ENGR. H. B. NO. 1073 Page 1 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
ENGROSSED HOUSE
BILL NO. 1073 By: Smith of the House
and
Alvord of the Senate
[ motor vehicles - salvage titles - notification of
penalty - certificates of title - effective date ]
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLA HOMA:
SECTION 1. AMENDATORY 47 O.S. 2021, Section 1111, as
amended by Section 123, Chapter 282, O.S.L. 2022 (47 O.S. Supp.
2022, Section 1111), is amended to read as follows:
Section 1111. A. As used in this section:
1. "Loss" means the cost, in dollars, to repair or replace a
vehicle which has been damaged by collision or other occurrence.
The amount paid by an insurer to a holder of the certificate of
title for repair of a damaged vehicle shall be prima facie evidence
of the amount of the loss. The amount paid by an insure r to a
holder of the certificate of title for replacement of a damaged
vehicle less the resale value of the damaged vehicle shall be prima
facie evidence of the amount of the loss;
ENGR. H. B. NO. 1073 Page 2 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
2. "Fair market value" means the value of a vehicle as listed
in the current National Auto Dealers Association guidebook or other
similar guidebook or the actual cash value, whichever is greater;
3. "Resale value" means the amount, in dollar s, paid to the
holder of a certificate of title by a willing buyer for a vehicle
damaged by collision or other occurrence or recovered from theft;
4. "Total loss" means a loss which is equal to the fair market
value of the vehicle immediately prior to the damage to or theft of
the vehicle; and
5. "Vehicle" means a vehicle, as defined in paragraph 40 41 of
Section 1102 of this title, manufactured within the last ten (10)
model years.
B. Any insurance company that pays a total loss on a claim for
any vehicle including, but not limited to, a flood-damaged vehicle
or recovered-theft vehicle, any junk dealer who receives a motor
vehicle which is to be used for junk or for parts, or any other
person permanently dismantling or junking a vehicle shall receive
the certificate of title from the current holder of the certificate
of title, shall detac h the license plate from the vehicle, and shall
return the license plate and the certificate of title to Service
Oklahoma or a licensed operator within thirty (30) days from receipt
of the certificate, or insuran ce companies may provide alternate
documentation within thirty (30) days pursuant to subsection P of
Section 1105 of this title. Service Oklahoma shall cancel the
ENGR. H. B. NO. 1073 Page 3 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
certificate of title to the vehicle used for junk or parts and shall
preserve the vehicle identification numbers on the c ertificate of
title in the computer files for at least five (5) years. No
certificate of title may be reissued on a junke d vehicle as defined
in Section 1105 of this title, unless reissued pursuant to paragr aph
3 of subsection C of this section. Service Oklahoma shall transfer
ownership of a stolen vehicle, not recovered from theft at the time
of transfer, by salvage or unrecovered-theft title to the insurer.
Service Oklahoma shall transfer ownership of a vehicle dam aged by
flooding or other occurrence to the insurer by an original title,
salvage title, or junked title, as may be appropriate, based upon an
estimate of the amount of loss submitted by the insurer. All
license plates surrendered to Service Oklahoma shall be destroyed.
C. 1. If an insurance company pays a claim for a loss which is
less than a total loss but the cost of repairing the vehicle for
safe operation on the highway exceeds s ixty percent (60%) of the
fair market value of the v ehicle, or if any vehicle not insured is
damaged to the extent that the cost of repair for safe operation on
the highway exceeds sixty percent (60%) of the fair market value of
the vehicle, any holder of the certificate of title for the vehicle
shall return the certificate of title to Service Oklahoma or a
licensed operator within thirty (30) days from receipt of payment
for the loss.
ENGR. H. B. NO. 1073 Page 4 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
2. Upon receipt of the certificate, Service Oklahoma or the
licensed operator shall issue a salvage title for the vehicle. The
title for any vehicle damaged by flooding shall be stamped with the
words "Flood Damaged", and for any such vehicle which was recovered
from a theft, the salvage title or rebuilt title shall be stamped
with the words "Recovered Theft". A licensed dealer subject to the
provisions of the Automotive Dismantlers and Parts Recycler Act,
Section 591.1 et seq. of this title, shall not be required to pay
registration fees, excise taxes, back taxes, or penalties on a
vehicle as a prerequisite to obtaining a salvage title.
3. If the actual documented cost of repairing the vehicle for
safe operation on the highway does not exceed sixty percent (60%) of
the fair market value of the vehicle as defined in this section, the
certificate of title shall be reissued to the holder and the vehicle
shall not be subject to inspection as required under this section.
The actual documented cost of repairing the vehicle pursuant to this
paragraph shall be certified by the insurance company paying the
loss.
D. If a motor vehicle with a salvage title is placed in
operative condition, application shall be made to Service Oklahoma
or a licensed operator for a rebuilt title. A visual inspection of
the vehicle and examination of the vehicle identification numbers
shall be conducted prior to the issuance of a rebuilt title. At the
time of issuance, the salvage title shall be returned to Service
ENGR. H. B. NO. 1073 Page 5 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Oklahoma by the owner, or by the licensed operator if the licensed
operator issues the rebuilt title. A visual inspection shall also
be made of any out-of-state vehicle to be registered and titled in
this state if the vehicle is within the class of vehicles for which
a rebuilt title is required and a similar inspection has not been
conducted by another state. The certificate of title for the
rebuilt vehicle shall be stamped w ith the words, "This Rebuilt
Vehicle Has Been Inspected by the Appropriate State Official."
E. 1. The visual inspections and examination of vehicle
identification numbers shall include, but not be limited to:
a. comparison of the vehicle identification n umbers with
the number recorded on the ownership records,
b. inspection of the vehicle identification numbers and
the VIN plate to detect possible alteration or other
fraud,
c. interpretation of the vehicle identification number
recorded on the ownership d ocuments to assure that it
accurately describes the motor vehicle in question,
and
d. inspection of the odometer of the vehicle to detect
rollback or alteration.
2. All vehicle damage shall be repaired before the examination
is conducted. The following paperwork shall be presented to the
licensed operator: the salvage title and original receipts for all
ENGR. H. B. NO. 1073 Page 6 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
parts placed on the vehicle. Components such as doors, motor, and
transmission shall indicate the serial number or the vehicle
identification number (VIN) of the auto the part was purchased from
or removed from.
F. The visual inspection and vehicle identification numbers
examination shall be performed by a licensed operator at the
location designated by the licensed operator. If the location of
the inspection is not the place of business of the rebuilder, the
licensed operator shall issue a permit authorizing the applicant to
operate the vehicle upon the public streets, roads, and highways in
route to and from the designated location for the inspection. The
inspection and examination shall be performed within ten (10)
working days after the owner of the vehicle requests the inspection
and examination. Requests shall be made by completing the request
form prescribed and provided by Service Oklahoma.
G. Inspection and examination of a rebuilt vehicle shall be
performed by a person employed by a licensed operator.
H. The fee for the examination by the licensed operator shall
be Twenty-five Dollars ($25.00), which shall be paid at the time of
issuance of the certificate of title for the rebuilt vehicle. The
licensed operator shall retain Five Dollars ($5.00) and shall remit
Twenty Dollars ($20.00) to the Tax Commission which shall retain Ten
Dollars ($10.00) and transmit Ten Dollars ($10.00) to the State
Treasurer for deposit in the Department of Public Safety Revolving
ENGR. H. B. NO. 1073 Page 7 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Fund through December 31, 2022. Beginning January 1, 2023, the
licensed operator shall retain Five Dollars ($5.00) and shall remit
Twenty Dollars ($20.00) to the Tax Commission which shall retain Ten
Dollars ($10.00) and transmit Ten Dollars ($10.00) to the State
Treasurer for deposit in the Service Oklahoma Revolving Fund. The
licensed operator and its employees and agents may not be sued for
and shall not be liable for any dama ges allegedly arising out of the
inspection of a vehicle or any acts or omissions in the performance
of the inspection. The licensed operator may be held liable for any
damages to the vehicle caused by the negligent acts or omissions i n
the performance of the inspection. Any person may be liable for any
damages to a vehicle caused by the intentional acts or omissions in
the performance of the inspection.
I. The rebuilt title and any subsequent transfers of such title
shall also reflect that the vehicle was a salvage vehicle, flood-
damaged vehicle or recovered-theft vehicle, if applicable, and also
shall include the salvage date.
J. Any title for a motor vehicle issued pursuant to the laws of
any other state which reflects that such ve hicle is a salvage
vehicle, a rebuilt vehicle or a junked vehicle or has any other
brand or classification notation by that state shall be retained on
the new title issued by Service Oklahoma unless the actual
documented cost of repairin g the vehicle for safe operation on the
ENGR. H. B. NO. 1073 Page 8 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
highway does not exceed sixty percent (60%) of the fair market value
of the vehicle as provided by this section.
K. When the insurance company pays a loss on a vehicle which is
registered at the time of mishap, acci dent, burning, or flooding,
the appropriate certificate of title shall be issued without the
payment of additional registratio n fees or excise taxes, upon the
submission of a police report or insurance adjuster's report and a
declaration by the insurer tha t the vehicle is held for sale to a
dealer. If the owner of the vehicle or other insured retains
ownership of the damaged veh icle, Service Oklahoma shall notify the
owner or insured of the requirements of this section.
L. Any insurance company that pays a claim for a loss where the
cost of repairing the vehicle for safe operation on the highway
exceeds sixty percent (60%) of the market value of the vehicle or
pays a claim for a flood-damaged vehicle as defined in Section 1105
of this title shall notify, in writing, the holder of the
certificate of title of the requirements of this section and shall
notify Service Oklahoma of the payment of such claim. The notice
shall include the estimated total damage percentage dete rmination of
the actual cash value made by the insurance company to repair the
vehicle for safe operation on the highway. The insurance company
shall also send a copy of the notification to the holder of the
title. Service Oklahoma shall provide notice to the owner of the
vehicle, in writing, requiring the owner to surrender the title
ENGR. H. B. NO. 1073 Page 9 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
along with the fee to Service Oklahoma or one of its licensed
operators within thirty (30) days from the receipt of notice for the
issuance of the appropriate title based on the amount of loss and
shall advise the owner of the penalty for failing to do so. If the
owner fails to surrender the certificate of title within thirty (30)
days, Service Oklahoma shall cancel the certificate of title and
shall issue the appropriate certificate of title for the loss
incurred and mail it to the owner or lienholder of the certificate
of title along with a statement of the fee s due for the transfer.
Service Oklahoma shall reissue the appropriate title with the words
"Flood Damaged" on the face of the title in the case of a flood-
damaged vehicle; provide d, no insurance company shall pay a claim
for less than the amount to which the holder of the certificate of
title is rightfully entitled in order to avoid compliance with this
section.
M. Except as provided for in subsection N of this section, any
person, firm, corporation, or other legal entity convicted of
violating any provision of this section shall be guilty of a
misdemeanor and shall be punished by a fine of not less than Three
Hundred Dollars ($300.00) or by incarceration in the county jail for
not more than six (6) months, or by both the fine and incarceration.
N. Any owner of a titled vehicle who has knowledge that the
title is not the proper type for the vehicle and, with intent to
misrepresent the vehicle, fails to make the appropriate title
ENGR. H. B. NO. 1073 Page 10 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
changes, shall be guilty of a misdemeanor. Any person who has
knowledge that the title is not the proper type for the vehicle, and
with intent to misrepresent the vehicle, buys or receives any
vehicle for which the appropriate title changes have not been made
as required by this act shall be guilty of a misdemeanor. Any
person found guilty in accordance with the provisions of this
subsection shall be punished by a fine of not more than One Thousand
Dollars ($1,000.00) for the first offense or Five Thousan d Dollars
($5,000.00) for the second or subsequent offense, or by imprisonment
in the county jail for a term not exceeding six (6) months, or by
both such fine and imprisonment.
O. Any owner of a salvage or junked vehicle shall submit the
certificate of title to Service Oklahoma or the licensed operator
for issuance of an appropriate title. Any holder of a certificate
of title issued by this state, to a vehicle which no longer exists,
shall surrender the certificate of title to Service Oklahoma for
cancellation. The vehicle identification number on the canceled
certificate of title shall be preserved in the computer of Service
Oklahoma for at least five (5) years.
Nothing in this section shall be construed to prevent the
transfer of ownership of a vehicle by assignment of the title to a
used car dealer, wholesa le used car dealer, or a licensed automotive
dismantler or parts recycler.
SECTION 2. This act shall become effective November 1, 2023.
ENGR. H. B. NO. 1073 Page 11 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Passed the House of Representatives the 9th day of March, 2023.
Presiding Officer of the House
of Representatives
Passed the Senate the ___ day of __________, 2023.
Presiding Officer of the Senate