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SENATE FLOOR VERSION
February 20, 2023
SENATE BILL NO. 643 By: Coleman
An Act relating to motor vehicles; amending 47 O.S.
2021, Sections 562, 563, 564, 564.1, 564.2, 565, as
amended by Section 3, Chapter 192, O .S.L. 2022,
565.1, 565.2, 565.3, 566, 566.1, 567, 576, 578.1,
579, 596.1, 596.2, 596.3, 596.5, 596.7, 596. 8,
596.14, 596.15, 596.16, 1116.1, 1128, as last amended
by Section 142, Chapter 282, O.S.L. 20 22, and 1137.3,
as amended by Section 172, Chapter 282, O.S. L. 2022
(47 O.S. Supp. 2022, Sections 565, 1128, and 1137.3),
which relates to the Oklahoma Motor Vehicle
Commission; updating name of Commission; modifying
powers and duties of the Commission; updating
statutory references; amending 21 O.S. 2021, Section
918, which relates to sale, barter, or exchange of
motor vehicles on Sunday prohibited ; updating
reference; repealing 47 O.S. 202 1, Section 1128, as
last amended by Section 21, Chapter 107, O.S .L. 2022
(47 O.S. Supp. 2022, Section 1128), which relates to
manufacturer of new vehic les; and providing an
effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 47 O.S. 2021, Sectio n 562, is
amended to read as follows:
Section 562. The following words, terms a nd phrases, when used
in Sections 561 through 567, 572, 578.1, 579 and 579.1 of this
title, shall have the meanings respective ly ascribed to them in this
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section, except where the context clearly indicates a different
meaning:
1. “Motor vehicle” means any motor-driven vehicle required to
be registered under the Oklahoma Vehicle License and Registration
Act. The term “motor vehicle” does not include:
a. recreational vehicles, a s defined in the Recreational
Vehicle Franchise Act , or
b. all-terrain vehicles, utility vehicles, and
motorcycles used exclusively for off -road use which
are sold by a retail implement dealer ;
2. “New motor vehicle dealer” means any person, firm,
association, corporation or trust not excluded by this paragraph who
sells, offers for sale, advertises to sell, leases or displays new
motor vehicles or powersports vehicles and holds a bona fide
contract or franchise in effect with a manufacturer or distributor
authorized by the manufacturer to make predelivery preparation of
such vehicles sold to purchasers and to perform post-sale work
pursuant to the manufacturer ’s or distributor’s warranty. As used
herein, “authorized predelivery preparation ” means the rendition by
the dealer of services and safety adjustmen ts on each new motor
vehicle in accordance with the procedure and safety standards
required by the manufacturer of the vehicle to be made before its
delivery to the purchaser. “Performance of authorized post-sale
work pursuant to the warranty”, as used herein, means the rendition
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of services which are required by the terms of the warranty that
stands extended to the vehicle at the time of its sale and are to be
made in accordance with the safety standards prescribed by the
manufacturer. The term includes premises or facilities at wh ich a
person engages only in the repair of motor vehicles if repairs are
performed pursuant to the terms of a franchise and mo tor vehicle
manufacturer’s warranty. However, the term shall not include
premises or facilities at wh ich a new motor vehicle deal er or
dealers within the area of responsibility of such dealer or dealers
as defined in the manufacturer ’s franchise agreement of such dealer
or dealers performs motor vehicle repairs pursuant to the terms of a
franchise and motor vehicle manufacturer ’s warranty. For the
purpose of Sections 561 through 567, 572, 578.1, 579 and 579.1 of
this title, the terms “new motor vehicle de aler” and “new motor
vehicle dealership” shall be synonymous. The term “new motor
vehicle dealer” does not include:
a. receivers, trustees, administrators, executors,
guardians or other persons appointed by or acting
under judgment or order of any court,
b. public officers while performing or in operatio n of
their duties, or
c. employees of persons, corpo rations or associations
enumerated in subparagraph a of this paragraph when
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engaged in the specific performance of their duties as
such employees;
3. “Motor vehicle salesperson” means any person who, for gain
or compensation of any kind, either directly o r indirectly,
regularly or occasionally, by any form of agreement or arrangement,
sells or negotiates for the sale of any new motor vehicle for any
new motor vehicle dealer to any one or more third partie s;
4. “Commission” means the Oklahoma New Motor Vehicle
Commission;
5. “Manufacturer” means any person, firm, association,
corporation or trust, resident or nonresident, who manufactures or
assembles new and unused motor vehicles or who engages in the
fabrication or assembly of motorized vehicles of a type re quired to
be registered in the State of Oklahoma;
6. “Distributor” means any person, firm, association,
corporation or trust, resident or nonresident , who, being authorized
by the original manufactur er, in whole or in part sells or
distributes new and unu sed motor vehicles to mo tor vehicle dealers,
or who maintains distributor representatives;
7. “Factory branch” means any branch office maintained by a
person, firm, association, corporation or trust who manufactures or
assembles motor vehicles for the sal e of motor vehicles to
distributors, or for the sale of motor vehicles to motor vehicle
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dealers, or for directing or supervising, in whole or in part, its
representatives;
8. “Distributor branch” means any branch office similarly
maintained by a distribut or for the same purposes a factory branch
is maintained;
9. “Factory representative ” means any officer or agent engaged
as a representative of a manu facturer of motor vehicles or by a
factory branch, for the purpose of making or promoting the sale of
its motor vehicles, or for s upervising or contacting its dealers or
prospective dealers;
10. “Distributor representative ” means any person, firm,
association, corporation or trust and each officer and em ployee
thereof engaged as a representative of a distribu tor or distributor
branch of motor vehicles, for the purpose of making or promoting the
sale of its motor vehicles, or for supervising or contacting i ts
dealers or prospective dealers;
11. “Franchise” means any contract or agreement between a motor
vehicle dealer and a manufactu rer of a new motor vehicle or its
distributor or factory branch by which the dealer is authorized to
engage in the business of selling any specified make or makes of new
motor vehicles;
12. “New or unused motor vehicle” means a vehicle which is in
the possession of the manufacturer or distributor or has been sold
only to the holder of a valid selling agreement, franchise or
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contract, granted by the manufacturer or distributor f or the sale of
that make of new vehicle so long as the m anufacturer’s statement of
origin has not been assigned to anyone other than a licensed
franchised new motor vehicle dealer of the same line -make;
13. “Area of responsibility” means the geographical area, as
designated by the manufacturer, factory branch, factory
representative, distributor, distributor branch or distributor
representative, in which the new motor vehicle dealer is held
responsible for the promotion and development of sales and renderi ng
of service for the make of motor vehicle for which th e motor vehicle
dealer holds a franchise or selling agreement;
14. “Off premises” means at a location other than the address
designated on the new mo tor vehicle dealer’s license;
15. “Sponsoring entity” means any person, firm, association,
corporation or trust which has control , either permanently or
temporarily, over the real property upon which the off -premise sale
or display is conducted;
16. “Product” means new motor vehicles and new motor vehic le
parts;
17. “Service” means motor vehicle warranty re pairs including
both parts and labor;
18. “Lead” means a consumer contact in response to a factory
program designed to generate interest in purchasin g or leasing a new
motor vehicle;
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19. “Sell or sale” means to sell or lease;
20. “Factory” means a manufacturer, distributor, fa ctory
branch, distributor branch, factory representative or distributor
representative, which manufactures or distributes vehi cle products;
21. “Powersports vehicle” means motorcycles, scooters, mopeds,
all-terrain vehicles, and ut ility vehicles. Powersports vehicle
shall mean the same as motor vehicle; and
22. “Powersports vehicle dealer ” means any person, firm, or
corporation who is in the business of selling any new powers ports
vehicles except for retail implement dealers ; and
23. “Retail implement deale r” means a business engaged
primarily in the sale of farm tractors as defined in Section 1 -118
of this title or implements of husbandry as defined in Section 1-125
of this title or a combination thereof . The term powersports
vehicle dealer shall mean the same as new motor vehicle dealer.
SECTION 2. AMENDATORY 47 O.S. 2021, Section 563, is
amended to read as follow s:
Section 563. A. There is hereby created the Oklahoma New Motor
Vehicle Commission, to be composed of nine (9) memb ers. Seven of
the members shall have been engaged in the manufacture, distribution
or sale of new motor vehicle s and two members shall be lay members,
all to be appointed by the Governor of the State of Oklahoma, with
the advice and consent of the State S enate. Such appointments shall
be made within thirty (30) days after the effective date of this
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section. Each of the Commissioners thus appointed shall, at the
time of the appointment, be a resident in good faith of the State of
Oklahoma, shall be of goo d moral character, and each of the industry
related Commissioners shall have been actually e ngaged in the
manufacture, distribution or sale of such new motor vehicles for n ot
less than ten (10) years next preceding suc h appointment. The
members of the Commission shall serve at the pleasure of the
Governor.
B. 1. The Commissioners shall elect a Chairman from amongst
them whose term shall be for one (1) year with the right to succeed
him or herself.
2. There shall be three at large members of the Commissi on.
Six members of the Commission shall be appointed from the following
geographical areas with at least one me mber from each area:
a. four areas of the state shall be the northwest,
northeast, southwest and southeast sections designated
by Interstate 35 dividing the state east and west and
Interstate 40 dividing the state north and south,
excluding Oklahoma County and Tulsa County, and
b. two additional areas shall be Okla homa County and
Tulsa County.
There shall not be more than two members of the Commis sion from any
one area.
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C. The terms of office of the members first appointed to the
Commission shall be as fol lows:
1. The members appointed from the northwest, northeas t and
southwest areas shall serve until June 3 0, 1987;
2. The members appointed fro m the southeast area and Oklahoma
County and Tulsa County shall serve until June 30, 1989; a nd
3. The members appointed at large shall serve until June 30,
1991.
Each member shall serve until a successor is appointed and
qualifies. Thereafter, the term o f office of each member of the
Commission shall be for six (6) years. The term of office of any
member will automatically expire if the member moves out of the
geographical area from which the member was appointed. I n event of
death, resignation, removal , or term automatically expiring, of any
person serving on the Commission, the vacancy shall be filled by
appointment as provided for the unexpired portion of the term. Th e
Commission shall meet at Oklahoma City and c omplete its organization
immediately after the membership thereof has been appointed and has
qualified. The Chairman and each mem ber of the Commissio n shall
take and subscribe to the oath of office required of public
officers.
D. The members of the Commi ssion shall receive reimbursement
for subsistence and traveling expenses necessarily incurred in the
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performance of their duties a s provided by the St ate Travel
Reimbursement Act.
E. The Commission shall appoi nt a qualified person to serve as
Executive Director thereof, which person shall hav e had not less
than ten (10) years of experience in the motor vehicle industry.
The Executive Director shall be appointed for a term of six (6)
years, and shall not be sub ject to dismissal or removal without
cause. The Commission shall fix the salary and prescribe the duties
of the Executive Director. The Executive Director shall devote such
time as necessary to fulfill the duties thereof, and before entering
upon such duties shall take and subscribe to the oath of o ffice.
The Executive Director may emp loy such clerical, technical and other
help and legal services and incur such expenses as ma y be necessary
for the proper discharge of the duties of the Executive Director
under this act. The Commission shall maintain its office and
transact its business in Oklahoma City, and it is authorized to
adopt and use a seal. The Executive Director is h ereby authorized
to hire, retain or otherwise acquire the services of an attorne y to
represent the Commission in any and all s tate and federal courts,
and assist the Commission in any and all business or legal matters
that may come before it. The attorney so representing the
Commission shall discharge the duties under the direction o f the
Executive Director.
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F. The Commission i s hereby vested with the powers necess ary to
enable it to fully and effectively carry out the provisions and
objects of this act, and is hereby author ized and empowered to make
and enforce all reasonable rules and to adopt and prescribe all
forms necessary to accomplish such purpose. All form s used by a new
motor vehicle dealer to facilitate the delivery of a vehicle pending
approval of financing shall be approved by the Commission . Spot
delivery agreement forms shall be required for all new motor vehicle
deliveries subject to dealers finding lending institutions to
purchase the retail installment contracts executed by the purchasin g
and selling parties.
G. All fees, charges and fines collected under t he provisions
of this act shall be deposited by the Ex ecutive Director in the
State Treasury in accordance with the depository laws of this state
in a special fund to be known as the “Oklahoma New Motor Vehicle
Commission Fund”, which is hereby created, an d except as hereinafter
provided the monies in the fun d shall be used by the Commission for
the purpose of carrying out and enforcing the provisions of this
act. Expenditures fro m the fund shall be made upon vouchers
approved by the Commission or its auth orized officers.
At the close of each fiscal year, the Commission shall file with
the Governor and the State Auditor and Inspector a true and correct
report of all fees, fines and charges collected and received by it
during the preceding fiscal year and sh all at the same time pay into
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the General Revenue Fund of the state a sum equal to ten perce nt
(10%) of the fees, fines and charges so collected and received.
All expenses incurre d by the Commission in carrying out the
provisions of this act, including but not limited to per diem,
wages, salaries, rent, posta ge, advertising, supplies, bond
premiums, travel and subsistence for the Commissioners, the
Executive Director, employees, an d legal counsel, and printing and
utilities, shall be a proper charge against such fund, exclusive of
the portion thereof to be pai d into the General Revenue Fund as
above set out. In no event shall liability ever accrue hereunder
against this state in an y sum whatsoever, or against the Oklahoma
New Motor Vehicle Commission Fund, in excess of the ninety percent
(90%) of the fees, fin es and charges deposited therein.
SECTION 3. AMENDATORY 47 O .S. 2021, Section 564, is
amended to read as follows:
Section 564. A. It shall be unlawful for any perso n, firm,
association, corporation, or trust to engage in business a s, or
serve in the capacity of, or act as a motor vehicle dealer,
powersports dealer, or manufacturer or distributor of new motor
vehicles, or powersports vehic les or factory branch, distributor
branch or factory representative or distributor representativ e, as
such, in this state without f irst obtaining a license therefor as
provided for by law. Any person, firm, association, corporation or
trust engaging in more than one of such capacities or having more
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than one place where such business is carried on o r conducted shall
be required to obtain and hold a current license for each thereof.
Provided that, a new motor vehicle dealer ’s license shall authorize
one person to sell in the event such person shall be the owner of a
proprietorship, or the person desi gnated as principal in the
dealer’s franchise or the managing officer or one partner if no
principal person is named in the franchise.
B. Applications for lic enses required to be obtained under
provisions of Section 561 et seq. of this title shall be veri fied by
the oath or affirmation of the applicant and shall be on forms
prescribed by the Oklahoma New Motor Vehicle Commission and
furnished to such applicants , and shall contain s uch information as
the Commission deems necessary to enable it to fully dete rmine the
qualifications and eligib ility of the several applicants to receive
the license or licenses applied for. The Commission shall require
in such application, or otherwise, information relating to the
applicant’s financial standing, the applicant ’s business integrity,
whether the applicant has an established place of business and is
primarily engaged in the pursuit, avocation or business for which a
license, or licenses, are applied for, and whether the applicant is
able to properly conduct the busin ess for which a license, or
licenses, are applied for, and such other pertinent information
consistent with the safeguarding of the public interest and the
public welfare. All suc h applications for license or licenses shall
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be accompanied by the appropria te fee or fees therefor in accordan ce
with the schedule thereof hereinafter set out. In the event any
such application is denied and the license applied for i s not
issued, the entire license fee shall be returned to the applicant.
All licenses issued und er the provisions of Section 561 et seq. of
this title shall expire on June 30, following the date of issue and
shall be nontransferable. All applications for renewal of a license
for a new motor vehicle dealer, manufacturer, distributor or
manufacturer’s or distributor’s representative shall be submitted by
June 1 of each year, and such license or licenses will be issued by
July 1. If applications have not be en made for renewal o f licenses
at the times described in this subsection, it shall be illegal fo r
any person to represent himself o r herself and act as a dealer,
manufacturer, distributor or manufacturer ’s or distributor’s
representative. Motor license a gents will be notifie d not to accept
such dealers’ titles until such time as licenses have been i ssued by
the Commission.
C. The schedule of license fees to be charged and received by
the Commission for the licenses issued hereunder shall be as
follows:
1. For each factory b ranch or distributor branch, Four Hundred
Dollars ($400.00) initial fee with annual renewal fee of Three
Hundred Dollars ($300.00);
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2. For each manufacturer or distributor of new motor vehicles,
Four Hundred Dollars ($400.00) initial fee with annual renew al fee
of Three Hundred Dollars ($300.00);
3. For each factory representati ve or distributor
representative, One Hundred Dollars ($100.00) annually;
4. For each new motor vehicle dealer, except powersports
vehicle dealers, initial fe e of Three Hundred Do llars ($300.00) per
franchise sold at each location licensed, with an annual renewal fee
of One Hundred Dollars ($100.00) per franchise sold at each location
per year; and
5. For each powersports vehicle dealer, initial fee of Three
Hundred Dollars ($300. 00) per manufacturer represented by the dealer
at each location licensed, wi th an annual renewal fee of One Hun dred
Dollars ($100.00) per manufacturer represented by the dealer at each
location licensed per year .
D. The licenses issue d to each new motor v ehicle dealer,
manufacturer, distributor, factory branch, distributor branch or
representative, if a corporatio n, shall specify the location of the
factory, office or branch thereof. In case such location is
changed, the Commission ma y endorse the change of location on the
license without charge unless the change of address trigg ers a
relocation of a new motor veh icle dealer pursuant to the provisions
of Section 578.1 of this title. The license of each dealer shall be
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posted in a conspicuous place in the dealer’s place or places of
business.
Every motor vehicle factory representa tive or distributor
representative if an individual shall physically possess the license
when engaged in business, and shall display same upon request. The
name of the employer of such factory representative or distributor
representative shall be stated o n the license and, in case of a
change of employer, the holder of such license shall immediately
mail same to the Commission for its endorsement of such change
thereon. The Commis sion shall endorse each such change of employer
on licenses for a fee of Ten Dollars ($10.00).
E. The powersports dealer license shall only allow the sale of
the specific types of powersports vehicles authorized by the
manufacturer and agreed to by the po wersports dealer.
SECTION 4. AMENDATORY 47 O.S. 2021, Section 564.1, is
amended to read as follows:
Section 564.1. Licensing of off-premises displays of new motor
vehicles and off-premise sales of new motorized recreational
vehicles.
A. The Oklahoma New Motor Vehicle Commission shall provide for
off-premise displays of new motor vehicles by currently licensed new
motor vehicle dealers . An off-premise event may be held for display
purposes only under the following conditions:
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1. The motor vehicles are for display purposes only and not for
sale at the off-premise display event;
2. No selling activities shall be conducted;
3. The display is in dealer ’s factory-approved area of sales
and service responsibility;
4. The dealer must obtain written approval fr om the
manufacturer or distributor ; and
5. The dealer is required to obtain approval for the display
location from the sponsoring entity.
B. The Oklahoma Motor Vehic le Commission is authorized to
provide a variance to the di stance requirements and the area of
sales and service responsibility requirements specified in this
section, for any off-premise display event if:
1. The the off-premise display is conducted withi n municipal,
county, or state-owned or controlled facilities or within the
grounds of any county, district, or state fair ; and
2. The request for the variance must be in wr iting to the
Commission no less than thirty (30) days prior to the off-premise
display event.
SECTION 5. AMENDATORY 47 O.S. 2021, Section 564.2, i s
amended to read as follows:
Section 564.2. It shall be punishable by an administr ative fine
not to exceed Five Hundred Dollars ($500.00) for any person, firm,
association, corporatio n or trust to engage in busin ess as, or serve
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in the capacity of, a new motor vehicle salesperson in this state
without first obtaining a certificate of re gistration with the
Oklahoma New Motor Vehicle Commission . The cost of registration for
each new salesperson shall be set at Twenty -five Dollars ($25.00) to
be renewed annually. The cost of registration and any
administrative fine is to be borne by the e mploying entity of the
new salesperson. The Commission shall promulgate rules and
procedures necessary for the implementation and cre ation of the
registry and the issu ance of certificates of registration.
SECTION 6. AMENDATORY 47 O.S. 2021, Section 565, as
amended by Section 3, Chapter 1 92, O.S.L. 2022 (47 O.S. Supp. 2022,
Section 565), is amended to read as follows:
Section 565. A. The Oklahoma New Motor Vehicle Commission may
deny an application for a lice nse, or revoke or sus pend a license or
impose a fine not to exceed Ten Thousand Dollars ($10,000.00) per
occurrence against a dealer, manufacturer, or distributor or a fine
not to exceed One Thousand Dollars ($1,000.00) against a dealer per
occurrence that violates any provision of Sections 561 through 567,
572, 578.1, 579, and 579.1 of this title is violated or for any of
the following reasons:
1. On satisfactory proof of unfitness of the applicant in any
application for any license under th e provisions of Section 561 et
seq. of this title;
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2. For any material misstatement made by an applicant in any
application for any license under the provisions of Section 561 et
seq. of this title;
3. For any failure to comply with any provision of Se ction 561
et seq. of this title or an y rule promulgated by the Commission
under authority vested in it by Section 561 et seq. of this title;
4. A change of condition after license is granted resulting in
failure to maintain the qualifications for license ;
5. Being a new motor vehicle dealer who:
a. has required a purchaser of a new motor ve hicle, as a
condition of sale and deliv ery thereof, to also
purchase special features, appliances, accessories or
equipment not desired or requested by the purchaser
and installed by the dealer,
b. uses any false or misleading advertising in connection
with business as a new motor vehicle deal er,
c. has committed any unlawful act which resulted in the
revocation of any similar license in another state,
d. has failed or refused to perform any written agreeme nt
with any retail buyer involving the sale of a motor
vehicle,
e. has been convicted of a felony crime that
substantially relates to the occupation of a motor
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vehicle dealer and poses a reasonable threat to public
safety,
f. has committed a fraudulent act in selling, purchasing
or otherwise dealing in new motor v ehicles or has
misrepresented the terms an d conditions of a sale,
purchase or contract for sale or purchase of a new
motor vehicle or any interest therein including an
option to purchase such vehic le,
g. has failed to meet or maintain the conditions and
requirements necessary to qualify for the is suance of
a license, or
h. completes any sale or transaction of an extended
service contract, extended maintenance plan, or
similar product using contract forms that do not
conspicuously disclose the identity of the service
contract provider;
6. Being a new motor vehicle salesperson who is not employed as
such by a licensed new motor vehicle dealer;
7. Being a new motor vehicle dealer who:
a. does not have an established place of business,
b. does not provide for a suitable repair shop separate
from the display room with ample space to repair or
recondition one or more vehicles at the same time, and
which is equipped with such parts, tools and equipment
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as may be requisite for the servicing of motor
vehicles in such a manner as to make them comply with
the safety laws of this state and to properly fulfill
the dealer’s or manufacturer’s warranty obligation,
c. does not hold a franchise in effect with a
manufacturer or distributor of new or unused motor
vehicles for the sale of the same and is not
authorized by the manufacturer or distributor to
render predelivery preparation of such vehicles sold
to purchasers and to perform any authorized post-sale
work pursuant to the manufacturer’s or distributor’s
warranty,
d. employs a person without obtaining a certific ate of
registration for the person, or utilizes the services
of used motor vehicle lots or dealers or other
unlicensed persons in connection with the sale of new
motor vehicles,
e. does not properly servic e a new motor vehicle before
delivery of same to th e original purchaser thereof, or
f. fails to order and stock a reasonable number of new
motor vehicles necessary to meet customer demand for
each of the new motor vehicles included in the new
motor vehicle dealer’s franchise agreement, unless the
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new motor vehicles are not readily available from the
manufacturer or distributor due to limited production;
8. Being a factory that has:
a. either induced or atte mpted to induce by means of
coercion or intimidation, any new motor vehicle
dealer:
(1) to accept delivery of any motor vehicle or
vehicles, parts or accessories therefor, or any
other commodities including advertising material
which shall not have been or dered by the new
motor vehicle dealer,
(2) to order or accept deli very of any motor vehicle
with special features, appliances, accessories or
equipment not included in the list price of the
motor vehicles as publicly advertised by the
manufacturer thereof, or
(3) to order or accept delivery of any p arts,
accessories, equipment, machinery, tools,
appliances or any commodity whatsoever, or
b. induced under threat or discrimination by the
withholding from delivery to a motor vehicle dealer
certain models of mo tor vehicles, changing or amending
unilaterally the dealer’s allotment of motor vehicles
and/or withholding and delaying delivery of such
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vehicles out of the ordinary course of business, in
order to induce by such coercion any such dealer to
participate or contribute to any local or national
advertising fund controlled d irectly or indirectly by
the factory or for any other purposes such as contest,
“give-aways” or other so-called sales promotional
devices and/or change of quotas in any sales contest;
or has required motor vehicle dealers, as a condi tion
to receiving their vehicle allotment, to order a
certain percentage of the vehicles with optional
equipment not specified by the new motor vehicle
dealer; however, nothing in this section shall
prohibit a factory from supporting an advertising
association which is open to a ll dealers on the same
basis;
9. Being a factory that:
a. has attempted to coerce or has coerced any new motor
vehicle dealer to enter into any agreement or to
cancel any agreement, or fail s to act in good faith
and in a fair, equitable and nondiscriminat ory manner;
or has directly or indi rectly coerced, intimidated,
threatened or restrained any motor vehicle dealer; or
has acted dishonestly, or has failed to act in
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accordance with the reaso nable standards of fair
dealing,
b. has failed to compensate its d ealers for the work and
services they are required to perform in connection
with the dealer’s delivery and preparation obligations
according to the agreements on file with the
Commission which must be found by the Commission to be
reasonable, or fail to ad equately and fairly
compensate its dealers for labor, parts and other
expenses incurred by such dealer to perform under and
comply with manufacturer’s warranty agreements.
Adequate and fair compensation for parts shall be
established by the dealer submitt ing to the
manufacturer or distribu tor one hundred sequential
nonwarranty customer-paid service repair orders which
contain warranty-like parts, or ninety (90)
consecutive days of nonwarrant y customer-paid service
repair orders which contain warranty-like parts,
whichever is less, covering repairs made no more than
one hundred eighty (180) days before the submission
and declaring the average percentage markup. Adequate
and fair compensation for labor shall be established
by the dealer submitting to the man ufacturer or
distributor one hundre d sequential customer-paid
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service repair orders which contain labor charges, or
ninety (90) consecutive days of customer-paid service
repair orders which contain labor charges, whichever
is less. When submitting repair orders to calculate a
labor rate, a dealer need not include repair orders
for routine maintenance. A manufacturer or
distributor may, not later than thirty (30) days after
submission, rebut that declared rate in writing by
reasonably substantiating that t he rate is inaccurate
or unreasonable in light of the practices of all other
franchised motor vehicle dealers in an economically
similar part of the state offering the same line-make
vehicles. The retail rate shall go into effect thirty
(30) days following the approval by the manufacturer,
subject to audit of the submitted repair orders by the
franchisor and a rebuttal of the declared rate as
described above. If the declared rate is rebutte d,
the manufacturer or distributor shall propose an
adjustment in writing of the average percentage m arkup
based on that rebuttal not later than thirty (30) days
after submission. If the dealer does not agree with
the proposed average percentage markup, t he dealer may
file a protest with the Co mmission not later than
thirty (30) days after receipt of tha t proposal by the
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manufacturer or distributor. In the event a protest
is filed, the manufacturer or distributor shall have
the burden of proof to establish the new motor vehicle
dealer’s submitted rate was inaccurate or unreasonable
in light of the practi ces of all other franchised
motor vehicle dealers in an economically similar part
of the state. A manufacturer or distributor may not
retaliate against an y new motor vehicle dealer seeking
to exercise its rights under th is provision. A
manufacturer or distributor may require a dealer to
submit repair orders in accordance with this section
in order to validate a dealer’s retail rate for parts
or labor not more often than once every twelve (12)
months. All claims made by dealers for compensation
for delivery, preparation and warranty work shall be
paid within thirty (30) days after approval and shall
be approved or disapproved within thirty (30) days
after receipt. When any claim is disapproved, the
dealer shall be notifi ed in writing of the groun ds for
disapproval. The dealer’s delivery, preparation and
warranty obligations as filed with the Commission
shall constitute the dealer’s sole responsibility for
product liability as between the dealer and
manufacturer. A factory may reasonably and
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periodically audit a new motor vehicle dealer to
determine the validity of paid claims for dealer
compensation or any charge-backs for warranty parts or
service compensation. Except in cases of suspected
fraud, audits of warranty pay ments shall only be for
the one-year period immediately following the date of
the payment. A manufacturer shall reserve the right
to reasonable, periodic audits to determine the
validity of paid claims for dealer compensation or any
charge-backs for consumer or dealer incentives .
Except in cases of suspected fraud, audits of
incentive payments shall only be for a one-year period
immediately following the date of the payment. A
factory shall not deny a claim or charge a new motor
vehicle dealer back subse quent to the payment of the
claim unless the factory can show that the claim was
false or fraudulent or that the new motor vehicle
dealer failed to reasonably substantiate the claim by
the written reasonable procedures of the fact ory. The
factory shall provide written notice to a dealer of a
proposed charge-back that is the result of an audit
along with the specific audit results and proposed
charge-back amount. A dealer that receives notic e of
a proposed charge-back pursuant to a factory’s audit
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has the right to file a protest with the Co mmission
within thirty (30) days after receipt of the notice of
the charge-back or audit results, whichever is later.
The factory is prohibited from imple menting the
charge-back or debiting the dealer’s account until
either the time frame for filing a pro test has passed
or a final adjudication is rendered by the Commission,
whichever is later, unless the dealer has agreed to
the charge-back or charge-backs,
c. unreasonably fails or refuses to of fer to its same
line-make franchised dealers all models manufa ctured
for that line-make, or unreasonably requires a dealer
to pay any extra fee, purchase unreasonable
advertising displays or other materials, or remode l,
renovate, or recondition the dealer ’s existing
facilities as a prerequisite to receiving a model o r
series of vehicles. The failure to deliver any such
new motor vehicle shall not be considered a violation
of the section if the failure is not arbitrary or is
due to lack of manufacturing cap acity or to a strike
or labor difficulty, a shortage of materi als, a
freight embargo or other cause over which the
manufacturer has no control. However, this
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subparagraph shall not apply to recreational vehicles
or limited production model vehicles,
d. except as necessary to comply with a health or safety
law, or to comply with a technology requirement which
is necessary to sell or service a motor vehicle that
the franchised motor vehicle dealer is authorized or
licensed by the franchisor to sell or servi ce,
requires a new motor veh icle dealer to construct a new
facility or substantially renovate the new motor
vehicle dealer’s existing facility unless the facility
construction or renovation is justified by the
economic conditions existing at the time, as w ell as
the reasonably forese eable projections, in the
automotive industry. However, this subparagraph shall
not apply if the factory provides money, credit,
allowance, reimbursement, or additional vehicle
allocation to a dealer to compensate the dealer fo r
the cost of, or a portion of the cost of, the facility
construction or renovation,
e. requires a new motor vehicle dealer to establish an
exclusive facility, unless supported by reasonable
business, market and econom ic considerations;
provided, that this provision shall not restric t the
terms of any agreement for su ch exclusive facility
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voluntarily entered into and supported by valuable
consideration separate from the new motor vehicle
dealer’s right to sell and servi ce motor vehicles for
the franchisor,
f. requires a new motor vehi cle dealer to enter into a
site-control agreement covering any or all of the new
motor vehicle dealer’s facilities or premises;
provided, that this provision shall not restrict the
terms of any site-control agreement voluntarily
entered into and supported by valuable consideration
separate from the new motor vehicle dealer’s right to
sell and service motor vehicles for the franchisor.
Notwithstanding the foregoing or the terms of any
site-control agreement, a site-control agreement
automatically extinguish es if all of the factory ’s
franchises that operated from the location that are
the subject of the site-control agreement are
terminated by the factory as part of the
discontinuance of a prod uct line, or
g. requires a new motor vehicle dealer to purchase go ods
or services for the constructio n, renovation, or
improvement of the dealer’s facility from a vendor
chosen by the factory if goods or services available
from other sources are of substan tially similar
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quality and design and comply with all applicable
laws; provided, however, that such g oods are not
subject to the factory’s intellectual property or
trademark rights and the new motor vehicle dealer has
received the factory’s approval, which approval may
not be unreasonably withheld. Nothing in this
subparagraph may be construed to allow a new motor
vehicle dealer to impair or eliminate a factory’s
intellectual property, trademark rights or trade dress
usage guidelines. Nothing in this sect ion prohibits
the enforcement of a voluntary agreement between the
factory and the new motor vehicle dealer where
separate and valuable consideration has been offered
and accepted;
10. Being a factory that establishes a system of motor vehicle
allocation or distribution which is unfair, inequitable or
unreasonably discriminatory. Upon the request of any dealer
franchised by it, a factory shall disclose in writing to the dealer
the basis upon which new motor vehicles are allocated, scheduled and
delivered among the dealers of the same line-make for that factory;
11. Being a factory that sells directly or indirectly new motor
vehicles to any retail consumer in the state except through a new
motor vehicle dealer holding a franchise for the line-make that
includes the new motor vehicle. This paragraph does not apply to
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factory sales of new motor vehicles to its employees, family members
of employees, retirees and family members of retirees, not-for-
profit organizations or the federal, state or local governmen ts.
The provisions of this paragraph shall not preclude a factory from
providing information to a co nsumer for the purpose of marketing or
facilitating a sale of a new motor vehicle or from establishing a
program to sell or offer to sell new motor vehicle s through
participating dealers;
12. a. Being a factory which dire ctly or indirectly:
(1) owns any ownership interest or has any financial
interest in a new motor vehicle dealer or any
person who sells products or services to the
public,
(2) operates or controls a new motor vehicle dealer,
or
(3) acts in the capacity of a new motor vehicle
dealer.
b. (1) This paragraph does not prohibit a factory from
owning or controlling a new motor vehicle dealer
while in a bona fide relationship with a dealer
development candidate who has made a substantial
initial investment in the f ranchise and whose
initial investment is subject to potential loss.
The dealer development candidate can reasonably
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expect to acquire full ownership of a new motor
vehicle dealer within a r easonable period of time
not to exceed ten (10) years and on reaso nable
terms and conditions . The ten-year acquisition
period may be expanded for good cause shown.
(2) This paragraph does not prohibit a factory from
owning, operating, controlling or actin g in the
capacity of a motor vehicle dealer for a period
not to exceed twelve (12) months during the
transition from one dealer to another dealer if
the dealership is for sale at a reasonable price
and on reasonable terms and conditions to an
independent qualified buyer. On showing by a
factory of good cause, the Oklaho ma New Motor
Vehicle Commission may ext end the time limit set
forth above; extensions may be granted for
periods not to exceed twelve (12) months.
(3) This paragraph does not prohibit a fact ory from
owning, operating or controlling or acting in the
capacity of a motor vehicle dealer which was i n
operation prior to January 1, 2000.
(4) This paragraph does not prohibit a factory from
owning, directly or indirectly, a minority
interest in an entity that owns, operates or
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controls motor vehicle dealerships of the s ame
line-make franchised by the man ufacturer,
provided that each of the following conditions
are met:
(a) all of the motor vehicle dealerships selling
the motor vehicles of that manufact urer in
this state trade exclusively in the line-
make of that manufact urer,
(b) all of the franchise agre ements of the
manufacturer confer rights on the dealer of
the line-make to develop and operate, within
a defined geographic territory or area, as
many dealership facilities as the dealer and
manufacturer shall agree are a ppropriate,
(c) at the time the manufacturer first acquires
an ownership interest or assumes operation,
the distance between any dealership thus
owned or operated and the nearest
unaffiliated motor vehicle dealership
trading in the same line -make is not less
than seventy (70) miles,
(d) during any period in which the manufacturer
has such an ownership interest, the
manufacturer has no more than three
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franchise agreements with new motor ve hicle
dealers licensed by the Oklahoma New Motor
Vehicle Commission to do business within the
state, and
(e) prior to January 1, 2000, the factory shall
have furnished or made available to
prospective motor vehicle dealers an
offering-circular in accordanc e with the
Trade Regulation Rule on Franchising of the
Federal Trade Commission, and any guidelines
and exemptions issued thereunder, which
disclose the possibility that the factory
may from time to time seek to own or
acquire, directly or indirectly, owne rship
interests in retail dealerships;
13. Being a factory which directly or indirectly makes
available for public disclosure any proprietary inf ormation provided
to the factory by a new motor vehicle dealer, other than in
composite form to dealers in the same line-make or in response to a
subpoena or order of the Commission or a court. Proprietary
information includes, but is not limited to, info rmation:
a. derived from monthly financial statements provided to
the factory, and
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b. regarding any aspect of the profitability of a
particular new motor vehicle dealer;
14. Being a factory which does not provide or direct leads in a
fair, equitable and t imely manner. Nothing in this paragraph shall
be construed to require a factory to disregard the preference o f a
consumer in providing or directing a lead;
15. Being a factory which used the customer list of a new motor
vehicle dealer for the purpose of unfairly competing with dealers;
16. Being a factory which prohibits a new motor vehicle dealer
from relocating after a written request by such new motor vehicle
dealer if:
a. the facility and the proposed new loc ation satisfies
or meets the written reaso nable guidelines of the
factory. Reasonable guidelines do not include site
control unless agreed to as set fo rth in subparagraphs
e and f of paragraph 9 of this subsection,
b. the proposed new location is within the area of
responsibility of the new motor vehicle dealer
pursuant to Section 578.1 of this title, and
c. the factory has sixty (60) days from receipt o f the
new motor vehicle dealer’s relocation request to
approve or deny the request. The failure to approve
or deny the request within the sixty-day time frame
shall constitute approval of the request;
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17. Being a factory which prohibits a new motor vehic le dealer
from adding additional line-makes to its existing facility, if,
after adding the additional line-makes, the facility satisfies the
written reasonable capitalization standards and facility guidelines
of each factory. Reasonable facility guideline s do not include a
requirement to maintain site control unless agreed to b y the dealer
as set forth in subparagraphs e and f of paragraph 9 of thi s
subsection;
18. Being a factory that increases prices of new motor vehicles
which the new motor vehicle dea ler had ordered for retail consumers
and notified the factory prior to the dealer’s receipt of the
written official price increase notification. A sales contract
signed by a retail consumer accompanied with proof of order
submission to the factory shall c onstitute evidence of each such
order, provided that the vehicle is in fac t delivered to the
customer. Price differences applicable to new models or series
motor vehicles at the time of the introduction of new models or
series shall not be considered a pr ice increase for purposes of this
paragraph. Price changes caused by any of the following shall not
be subject to the provisions of this paragrap h:
a. the addition to a motor vehicle of required or
optional equipment pursuant to state or federal law,
b. revaluation of the United States dollar in the case of
foreign-made vehicles or components, or
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c. an increase in transportation charges due to incr eased
rates imposed by common or contract carriers;
19. Being a factory that requires a new motor vehicle dea ler to
participate monetarily in an advertising campaign or contest, or
purchase any promotional materials, showroom or other display
decoration or materials at the expense of the new motor vehicle
dealer without consent of the dealer, which consent shall not be
unreasonably withheld;
20. Being a factory that denies any new mot or vehicle dealer
the right of free association with any other new motor vehicle
dealer for any lawful purpose, unless otherwise permitted by this
chapter; or
21. Being a factory that requires a new motor vehicle dealer to
sell, offer to sell or sell excl usively an extended service
contract, extended maintenance plan or simil ar product, such as gap
products offered, endorsed or sponsored by the factory by the
following means:
a. by an act or statement from the factory that will in
any manner adversely impa ct the dealer,
b. by measuring the dealer’s performance under the
franchise based on the sale of extended service
contracts, extended maintenance plans or similar
products offered, endorsed or sponsored by the
manufacturer or distributor.
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B. Notwithstanding the terms of any franchise agreement, in the
event of a proposed sale or transfer of a dealership, the
manufacturer or distributor shall be permitted to exercise a right
of first refusal to acquire the assets or ownership interest of the
dealer of the new vehicle dealership, if such sale or transfer is
conditioned upon the manufacturer or dealer entering into a dealer
agreement with the proposed new owner or transferee, only if all the
following requirements are met:
1. To exercise its right of first re fusal, the factory must
notify the dealer in writing within sixty (60) d ays of receipt of
the completed proposal for the proposed sale transfer;
2. The exercise of the right of firs t refusal will result in
the dealer and the owner of the dealership receiv ing the same or
greater consideration as they have contracted to receive in
connection with the proposed change of ownership or transfer;
3. The proposed sale or transfer of the ass ets of the
dealership does not involve the transfer or sale to a member or
members of the family of one or mo re dealer owners, or to a
qualified manager or a partnership or corporation controlled by such
persons; and
4. The factory agrees to pay the reaso nable expenses, including
attorney fees which do not exceed the usual, cus tomary and
reasonable fees charged for similar work done for other clien ts
incurred by the proposed new owner and transferee prior to the
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exercise by the factory of its right of firs t refusal in negotiating
and implementing the contract for the proposed sa le or transfer of
the dealership or dealership assets. Notwithstanding the foregoing,
no payment of expenses and attorney fees shall be required if the
proposed new dealer or transf eree has not submitted or caused to be
submitted an accounting of those ex penses within thirty (30) days of
receipt of the written request of the factory for such an
accounting. The accounting may be requested by a factory before
exercising its right of f irst refusal.
C. Nothing in this section shall prohibit, limit, restrict or
impose conditions on:
1. Business activities, including without limi tation the
dealings with motor vehicle manufacturers and the representatives
and affiliates of motor vehicle m anufacturers, of any person that is
primarily engaged in the business of s hort-term, not to exceed
twelve (12) months, rental of motor vehicles an d industrial and
construction equipment and activities incidental to that business,
provided that:
a. any motor vehicle sold by that person is limited to
used motor vehicles that have been previously used
exclusively and regularly by that person in the
conduct of business and used motor vehicles traded in
on motor vehicles sold by that person,
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b. warranty repairs performed by that person on motor
vehicles are limited to those motor vehi cles that it
owns, previously owned or takes in trade, and
c. motor vehicle financing provided by that person to
retail consumers for motor vehicles is limited to used
vehicles sold by that person in the conduct of
business; or
2. The direct or indirect o wnership, affiliation or control of
a person described in paragraph 1 of this subsection.
D. As used in this section:
1. “Substantially relates” means the nature of criminal conduct
for which the person was convicted has a direct bearing on the
fitness or ability to perform one or more of the duties or
responsibilities neces sarily related to the occupation; and
2. “Poses a reasonable threat” means the nature of criminal
conduct for which the person was convicted involved an act or threat
of harm against another and has a bearing on the fitness or ability
to serve the public or work with others in the occupation.
SECTION 7. AMENDATORY 47 O.S. 2021, Section 5 65.1, is
amended to read as follows:
Section 565.1. Notwithstanding the terms of any franchise
agreement, and subject to the following condit ions contained in
paragraphs 1 through 5 of this section, a ny manufacturer or
distributor who prevents or refuses to honor the succession to a
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dealership by any legal heir or devisee under the will of a new
motor vehicle dealer or under the laws of descent and distribution
of this state without good cause or good faith, as defined in this
section, shall be subject to the following procedure:
1. Within one hundred twenty (120) days after the death of the
new motor vehicle dealer, the manufacturer shall rece ive a written
notice from any legal heir or devisee who int ends to establish a
successor dealership. If timely no tice is not so received, then
this paragraph shall not apply, and any succession shall be governed
solely by the terms of the franchise;
2. Within thirty (30) days of receipt of the legal heir’s or
devisee’s timely written notice, the manufacturer may req uest, and
the legal heir or devisee shall, within a reasonable time, provide
any information which is reasonably necessary for the manufacture r
to evaluate the proposed successor dealer and dealership, including,
but not limited to, applications, proposals for facilities and
financing;
3. Within sixty (60) days of receipt of such information, the
manufacturer shall approve or disapprove the pro posed successor
dealership, and in case of disapproval shall communicate in writing
such disapproval and grounds f or disapproval to the legal heir or
devisee;
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4. Failure of the manufacturer to act in a timely manner with
respect to any time period describ ed above shall constitute a waiver
of the manufacturer’s right to disapprove the proposed succession;
5. Within ten (10) days of its receipt of the manufacturer ’s
notice of disapproval, the legal heir or devisee may file a protest
of the manufacturer’s decision with the Oklahoma New Motor Vehicle
Commission and request a hearing. Such hearing shall be heard in a
substantially similar manner as provided by Section 566 of this
title, except that the Commission shall render a final decision
within sixty (60) day s of the filing of the protest. The
manufacturer shall have the burden of proof to show that its
disapproval was for a good cause and in good faith. A denial shall
not be for good cause and in good faith unless the factory
establishes that the legal heir or devisee, or the legal heir or
devisee’s controlling executive management, is not of good moral
character or fails to meet the written, reasonable and uniformly
applied requirements of the manufacturer or distributor relating to
financial qualifications , general business experience, and other
requirements relating to prospective franchisees. However, a legal
heir that is of good moral character in accordance with the
factory’s qualifications and meets the factory ’s financial
qualifications may rely on c ontrolling executive management that is
of good moral character and meets the factory ’s qualifications for
general business experience and other requirements relating to
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prospective franchises. The disapproval by the manufacturer shall
be final if the legal heir or devisee fails to file a timely protest
of such disapproval. In the event that the Commission finds that
the manufacturer’s disapproval was not made for good cause, then it
shall issue a final order requiring the manufacturer to honor the
successor designated in the notice sent by the legal heir or
devisee. Notwithstanding anything to the contrary in t his section,
a new motor vehicle dealer may designate any person as successor by
filing a written instrument pursuant to the franchise with the
manufacturer during the new motor vehicle dealer’s lifetime. In
such a case, the written instrument and franchi se shall govern the
dealership succession.
The suspension, revocation or refusal to issue or renew a
license or the imposition of any other penalt y by the Commission
shall be in addition to any penalty which might be imposed upon any
licensee upon judgment or conviction in a court of competent
jurisdiction for any violation of the provisions of Sections 561
through 567, 572, 578.1, 579 and 579.1 of this title.
SECTION 8. AMENDATORY 47 O.S. 2021, Section 565.2, is
amended to read as follows:
Section 565.2. A. Irrespective of the terms, provisions or
conditions of any franchise, or the terms or provisions of any
waiver, no manufacturer sha ll terminate, cancel or fail to renew any
franchise with a licensed new motor vehicle dealer un less the
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manufacturer has satisfied the notice requirements as provided in
this section and has good cause for cancellation, termination or
nonrenewal. The manu facturer shall not attempt to cancel or fail to
renew the franchise agreement of a new motor ve hicle dealer in this
state unfairly and without just provocation or without due regard to
the equities of the dealer or without good faith as defined herein.
As used herein, “good faith” means the duty of each party to any
franchise agreement to act in a fair and equitable manner toward
each other, with freedom from coercion or intimidation or threats
thereof from each other.
B. Irrespective of the terms, provis ions or conditions of any
franchise, or the terms or provisions of any waiver, good cause
shall exist for the purpose of a termination, cancellation, or
nonrenewal when:
1. The new motor vehicle dealer has failed to comply with a
provision of the franchis e, which provision is both reasonable and
of material significance to the franchise relationshi p, or the new
motor vehicle dealer has failed to comply with reasonable
performance criteria for sales or service established by the
manufacturer, and the dealer has been notified by written notice
from the manufacturer; and
2. The new motor vehicle deale r has received written
notification of failure to comply with the manufacturer ’s reasonable
sales performance standards, capitalization requirements, facility
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commitments, business related equipment acquisitions or other such
remediable failings exclusive of those reasons enumerated in
paragraph 1 of subsection C of this section, and the new motor
vehicle dealer has been afforded a reasonable opportunity of not
less than six (6) months to comply with such a provision or criteria
the manufacturer’s reasonable sales performance standards and
business related equipment acquisitions and not less than three ( 3)
months to comply with the manufacturer ’s reasonable capitaliz ation
requirements.
C. Irrespective of t he terms, provisions or conditions of any
franchise agreement prior to the termination, cancellation or
nonrenewal of any franchise, the manufacturer shall furnish
notification of such termination , cancellation or nonrenewal to the
new motor vehicle dealer and the Oklahoma New Motor Vehicle
Commission as follows:
1. Not less than ninety (90) days prior to the effective date
of such termination, cancellation or nonrenewal unless for a cause
described in paragraph 2 of this subsection;
2. Not less than fift een (15) days prior to the effective date
of such termination, cancellation or nonrenewal with respect to any
of the following:
a. insolvency of the new motor vehicle dealer, or the
filing of any petition by or against the motor vehicle
dealer under any bankruptcy or receivership law,
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b. failure of the new motor vehicle dealer to conduct its
customary sales and service operations during its
customary business hours for seven (7) consecutive
business days, provided that such failure to conduct
business shall not be due to an act of God or
circumstances beyond the direct control of the new
motor vehicle dealer, or
c. conviction of the new motor vehicle dealer of any
felony which is punishable by imprisonm ent or a
violation of the Federal Odometer Act; and
3. Not less than one hundred eighty (180) days prior to the
effective date of such termination or cancellation where the
manufacturer or distributor is discontinuing the sale of the product
line.
The notification required by this subsection shall be by
certified mail, return receipt requested, and shall contai n a
statement of intent to terminate, to cancel or to not renew the
franchise, a statement of the reasons for the termination,
cancellation or nonre newal and the date the termination shall take
effect.
D. Upon the affected new motor vehicle dealer ’s receipt of the
aforementioned notice of termination, cancellation or nonrenewal,
the new motor vehicle dealer shall have the right to file a protest
of such threatened termination, cancellation or nonrenewal w ith the
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Commission within thirty (30) days and reque st a hearing. Such
hearing shall be held within one hundred eighty (180) days of the
date of the dealer’s timely protest and in accordance with the
provisions of the Administrative Procedures Act, Sectio ns 301
through 326 of Title 75 of the Oklahoma Statu tes, to determine if
the threatened cancellatio n, termination or nonrenewal of the
franchise has been for good cause and if the factory has complied
with its obligations pursuant to subsections A, B and C of this
section and the factory shall have the burd en of proof. If the
Commission finds that the threatened cancellation, termination or
nonrenewal of the franchise has not been for good cause or violates
subsection A, B or C of this section, then it sha ll issue a final
order stating that the threatened t ermination is wrongful. A
factory shall have t he right to appeal such order. During the
pendency of the hearing and after the decision, the franchise shall
remain in full force and effect, including the right to transfer the
franchise. If the Commission finds that the threatened
cancellation, termin ation or nonrenewal is for good cause and does
not violate subsection A, B or C of this section, the new motor
vehicle dealer shall have the right to an appe al. During the
pendency of the action, including th e final decision or appeal, the
franchise shall remain in full force and effect, including the right
to transfer the franchise. If the new motor vehicle dealer pr evails
in the threatened termination acti on, the Commission shall awa rd to
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the new motor vehicle dealer the attorney fees and costs incurred to
defend the action.
E. If the factory prevails in an action to terminate, cancel or
not renew any franchise, the new motor vehicle dealer shall be
allowed fair and reasonable compen sation by the manufactur er for:
1. New current and previous model year vehicle inventory which
has been acquired from the manufacturer, and which is unused and has
not been damaged or al tered while in the dealer’s possession;
2. Supplies and parts which have been acquired from the
manufacturer, for the purpose of this secti on, limited to any and
all supplies and parts that are listed on the current parts price
sheet available to the deal er;
3. Equipment and furnishings, provid ed the new motor vehicle
dealer purchased them from the manufacturer or its approved sources;
and
4. Special tools, with such fair and reasonable compensation to
be paid by the manufacturer within ninety (90) days of the effective
date of the termination, cancellation or nonrenewal, provided the
new motor vehicle dealer has clear title to the inventory and other
items and is in a position to convey that title to the manufacturer.
a. For the purposes of paragraph 1 o f this subsection,
fair and reasonable co mpensation shall be no less than
the net acquisition price of the vehicle paid by the
new motor vehicle dealer.
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b. For the purposes of paragraphs 2, 3 and 4 of this
subsection, fair and reasonable compensation shall be
the net acquisition price paid by the new motor
vehicle dealer less a twenty-percent (20%) straight-
line depreciation for each year foll owing the dealer’s
acquisition of the supplies, parts, equipment,
furnishings and/or special tools.
F. If a factory prevails in an action to terminate, canc el or
not renew any franchis e and the new motor vehi cle dealer is leasing
the dealership facilities , the manufacturer shall pay a reasonable
rent to the lessor in accordance with and subject to the provisions
of subsection G of this section. Nothing in th is section shall be
construed to relieve a dealer of its duty to mitigate damages.
G. 1. Such reasonable rental value shall be paid only to the
extent the dealership premises are recognized in the franchise and
only if they are:
a. used solely for perfor mance in accordance with the
franchise. If the faci lity is used for the operation
of more than one franchise, the reasonable rent shall
be paid based upon the portion of the facility
utilized by the franchise being terminated, canceled
or nonrenewed, and
b. not substantially in exce ss of facilities recomme nded
by the manufacturer.
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2. If the facilities are owned by the new motor vehicle dealer,
within ninety (90) days following the effective date of the
termination, cancellation or nonrenewal the manufactu rer will
either:
a. locate a qualified purchaser who will offer to
purchase the dealership faciliti es at a reasonable
price,
b. locate a qualified lessee who will offer to lease the
premises for the remaining lease term at the rent set
forth in the lease, or
c. failing the foregoing, lease the dealership fa cilities
at a reasonable rental value for the p ortion of the
facility that is recognized in the franchise agreement
for one (1) year.
3. If the facilities are lea sed by the new motor vehicle
dealer, within ninety (90) days followin g the effective date of the
termination, cancellation or nonrenewal the manufacturer will
either:
a. locate a tenant or tenants satisfactory to the lessor,
who will sublet or assume the b alance of the lease,
b. arrange with the lessor for the cancellation of the
lease without penalty to the dealer, or
c. failing the foregoing , lease the dealership facilities
at a reasonable rent for the portion of the facility
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that is recognized in the fra nchise agreement for one
(1) year.
4. The manufacturer shall not be obligated to provide
assistance under this section if the new motor veh icle dealer:
a. fails to accept a bona fide offer from a prospective
purchaser, subleases or assignee,
b. refuses to execute a settlement agreement with the
lessor if such agreement wit h the lessor would be
without cost to the dealer, or
c. fails to make written request for assistance under
this section within ninety (90) days after the
effective date of the termination , cancellation or
nonrenewal.
5. The manufacturer shall be entitled to occupy and use any
space for which it pays rent required by this sec tion.
H. In addition to the repurchase requirements set forth in
subsections E and G of this section, in the event the termination or
cancellation is the re sult of a discontinuance of a product line,
the manufacturer or distributor shall compensate the ne w motor
vehicle dealer in an amount equivalent to the fair market value of
the terminated franchise as of the date o f the manufacturer’s or
distributor’s announcement or provide the new motor vehicle dealer
with a replacement franchise on substantially sim ilar terms and
conditions as those offered to other same line -make dealers. The
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dealer may immediately request paym ent under this provision
following the announcement in exchange for c ancelling any further
franchise rights, except payments owed to the dea ler in the ordinary
course of business, or may request payment under this provision upon
the final termination, canc ellation or nonrenewal of the franchise.
In either case, payment under this provision shall be made not later
than ninety (90) days after t he fair market value is determined. If
the factory and dealer cannot agree on the fair market value of the
terminated franchise or agree to a process to det ermine the fair
market value, then the factory and d ealer shall utilize a neutral
third party mediator to resolve the disagreement.
SECTION 9. AMENDATORY 47 O.S. 2021, Section 565.3, is
amended to read as follows:
Section 565.3. A. A franchised vehicle dealer proposing a
sale, transfer, or assignment of a franchise agreem ent or the
business and assets of a dealership or an i nterest in a dealership
to another person, hereinafter transfe ree, shall notify the
manufacturer or distributor whose vehicles the dealer is franchised
to sell of the proposed action of the dealer. The manufacturer or
distributor may make written request to the transferee to submit
completed application forms and re lated information generally
utilized by a manufacturer to evaluate such a proposal and a copy of
all agreements related to the proposed sale , transfer, or
assignment.
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B. The approval by the man ufacturer or distributor of the sale,
transfer, or assignment shall not be unreasonably withheld unless
the transferee is not of good moral character or fails to meet the
written, reasonable, and unifor mly applied requirements of the
manufacturer or distri butor relating to prospective franchisees .
Approval of the transfer shall not be made contingent upon the
transferee meeting unreasonable facility requirement s or
performance standards, but may be made contingent upon the
transferee meeting reasonable wri tten requirements. The burden of
proof shall be upon the manu facturer or distributor to show good
cause existed to withhold approval. The manufacturer or dis tributor
that has made such a determination shall send a letter by certified
mail to the dealer a nd the applicant of its refusal to approve the
proposal, which shall include a statement of the specific grounds
for refusal, within sixty (60) days after the later of:
1. Receipt by the manufacturer o r distributor of the notice of
the proposed sale, tran sfer, or assignment; or
2. Receipt by the manufacturer or dis tributor of the
information requested from the transferee pursuant to subsection A
of this section if the manufacturer or distributor has re quested
such information within fifteen (15) days of r eceipt of written
notice of the proposed sale, transfer, or as signment.
C. Failure of the manufacturer or distributor to send its
notice of refusal pursuant t o subsection B of this section shall
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mean that the application for the proposed sale, transfer, o r
assignment is approved.
D. A dealer receiving notice of ref usal of the sale, transfer,
or assignment shall have the right to file a protest with the
Oklahoma New Motor Vehicle Commission within thirt y (30) days of
receipt of the refusal. A dealer receiving notice that the sale,
transfer or assignment is contingen t upon the transferee meeting
facility and/or performance standards shall have the right to file a
protest with the Commission within thirty (30) days of receipt of
the notice. In the event a protest is filed, the manufacturer or
distributor shall have th e burden of proof to establish the
transferee or the transferee’s controlling executive management is
not of good moral character or fails t o meet the written reasonable
and uniformly applied requirements of the manufactu rer or
distributor relating to pros pective franchisees or that the facility
requirements are not reasonable based on the reasons set forth in
subparagraph d of paragraph 9 of Section 565 of this title.
E. Notwithstanding any other pro vision of this section, the
manufacturer shall submit a signed copy of the Dealer Sales and
Service Agreement resulting from any complete d sale, transfer, or
assignment of a franchise to the Oklahoma New Motor Vehicle
Commission within fifteen (15) days.
SECTION 10. AMENDATORY 47 O.S. 2021, Section 566, is
amended to read as follows:
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Section 566. The Oklahoma New Motor Vehicle Commission may deny
any application for license, or suspend or r evoke a license issued
or impose a fine, only after a hearing of which the applicant, or
licensee affected, shall be given at least ten (10) days ’ written
notice specifying the reason for d enying the applicant a license,
or, in the case of a revocation or suspension or imposition of a
fine, the offenses of which the li censee is charged. Such notices
may be served as provided by law for the service o f notices, or
mailing a copy by registered mail to the last-known residence or
business address of such appli cant or licensee. The hearing on such
charges shall be at such time and place as the Commission may
prescribe and the aforementioned notice shall further specify the
time and place. If su ch applicant or licensee is a motor vehicle
salesperson, factory re presentative or distributor representative,
the Commission shall in like manner also notify the perso n, firm,
association, corporation or trust wit h whom he or she is associated,
or in whose association he or she is about to enter. The Commission
shall have the power to compel the production of all records, papers
and other documents which may be deemed relevant to the proceeding
bearing upon the complaints. The Commission shall have the p ower to
subpoena and bring before it any person, or take testimony of any
such person by deposition, with the same fees and mileage and in the
same manner as prescribed in proceedings before courts of the state
in civil cases. Any party to such hearing sh all have the right to
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the attendance of witnesses in his behalf upo n designating to the
Commission the person or persons sought to be subpoenaed.
SECTION 11. AMENDATORY 47 O.S. 2021, Section 566.1, is
amended to read as follows:
Section 566.1. All rulings, orders, decisions, procedures or
acts of the Oklahoma New Motor Vehicle Commission shall be subject
to the provisions of the Administrative Procedures Act, Sections 301
through 326 of Title 75 of the Oklahoma Statutes.
SECTION 12. AMENDATORY 47 O.S. 2021, Section 567, is
amended to read as follows:
Section 567. The Oklahoma New Motor Vehicle Commission is
hereby authorized, with out cost bond or deposit, to institute
injunctive actions in courts of competent jur isdiction, in the name
of the State of Oklahoma on th e relation of the Commission, t o
enforce the provisions of Sections 561 through 567, 572, 578.1, 579
and 579.1 of this title. Any licensee or other person who violates
or threatens to violate any provis ion of this chapter or rule
promulgated thereunder or order of the Commission may be enjoined
from so doing.
SECTION 13. AMENDATORY 47 O.S. 20 21, Section 576, is
amended to read as follows:
Section 576. There is hereby created a petty cash fund not to
exceed One Hundred Dollars ($100.00) for th e Oklahoma New Motor
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Vehicle Commission, which may be expended f or small authorized
expenses of the Commiss ion.
SECTION 14. AMENDATORY 47 O.S. 2021, Section 578.1, is
amended to read as follows:
Section 578.1. A. Notwithstanding the terms of a franchise and
notwithstanding the terms of a waiver, if a factory intends or
proposes to enter into a franchise to establish an additional new
motor vehicle dealer or to reloca te an existing new motor vehicle
dealer within or into a r elevant market area in which the same line -
make of motor vehicle is currently represented, the factory shall
provide at least sixty (60) days advance written notice to the
Commission and to each new motor vehicle dealer of the same line -
make in the relevant market area, of the intention of the fac tory to
establish an additional new motor vehicle dealer or to relo cate an
existing new motor vehicle dealer within or into the relevant market
area. For purposes of this section, the “relevant market area ”
means the area within a radius of fifteen (15) m iles of the site of
the proposed new motor vehicle dealership. The notice shall be sent
by certified mail to each party and shall include the following
information:
1. The specific location at which the additiona l or relocated
motor vehicle dealer will b e established;
2. The date on or after which the additional or rel ocated motor
vehicle intends to commence business at the proposed location;
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3. The identity of all motor vehicle dealers who are franchised
to sell the same line-make vehicles as the propo sed dealer and who
have licensed locations within the relevant mark et area;
4. The names and addresses of the person intended to be
franchised as the propo sed additional or relocated motor vehicle
dealership, the principal investors in the proposed additi onal or
relocated motor vehicle dealership, and the proposed dealer operator
of the proposed additional or relocated motor vehicle dealership;
and
5. The specific grounds or reasons for the proposed
establishment of an additional motor vehicle dealer or r elocation of
an existing dealer.
B. This section does not apply The notice provisions and
hearing opportunities prescribed in subsection A of this section
shall not apply if any of the following are true:
1. To the relocation of an exis ting new motor vehicle dealer
within the relevant market area of that dealer; provide d, that the
relocation not be at a site within ten (10) miles of a licensed new
motor vehicle dealer for the same line-make of motor vehicle;
2. To a proposed additional new motor vehicle dealer which is
to be established at or within two (2) miles of a l ocation at which
a former licensed new motor vehicle dealer for the same line -make of
new motor vehicle had ceased operating within the previous tw o (2)
years;
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3. To the relocation of an existing new motor vehicle dealer
within two (2) miles of the existi ng site of the new motor vehicle
dealership; or
4. To the relocation of an existing new motor vehicle dealer if
the proposed site of the relocated new motor vehicle deale rship is
farther away from all other new motor vehicle dealers of the same
line-make in that relevant market area.
C. Within thirty (30) days after receipt of the notice, or
within thirty (30) days after the end of an appeal proced ure
provided by the fact ory, whichever is greater, a new motor vehicle
dealer so notified or entitled to noti ce may file a petition with
the Commission protesting the proposed establishment or reloc ation.
The petition shall contain a short statement setti ng forth the
reasons for the objection of the dealer to the proposed
establishment or relocation. Upon filin g of a protest, the
Commission shall promptly notify the factory that a timely protest
has been filed and shall schedule a hearing, which shall be held
within one hundred twenty (120) days of the filing of a timely
protest. The factory shall not establish or relocate the new motor
vehicle dealer until the Commission has held a hearing and has
determined that there is good cause for permitting the pr oposed
establishment or relocation. When more than one protest is filed
against the establishment or relocat ion of the same dealer, the
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Commission shall consolidate the hearings to expedite disposi tion of
the matter.
D. The burden of proof to establish t hat good cause exists fo r
permitting the proposed establishment of a new motor vehicle dealer
or relocating an existing new motor vehicle dealership shall be on
the applicant who seeks to establish a new motor vehicle dealership
or the relocation of an exi sting new motor vehicle dealership.
SECTION 15. AMENDATORY 47 O.S. 2021, Section 579, is
amended to read as follows:
Section 579. In determining whether good cause has been
established for permitting the proposed establishment or relocation
of an additional franchise for the s ame line-make, the Oklahoma New
Motor Vehicle Commission shall take into consideration, and must be
persuaded, that good cause exists for entering into or relocating an
additional franchise for the same line -make by the greater weight of
facts and the existing circumstances, including, but no t limited to:
1. Permanency of the investment of the proposed dealership;
2. Effect on the retail new motor vehi cle business and the
consuming public in the relevant market area;
3. Whether it is injurious to the public welfare for an
additional new motor vehicle dealership to be es tablished;
4. Whether the new motor vehicle dealers of the same line -make
in that relevant market area are providing adequate competition and
convenient consumer care for the motor vehicle sal es and service
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facilities, equipment, supply of motor vehicle p arts, and qualified
service personnel; and
5. Whether the establishment of an addit ional new motor vehicle
dealership would increase competition, and therefore be in the
public interest.
SECTION 16. AMENDATORY 47 O.S. 2021, Sectio n 596.1, is
amended to read as follows:
Section 596.1. As used in this act:
1. “Area of sales responsibility” means a geographical area
agreed to by a dealer and the manufacturer in a dealer agreement in
which the dealer has the exclusive right to displa y or sell the new
recreational vehicles of a manufacturer of a particular line -make to
the public;
2. “Camping trailer” means a vehicular unit that is mo unted on
wheels and constructed with collapsible partial side walls that fold
for towing by another ve hicle and unfold at the campsi te to provide
temporary living quarters for recreation al, camping or travel use;
3. “Commission” means the Oklahoma New Mot or Vehicle
Commission;
4. “Dealer” means any person, firm, corporation, or business
entity licensed or required to be licensed pursuant to the
provisions of this act to sell new recreat ional vehicles;
4. 5. “Dealer agreement” means a written agreement or contract
entered into between a manufacturer and a dealer that establishes
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the legal rights and oblig ations of the parties to that agreement or
contract and pursuant to which the dealer is authorized to sell new
recreational vehicles manufactured or distr ibuted by the
manufacturer;
5. 6. “Established place of business ” means a permanently
enclosed building or structure, easily accessible to the public,
with a paved or graveled lot for c ustomer parking and for the
showing and storage of vehicles. Establis hed place of business
shall not mean tents, temporary stands, lots, or other temporary
quarters. The established place of business shall have a sign
visible from the outside of the busi ness which identifies the
recreational vehicle dealership. The establ ished place of business
shall have an indoor office with public areas sufficient to conduct
sales transactions with customers and have restroom facilities
available for the public. The established place of business shall
include a service and parts area, separated from the public areas,
equipped with tools, equipment, and replacement parts necessary for
reasonably expected warranty and service needs;
6. 7. “Factory campaign” means an effort by a warrantor to
contact recreational vehicle owners or recreati onal vehicle dealers
in order to address an issue concerning a recreational vehicle
problem, defective part or equipment;
7. 8. “Factory representative ” means any officer or agent
engaged as a representative of a manufacturer of recreational
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vehicles or a factory branch for the purpose of making or promoting
the sale of recreational vehicles of the manufa cturer or for
supervising or contacting dealers or prospective dealers of the
manufacturer;
8. 9. “Family member” means any of the following:
a. a spouse of an individual,
b. a child, grandchild, parent, sibling, niece, or nephew
of an individual, or
c. the spouse of a child, grandchild, parent, sibling,
niece, or nephew of an individual ;
9. 10. “Fifth wheel trailer” means a vehicular unit mounted on
wheels that is designed to provide temporary living quarters for
recreational, camping or travel use of su ch size and weight as to
not require a special highway movement permit and is design ed to be
towed by a motorized vehicle that contains a towing mechanism that
is mounted above or forward of the rear axle of the tow vehicle;
10. 11. “Line-make” means a specific series of recreational
vehicle products that meet all of the following:
a. are identified by a common series trade name or
trademark,
b. are targeted to a particular market segment based on
the decor, features, equipment, size, weight, and
price range,
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c. have dimensions and interior floor plans that
distinguish the recreational ve hicles from
recreational vehicles that have substantially the same
decor, features, equipment, weight, and price,
d. belong to a single, distinct classification of
recreational vehicle product type that has a
substantial degree of commonality in the constr uction
of the chassis, frame, and body, and
e. are authorized for sale by the dealer in the dealer
agreement;
11. 12. “Manufacturer” means a person that manufactures or
wholesales recreational vehicles or that distributes or wholesales
recreational vehicles to dealers;
12. 13. “Motor home” means a motorized, vehicular unit designed
to provide temporary living quarters for recreational, camping or
travel use;
13. “OMVC” means the Oklahoma Motor Vehicle Commission;
14. “Person” means an individual, partne rship, corporation,
limited liability compa ny, association, trust, est ate, or other
legal entity;
15. “Proprietary part” means a recreational vehicle part
manufactured by or for a manufacturer and sold exclusively by a
manufacturer;
16. “Recreational vehicle” means a vehicle that:
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a. is primarily designed as a vehicle that also provides
temporary living quarters for noncommercial,
recreational or camping use,
b. is built to the standards of the National Fire
Protection Association for recreational vehicle s,
c. has its own motive power or is mounte d on or towed by
another vehicle,
d. is regulated by the National Highway Traffic Safety
Administration as a vehicle or vehicle e quipment,
e. does not require a special highway use permit for
operation on the high ways, and
f. an individual can easily trans port and set up on a
daily basis.
Recreational vehicles includes motor homes, travel trailers,
fifth wheel travel trailers, foldi ng camping trailers and truck
campers;
17. “Recreational vehicle salesperson ” means any person who,
for gain or compensation o f any kind, either directly or indirectly,
regularly or occasionally, by any form of agreement or arrangement,
sells or negotiates for the sale of any new recreational vehicle for
any new recreational vehicle deal er to any one or more third
parties;
18. “Transient customer” means a person who:
a. owns a recreational vehicle,
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b. is temporarily traveling through the area of sales
responsibility of a dealer,
c. engages the dealer to perform service work on that
recreational vehicle, and
d. requires repairs that relate to the safe opera tions of
that recreational vehicle or, if not undertaken, are
of a nature that would render that recre ational
vehicle unusable;
19. “Travel trailer” means a vehicular unit mounted on wh eels
that is designed to provide temporary living quarters for
recreational, camping or travel use of such size and weight as to
not require a special highway movement perm it when towed by a
motorized vehicle;
20. “Truck camper” means a portable unit that is constructed to
provide temporary living quarters for recreational, camping or
travel use and consists of a roof, floor and sides and is designed
to be loaded onto and u nloaded from the back of a pickup truck; and
21. “Warrantor” means a manufacturer o r any other person that
provides a warranty to the consumer in connect ion with a new
recreational vehicle or parts, accessories, or components of a new
recreational vehicle . The term does not include a person that
provides a service contract, mechanical o r other insurance, or an
extended warranty sold for separate considera tion by a dealer or
other person not controlled by a warrantor.
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SECTION 17. AMENDATORY 47 O.S. 2021, Sectio n 596.2, is
amended to read as follows:
Section 596.2. A. It shall be unlawful for any person, firm,
association, corporation or trust to engage in business as, or serve
in the capacity of, or act as a new recreational vehicle dealer, new
recreational vehicle manufacturer, new recreational vehicle factory
representative or new recreational vehicle salesperson in this state
without first obtaining a license or salesperson registration as
provided for by law.
B. The Oklahoma New Motor Vehicle Commission (OMVC) shall issue
new recreational vehicle dealer, manu facturer and factory
representative licenses and recreati onal vehicle salesperson
registrations upon application . The Commission shall promulgate
rules and forms to implement and enforce the provisions of this
section.
C. The schedule of license fees and salesperson registration
fees to be charged and received by the Oklahoma Motor Vehicle
Commission for the licenses issued hereund er shall be as follows:
1. For each manufacturer or distributor of new recreational
vehicles, an initial fee of Four Hundred Dollars ($400.00) with an
annual renewal fee of Three Hun dred Dollars ($300.00);
2. For each factory representative, an initial f ee of One
Hundred Dollars ($100.00) with an annual renewal fee of One Hundred
Dollars ($100.00);
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3. For each new motor home d ealer, an initial fee of Three
Hundred Dollars ($300.00) per franchise sold at each licensed
location with an annual renewal fee o f One Hundred Dollars ($100.00)
per franchise sold at each licensed location;
4. For each fifth wheel trailer, travel trailer , camping
trailer and truck camper dealer, an initial fee of Three Hundred
Dollars ($300.00) per manufacturer represented at each licensed
location with an annual renewal f ee of One Hundred Dollars ($100.00)
per manufacturer represented at each location; a nd
5. For each salesperson registration, an initial fee of Twenty-
five Dollars ($25.00) with an annual renewal fee of Twenty -five
Dollars ($25.00).
D. A manufacturer shall not sell or display for sale a
recreational vehicle in this state except to a deal er or through a
dealer that is licensed by th e Commission to sell recreational
vehicles in the State of Oklahoma . The manufacturer shall also be
required to have a dealer agreement with the dealer that meets the
requirements of the Recreational Vehicle Fr anchise Act and is signed
by both parties.
E. A dealer shall not sell or display for sale a new
recreational vehicle in this stat e unless the dealer is licensed by
the Commission to sell recreational vehicles in the State of
Oklahoma. The dealer shall also be required to have a dealer
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agreement with the manufa cturer of the recreational vehicle that
meets the requirements of this ac t and is signed by both parties.
SECTION 18. AMENDATORY 47 O.S. 2021, Section 596.3, is
amended to read as follows:
Section 596.3. A. All of the following conditions shall apply
to the area of sales responsibility of a dealer included in a dealer
agreement between a manu facturer and a dealer:
1. The manufacturer shall designate in t he dealer agreement the
area of sales responsibility exclusively assi gned to the dealer;
2. The manufacturer shall not change the area of sales
responsibility of a dealer or establish another dealer for the same
line-make in that area during the term of t he dealer agreement; and
3. The area of sales responsibility may not be reviewed or
changed without the consent of both parties until one (1) year after
the execution of the dealer agreement.
B. A dealer may not conduct sales activity or display for sale
recreational vehicles outside of its designated area of sales
responsibility.
C. A dealer may sell off -premise within the area of sales
responsibility of the dealer under the following circu mstances:
1. At sanctioned recreational vehicle shows where the sales
event is held off-premise and at least sixty-seven percent (67%) of
the recreational vehicle dealers that are located within a sixty -
mile radius of the location of the show participate in the show. A
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sanctioned recreational vehicle show may be held only under the
following conditions:
a. the sponsoring entity of the sales event shall obtain
a permit from the OMVC Oklahoma New Motor Vehicle
Commission at the rate of Two Hundred Dollars
($200.00) per event. The permit shall be for a period
not to exceed ten (10) consecutive days,
b. dealer permits for a sanctioned rec reational vehicle
show described in this paragraph shall be obtained
from the OMVC Commission at a rate of Fifteen Dollars
($15.00) for each motor home per sanctioned
recreational vehicle show,
c. new recreational vehicle dealers whose manufactu rer-
approved area of responsibility includes the event
location shall be eligible to participate in the
sanctioned recreational vehicl e show,
d. new recreational vehicle dealers shall obtain written
approval from the manufacturer or distributor to
participate in the sanctioned recreational vehicle
show, and
e. the sanctioned recreational vehicle show shall be
conducted within municipal, county, or state-owned or
controlled facilities or within the gr ounds of any
county, district, or state fair; and
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2. At nonsanctioned recreational vehicle shows where one or
more dealers may sell recreational vehicles off -premise under the
following conditions:
a. dealer permits for a nonsanctioned recreational
vehicle show described in this paragraph shall be
obtained from the OMVC Commission at a rate of Fifteen
Dollars ($15.00) for each recreational vehicle per
nonsanctioned recreational vehicle show,
b. the location of the nonsanctioned recreational vehicle
show shall be within the manufacturer-approved area of
responsibility,
c. the nonsanctioned recreational vehicle show shall
occur no more than five (5) consecutive days per
event, excluding county, d istrict, or state fairs,
d. each dealer may participate in no mo re than eight
nonsanctioned recreational vehicle shows per calendar
year, and
e. nonsanctioned recreational vehicle shows shall be held
on privately owned property no closer than two and
one-half (2 1/2) miles to any other nonparticipating
recreational vehicle dealer; provided, however a
nonsanctioned recreational vehicle s how may be held on
county or municipally owned property with no mileage
barrier restriction.
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D. A dealer may display a rec reational vehicle within the
designated area of responsibility o f the dealer for promotional
purposes. At an off-premise display event, no sales activities
shall be conducted including, but not limited to, negotiations,
financing and accepting credit appl ications. Sales or finance
personnel shall not be permitted to participate at an off-premise
display event. A permit for the off -premise display event shall not
be required.
E. A dealer agreement shall include a designated principal of
the dealer. A dealer agreement may identify a family member as the
successor of the principal or include a succession plan of the
dealer. A dealer may at any time change a designation or succession
plan made in the dealer agreement by providing written notice to the
manufacturer.
SECTION 19. AMENDATORY 47 O.S. 2021, Sectio n 596.5, is
amended to read as follows:
Section 596.5. A. A manufacturer, dir ectly or through any
officer, agent, or employee, may terminate or not renew a dealer
agreement without good cause. If the manufacturer terminates or
does not renew the dealer agreem ent without good cause, the
manufacturer shall comply with the provisions of subsections D and E
of this section. If the manufacturer terminate s or does not renew
the dealer agreement with good cause, the provisions of subsections
D and E of this section shall not apply.
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B. A manufacturer has the burden of showing good cause for
terminating or not renewing a dealer agreement. All of the
following factors shall be consider ed in determining whether there
is good cause for a proposed termination or nonrenew al of a dealer
agreement by a manufacturer:
1. The extent of the penetra tion of the dealer in the relevant
market area;
2. The extent and qual ity of the service of the de aler under
recreational vehicle warranties;
3. The nature and extent of the investm ent of the dealer in
business of the dealer;
4. The adequacy of the serv ice facilities, equipment, parts,
supplies, and personnel of the dealer ;
5. The effect of the prop osed action on the community;
6. Whether the dealer fails to follow agreed -upon procedures or
standards related to the overall operation of the dealership; and
7. The performance by the dealer under the terms of dealer
agreement.
C. Except as otherwise provided in this section, a manufacturer
shall provide a dealer with written notice of a termination or
nonrenewal of a dealer agreement. All of the followi ng conditions
apply to a notice described in this subsection:
1. Except as provided in paragraph 4 or 5 of this subsection,
the manufacturer shall provide written notice at least nin ety (90)
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days before the effective date of the termination or nonrenewal of
the dealer agreement;
2. The notice shall state all of the reasons for the
termination or nonre newal of the dealer agreement;
3. The notice shall state that if the dealer provide s to the
manufacturer a written notification of the intent of the dealer to
cure all claimed deficiencies within thirty (30) days after the
dealer receives the notice, the dealer shall have one hundred twenty
(120) days after the date of the notice to corr ect the claimed
deficiencies. If all of the deficiencies are corrected w ithin the
one-hundred-twenty-day time period, the notice shall be deeme d void
and the manufacturer shall not terminate or not renew the dealer
agreement because of the claimed deficie ncies stated in the notice.
If the dealer does not provide a notificatio n of intent to cure
deficiencies within the thirty -day time period, the termination or
nonrenewal of the dealer agreement shall take effect sixty (60) days
after the dealer received t he notice from the manufacturer;
4. A manufacturer may reduce the notice period described in
paragraph 1 of this subsection from ninety (90) da ys to thirty (30)
days and shall not be required to allow the dealer an opportunity to
correct the deficiencies if the grounds for termination or
nonrenewal of the dealer agreement by t he manufacturer are any of
the specific categories of good cause descri bed in subsection F of
this section; and
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5. A manufacturer shall not be required to provide notice or an
opportunity to correct deficiencies under this subsection if the
grounds for termination or nonrenewal of the dealer agreement by the
manufacturer includes one of the following:
a. the dealer becomes insolvent,
b. the dealer is bankrupt, or
c. the dealer makes an assignment for the benefit of
creditors.
D. If a manufacturer terminat es or does not renew a dealer
agreement for good cause under this secti on the dealer, at its
option, may require the manufacturer to repurchase any of the
following from the dealer:
1. All new, untitled recreational vehicles that were acquired
from the manufacturer within eighteen (18) months before the
effective date of the notice of termination of th e dealer agreement
that have not been used, except for demonstration purposes and ha ve
not been altered or damaged, may be repurchased at one hundred
percent (100%) of the net invoice cost of the recreational vehicles,
including transportation, less applic able rebates and discounts to
the dealer;
2. All current and undamaged accessories and proprietary parts
sold to the dealer for resale within the eighteen ( 18) months prior
to the effective date of the termination of the dealer agreement
that are accompanied by the original invoice may be repurchased at
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one hundred five percent (105%) of the original net price paid to
the manufacturer to compensate the dealer for handling, packing, and
shipping the accessories and parts; and
3. Any properly functioning di agnostic equipment, special
tools, current signage, and other equipment and machiner y, purchased
by the dealer within the five (5) years prior to the effecti ve date
of the termination of the dealer agreement at the request of th e
manufacturer, if such equi pment or machinery cannot be used in the
normal course of the ongoing business of th e dealer, may be
repurchased at one hundred percent (100%) of the net cos t of the
dealer, plus freight, destination, delivery, and distribution
charges and sales taxes.
E. The dealer shall promptly return or arrange for the return
of all of the items the manufacturer is required to repurchase under
subsection D of this section at the expense of the manufacturer.
F. As used in this section, “good cause” includes, but is not
limited to, any of the following:
1. A conviction of a felony or a plea of guilty or nolo
contendere to a felony by a dealer or an owner of a dealership of a
crime that was committed during the time frame of the current dealer
agreement; provided, there is full disclosure, in writing, of any
felony conviction or plea of guilty or nolo c ontendere to any such
felony crime that occurred within ten (10) years of entering into
such dealer agreement;
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2. Abandonment or permanent clos ing of the business operatio ns
of a dealer for twenty-one (21) consecutive business days without
contacting the manufacturer prior to the closing unless the closing
is due to an act of God, strike, labor difficulty, or other cause
over which the dealer has no control;
3. A material misrepresentation to a manufacturer by a dealer
that severely affects the business r elationship between the dealer
and the manufacturer;
4. Suspension or re vocation of the license of a dealer or
refusal to renew the license of the dealer by the OMVC Oklahoma New
Motor Vehicle Commission ;
5. A material violation of any of the provisions of the
Recreational Vehicle Franchise Act by a dealer; or
6. The dealer becomes insolvent, is bankrupt, or makes an
assignment for the benefit of creditors.
SECTION 20. AMENDATORY 47 O.S. 2021, Section 596.7, is
amended to read as follows:
Section 596.7. The OMVC Oklahoma New Motor Vehicle Commission
may not prohibit a dealer from selling the remaining in stock
inventory of a particular line -make after a dealer agreement has
been terminated or not renewed pursuant to the pro visions of Section
7 or 8 of this act 596.5 or 596.6 of this title . If recreational
vehicles of a line-make are not returned or required to be returned
to the manufacturer, the dealer may continue to sell all line-makes
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that were subject to the dealer agreement and are currently in stock
until those line-makes are no longer in the dealer inventory.
SECTION 21. AMENDATORY 47 O.S. 2021, Section 596.8, is
amended to read as follows:
Section 596.8. A. All of the following conditions shall apply
to a proposed sale of the business assets, transfer of the stock, or
other transaction tha t will result in a change of ownership of a
dealer, except a transa ction described in subsection B of this
section:
1. The dealer shall provide written notice to the manufacturer
at least ninety (90) days prior to the proposed closing of the
transaction;
2. If the dealer is not in breach of the dealer agreement or in
violation of the provisions of this act at the time the dealer
provides the notice described in paragraph 1 of this subsection, the
manufacturer shall not object to the proposed transaction, unless
the prospective transferee meets one or more of the followin g:
a. the prospective transferee was previously a party to a
dealer agreement with the manufa cturer that the
manufacturer terminated,
b. in the preceding ten (10) years, the prospective
transferee was convicted of a felony crime or any
crime of fraud, dece it or moral turpitude,
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c. the prospective transferee does not have an
application for a recre ational vehicle dealer license
pending with the OMVC Oklahoma New Motor Vehicle
Commission or a tentative dealer agreement with a
recreational vehicle manufacturer to cond uct business
as a dealer in this state,
d. the prospective transferee does not have a n active
line of credit sufficient to purchase recreational
vehicles from the manufacturer accor ding to the terms
of the dealer agreement, or
e. in the preceding ten (10) years, the prospective
transferee was bankrupt or insolvent, made a general
assignment for the benefit of creditors, or a
receiver, trustee, or conservator was appointed to
take possession of the business or property of the
prospective transferee;
3. If the manufacturer objects to the proposed transaction, the
manufacturer shall give writ ten notice of an objection, including
the reasons by the manufacturer for objecting, to the deal er within
thirty (30) days after receiving the notice described in paragrap h 1
of this subsection. If th e manufacturer does not give notice of an
objection within the thirty-day time period, the proposed
transaction shall be considered approved by the man ufacturer; and
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4. For purposes of paragraph 3 of this subsection, the
manufacturer has the burden of dem onstrating why the manufacturer
objects to the proposed transaction.
B. All of the following conditions apply concerning the death,
incapacity, or retirement of the designated principal of a dealer:
1. The manufacturer shall provide the dealer an opportu nity to
designate, in writing, a family member as a suc cessor to the dealer
in the event of the death, incapacity, or retirement of the
designated principal;
2. The manufacturer shall not prevent or refuse to honor the
succession to a dealership by a family member of the deceased,
incapacitated, or retired de signated principal of that dealer unless
the manufacturer previously provided written notice to the dealer of
any objections to the succession plan of the dealer within t hirty
(30) days after receiving the succession plan of the dealer or any
modification of the succession plan of the dealer;
3. Except as provided in paragraph 5 of this subsection, unless
the dealer is in breach of the dealer agreement, a manufacturer
shall not object to the succession to a dealership by a family
member of the deceased, in capacitated, or retired designated
principal, unless the successor meets one or more of the fol lowing:
a. in the preceding ten (10) years, the successor was
convicted of a felony crime or any crime of fraud,
deceit or moral turpitude,
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b. in the preceding ten (10) years, the successor was
bankrupt, insolvent, or made an assignment for the
benefit of creditors,
c. the successor was previously a party to a dealer
agreement with the manufacturer that the manufacturer
terminated for a breach of a dealer agreemen t,
d. the successor does not have an active line of credit
sufficient to purchase recreationa l vehicles from the
manufacturer according to the terms of the dealer
agreement, or
e. the successor does not have an application for a
recreational vehicle dealer license pending with the
OMVC Commission or a tentative dealer agreement with a
recreational vehicle manufacturer to conduct business
as a dealer in this state;
4. The manufacturer has the burden of proof r egarding any
objection to the succession to a de alership by a family member of
the deceased, incapacitated, or retired designated principal; and
5. The consent of the manufacturer shall be required for the
succession to a dealership by a family member of the deceased,
incapacitated, or retired designat ed principal if the succession
involves a relocation of the business or an alteration of the terms
and conditions of the dealer agreement.
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SECTION 22. AMENDATORY 47 O.S. 2021, Section 596.14, is
amended to read as follows:
Section 596.14. The Oklahoma New Motor Vehicle Commission may
deny an application for a license, revoke or suspend a license,
impose a fine against a manufacturer or distributor i n an amount not
to exceed Ten Thousand Dollars ( $10,000.00) per occur rence, or
impose a fine against a dealer in an amount not to exceed One
Thousand Dollars ($1,000.00) per occurrence if any provision of the
Recreational Vehicle Franchise Act is violated or for any of the
following reasons:
1. On satisfactory proof of unf itness of the applicant in any
application for any license under the provisio ns of the Recreational
Vehicle Franchise Act;
2. For any material misstatement made by an applicant in any
application for any license under the provisions o f the Recreational
Vehicle Franchise Act;
3. For any failure to comply with any provision of the
Recreational Vehicle Franchise Act or any rule promulgated by the
Commission under authority vested to the OMVC Commission pursuant to
the Recreational Vehicle Franchise Act;
4. A change of condition after a license is granted resulting
in the failure to maintain the qualifications for a license;
5. Being a new recreational vehicle dealer who:
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a. has required a purchaser of a new recreational
vehicle, as a condition of sale and delivery thereof,
to also purchase special features, appliances,
accessories or equipment not desired or requested by
the purchaser and installed by the dealer,
b. uses any false or mislea ding advertising in connection
with business as a new recre ational vehicle dealer or
vehicle salesperson,
c. has committed any unlawful act which resulted in the
revocation of any similar license in another state,
d. has failed or refused to perform any wr itten agreement
with any retail buyer involving the sale of a
recreational vehicle,
e. has been convicted of a crime involving moral
turpitude,
f. has committed a fraudulent act in selling, purchasing
or otherwise dealing in new recreational vehicles or
has misrepresented the terms and conditions of a sale,
purchase or contract for sale or purchase of a new
recreational vehicle or any interest there in including
an option to purchase such vehicle,
g. has failed to meet or maintain the conditions and
requirements necessary to qualify for the issuance of
a license, or
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h. has employed an unregistered new recreational vehicle
salesperson;
6. Being a new recreational vehicle dealer who:
a. does not have an establ ished place of busin ess,
b. does not provide for a suitable repair shop separate
from the display room with ample space to repair or
recondition one or more recreational vehicles at the
same time and equipped with tools, equipment, and
replacement parts as may be necessary fo r the
servicing of recreational vehicles in such a manner as
to make such vehicles compl y with the safety laws of
this state and properly fulfill the warranty
obligation of the dealer or manufacturer,
c. does not hold a dealer agreeme nt in effect with a
manufacturer or distributor of ne w or unused
recreational vehicles for the sale of the sam e and is
not authorized by the manufacturer or distributor to
render predelivery prepara tion of such vehicles sold
to purchasers and perform autho rized postsale work
pursuant to the warranty of the m anufacturer or
distributor,
d. employs unregistered salespersons or employs or
utilizes the services of used recreational vehicle
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lots, dealers or other unregistered persons in
connection with the sale of new recreational veh icles;
7. Being a factory that has:
a. induced or attempted to induce by means of coer cion or
intimidation any new recreational vehicle dealer:
(1) to accept delivery of any recreational vehicle or
vehicles, parts or accessories for recreational
vehicles, or any other commodities inclu ding
advertising material which shall not have been
ordered by the new recreational vehicle dealer,
(2) to order or accept delivery of any recre ational
vehicle with special features, appliances,
accessories or equipment not included in the list
price of the recreational vehicles as publicly
advertised by the ma nufacturer of the
recreational vehicle, or
(3) to order or accept delivery of any parts,
accessories, equipment, machinery, tools,
appliances or any commodity whatsoeve r,
b. induced under threat or di scrimination by the
withholding from delivery to a recre ational vehicle
dealer certain models of recreational vehicles,
changing or amending uni laterally the allotment of
recreational vehicles of a dealer or withholding and
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delaying delivery of such vehicl es out of the ordinary
course of business, in order to i nduce a dealer by
such coercion to participate or contribute to any
local or national ad vertising fund controlled directly
or indirectly by the factory or for any other purposes
including contests, gi veaways, other sales promotional
devices, or change of q uotas in any sales contest, or
c. required recreational vehicle dealers, as a condition
of receiving the vehicle allotment of the dealer, to
order a certain percentage of the recreational
vehicles with optional equipment not specified by the
new recreational vehicle dealer; however, nothing in
this paragraph shall prohibit a factory from
supporting an advertising association which is open to
all dealers on the same basis ; or
8. Has employed unlicensed factory representatives.
The Commission may deny any ap plication for license, or suspend
or revoke a license issued, or impose a fine, only aft er a hearing
for which the applicant or licensee affected shall be given at leas t
ten (10) days’ written notice specifying the reason for denying the
applicant a license, or, in the case of a revocation or suspension
or imposition of a fine, the offense wh ich the licensee is alleged
to have committed. The notice may be served as prov ided by law for
the service of notices or mailing a copy by registered mail to the
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last-known residence or business address of the applicant or
licensee. The hearing on allege d violations shall be at such time
and place as the Commission may prescribe and the aforementioned
notice shall further specify the time and place . If the applicant
or licensee is a motor vehicle salesperson, factory representative
or distributor represe ntative, the Commission shall in like manner
additionally notify the person, fir m, association, corporation or
trust with whom he or she is associated, or in whose asso ciation he
or she is about to enter. The Commission shall have the power to
compel the production of all records, papers and other docu ments
which may be deemed releva nt to the proceeding bearing upo n the
complaints. The Commission shall have the power t o subpoena and
bring before it any person, or take testimony of any person by
deposition, with the same fees and mileage and in the same manner as
prescribed in the pro ceedings before courts of the st ate in civil
cases. Any party to the hearing shall have the right to the
attendance of witnesses on his or her behalf upon designating to the
Commission the person or persons sought to be sub poenaed.
SECTION 23. AMENDATORY 47 O.S. 2021, Section 596.15, is
amended to read as follows:
Section 596.15. A. A dealer, manufacturer, or warrantor
injured by another party who has violated a prov ision of this act
may bring a civil action in court for the recovery of actua l
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damages. The court shall award attorney fees and costs to the
prevailing party in a civil action und er this section.
B. Venue for a civil action filed pursuant to this section
shall be the county in which the business of the dealer is located.
In an action involving more than one dealer, any county in which the
business of any dealer that is party to t he action is located is a
proper venue for that action.
C. Before bringing a civil action under this section, the party
bringing suit for an alleged vio lation of this act shall serve a
written demand for mediation on the offending party. The demand for
mediation shall include a brief statement of the dispute and the
relief sought by the party making the demand. The party making the
demand for mediation shall serve the demand by certified mail to one
of the following addresses:
1. In an action between a dealer and a manufacturer, the
address stated in the dealer agreement betwee n the parties;
2. In an action between a dealer and a warrantor that is not a
manufacturer, the address stated in any agreement between the
parties; or
3. In an action between tw o dealers, the address of the
offending dealer in the records of the OMVC Oklahoma New Motor
Vehicle Commission.
D. Within twenty (20) days after a dema nd for mediation is
served under subsection C of this section, the parties shall
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mutually select an ind ependent mediator who is approved by the OMVC
Commission, and meet with that mediator for the purpose of
attempting to resolve the dispute at a location in this state
selected by the mediator. The mediator may extend the date of the
meeting for good cause shown by either party or if the parties agree
to the extension.
E. The service of a demand for mediation under subsection C of
this section tolls the t ime for the filing of any complaint,
petition, protest, or other action under this act until
representatives of both parties have met with the mediator selected
pursuant to subsection D of this section for the purpose of
attempting to resolve the dispute. If a complaint, petition,
protest, or other action is filed before that meeting, the court
shall enter an order suspending the proceeding or action until the
mediation meeting ha s occurred and may, if all of the parties to the
proceeding or action stipula te in writing that they wish to continue
to mediate under this section, enter an order suspending the
proceeding or action for as long a period as the court considers
appropriate. The court may modify, extend, or revoke a suspension
order issued under thi s subsection if it considers that action
appropriate.
F. Each of the parties to the m ediation under this section is
responsible for its own attorney fees. The parties shall equa lly
divide the cost of the mediator.
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SECTION 24. AMENDATORY 47 O.S. 202 1, Section 596.16, is
amended to read as follows:
Section 596.16. A. In addition to any remedy available under
the provisions of this act or otherwise avail able by law, a
manufacturer, warrantor, or dealer may apply to the court for the
grant, after a hearing and for cause shown, of a temporary o r
permanent injunction or other equi table relief restraining any
person from doing any of the following:
1. Acting as a dealer without a proper license;
2. Violating or continuing to violate the provisions of th is
act. A single violation of the provisio ns of this act shall be a
sufficient basis for the court to grant equitable relief under this
section; or
3. Failing or refusing to comply with any requirement of the
provisions of this act.
B. The court may not require a bond as a condition to the grant
of equitable relief under this sect ion.
C. If, on January 1, 2011, a dealership does not meet the
requirements of the definition of established place of business as
defined in Section 3 of this act 596.1 of this title, the dealership
shall be eligible for licensing by the OMVC Oklahoma New Motor
Vehicle Commission for that location. If the dealership moves the
dealership to a new location, the new dealership shall comply with
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the requirements of the definition o f established place of business
as defined in Section 3 of this act 596.1 of this title.
SECTION 25. AMENDATORY 47 O.S. 2 021, Section 1116.1, is
amended to read as follows:
Section 1116.1. A license plate or decal bearing an expir ation
date of four (4) months from the date of registration shall be
issued for a vehicle registered in the name of a manufacturer or
dealer of new motor vehicles. Such licen se plate or decal shall be
issued if the vehicle so registered is exempt from the vehicle
excise tax pursuant to the provisions of subsection (k) paragraph 12
of Section 2105 of Title 68 of the Oklahoma Statutes. It shall be
unlawful for any person other t han a manufacturer, licensed dealer,
person contemplating purchase of the vehicl e or person holding a
valid salesman’s license issued by the Oklah oma New Motor Vehicle
Commission to operate the vehicle after the expiration of the f our-
month registration pe riod.
SECTION 26. AMENDATORY 47 O.S. 2021, Section 1128 , as
last amended by Section 142, Chapter 282, O.S.L. 2022 (47 O.S. Supp.
2022, Section 1128), is amended to read as follows:
Section 1128. A. Every person manufacturing or having a
contract to sell new vehicles in this state shall file a verified
application for a general distinctive number for all new vehicles
owned or controlled by the manufacturer or dealer; provided, Service
Oklahoma shall issue a license to sell such new motor vehicles only
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for those types of new vehicles for which the applica nt has a sales
contract or franchise; provided, further, that no license shall be
issued to any applicant that has not complied with the provisions of
Sections 561 through 568 of this title and does not hold a current
license issued by the Oklahoma New Motor Vehicle Commission pursuant
thereto. A separate manufacturer’s or dealer’s license shall be
required for each separate county within which such manufacturer or
dealer has an established place of business and upon payment of a
license fee of Ten Dollars ($1 0.00) there shall be assigned and
issued to such manufacturer or dealer a Certificate of Registration
and one license plate which shall be displayed upon each vehicle of
such manufacturer or dealer when same is operated, driven, or
displayed on any street, road, or highway, in the same manner as
hereinbefore provided for vehicles owned by other persons. Such a
manufacturer or dealer in new vehicles may obtain as many additional
license plates as may be desired, upon the payment of the sum of Ten
Dollars ($10.00) for each additional plate; provided that no such
license plate issued to any manufacturer or dealer shall be used or
displayed upon any secondhand or used vehicle, or upon any new
vehicle which is used for a service car, or private use, or for
hire. Any person, with consent of the dealer, may operate a motor
vehicle, with the dealer’s tag affixed, while contemplating
purchase, so long as this intent is limited to a consecutive
seventy-two-hour period, or a weekend . An individual holding a
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valid salesman’s license issued by the Oklahoma Motor Vehicle
Commission shall not be subject to this limitation. If such person
also buys and sells used vehicles, he shall, after obtaining his new
motor vehicle dealer ’s license from the Oklahoma Motor Vehicle
Commission, also obtain a used motor vehicle dealer’s license, from
the Used Motor Vehicle and Parts Commission, the cost of which shall
be as prescribed in Section 1101 et seq. of this title.
B. Each dealer and used motor vehicle dealer shall keep a
record of the purchase and sale of each motor vehicle he buys or
sells, which shall show the name of the seller or buyer as the case
may be, and a complete description of the vehicle purchased or sold,
and such other information a s Service Oklahoma may prescribe.
C. Application for manufacturer’s or dealer’s license must show
that such dealer or manufacturer has not violated any of the
provisions of this section; and such license shall be nonassi gnable;
and any such license may be suspended tempora rily or revoked by
Service Oklahoma for violation or failure to comply with this
section; provided, the holder of such license shall be given ten
(10) days’ notice of hearing to suspend or cancel such li cense. If
any such person subject to any of the licenses required in this
section fails to obtain it when due, a penalty of twenty-five cents
($0.25) per day on each such license shall be charged in the same
manner as is now provided on delinquent motor v ehicle registrations,
and after a period of thirty (30) days such penalty shall be equal
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to the license fee. It shall be the duty of every person licensed
to sell new or used motor vehicles to advise each purchaser in
writing about his title requirements and payment of any taxes due .
Each used motor vehicle must display a proper Oklahoma license plate
or a used dealer’s license plate.
D. Every person engaged in the business of transporting and
delivering new or used vehicles by driving, either singly or by
towbar, saddle mount or full mount method, engaging in drive-away
operations as defined in Section 3 of Title 85 of the Oklahoma
Statutes, or any combination thereof, from the manufacturer or
shipper to the dealer or consignee and using the public highw ays of
this state shall file wit h Service Oklahoma a verified application
for in-transit license plates to identify such vehicles. The
application shall provide for a general distinctive number for all
vehicles so transported. Upon payment of a license f ee of Ten
Dollars ($10.00) there shall be assigned and issued to such person
one in-transit plate. Such in-transit plate shall be used by such
person only on vehicles when so transported. Such person may obtain
as many additional in-transit plates as des ired upon payment of a
fee of Ten Dollars ($10.00) for each additional plate. Provided, a
used motor vehicle dealer shall use a used dealer license plate in
lieu of the in-transit license plate for transporting a used motor
vehicle and, in such cases, sha ll be exempt from makin g application
for an in-transit license plate. Provided further, only a person
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who possesses a valid motor carrier authority issued by the Federal
Motor Carrier Safety Administration, or a valid for-hire authority
issued by the Corporation Commission may use the in-transit license
plates obtained by them as herein authorized for transporting new or
used manufactured homes from one location to another location within
Oklahoma or from a point in another state to a point in this state .
Nothing contained in t his section shall relieve any person from the
payment of license fees otherwise provided by law. When Service
Oklahoma deems it advisable and in the public interest, it may
require the holder of any in-transit license, or any person making
application therefor, to file a proper surety bond in any amount it
deems proper, not to exceed Ten Th ousand Dollars ($10,000.00).
E. Service Oklahoma shall issue dealer licenses to new and used
manufactured home dealers, new a nd used travel trailer dealers and
new and used commercial trailer dealers.
F. All licenses provided for in this section shall expire on
December 31 of each year.
SECTION 27. AMENDATORY 47 O.S. 2021, Section 1137.3, as
amended by Section 172, Chapter 282, O.S.L. 2022 (47 O.S. Sup p.
2022, Section 1137.3), is amended to read as follows:
Section 1137.3. The purchaser of every new motor vehicle,
travel trailer or commercial trailer shall register or license the
same within thirty (30) days from the date of purchase. It shall be
the responsibility of the selling dealer to place a temporary
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license plate, in size similar to the permanent Oklahoma license
plate but of a weatherproof plastic-impregnated substance approved
by the Oklahoma New Motor Vehicle Commission, upon a new motor
vehicle, travel trailer or commercial trailer when a transaction is
completed for the sale of said vehicle or trailer. Except for cab
and chassis trucks, the temporary license plate under this section
shall be placed at the location provided for the permanent motor
vehicle license plate. The purchaser of a new cab and chassis truck
may place the temporary license plate under this section in the rear
window. Said temporary license plate shall show the dealer’s
license number which is issued to him or her each year by Service
Oklahoma, the date the new motor vehicle, travel trailer or
commercial trailer was purchased and the company name of the selling
dealer. The Oklahoma Motor Vehicle Commission is hereby directed to
develop a temporary license plate design to incorporate these
requirements in a manner that will permit law enforcement personnel
to readily identify the dealer license number and date of the
vehicle purchase. The Motor Vehicle Commission is further
authorized to develop additional requirements and parameters
designed to discourage or prevent illegal duplication and use of the
temporary license plate. On or before thirty (30) days from the
date of purchase of a new motor vehicle, travel trailer or
commercial trailer, said temporary license plate shall be removed
and replaced with a permanent, current Oklahoma license plate. Use
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of said temporary license plate by a licensed dealer for other than
the purpose of normally doing business shall constitute grounds for
revocation of the dealer’s license.
It shall be unlawful for any licensed dealer of new motor
vehicles, travel trailers or commercial trailers to procure the
registration and licensing of any new motor vehicle, travel trailer
or commercial trailer sold by such licensed dealer or to act as the
agent for such purchaser in the procurement of said registration and
licensing. The license of any licensed dealer of new motor
vehicles, travel trailers or commercial trailers violating the
provisions of this section shall be revoked.
SECTION 28. AMENDATORY 21 O.S . 2021, Section 918, is
amended to read as follows:
Section 918. No person, firm or corporation, whether owner,
proprietor, agent or employee, shall keep open, operate or assist in
keeping open or operating any place or premises or residences
whether open or closed, for the purpose of selling, bartering, or
exchanging, or offering for sa le, barter, or exchange, any motor
vehicle or motor vehicles, whether new, used or second hand, on th e
first day of the week, c ommonly called Sunday, except as otherwise
provided in this section; and provided, however, that this act shall
not apply to the opening of an establishment or place of business on
the first day of the week for other purposes, suc h as the sale of
petroleum products, tires, automobile accessories, or for the
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purpose of operating and conducting a motor vehicle repair shop, or
for the purpose of supplying such services as towing or wrecking.
Antique, classic, or special interest auto mobiles sold, bartered,
auctioned, or exchanged by any person, firm, or corporation are
exempt from the provisions of this section, as well as off-premise
off-premises sales of new motorized r ecreational vehicles approved
by the Oklahoma New Motor Vehicle Commission pursuant to the
provisions of the Recreational Vehicle Franchise Act.
SECTION 29. REPEALER 47 O.S. 2021, Section 1128, as last
amended by Section 21, Chapter 107 , O.S.L. 2022 (47 O.S. Supp. 2022,
Section 1128), is hereby repealed.
SECTION 30. This act shall become effective November 1, 2023.
COMMITTEE REPORT BY: COMMITTEE ON BUSINESS AND COMMERCE
February 20, 2023 - DO PASS