Oklahoma 2024 Regular Session

Oklahoma House Bill HB1073 Compare Versions

Version 1 (Old)

Version 2 (New)

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3		-	ENGR. H. B. NO. 1073 Page 1 1
	3	+	HB1073 HFLR Page 1
	4	+	BOLD FACE denotes Committee Amendments. 1
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28		-	ENGROSSED HOUSE
29		-	BILL NO. 1073 By: Smith of the House
	29	+	HOUSE OF REPRESENTATIVES - FLOOR VERSION
30	30
31		-	~~and~~
	31	+	STATE OF OKLAHOMA
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33		-	Alvord of the Senate
	33	+	1st Session of the 59th Legislature (2023)
	34	+
	35	+	COMMITTEE SUBSTITUTE
	36	+	FOR
	37	+	HOUSE BILL NO. 1073 By: Smith
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	43	+	COMMITTEE SUBSTITUTE
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40		-	[ motor vehicles - salvage titles - notification of
41		-	penalty - certificates of title - effective date ]
	45	+	An Act relating to motor vehicles; amending 47 O.S.
	46	+	2021, Section 1111, as amended by Section 123,
	47	+	Chapter 282, O.S.L. 2022 (47 O.S. Supp. 2022, Section
	48	+	1111), which relates to salvage titles; requ iring
	49	+	notification of penalty; requiring Service Oklahoma
	50	+	to cancel certain certificates of title; requiring
	51	+	issuance of certain certificate of title; requiring
	52	+	the mailing of certain docu ments; and providing an
	53	+	effective date.
	54	+
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46	59		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLA HOMA:
47	60		SECTION 1. AMENDATORY 47 O.S. 2021, Section 1111, as
48	61		amended by Section 123, Chapter 282, O.S.L. 2022 (47 O.S. Supp.
49	62		2022, Section 1111), is amended to read as follows:
50	63		Section 1111. A. As used in this section:
51	64		1. "Loss" means the cost, in dollars, to repair or replace a
52	65		vehicle which has been damaged by collision or other occurrence.
53	66		The amount paid by an insurer to a holder of the certificate of
54	67		title for repair of a damaged vehicle shall be prima facie evidence
55		-	of the amount of the loss. The amount paid by an insure r to a
56		-	holder of the certificate of title for replacement of a damaged
57		-	vehicle less the resale value of the damaged vehicle shall be prima
58		-	facie evidence of the amount of the loss;
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60		-	ENGR. H. B. NO. 1073 Page 2 1
	69	+	HB1073 HFLR Page 2
	70	+	BOLD FACE denotes Committee Amendments. 1
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	95	+	of the amount of the loss. The amount paid by an insure r to a
	96	+	holder of the certificate of title for replacement of a damaged
	97	+	vehicle less the resale value of the damaged vehicle shall be prima
	98	+	facie evidence of the amount of the loss;
85	99		2. "Fair market value" means the value of a vehicle as listed
86	100		in the current National Auto Dealers Association guidebook or other
87	101		similar guidebook or the actual cash value, whichever is greater;
88	102		3. "Resale value" means the amount, in dollar s, paid to the
89	103		holder of a certificate of title by a willing buyer for a vehicle
90	104		damaged by collision or other occurrence or recovered from theft;
91	105		4. "Total loss" means a loss which is equal to the fair market
92	106		value of the vehicle immediately prior to the damage to or theft of
93	107		the vehicle; and
94	108		5. "Vehicle" means a vehicle, as defined in paragraph 40 41 of
95	109		Section 1102 of this title, manufactured within the last ten (10)
96	110		model years.
97	111		B. Any insurance company that pays a total loss on a claim for
98	112		any vehicle including, but not limited to, a flood-damaged vehicle
99	113		or recovered-theft vehicle, any junk dealer who receives a motor
100	114		vehicle which is to be used for junk or for parts, or any other
101	115		person permanently dismantling or junking a vehicle shall receive
102	116		the certificate of title from the current holder of the certificate
103	117		of title, shall detac h the license plate from the vehicle, and shall
104	118		return the license plate and the certificate of title to Service
105		-	Oklahoma or a licensed operator within thirty (30) days from receipt
106		-	of the certificate, or insuran ce companies may provide alternate
107		-	documentation within thirty (30) days pursuant to subsection P of
108		-	Section 1105 of this title. Service Oklahoma shall cancel the
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110		-	ENGR. H. B. NO. 1073 Page 3 1
	120	+	HB1073 HFLR Page 3
	121	+	BOLD FACE denotes Committee Amendments. 1
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	146	+	Oklahoma or a licensed operator within thirty (30) days from receipt
	147	+	of the certificate, or insuran ce companies may provide alternate
	148	+	documentation within thirty (30) days pursuant to subsection P of
	149	+	Section 1105 of this title. Service Oklahoma shall cancel the
135	150		certificate of title to the vehicle used for junk or parts and shall
136	151		preserve the vehicle identification numbers on the c ertificate of
137	152		title in the computer files for at least five (5) years. No
138	153		certificate of title may be reissued on a junke d vehicle as defined
139	154		in Section 1105 of this title, unless reissued pursuant to paragr aph
140	155		3 of subsection C of this section. Service Oklahoma shall transfer
141	156		ownership of a stolen vehicle, not recovered from theft at the time
142	157		of transfer, by salvage or unrecovered-theft title to the insurer.
143	158		Service Oklahoma shall transfer ownership of a vehicle dam aged by
144	159		flooding or other occurrence to the insurer by an original title,
145	160		salvage title, or junked title, as may be appropriate, based upon an
146	161		estimate of the amount of loss submitted by the insurer. All
147	162		license plates surrendered to Service Oklahoma shall be destroyed.
148	163		C. 1. If an insurance company pays a claim for a loss which is
149	164		less than a total loss but the cost of repairing the vehicle for
150	165		safe operation on the highway exceeds s ixty percent (60%) of the
151	166		fair market value of the v ehicle, or if any vehicle not insured is
152	167		damaged to the extent that the cost of repair for safe operation on
153	168		the highway exceeds sixty percent (60%) of the fair market value of
154	169		the vehicle, any holder of the certificate of title for the vehicle
155		-	shall return the certificate of title to Service Oklahoma or a
156		-	licensed operator within thirty (30) days from receipt of payment
157		-	for the loss.
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159		-	ENGR. H. B. NO. 1073 Page 4 1
	171	+	HB1073 HFLR Page 4
	172	+	BOLD FACE denotes Committee Amendments. 1
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	197	+	shall return the certificate of title to Service Oklahoma or a
	198	+	licensed operator within thirty (30) days from receipt of payment
	199	+	for the loss.
184	200		2. Upon receipt of the certificate, Service Oklahoma or the
185	201		licensed operator shall issue a salvage title for the vehicle. The
186	202		title for any vehicle damaged by flooding shall be stamped with the
187	203		words "Flood Damaged", and for any such vehicle which was recovered
188	204		from a theft, the salvage title or rebuilt title shall be stamped
189	205		with the words "Recovered Theft". A licensed dealer subject to the
190	206		provisions of the Automotive Dismantlers and Parts Recycler Act,
191	207		Section 591.1 et seq. of this title, shall not be required to pay
192	208		registration fees, excise taxes, back taxes, or penalties on a
193	209		vehicle as a prerequisite to obtaining a salvage title.
194	210		3. If the actual documented cost of repairing the vehicle for
195	211		safe operation on the highway does not exceed sixty percent (60%) of
196	212		the fair market value of the vehicle as defined in this section, the
197	213		certificate of title shall be reissued to the holder and the vehicle
198	214		shall not be subject to inspection as required under this section.
199	215		The actual documented cost of repairing the vehicle pursuant to this
200	216		paragraph shall be certified by the insurance company paying the
201	217		loss.
202	218		D. If a motor vehicle with a salvage title is placed in
203	219		operative condition, application shall be made to Service Oklahoma
204	220		or a licensed operator for a rebuilt title. A visual inspection of
205		-	the vehicle and examination of the vehicle identification numbers
206		-	shall be conducted prior to the issuance of a rebuilt title. At the
207		-	time of issuance, the salvage title shall be returned to Service
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209		-	ENGR. H. B. NO. 1073 Page 5 1
	222	+	HB1073 HFLR Page 5
	223	+	BOLD FACE denotes Committee Amendments. 1
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	248	+	the vehicle and examination of the vehicle identification numbers
	249	+	shall be conducted prior to the issuance of a rebuilt title. At the
	250	+	time of issuance, the salvage title shall be returned to Service
234	251		Oklahoma by the owner, or by the licensed operator if the licensed
235	252		operator issues the rebuilt title. A visual inspection shall also
236	253		be made of any out-of-state vehicle to be registered and titled in
237	254		this state if the vehicle is within the class of vehicles for which
238	255		a rebuilt title is required and a similar inspection has not been
239	256		conducted by another state. The certificate of title for the
240	257		rebuilt vehicle shall be stamped w ith the words, "This Rebuilt
241	258		Vehicle Has Been Inspected by the Appropriate State Official."
242	259		E. 1. The visual inspections and examination of vehicle
243	260		identification numbers shall include, but not be limited to:
244	261		a. comparison of the vehicle identification n umbers with
245	262		the number recorded on the ownership records,
246	263		b. inspection of the vehicle identification numbers and
247	264		the VIN plate to detect possible alteration or other
248	265		fraud,
249	266		c. interpretation of the vehicle identification number
250	267		recorded on the ownership d ocuments to assure that it
251	268		accurately describes the motor vehicle in question,
252	269		and
253	270		d. inspection of the odometer of the vehicle to detect
254	271		rollback or alteration.
255		-	2. All vehicle damage shall be repaired before the examination
256		-	is conducted. The following paperwork shall be presented to the
257		-	licensed operator: the salvage title and original receipts for all
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259		-	ENGR. H. B. NO. 1073 Page 6 1
	273	+	HB1073 HFLR Page 6
	274	+	BOLD FACE denotes Committee Amendments. 1
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	299	+	2. All vehicle damage shall be repaired before the examination
	300	+	is conducted. The following paperwork shall be presented to the
	301	+	licensed operator: the salvage title and original receipts for all
284	302		parts placed on the vehicle. Components such as doors, motor, and
285	303		transmission shall indicate the serial number or the vehicle
286	304		identification number (VIN) of the auto the part was purchased from
287	305		or removed from.
288	306		F. The visual inspection and vehicle identification numbers
289	307		examination shall be performed by a licensed operator at the
290	308		location designated by the licensed operator. If the location of
291	309		the inspection is not the place of business of the rebuilder, the
292	310		licensed operator shall issue a permit authorizing the applicant to
293	311		operate the vehicle upon the public streets, roads, and highways in
294	312		route to and from the designated location for the inspection. The
295	313		inspection and examination shall be performed within ten (10)
296	314		working days after the owner of the vehicle requests the inspection
297	315		and examination. Requests shall be made by completing the request
298	316		form prescribed and provided by Service Oklahoma.
299	317		G. Inspection and examination of a rebuilt vehicle shall be
300	318		performed by a person employed by a licensed operator.
301	319		H. The fee for the examination by the licensed operator shall
302	320		be Twenty-five Dollars ($25.00), which shall be paid at the time of
303	321		issuance of the certificate of title for the rebuilt vehicle. The
304	322		licensed operator shall retain Five Dollars ($5.00) and shall remit
305		-	Twenty Dollars ($20.00) to the Tax Commission which shall retain Ten
306		-	Dollars ($10.00) and transmit Ten Dollars ($10.00) to the State
307		-	Treasurer for deposit in the Department of Public Safety Revolving
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309		-	ENGR. H. B. NO. 1073 Page 7 1
	324	+	HB1073 HFLR Page 7
	325	+	BOLD FACE denotes Committee Amendments. 1
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	350	+	Twenty Dollars ($20.00) to the Tax Commission which shall retain Ten
	351	+	Dollars ($10.00) and transmit Ten Dollars ($10.00) to the State
	352	+	Treasurer for deposit in the Department of Public Safety Revolving
334	353		Fund through December 31, 2022. Beginning January 1, 2023, the
335	354		licensed operator shall retain Five Dollars ($5.00) and shall remit
336	355		Twenty Dollars ($20.00) to the Tax Commission which shall retain Te n
337	356		Dollars ($10.00) and transmit Ten Dollars ($10.00) to the State
338	357		Treasurer for deposit in the Service Oklahoma Revolving Fund. The
339	358		licensed operator and its employees and agents may not be sued for
340	359		and shall not be liable for any dama ges allegedly arising out of the
341	360		inspection of a vehicle or any acts or omissions in the performance
342	361		of the inspection. The licensed operator may be held liable for any
343	362		damages to the vehicle caused by the negligent acts or omissions i n
344	363		the performance of the inspection. Any person may be liable for any
345	364		damages to a vehicle caused by the intentional acts or omissions in
346	365		the performance of the inspection.
347	366		I. The rebuilt title and any subsequent transfers of such title
348	367		shall also reflect that the vehicle was a salvage vehicle, flood-
349	368		damaged vehicle or recovered-theft vehicle, if applicable, and also
350	369		shall include the salvage date.
351	370		J. Any title for a motor vehicle issued pursuant to the laws of
352	371		any other state which reflects that such ve hicle is a salvage
353	372		vehicle, a rebuilt vehicle or a junked vehicle or has any other
354	373		brand or classification notation by that state shall be retained on
355		-	the new title issued by Service Oklahoma unless the actual
356		-	documented cost of repairin g the vehicle for safe operation on the
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358		-	ENGR. H. B. NO. 1073 Page 8 1
	375	+	HB1073 HFLR Page 8
	376	+	BOLD FACE denotes Committee Amendments. 1
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	401	+	the new title issued by Service Oklahoma unless the actual
	402	+	documented cost of repairin g the vehicle for safe operation on the
383	403		highway does not exceed sixty percent (60%) of the fair market value
384	404		of the vehicle as provided by this section.
385	405		K. When the insurance company pays a loss on a vehicle which is
386	406		registered at the time of mishap, acci dent, burning, or flooding,
387	407		the appropriate certificate of title shall be issued without the
388	408		payment of additional registratio n fees or excise taxes, upon the
389	409		submission of a police report or insurance adjuster's report and a
390	410		declaration by the insurer tha t the vehicle is held for sale to a
391	411		dealer. If the owner of the vehicle or other insured retains
392	412		ownership of the damaged veh icle, Service Oklahoma shall notify the
393	413		owner or insured of the requirements of this section.
394	414		L. Any insurance company that pays a claim for a loss where the
395	415		cost of repairing the vehicle for safe operation on the highway
396	416		exceeds sixty percent (60%) of the market value of the vehicle or
397	417		pays a claim for a flood-damaged vehicle as defined in Section 1105
398	418		of this title shall notify, in writing, the holder of the
399	419		certificate of title of the requirements of this section and shall
400	420		notify Service Oklahoma of the payment of such claim. The notice
401	421		shall include the estimated total damage percentage dete rmination of
402	422		the actual cash value made by the insurance company to repair the
403	423		vehicle for safe operation on the highway. The insurance company
404	424		shall also send a copy of the notification to the holder of the
405		-	title. Service Oklahoma shall provide notice to the owner of the
406		-	vehicle, in writing, requiring the owner to surrender the title
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408		-	ENGR. H. B. NO. 1073 Page 9 1
	426	+	HB1073 HFLR Page 9
	427	+	BOLD FACE denotes Committee Amendments. 1
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	452	+	title. Service Oklahoma shall provide notice to the owner of the
	453	+	vehicle, in writing, requiring the owner to surrender the title
433	454		along with the fee to Service Oklahoma or one of its licensed
434	455		operators within thirty (30) days from the receipt of notice for the
435	456		issuance of the appropriate title based on the amount of loss and
436	457		shall advise the owner of the penalty for failing to do so. If the
437	458		owner fails to surrender the certificate of title within thirty (30)
438	459		days, Service Oklahoma shall cancel the certificate of title and
439	460		shall issue the appropriate certificate of title for the loss
440	461		incurred and mail it to the owner or lienholder of the certificate
441	462		of title along with a statement of the fee s due for the transfer.
442	463		Service Oklahoma shall reissue the appropriate title with the words
443	464		"Flood Damaged" on the face of the title in the case of a flood-
444	465		damaged vehicle; provide d, no insurance company shall pay a claim
445	466		for less than the amount to which the holder of the certificate of
446	467		title is rightfully entitled in order to avoid compliance with this
447	468		section.
448	469		M. Except as provided for in subsection N of this section, any
449	470		person, firm, corporation, or other legal entity convicted of
450	471		violating any provision of this section shall be guilty of a
451	472		misdemeanor and shall be punished by a fine of not less than Three
452	473		Hundred Dollars ($300.00) or by incarceration in the county jail for
453	474		not more than six (6) months, or by both the fine and incarceration.
454		-	N. Any owner of a titled vehicle who has knowledge that the
455		-	title is not the proper type for the vehicle and, with intent to
456		-	misrepresent the vehicle, fails to make the appropriate title
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	477	+	BOLD FACE denotes Committee Amendments. 1
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	502	+	N. Any owner of a titled vehicle who has knowledge that the
	503	+	title is not the proper type for the vehicle and, with intent to
	504	+	misrepresent the vehicle, fails to make the appropriate title
483	505		changes, shall be guilty of a misdemeanor. Any person who has
484	506		knowledge that the title is not the proper type for the vehicle, and
485	507		with intent to misrepresent the vehicle, buys or receives any
486	508		vehicle for which the appropriate title changes have not been made
487	509		as required by this act shall be guilty of a misdemeanor. Any
488	510		person found guilty in accordance with the provisions of this
489	511		subsection shall be punished by a fine of not more than One Thousand
490	512		Dollars ($1,000.00) for the first offense or Five Thousan d Dollars
491	513		($5,000.00) for the second or subsequent offense, or by imprisonment
492	514		in the county jail for a term not exceeding six (6) months, or by
493	515		both such fine and imprisonment.
494	516		O. Any owner of a salvage or junked vehicle shall submit the
495	517		certificate of title to Service Oklahoma or the licensed operator
496	518		for issuance of an appropriate title. Any holder of a certificate
497	519		of title issued by this state, to a vehicle which no longer exists,
498	520		shall surrender the certificate of title to Service Oklahoma for
499	521		cancellation. The vehicle identification number on the canceled
500	522		certificate of title shall be preserved in the computer of Service
501	523		Oklahoma for at least five (5) years.
502	524		Nothing in this section shall be construed to prevent the
503	525		transfer of ownership of a vehicle by assignment of the title to a
504		-	used car dealer, wholesa le used car dealer, or a licensed automotive
505		-	dismantler or parts recycler.
506		-	SECTION 2. This act shall become effective November 1, 2023.
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	527	+	HB1073 HFLR Page 11
	528	+	BOLD FACE denotes Committee Amendments. 1
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528	548		21
529	549		22
530	550		23
531	551		24
532	552
533		-	Passed the House of Representatives the 9th day of March, 2023.
	553	+	used car dealer, wholesa le used car dealer, or a licensed automotive
	554	+	dismantler or parts recycler.
	555	+	SECTION 2. This act shall become effective November 1, 2023.
534	556
535		-
536		-
537		-
538		-	Presiding Officer of the House
539		-	of Representatives
540		-
541		-
542		-
543		-	Passed the Senate the ___ day of __________, 2023.
544		-
545		-
546		-
547		-
548		-	Presiding Officer of the Senate
549		-
550		-
	557	+	COMMITTEE REPORT BY: COMMITTEE ON GENERAL GOVERNMENT, dated
	558	+	03/01/2023 - DO PASS, As Amended.