Oklahoma 2024 Regular Session

Oklahoma House Bill HB2195 Compare Versions

Version 1 (Old)

Version 2 (New)

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3		-	SENATE FLOOR VERSION - HB2195 SFLR Page 1
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	3	+	ENGR. H. B. NO. 2195 Page 1 1
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29		-	SENATE FLOOR VERSION
30		-	March 28, 2024
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33	28		ENGROSSED HOUSE
34	29		BILL NO. 2195 By: Lowe (Dick) of the House
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36	31		and
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38	33		Paxton of the Senate
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43	41		An Act relating to motor vehicles; 47 O.S. 2021,
44	42		Section 1107, as last amended by Section 2, Chapter
45	43		366, O.S.L. 2023 (47 O.S. Supp. 2023, Section 1 107),
46	44		which relates to sale or transfer of ownership of a
47	45		vehicle; setting time limit on certai n impoundment of
48	46		vehicles; allowing for dismissal of charges i f
49	47		certain conditions are met; amending 47 O.S. 2021,
50	48		Sections 1137.1, as last amended by Section 1,
51	49		Chapter 262, O.S.L. 2023, and 1137.3, as last amended
52	50		by Section 2, Chapter 262, O.S.L. 2023 ( 47 O.S. Supp.
53	51		2023, Sections 1137.1 and 1137.3), which relate to
54	52		used dealer temporary plate and registration and
55	53		licensing of new motor vehi cles; modifying
56	54		description of certain length of time ; and providing
57	55		an effective date.
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61	61		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
62	62		SECTION 1. AMENDATORY 47 O.S. 2021, Section 1107, as
63	63		last amended by Section 2, Chapter 366, O.S .L. 2023 (47 O.S. Supp.
64	64		2023, Section 1107), is amended to read as follows:
65	65		Section 1107. A. In the event of the sale or transfer of the
66	66		ownership of a vehicle for which a certificate of title has been
67	67		issued as provided by Section 1105 of this title, the holder of such
68		-	certificate shall endorse on the back of same a complete as signment
69	68
70		-	SENATE FLOOR VERSION - HB2195 SFLR Page 2
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	69	+	ENGR. H. B. NO. 2195 Page 2 1
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	94	+	certificate shall endorse on the back of same a complete assignment
96	95		thereof with warranty of title in form printed thereon with a
97	96		statement of all liens or encumbrances on the vehicle, sworn to
98	97		before a notary public or some other person authorized by law to
99	98		take acknowledgments, and deliver same to the purchaser or
100	99		transferee at the time of delivery to the purchaser or transferee of
101	100		the vehicle; provided, a transfer of the ownership of a vehicle to
102	101		an insurer resulting from the settlement of a total loss claim shall
103	102		not require a notarized signature on the certificate of title. The
104	103		purchaser or transferee, unless such person is a bona fide use d
105	104		motor vehicle dealer licensed by this state, a retail implement
106	105		dealer in connection with the purchase or transfer of off-road
107	106		vehicles or a charitable organization shall, within thirty (30) days
108	107		from the time of delivery to the purchaser or transferee o f the
109	108		vehicle, present the assigned certificate of title and the insurance
110	109		security verification to the vehicle to Service Oklahoma, or one of
111	110		its licensed operators, accompanied by a fee of Eleven Dollars
112	111		($11.00), together with any motor vehicl e excise tax or license fee
113	112		that may be due, whereupon a new certificate of title, shall be
114	113		issued to the assignee. One Dollar ($1.00) of each fee shall be
115	114		deposited in the Oklahoma Tax Commission Reimbursement Fund through
116	115		December 31, 2022, and beginning January 1, 2023, this fee shall be
117	116		deposited in the Service Oklahoma Reimbursement Fund. Any
118	117		charitable organization utilizing the exemption authorized by this
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120		-	SENATE FLOOR VERSION - HB2195 SFLR Page 3
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	119	+	ENGR. H. B. NO. 2195 Page 3 1
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146	144		subsection shall receive training as prescribed by the Oklahoma Used
147	145		Motor Vehicle and Parts Commission.
148	146		B. A licensed dealer, a retail implement dealer in connection
149	147		with the sale or disposal of off-road vehicles or a charitable
150	148		organization shall, on selling or otherwise disposing of a vehicle,
151	149		execute and deliver to the purchaser thereof the c ertificate of
152	150		title properly and completely reassigned. Thereupon, the purchaser
153	151		of the vehicle shall present the reassigned certificate to Service
154	152		Oklahoma, or a licensed operator, accompanied by a fee of Eleven
155	153		Dollars ($11.00), and any motor vehicle excise tax or license fee
156	154		that may be due, whereupon a new certificate of title will be issued
157	155		to the purchaser. One Dollar ($1.00) of each fee shall be deposited
158	156		in the Oklahoma Tax Commission Reimbursement Fund through December
159	157		31, 2022, and beginning January 1, 2023, this fee shall be deposited
160	158		in the Service Oklahoma Reimbursement Fund. The certificate, when
161	159		so assigned and returned to Service Oklahoma, together with any
162	160		subsequent assignment or reissue thereof, shall be appropriately
163	161		filed and indexed so that at all times it will be possible to trace
164	162		title to the vehicle designated therein. Provided, when the
165	163		ownership of any motor vehicle shall pass by operation of law, the
166	164		person owning the vehicle may, upon furnishing satisfactory proof to
167	165		Service Oklahoma of ownership, procure a title to the motor vehicle,
168	166		regardless of whether a certificate of title has ever been issued.
169	167		The dealer shall execute and deliver to the purchaser bills of sale
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171		-	SENATE FLOOR VERSION - HB2195 SFLR Page 4
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	169	+	ENGR. H. B. NO. 2195 Page 4 1
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197	194		on forms prescribed by Service Oklahoma for all new vehicles sold by
198	195		the dealer. On presentation of a bill of sale executed on forms
199	196		prescribed by Service Oklahoma, by a manufacturer or dealer for a
200	197		new vehicle sold in this state, accompanied by remittance in the sum
201	198		of Eleven Dollars ($11.00), together with any motor vehicle excise
202	199		tax or license fee that may be due, a certificate of title shall be
203	200		issued in accordance with the provisions of the Oklahoma Vehicle
204	201		License and Registration Act. One Dollar ($1.00) of each fee shall
205	202		be deposited in the Oklahoma Tax Commission Reimbursement Fund
206	203		through December 31, 2022, and beginning January 1, 2023, this fee
207	204		shall be deposited in the Service Oklahoma Reimbursement Fund. For
208	205		purposes of this subsection, "charitable organization" shall mean
209	206		any organization which is exempt from taxation pursuant to the
210	207		provisions of the Internal Revenue Code, 26 U.S.C., Section
211	208		501(c)(3) and which is registered as a charitable organization with
212	209		the Oklahoma Secretary of State and the Oklahoma Attorney General's
213	210		office; "off-road vehicles" means all-terrain vehicles, utility
214	211		vehicles, and motorcycles used exclusively for off-road use; "retail
215	212		implement dealer" means a business engaged primarily in the sale of
216	213		farm tractors as defined in Section 1-118 of this title or
217	214		implements of husbandry as defined in Section 1-125 of this title or
218	215		a combination thereof.
219	216		C. Any person violating the provisions of this section shall be
220	217		guilty of a misdemeanor and upon the first conviction thereof shall
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	219	+	ENGR. H. B. NO. 2195 Page 5 1
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248	244		be punished by a fine not to exceed Five Hundred Dollars ($500.00),
249	245		with impoundment of the vehicle until all taxes and fees are paid.
250	246		A second or subsequent conviction shall be punished by a fine not to
251	247		exceed One Thousand Dollars ($1,000.00), with impoundment of the
252	248		vehicle until all taxes and fees are paid. If a vehicle is
253	249		impounded pursuant to the provisions of this section, the vehicle
254	250		shall not be released to the owner until the owner provides proof of
255	251		security or an affidavit that the vehicle will not be used on public
256	252		highways or public streets, as required pursuant to Section 7-600 et
257	253		seq. of this title. Each vehicle involved in a violation of this
258	254		section shall be considered a separate offense.
259	255		D. Impoundment of vehicles as provided in subsection C of this
260	256		section shall not occur until the expiration of sixt y (60) days from
261	257		the date any excise taxes and fees are due related to the transfer
262	258		of the registration of the vehicle. After issuance of a citation as
263	259		provided in subsection C of this section, if proof of payment of all
264	260		required excise taxes and fees, and transfer of the registration, is
265	261		provided within seventy-two (72) hours to the clerk of the court
266	262		where the charge is filed, the charge shall be dismissed upon the
267	263		payment of court costs.
268	264		SECTION 2. AMENDATORY 47 O.S. 2021, Sect ion 1137.1, as
269	265		last amended by Section 1, Chapter 262, O.S.L. 2023 (47 O.S. Supp.
270	266		2023, Section 1137.1), is amended to read as follows:
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298	293		Section 1137.1 A. Except for vehicles, travel trailers or
299	294		commercial trailers which display a current Oklahoma license tag,
300	295		upon the purchase or transfer of ownership of a used motor vehicle,
301	296		travel trailer or commercial trailer, including an out-of-state
302	297		purchase or transfer of the same, to a licensed used motor vehicle
303	298		dealer, wholesale used motor vehicle dealer, used travel trailer
304	299		dealer or used commercial trailer dealer, subsequently referred to
305	300		in this section as "dealer", the dealer shall affix a used dealer's
306	301		plate visible from the rear of the vehicle, travel trailer or
307	302		commercial trailer. Such license plate shall expire on December 31
308	303		of each year. When the vehicle, travel trailer or commercial
309	304		trailer is parked on the dealer's licensed place of business, it
310	305		shall not be required to have a license plate of any kind affixed.
311	306		A dealer shall obtain from Service Oklahoma at a cost of Ten Dollars
312	307		($10.00) a dealer license plate for demonstrating, transporting or
313	308		any other normal business of a dealer including use by an individual
314	309		holding a valid salesperson's license issued by the Oklahoma Used
315	310		Motor Vehicle and Parts Commission. Any dealer who operates a
316	311		wrecker or towing service licensed pursuant to Sections 951 through
317	312		957 of this title shall register each wrecker vehicle and display a
318	313		wrecker license plate on each vehicle as required by Section 1 134.3
319	314		of this title. A dealer may obtain as many additional license
320	315		plates as may be desired upon the payment of Ten Dollars ($10.00)
321	316		for each additional license plate. Use of the used dealer license
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323		-	SENATE FLOOR VERSION - HB2195 SFLR Page 7
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349	343		plate by a licensed dealer for other than the purposes as set forth
350	344		herein shall constitute grounds for revocation of the dealer's
351	345		license. Service Oklahoma shall design the official used dealer
352	346		license plate to include the used dealer's license number issued to
353	347		him or her each year by Service Oklahoma or the Used Motor Vehicle
354	348		and Parts Commission.
355	349		B. Upon the purchase or transfer of ownership of an out-of-
356	350		state used motor vehicle, travel trailer or commercial trailer to a
357	351		licensed dealer, the dealer shall make application for an Oklahoma
358	352		certificate of title pursuant to the Oklahoma Vehicle License and
359	353		Registration Act, Section 1101 et seq. of this title. Upon receipt
360	354		of the Oklahoma certificate of title, the dealer shall follow the
361	355		procedure as set forth in subsection A of this section. Provided,
362	356		nothing in this title shall be construed as requiring a dealer to
363	357		register a used motor vehicle, travel trailer or commercial trailer
364	358		purchased in another state which will not be operated or sold in
365	359		this state.
366	360		C. Upon sale or transfer of ownership of the used motor vehicle
367	361		or travel trailer, the dealer shall place upon the reassignment
368	362		portion of the certificate of title a tax stamp issued by the county
369	363		treasurer of the county in which the dealer has his or her primary
370	364		place of business. The tax stamp shall be issued upon payment of a
371	365		fee of Three Dollars and fifty cents ($3.50) and shall be in lieu of
372	366		the dealer's ad valorem tax on the inventories of used motor
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374		-	SENATE FLOOR VERSION - HB2195 SFLR Page 8
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400	393		vehicles or travel trailers but shall not relieve any other property
401	394		of the dealer from ad valorem taxation.
402	395		D. Upon sale of a used motor vehicle or travel trailer to
403	396		another licensed dealer, the selling dealer shall place the tax
404	397		stamp required in subsection C of this section upon the certificate
405	398		of title. The used dealer license plate or wholesale dealer license
406	399		plate shall be removed by the selling dealer. The purchasing dealer
407	400		shall, at time of purchase, place his or her dealer license plate on
408	401		the used motor vehicle, travel trailer or commercial trailer as
409	402		provided in subsection A of this section; provided, for vehicles,
410	403		travel trailers or commercial trailers purchased by a licensed used
411	404		dealer at an auction, in lieu of such placement of the dealer
412	405		license plate, the auction may provide temporary documentation as
413	406		approved by the Director of the Motor Vehicle Division of Service
414	407		Oklahoma for the purpose of transporting such vehicle to the
415	408		purchaser's point of destination. Such temporary documentation
416	409		shall be valid for two (2) days following the date of sale.
417	410		E. The purchaser of every used motor vehicle, travel trailer or
418	411		commercial trailer, except as otherwise provided by law, shall
419	412		obtain registration and title for the vehicle or trailer within two
420	413		(2) months sixty (60) days from the date of purchase of same. It
421	414		shall be the responsibility of the selling dealer to place a
422	415		temporary license plate, in size similar to the permanent Oklahoma
423	416		license plate but of a weatherproof plastic-impregnated substance
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451	443		approved by the Used Motor Vehicle and Parts Commission, upon a used
452	444		motor vehicle, travel trailer or commercial trailer when a
453	445		transaction is completed for the sale of said vehicle. The
454	446		temporary license plate under this subsection shall be placed at the
455	447		location provided for the permanent motor vehicle license plate.
456	448		The temporary license plate shall show the license number which is
457	449		issued to the dealer each year by Service Oklahoma or the Used Motor
458	450		Vehicle and Parts Commission, the date the used motor vehicle,
459	451		travel trailer or commercial trailer was purchased and the company
460	452		name of the selling dealer. The Used Motor Vehicle and Parts
461	453		Commission is hereby directed to develop the temporary license plate
462	454		design to incorporate these requirements in a manner that will
463	455		permit law enforcement personnel to readily identify the dealer
464	456		license number and date of the vehicle purchase. The Used Motor
465	457		Vehicle and Parts Commission is hereby authorized to develop
466	458		additional requirements and parameters as deemed appropriate to
467	459		discourage or prevent illegal duplication and use of the temporary
468	460		license plate. Such temporary license plate shall be valid for a
469	461		period of two (2) months sixty (60) days from the date of purchase.
470	462		Use of the temporary license by a dealer for other than the purposes
471	463		set forth herein shall constitute grounds for revocation of the
472	464		dealer's license to conduct business. Purchasers of a commercial
473	465		trailer shall affix the temporary license plate to the rear of the
474	466		commercial trailer. The purchaser shall display the temporary
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502	493		license plate for a period not to exceed two (2) months sixty (60)
503	494		days or until registration and title are obtained as provided in
504	495		this section.
505	496		The provisions of this subsection on temporary licenses shall
506	497		apply to nonresidents who purchase a used motor vehicle, travel
507	498		trailer or commercial trailer within this state that is to be
508	499		licensed in another state. The nonresident purchaser shall be
509	500		allowed to operate the vehicle or trailer within the state with a
510	501		temporary license plate for a period not to exceed two (2) months
511	502		sixty (60) days from date of purchase. Any nonresident purchaser
512	503		found to be operating a used motor vehicle, travel trailer or
513	504		commercial trailer within this state after two (2) months sixty (60)
514	505		days shall be subject to the registration fees of this state upon
515	506		the same terms and conditions applying to residents of this state.
516	507		F. It shall be unlawful for any dealer to procure the
517	508		registration and licensing of any used motor vehicle, travel trailer
518	509		or commercial trailer sold by the dealer or to act as the agent for
519	510		the purchaser in the procurement of the registration and licensing
520	511		of the purchaser's used vehicle, travel trailer or commercial
521	512		trailer. A license of any dealer violating the provision of this
522	513		section may be revoked.
523	514		G. Dealers following the procedure set forth herein shall not
524	515		be required to register vehicles, travel trailers or commercial
525	516		trailers to which this section applies, nor will the registration
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553	543		fee otherwise required be assessed. Provided, dealers shall not
554	544		purchase or trade for a used motor vehicle, travel trailer or
555	545		commercial trailer on which the registration therefor has been
556	546		expired for a period exceeding two (2) months sixty (60) days
557	547		without obtaining current registration therefor.
558	548		H. A nonprofit charitable organization which is exempt from
559	549		taxation pursuant to the provisions of the Internal Revenue Code, 26
560	550		U.S.C., Section 501(c)(3), and which accepts donations of used motor
561	551		vehicles previously titled in Oklahoma to be subsequently
562	552		transferred to another owner, upon the qualifying organization
563	553		providing sufficient documentation of its tax-exempt status, may
564	554		obtain from Service Oklahoma charitable nonprofit organization
565	555		license plates for demonstrating, transporting or test-driving
566	556		donated vehicles, provided that no organization shall possess or use
567	557		at any one time more than eight such plates. Service Oklahoma shall
568	558		design distinctive license plates for that purpose. The cost for
569	559		said plates shall be the same as provided in subsection A of this
570	560		section for dealer plates.
571	561		I. The transfer of ownership from the vehicle donor to the
572	562		qualifying nonprofit organization described in subsection H of this
573	563		section shall be made without the payment of motor vehicle excise
574	564		tax levied pursuant to Section 2103 of Title 68 of the Oklahoma
575	565		Statutes.
576	566
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	567	+	ENGR. H. B. NO. 2195 Page 12 1
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603	592		SECTION 3. AMENDATORY 47 O.S. 202 1, Section 1137.3, as
604	593		last amended by Section 2, Chapter 262, O.S.L. 2023 (47 O.S. Supp.
605	594		2023, Section 1137.3), is amended to read as follows:
606	595		Section 1137.3 The purchaser of every new motor vehicle, travel
607	596		trailer or commercial trailer shall register or license the same
608	597		within two (2) months sixty (60) days from the date of purchase. It
609	598		shall be the responsibility of the selling dealer to place a
610	599		temporary license plate, in size similar to the permanent Oklahoma
611	600		license plate but of a weatherproof plastic-impregnated substance
612	601		approved by the Oklahoma Motor Vehicle Commission, upon a new motor
613	602		vehicle, travel trailer or commercial trailer when a transaction is
614	603		completed for the sale of said vehicle or trailer. Except for cab
615	604		and chassis trucks, the temporary license plate under this section
616	605		shall be placed at the location provided for the permanent motor
617	606		vehicle license plate. The purchaser of a new cab and chassis truck
618	607		may place the temporary license plate under this section in the rear
619	608		window. Said temporary license plate shall show the dealer's
620	609		license number which is issued to him or her each year by Service
621	610		Oklahoma, the date the new motor vehicle, travel trailer or
622	611		commercial trailer was purchased and the company name of the selling
623	612		dealer. The Oklahoma Motor Vehicle Commission is hereby directed to
624	613		develop a temporary license plate design to incorporate these
625	614		requirements in a manner that will permit law enforcement personnel
626	615		to readily identify the dealer license number and date of the
627	616
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654	642		vehicle purchase. The Motor Vehicle Commission is further
655	643		authorized to develop additional requirements and parameters
656	644		designed to discourage or prevent illegal duplication and use of the
657	645		temporary license plate. On or before two (2) months sixty (60)
658	646		days from the date of purchase of a new motor vehicle, travel
659	647		trailer or commercial trailer, said temporary license plate shall be
660	648		removed and replaced with a permanent, current Oklahoma license
661	649		plate. Use of said temporary license plate by a licensed dealer for
662	650		other than the purpose of normally doing business shall constitute
663	651		grounds for revocation of the dealer's license.
664	652		It shall be unlawful for any licensed dealer of new motor
665	653		vehicles, travel trailers or commercial trailers to procure the
666	654		registration and licensing of any new motor vehicle, travel trailer
667	655		or commercial trailer sold by such licensed dealer or to act as the
668	656		agent for such purchaser in the procurement of said registration and
669	657		licensing. The license of any licensed dealer of new motor
670	658		vehicles, travel trailers or commercial trailers violating the
671	659		provisions of this section shall be revoked.
672	660		SECTION 4. This act shall become effective November 1, 2024.
673		-	COMMITTEE REPORT BY: COMMITTEE ON PUBLIC SAFETY
674		-	March 28, 2024 - DO PASS
	661	+
	662	+	ENGR. H. B. NO. 2195 Page 14 1
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	686	+
	687	+	Passed the House of Representatives the 29th day of February,
	688	+	2024.
	689	+
	690	+
	691	+
	692	+
	693	+	Presiding Officer of the House
	694	+	of Representatives
	695	+
	696	+
	697	+	Passed the Senate the ___ day of __________, 2024.
	698	+
	699	+
	700	+
	701	+
	702	+	Presiding Officer of the Senate
	703	+
	704	+