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SENATE FLOOR VERSION
March 28, 2024
ENGROSSED HOUSE
BILL NO. 2195 By: Lowe (Dick) of the House
and
Paxton of the Senate
An Act relating to motor vehicles; 47 O.S. 2021,
Section 1107, as last amended by Section 2, Chapter
366, O.S.L. 2023 (47 O .S. Supp. 2023, Section 1107),
which relates to sale or transfer of ownership of a
vehicle; setting time limit on certain impoundment of
vehicles; allowing for dismissal of charges if
certain conditions are met; amending 47 O.S. 2021,
Sections 1137.1, as l ast amended by Section 1,
Chapter 262, O.S.L. 2023, and 1137.3, as last amended
by Section 2, Chapter 262, O.S.L. 2023 (47 O.S. Supp.
2023, Sections 1137.1 and 1137.3), which relate to
used dealer temporary plate and registration and
licensing of new motor vehicles; modifying
description of certain length of time; and providing
an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 47 O.S. 2021, Section 1107, as
last amended by Section 2, Chapter 366, O.S.L. 2023 (47 O.S. Supp.
2023, Section 1107), is amended to read as follows:
Section 1107. A. In the event of the sale or transfer of the
ownership of a vehicle for which a certificate of title has been
issued as provided by Section 1105 o f this title, the holder of such
certificate shall endorse on the back of same a complete as signment
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thereof with warranty of title in form printed thereon with a
statement of all liens or encumbrances on the vehicle, sworn to
before a notary public or som e other person authorized by law to
take acknowledgments, and deliver same to the purchaser or
transferee at the time of delivery to the purchaser or transferee of
the vehicle; provided, a transfer of the ownership of a vehicle to
an insurer resulting from the settlement of a total loss claim shall
not require a notarized signature on the certifi cate of title. The
purchaser or transferee, unless such person is a bona fide used
motor vehicle dealer licensed by this state, a retail implement
dealer in connection with the purchase or transfer of off -road
vehicles or a charitable organization shall, within thirty (30) days
from the time of delivery to the purchaser or transferee of the
vehicle, present the assigned certificate of title and the insurance
security verification to the vehicle to Service Oklahoma, or one of
its licensed operators, accompa nied by a fee of Eleven Dollars
($11.00), together with any motor vehicle excise tax or license fee
that may be due, whereupon a new certificate of title, shall be
issued to the assignee. One Dollar ($1.00) of each fee shall be
deposited in the Oklahoma Tax Commission Reimbursement Fund through
December 31, 2022, and beginning January 1, 2023, this fee shall be
deposited in the Service Oklahoma Reimbursement Fund. Any
charitable organization utilizing the exemption authorized by this
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subsection shall rece ive training as prescribed by the Oklahoma Used
Motor Vehicle and Parts Commission.
B. A licensed dealer, a retail implement dealer in connection
with the sale or disposal of off-road vehicles or a charitable
organization shall, on selling or otherwise disposing of a vehicle,
execute and deliver to the purchaser thereof the certificate of
title properly and completely reassigned. Thereupon, the purchaser
of the vehicle shall present the reassigned certificate to Service
Oklahoma, or a licensed operator, a ccompanied by a fee of Eleven
Dollars ($11.00), and any motor vehicle excise tax or license fee
that may be due, whereupon a new certificate of title will be issued
to the purchaser. One Dollar ($1.00) of each fee shall be deposited
in the Oklahoma Tax Commission Reimbursement Fund through December
31, 2022, and beginning January 1, 2023, this fee shall be deposited
in the Service Oklahoma Reimbursement Fund. The c ertificate, when
so assigned and returned to Service Oklahoma, together with any
subsequent assignment or reissue thereof, shall be appropriately
filed and indexed so that at all times it will be possible to trace
title to the vehicle designated therein. Provided, when the
ownership of any motor vehicle shall pass by operation of law, the
person owning the vehicle may, upon furnishing satisfactory proof to
Service Oklahoma of ownership, procure a title to the motor vehicle,
regardless of whether a certific ate of title has ever been issued.
The dealer shall execute and deliver to the purchaser bi lls of sale
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on forms prescribed by Service Oklahoma for all new vehicles sold by
the dealer. On presentation of a bill of sale executed on forms
prescribed by Service Oklahoma, by a manufacturer or dealer for a
new vehicle sold in this state, accompanied by remittance in the sum
of Eleven Dollars ($11.00), together with any motor vehicle excise
tax or license fee that may be due, a certificate of title shall be
issued in accordance with the provisions of the Oklahoma Vehicle
License and Registration Act. One Dollar ($1.00) of each fee shall
be deposited in the Oklahoma Tax Commission Reimbursement Fund
through December 31, 2022, and beginning January 1, 2023, this f ee
shall be deposited in the Service Oklahoma Reimbursement Fund. For
purposes of this subsection, "charitable organization" shall mean
any organization which is exempt from taxation pursuant to the
provisions of the Internal Revenue Code, 26 U.S.C., Sect ion
501(c)(3) and which is registered as a charitable organization with
the Oklahoma Secreta ry of State and the Oklahoma Attorney General's
office; "off-road vehicles" means all -terrain vehicles, utility
vehicles, and motorcycles used exclusively for off -road use; "retail
implement dealer" 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.
C. Any person viola ting the provisions of this section shall be
guilty of a misdemeanor and upon the first conv iction thereof shall
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be punished by a fine not to exceed Five Hundred Dollars ($500.00),
with impoundment of the vehicle until all taxes and fees are paid.
A second or subsequent conviction shall be punished by a fine not to
exceed One Thousand Dollars ($1,000.00), with impoundment of the
vehicle until all taxes and fees are paid. If a vehicle is
impounded pursuant to the provisions of this section, the vehicle
shall not be released to the owner until the owner provides proof of
security or an affidavit t hat the vehicle will not be used on public
highways or public streets, as required pursuant to Section 7 -600 et
seq. of this title. Each vehicle involved in a viol ation of this
section shall be considered a separate offense.
D. Impoundment of vehicles as provided in subsection C of this
section shall not occur until the expiration of sixty (60) days from
the date any excise taxes and fees are due related to the tra nsfer
of the registration of the vehicle. After issuance of a citation as
provided in subsection C of this section, if proof of payment of all
required excise taxes and fees, and transfer of the registration, is
provided within seventy -two (72) hours to the clerk of the court
where the charge is filed, the charge shall be dismissed upon the
payment of court costs.
SECTION 2. AMENDATORY 47 O.S. 2021, Section 1137.1, as
last amended by Section 1, Chapter 262, O.S.L. 2023 (47 O.S. Su pp.
2023, Section 1137.1), is amended to read as follows:
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Section 1137.1 A. Except for veh icles, travel trailers or
commercial trailers which display a current Oklahoma license tag,
upon the purchase or transfer of ownership of a used motor vehicle,
travel trailer or commercial trailer, including an out -of-state
purchase or transfer of the same, to a licensed used motor vehicle
dealer, wholesale used motor vehicle dealer, used travel trailer
dealer or used commercial trailer dealer, subsequently referred to
in this section as "dealer", the dealer shall affix a used dealer's
plate visible from th e rear of the vehicle, travel trailer or
commercial trailer. Such license plate shall expire on December 31
of each year. When the vehicle, travel trailer or comm ercial
trailer is parked on the dealer's licensed place of business, it
shall not be required to have a license plate of any kind affixed.
A dealer shall obtain from Service Oklahoma at a cost of Ten Dollars
($10.00) a dealer license plate for demonstrati ng, transporting or
any other normal business of a dealer including use by an individual
holding a valid salesperson's license issued by the Oklahoma Used
Motor Vehicle and Parts Commission. Any dealer who operates a
wrecker or towing service licensed pur suant to Sections 951 through
957 of this title shall register each wrecker vehicle and display a
wrecker license plate on each vehicle as required by Section 1134.3
of this title. A dealer may obtain as many additional license
plates as may be desired up on the payment of Ten Dollars ($10.00)
for each additional license plate. Use of the used d ealer license
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plate by a licensed dealer for other than the purposes as set forth
herein shall constitute grounds for revocation of the dealer's
license. Service Oklahoma shall design the official used dealer
license plate to include the used dealer's license number issued to
him or her each year by Service Oklahoma or the Used Motor Vehicle
and Parts Commission.
B. Upon the purchase or transfer of ownership of an out-of-
state used motor vehicle, travel trailer or commercial trailer to a
licensed dealer, the dealer shall make application for an Oklahoma
certificate of title pursuant to the Oklahoma Vehicle License and
Registration Act, Section 1101 et seq. of this t itle. Upon receipt
of the Oklahoma certificate of title, the dealer shall follow the
procedure as set forth in subsection A of this section. Provided,
nothing in this title shall be construed as requiring a dealer to
register a used motor vehicle, travel trailer or commercial trailer
purchased in another state which will not be operated or sold in
this state.
C. Upon sale or transfer of ownership of the used motor vehicle
or travel trailer, the dealer shall place upon the reassignment
portion of the certificate of title a tax stamp issued by the county
treasurer of the county in which the dealer has his or her primary
place of business. The tax stamp shall be issued upon payment of a
fee of Three Dollars and fifty cents ($3.50) and shall be in lieu of
the dealer's ad valorem tax on the inventories of used motor
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vehicles or travel trailers but s hall not relieve any other property
of the dealer from ad valorem taxation.
D. Upon sale of a used motor vehicle or travel trailer to
another licensed dealer, the selling dealer shall place the tax
stamp required in subsection C of this section upon the certificate
of title. The used dealer license plate or wholesale dealer license
plate shall be removed by the selling dealer. The purchasing dealer
shall, at time of purchase, place his or her dealer license plate on
the used motor vehicle, travel trailer or commercial trailer as
provided in subsection A of this section; provided, for vehicles,
travel trailers or commercial trailers purchased by a licensed used
dealer at an auction, in lieu of such placement of the dealer
license plate, the auction may provide temporary documentation as
approved by the Director of the Motor Vehicle Division of Service
Oklahoma for the purpose of transporting such vehicle to the
purchaser's point of destination. Such temporary documentation
shall be valid for two (2) days f ollowing the date of sale.
E. The purchaser of every used motor vehicle, travel trailer or
commercial trailer, except as otherwise provided by law, shall
obtain registration and title for the vehicle or trailer within two
(2) months sixty (60) days from the date of purchase of same. It
shall be the responsibility of the selling dealer to place a
temporary license plate, in size similar to the permanent Oklahoma
license plate but of a weatherproof plastic -impregnated substance
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approved by the Used Motor Ve hicle and Parts Commission, upon a used
motor vehicle, travel trailer or commercial trailer when a
transaction is completed for the sale of said vehicle. The
temporary license plate under this subsection shall be placed at the
location provided for the permanent motor vehicle license plate.
The temporary license plate shall show the license number which is
issued to the dealer each year by Service Oklahoma or the U sed Motor
Vehicle and Parts Commission, the date the used motor vehicle,
travel trailer or commercial trailer was purchased and the company
name of the selling dealer. The Used Motor Vehicle and Parts
Commission is hereby directed to develop the 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 Used Motor
Vehicle and Parts Commission is hereby authorized to develop
additional requirements and parameters as deemed appropriate to
discourage or prevent illegal duplication and use of the temporary
license plate. Such temporary license plate shall be valid for a
period of two (2) months sixty (60) days from the date of purchase.
Use of the temporary license by a dealer for other than the purposes
set forth herein shall constitute grounds for revocation of the
dealer's license to conduct business. Purchasers of a commercial
trailer shall affix the temporary l icense plate to the rear of the
commercial trailer. The purchaser shall display the tempora ry
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license plate for a period not to exceed two (2) months sixty (60)
days or until registration and title are obtained as provided in
this section.
The provisions of this subsection on temporary licenses shall
apply to nonresidents who purchase a used motor vehicle, travel
trailer or commercial trailer within this state that is to be
licensed in another state. The nonresident purchaser shall be
allowed to operate t he vehicle or trailer within the state with a
temporary license plate for a period not to ex ceed two (2) months
sixty (60) days from date of purchase. Any nonresident purchaser
found to be operating a used motor vehicle, travel trailer or
commercial trailer within this state after two (2) months sixty (60)
days shall be subject to the registration fees of this state upon
the same terms and conditions applying to residents of this state.
F. It shall be unlawful for any dealer to procure the
registration and licensing of any used motor vehicle, travel trailer
or commercial trailer sold by the deal er or to act as the agent for
the purchaser in the procurement of the registration and licensing
of the purchaser's used vehicle, travel trailer or commercial
trailer. A license of any dealer violating the provision of this
section may be revoked.
G. Dealers following the procedure set forth herein shall not
be required to register vehicles, travel trailers or commercial
trailers to which this section applies, nor will the registration
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fee otherwise required be assessed. Provided, dealers shall not
purchase or trade for a used motor vehicle, travel trailer or
commercial trailer on which the registration therefor has been
expired for a period exceeding two (2) months sixty (60) days
without obtaining current registration therefor.
H. A nonprofit charitable organization which is exempt from
taxation pursuant to the provisions of the Internal Revenue Code, 26
U.S.C., Section 501(c)(3), and which accepts donations of u sed motor
vehicles previously titled in Oklahoma to be subsequently
transferred to another o wner, upon the qualifying organization
providing sufficient documentation of its tax -exempt status, may
obtain from Service Oklahoma charitable nonprofit organizati on
license plates for demonstrating, transporting or test -driving
donated vehicles, provided that no organization shall possess or use
at any one time more than eight such plates. Service Oklahoma shall
design distinctive license plates for that purpose. The cost for
said plates shall be the same as provided in subsection A of this
section for dealer plates.
I. The transfer of ownership from the vehicle donor to the
qualifying nonprofit organization described in subsection H of this
section shall be made without the payment of motor vehicle excise
tax levied pursuant to Section 2103 of Title 68 of the Oklahoma
Statutes.
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SECTION 3. AMENDATORY 47 O.S. 2021, Section 1137.3, as
last amended by Section 2, Chapter 262, O.S.L. 2023 (47 O.S. Supp.
2023, Section 1137.3), is amended to read as follows:
Section 1137.3 The purchas er of every new motor vehicle, travel
trailer or commercial trailer shall register or license the same
within two (2) months sixty (60) days from the date of purcha se. It
shall be the responsibility of the selling dealer to place a
temporary license plate, in size similar to the permanent Oklahoma
license plate but of a weatherproof plastic -impregnated substance
approved by the Oklahoma Motor Vehicle Commission, upo n 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 lic ense 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
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vehicle purchase. The Motor Vehicle Commission is further
authorized to develop additi onal requirements and parameters
designed to discourage or prevent illegal duplication and u se of the
temporary license plate. On or before two (2) months sixty (60)
days from the date of purchase of a new motor vehicle, travel
trailer or commercial trail er, said temporary license plate shall be
removed and replaced with a permanent, current Oklahoma license
plate. Use 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 su ch 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 s hall be revoked.
SECTION 4. This act shall become effective November 1, 202 4.
COMMITTEE REPORT BY: COMMITTEE ON PUBLIC SAFETY
March 28, 2024 - DO PASS