delivery to a recreational vehicle
4375	6441		dealer certain models of recreational vehicles,
4376	6442		changing or amending uni laterally the allotment of
4377	6443		recreational vehicles of a dealer or withholding and
4378	6444
4379		-	SENATE FLOOR VERSION - SB643 SFLR Page 87
4380		-	(Bold face denotes Committee Amendments) 1
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4404	6494
4405	6495		delaying delivery of such vehicl es out of the ordinary
4406	6496		course of business, in order to induce a dealer by
4407	6497		such coercion to participate or contribute to any
4408	6498		local or national ad vertising fund controlled directly
4409	6499		or indirectly by the factory or for any other purposes
4410	6500		including contests, gi veaways, other sales promotional
4411	6501		devices, or change of quotas in any sales contest, or
4412	6502		c. required recreational vehicle dealers, as a condition
4413	6503		of receiving the vehicle allotment of the dealer, to
4414	6504		order a certain percentage of the recreational
4415	6505		vehicles with optional equipment not specified by the
4416	6506		new recreational vehicle dealer; however, nothing in
4417	6507		this paragraph shall prohibit a factory from
4418	6508		supporting an advertising association which is open to
4419	6509		all dealers on the same basis ; or
4420	6510		8. Has employed unlicensed factory representatives.
4421	6511		The Commission may deny a ny application for license, or suspend
4422	6512		or revoke a license issued, or impose a fine, only aft er a hearing
4423	6513		for which the applicant or licensee affected shall be given at leas t
4424	6514		ten (10) days’ written notice specifying the reason for denying the
4425	6515		applicant a license, or, in the case of a revocation or suspension
4426	6516		or imposition of a fine, the offense wh ich the licensee is alleged
4427	6517		to have committed. The notice may be served as prov ided by law for
4428	6518		the service of notices or mailing a copy by registered mail to the
4429	6519
4430		-	SENATE FLOOR VERSION - SB643 SFLR Page 88
4431		-	(Bold face denotes Committee Amendments) 1
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4455	6569
4456	6570		last-known residence or business address of the applicant or
4457	6571		licensee. The hearing on allege d violations shall be at such time
4458	6572		and place as the Commission may prescribe and the aforementioned
4459	6573		notice shall further specify the time and place . If the applicant
4460	6574		or licensee is a motor vehicle salesperson, factory representative
4461	6575		or distributor represe ntative, the Commission shall in like manner
4462	6576		additionally notify the person, fir m, association, corporation or
4463	6577		trust with whom he or she is associated, or in whose association he
4464	6578		or she is about to enter. The Commission shall have the power to
4465	6579		compel the production of all records, papers and other docu ments
4466	6580		which may be deemed releva nt to the proceeding bearing upo n the
4467	6581		complaints. The Commission shall have the po wer to subpoena and
4468	6582		bring before it any person, or take testimony of any person by
4469	6583		deposition, with the same fees and mileage and in the same manner as
4470	6584		prescribed in the pro ceedings before courts of the st ate in civil
4471	6585		cases. Any party to the hearing shall have the right to the
4472	6586		attendance of witnesses on his or her behalf upon designating to the
4473	6587		Commission the person or persons sought to be sub poenaed.
4474	6588		SECTION 23. AMENDATORY 47 O.S. 2021, Section 596.15, is
4475	6589		amended to read as follows:
4476	6590		Section 596.15. A. A dealer, manufacturer, or warrantor
4477	6591		injured by another party who has violated a prov ision of this act
4478	6592		may bring a civil action in court for the recovery of actua l
4479	6593
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4481		-	(Bold face denotes Committee Amendments) 1
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4505	6643
4506	6644		damages. The court shall award attorney fees and costs to the
4507	6645		prevailing party in a civil action under this section .
4508	6646		B. Venue for a civil action filed pursuant to this section
4509	6647		shall be the county in which the business of the dealer is located.
4510	6648		In an action involving more than one dealer, any county in which the
4511	6649		business of any dealer that is party to the action is lo cated is a
4512	6650		proper venue for that action.
4513	6651		C. Before bringing a civil action under this section, the party
4514	6652		bringing suit for an alleged vio lation of this act shall serve a
4515	6653		written demand for mediation on the o ffending party. The demand for
4516	6654		mediation shall include a brief statement of the dispute and the
4517	6655		relief sought by the party making the demand. The party making the
4518	6656		demand for mediation shall serve the demand by certified mail to one
4519	6657		of the following addre sses:
4520	6658		1. In an action between a dealer and a ma nufacturer, the
4521	6659		address stated in the dealer agreement betwee n the parties;
4522	6660		2. In an action between a dealer and a warrantor that is not a
4523	6661		manufacturer, the address stated in any agreement between the
4524	6662		parties; or
4525	6663		3. In an action between two dealers, the address of the
4526	6664		offending dealer in the records of the OMVC Oklahoma New Motor
4527	6665		Vehicle Commission.
4528	6666		D. Within twenty (20) days after a dema nd for mediation is
4529	6667		served under subsection C of this section, the par ties shall
4530	6668
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4532		-	(Bold face denotes Committee Amendments) 1
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4556	6718
4557	6719		mutually select an independent mediat or who is approved by the OMVC
4558	6720		Commission, and meet with that mediator for the purpose of
4559	6721		attempting to resolve the dispute at a location in this state
4560	6722		selected by the mediator. The mediator may extend the d ate of the
4561	6723		meeting for good cause shown by eithe r party or if the parties agree
4562	6724		to the extension.
4563	6725		E. The service of a demand for mediation under subsection C of
4564	6726		this section tolls the t ime for the filing of any complaint,
4565	6727		petition, protest, or other actio n under this act until
4566	6728		representatives of both p arties have met with the mediator selected
4567	6729		pursuant to subsection D of this section for the purpose of
4568	6730		attempting to resolve the dispute. If a complaint, petition,
4569	6731		protest, or other action is filed before th at meeting, the court
4570	6732		shall enter an order suspe nding the proceeding or action until the
4571	6733		mediation meeting ha s occurred and may, if all of the parties to the
4572	6734		proceeding or action stipula te in writing that they wish to continue
4573	6735		to mediate under this section , enter an order suspending the
4574	6736		proceeding or action for as long a period as the court considers
4575	6737		appropriate. The court may modify, extend, or revoke a suspension
4576	6738		order issued under thi s subsection if it considers that action
4577	6739		appropriate.
4578	6740		F. Each of the parties to the mediation under this section is
4579	6741		responsible for its own attorney fees. The parties shall equa lly
4580	6742		divide the cost of the mediator.
4581	6743
4582		-	SENATE FLOOR VERSION - SB643 SFLR Page 91
4583		-	(Bold face denotes Committee Amendments) 1
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4607	6793
4608	6794		SECTION 24. AMENDATORY 47 O.S. 202 1, Section 596.16, is
4609	6795		amended to read as follows:
4610	6796		Section 596.16. A. In addition to any remedy available under
4611	6797		the provisions of this act or otherwise avail able by law, a
4612	6798		manufacturer, warrantor, or dealer may apply to the court for the
4613	6799		grant, after a hearing and for cause shown, of a temporary o r
4614	6800		permanent injunction or other equi table relief restraining any
4615	6801		person from doing any of the following:
4616	6802		1. Acting as a dealer without a proper license;
4617	6803		2. Violating or continuing to violate the provisions of th is
4618	6804		act. A single violation of the provisio ns of this act shall be a
4619	6805		sufficient basis for the court to grant equitable relief under this
4620	6806		section; or
4621	6807		3. Failing or refusing to comply with any requirement of the
4622	6808		provisions of this act.
4623	6809		B. The court may not require a bond as a condition to the grant
4624	6810		of equitable relief under this sect ion.
4625	6811		C. If, on January 1, 2011, a dealership does not meet the
4626	6812		requirements of the definition of established place of business as
4627	6813		defined in Section 3 of this act 596.1 of this title, the dealership
4628	6814		shall be eligible for licens ing by the OMVC Oklahoma New Motor
4629	6815		Vehicle Commission for that location. If the dealership moves the
4630	6816		dealership to a new location, the new dealership shall comply with
4631	6817
4632		-	SENATE FLOOR VERSION - SB643 SFLR Page 92
4633		-	(Bold face denotes Committee Amendments) 1
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4657	6867
4658	6868		the requirements of the definition o f established place of business
4659	6869		as defined in Section 3 of this act 596.1 of this title.
4660	6870		SECTION 25. AMENDATORY 47 O.S. 2 021, Section 1116.1, is
4661	6871		amended to read as follows:
4662	6872		Section 1116.1. A license plate or decal bearing an expir ation
4663	6873		date of four (4) months from the date of regi stration shall be
4664	6874		issued for a vehicle registere d in the name of a manufacturer or
4665	6875		dealer of new motor vehicles. Such licen se plate or decal shall be
4666	6876		issued if the vehicle so registered is exempt from the vehicle
4667	6877		excise tax pursuant to the provisions of subsection (k) paragraph 12
4668	6878		of Section 2105 of Ti tle 68 of the Oklahoma Statutes. It shall be
4669	6879		unlawful for any person other t han a manufacturer, licensed dealer,
4670	6880		person contemplating purchase of the vehicl e or person holding a
4671	6881		valid salesman’s license issued by the Oklahoma New Motor Vehicle
4672	6882		Commission to operate the vehicle after the expiration of the f our-
4673	6883		month registration pe riod.
4674	6884		SECTION 26. AMENDATORY 47 O.S. 2021, Section 1128 , as
4675	6885		last amended by Section 142, Chapter 282, O.S. L. 2022 (47 O.S. Supp.
4676	6886		2022, Section 1128), is amende d to read as follows:
4677	6887		Section 1128. A. Every person manufacturing or having a
4678	6888		contract to sell new vehicles in this state shall file a verified
4679	6889		application for a general distinctive number for all new vehicles
4680	6890		owned or controlled by the manufacturer or dealer; provided, Service
4681	6891		Oklahoma shall issue a license to sell such new motor vehicles only
4682	6892
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4684		-	(Bold face denotes Committee Amendments) 1
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4708	6942
4709	6943		for those types of new vehicles for which the applica nt has a sales
4710	6944		contract or franchise; provided, further, that no license shall be
4711	6945		issued to any applicant that has not complied with the provisions of
4712	6946		Sections 561 through 568 of this title and does not hold a current
4713	6947		license issued by the Oklahoma New Motor Vehicle Commission pursuant
4714	6948		thereto. A separate manufacturer’s or dealer’s license shall be
4715	6949		required for each separate county within which such manufacturer or
4716	6950		dealer has an established place of business and upon payment of a
4717	6951		license fee of Ten Dollars ($1 0.00) there shall be assigned and
4718	6952		issued to such manufacturer or dealer a Certificate of Registration
4719	6953		and one license plate which shall be displayed upon each vehicle of
4720	6954		such manufacturer or dealer when same is operated, driven, or
4721	6955		displayed on any street, road, or highway, in the same manner as
4722	6956		hereinbefore provided for vehicles owned by other persons. Such a
4723	6957		manufacturer or dealer in new vehicles may obtain as many additional
4724	6958		license plates as may be desired, upon the payment of the sum of Ten
4725	6959		Dollars ($10.00) for each additional plate; provided that no such
4726	6960		license plate issued to any manufacturer or dealer shall be used or
4727	6961		displayed upon any secondhand or used vehicle, or upon any new
4728	6962		vehicle which is used for a service car, or private use, or for
4729	6963		hire. Any person, with consent of the dealer, may operate a motor
4730	6964		vehicle, with the dealer’s tag affixed, while contemplating
4731	6965		purchase, so long as this intent is limited to a consecutive
4732	6966		seventy-two-hour period, or a weekend . An individual holding a
4733	6967
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4735		-	(Bold face denotes Committee Amendments) 1
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4759	7017
4760	7018		valid salesman’s license issued by the Oklahoma Motor Vehicle
4761	7019		Commission shall not be subject to this limitation. If such person
4762	7020		also buys and sells used vehicles, he shall, after obtaining his new
4763	7021		motor vehicle dealer ’s license from the Oklahoma Motor Vehicle
4764	7022		Commission, also obtain a used motor vehicle dealer’s license, from
4765	7023		the Used Motor Vehicle and Parts Commission, the cost of which shall
4766	7024		be as prescribed in Section 1101 et seq. of this title.
4767	7025		B. Each dealer and used motor vehicle dealer shall keep a
4768	7026		record of the purchase and sale of each motor vehicle he buys or
4769	7027		sells, which shall show the name of the seller or buyer as the case
4770	7028		may be, and a complete description of the vehicle purchased or sold,
4771	7029		and such other information a s Service Oklahoma may prescribe.
4772	7030		C. Application for manufacturer’s or dealer’s license must show
4773	7031		that such dealer or manufacturer has not violated any of the
4774	7032		provisions of this section; and such license shall be nonassi gnable;
4775	7033		and any such license may be suspended tempora rily or revoked by
4776	7034		Service Oklahoma for violation or failure to comply with this
4777	7035		section; provided, the holder of such license shall be given ten
4778	7036		(10) days’ notice of hearing to suspend or cancel such li cense. If
4779	7037		any such person subject to any of the licenses required in this
4780	7038		section fails to obtain it when due, a penalty of twenty-five cents
4781	7039		($0.25) per day on each such license shall be charged in the same
4782	7040		manner as is now provided on delinquent motor v ehicle registrations,
4783	7041		and after a period of thirty (30) days such penalty shall be equal
4784	7042
4785		-	SENATE FLOOR VERSION - SB643 SFLR Page 95
4786		-	(Bold face denotes Committee Amendments) 1
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4810	7092
4811	7093		to the license fee. It shall be the duty of every person licensed
4812	7094		to sell new or used motor vehicles to advise each purchaser in
4813	7095		writing about his title requirements and payment of any taxes due .
4814	7096		Each used motor vehicle must display a proper Oklahoma license plate
4815	7097		or a used dealer’s license plate.
4816	7098		D. Every person engaged in the business of transporting and
4817	7099		delivering new or used vehicles by driving, either singly or by
4818	7100		towbar, saddle mount or full mount method, engaging in drive-away
4819	7101		operations as defined in Section 3 of Title 85 of the Oklahoma
4820	7102		Statutes, or any combination thereof, from the manufacturer or
4821	7103		shipper to the dealer or consignee and using the public highw ays of
4822	7104		this state shall file wit h Service Oklahoma a verified application
4823	7105		for in-transit license plates to identify such vehicles. The
4824	7106		application shall provide for a general distinctive number for all
4825	7107		vehicles so transported. Upon payment of a license f ee of Ten
4826	7108		Dollars ($10.00) there shall be assigned and issued to such person
4827	7109		one in-transit plate. Such in-transit plate shall be used by such
4828	7110		person only on vehicles when so transported. Such person may obtain
4829	7111		as many additional in-transit plates as des ired upon payment of a
4830	7112		fee of Ten Dollars ($10.00) for each additional plate. Provided, a
4831	7113		used motor vehicle dealer shall use a used dealer license plate in
4832	7114		lieu of the in-transit license plate for transporting a used motor
4833	7115		vehicle and, in such cases, sha ll be exempt from makin g application
4834	7116		for an in-transit license plate. Provided further, only a person
4835	7117
4836		-	SENATE FLOOR VERSION - SB643 SFLR Page 96
4837		-	(Bold face denotes Committee Amendments) 1
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4861	7167
4862	7168		who possesses a valid motor carrier authority issued by the Federal
4863	7169		Motor Carrier Safety Administration, or a valid for-hire authority
4864	7170		issued by the Corporation Commission may use the in-transit license
4865	7171		plates obtained by them as herein authorized for transporting new or
4866	7172		used manufactured homes from one location to another location within
4867	7173		Oklahoma or from a point in another state to a point in this state .
4868	7174		Nothing contained in t his section shall relieve any person from the
4869	7175		payment of license fees otherwise provided by law. When Service
4870	7176		Oklahoma deems it advisable and in the public interest, it may
4871	7177		require the holder of any in-transit license, or any person making
4872	7178		application therefor, to file a proper surety bond in any amount it
4873	7179		deems proper, not to exceed Ten Th ousand Dollars ($10,000.00).
4874	7180		E. Service Oklahoma shall issue dealer licenses to new and used
4875	7181		manufactured home dealers, new a nd used travel trailer dealers and
4876	7182		new and used commercial trailer dealers.
4877	7183		F. All licenses provided for in this section shall expire on
4878	7184		December 31 of each year.
4879	7185		SECTION 27. AMENDATORY 47 O.S. 2021, Section 1137.3, as
4880	7186		amended by Section 172, Chapter 282, O.S.L. 2022 (47 O.S. Sup p.
4881	7187		2022, Section 1137.3), is amended to read as follows:
4882	7188		Section 1137.3. The purchaser of every new motor vehicle,
4883	7189		travel trailer or commercial trailer shall register or license the
4884	7190		same within thirty (30) days from the date of purchase. It shall be
4885	7191		the responsibility of the selling dealer to place a temporary
4886	7192
4887		-	SENATE FLOOR VERSION - SB643 SFLR Page 97
4888		-	(Bold face denotes Committee Amendments) 1
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4912	7242
4913	7243		license plate, in size similar to the permanent Oklahoma license
4914	7244		plate but of a weatherproof plastic-impregnated substance approved
4915	7245		by the Oklahoma New Motor Vehicle Commission, upon a new motor
4916	7246		vehicle, travel trailer or commercial trailer when a transaction is
4917	7247		completed for the sale of said vehicle or trailer. Except for cab
4918	7248		and chassis trucks, the temporary license plate under this section
4919	7249		shall be placed at the location provided for the permanent motor
4920	7250		vehicle license plate. The purchaser of a new cab and chassis truck
4921	7251		may place the temporary license plate under this section in the rear
4922	7252		window. Said temporary license plate shall show the dealer’s
4923	7253		license number which is issued to him or her each year by Service
4924	7254		Oklahoma, the date the new motor vehicle, travel trailer or
4925	7255		commercial trailer was purchased and the company name of the selling
4926	7256		dealer. The Oklahoma Motor Vehicle Commission is hereby directed to
4927	7257		develop a temporary license plate design to incorporate these
4928	7258		requirements in a manner that will permit law enforcement personnel
4929	7259		to readily identify the dealer license number and date of the
4930	7260		vehicle purchase. The Motor Vehicle Commission is further
4931	7261		authorized to develop additional requirements and parameters
4932	7262		designed to discourage or prevent illegal duplication and use of the
4933	7263		temporary license plate. On or before thirty (30) days from the
4934	7264		date of purchase of a new motor vehicle, travel trailer or
4935	7265		commercial trailer, said temporary license plate shall be removed
4936	7266		and replaced with a permanent, current Oklahoma license plate. Use
4937	7267
4938		-	SENATE FLOOR VERSION - SB643 SFLR Page 98
4939		-	(Bold face denotes Committee Amendments) 1
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4963	7317
4964	7318		of said temporary license plate by a licensed dealer for other than
4965	7319		the purpose of normally doing business shall constitute grounds for
4966	7320		revocation of the dealer’s license.
4967	7321		It shall be unlawful for any licensed dealer of new motor
4968	7322		vehicles, travel trailers or commercial trailers to procure the
4969	7323		registration and licensing of any new motor vehicle, travel trailer
4970	7324		or commercial trailer sold by such licensed dealer or to act as the
4971	7325		agent for such purchaser in the procurement of said registration and
4972	7326		licensing. The license of any licensed dealer of new motor
4973	7327		vehicles, travel trailers or commercial trailers violating the
4974	7328		provisions of this section shall be revoked.
4975	7329		SECTION 28. AMENDATORY 21 O.S . 2021, Section 918, is
4976	7330		amended to read as follows:
4977	7331		Section 918. No person, firm or corporation, whether owner,
4978	7332		proprietor, agent or employee, shall keep open, operate or assist in
4979	7333		keeping open or operating any place or premises or residences
4980	7334		whether open or closed, for the purpose of selling, bartering, or
4981	7335		exchanging, or offering for sale, barter, or exchange, any motor
4982	7336		vehicle or motor vehicles, whether new, used or second hand, on th e
4983	7337		first day of the week, c ommonly called Sunday, except as otherwise
4984	7338		provided in this section; and provided, however, that this act shall
4985	7339		not apply to the opening of an establishment or place of business on
4986	7340		the first day of the week for other purposes, suc h as the sale of
4987	7341		petroleum products, tires, automobile accessories, or for the
4988	7342
4989		-	SENATE FLOOR VERSION - SB643 SFLR Page 99
4990		-	(Bold face denotes Committee Amendments) 1
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5015	7393		purpose of operating and conducting a motor vehicle repair shop, or
5016	7394		for the purpose of supplying such services as towing or wrecking.
5017	7395		Antique, classic, or special interest auto mobiles sold, bartered,
5018	7396		auctioned, or exchanged by any person, firm, or corporation are
5019	7397		exempt from the provisions of this section, as well as off-premise
5020	7398		off-premises sales of new motorized r ecreational vehicles approved
5021	7399		by the Oklahoma New Motor Vehicle Commission pursuant to the
5022	7400		provisions of the Recreational Vehicle Franchise Act.
5023	7401		SECTION 29. REPEALER 47 O.S. 2021, Section 1128, as last
5024	7402		amended by Section 21, Chapter 107 , O.S.L. 2022 (47 O.S. Supp. 2022,
5025	7403		Section 1128), is hereby repealed.
5026	7404		SECTION 30. This act shall become effective November 1, 2023.
5027		-	~~COMMITTEE REPORT BY: COMMITTEE ON BUSINESS AND COMMERCE~~
5028		-	~~February 20,~~ 2023 ~~- DO PASS~~
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