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SENATE FLOOR VERSION
April 10, 2023
ENGROSSED HOUSE
BILL NO. 2244 By: Dobrinski of the House
and
Thompson (Roger) of the
Senate
An Act relating to motor vehicles; defining terms;
authorizing dealer management system providers
perform certain actions; prohibiting dealer
management system providers from certain actions ;
making conflicting term or condition of contracts
void and unenforceable; requiring certain actions of
authorized integrator s; allowing dealers to withdraw,
revoke or amend certain express written authorization
under certain circumstances; requiring cert ain
obligations to secure and prevent unauthorized access
to certain information; stating certain parties not
liable for certain actions; requiring indemnification
for certain claims; requiring manufacturers to allow
new motor vehicle dealers to make certa in offers to
consumers; making certain exceptions; limiting
certain applications; amending 21 O.S. 2021, Section
918, which relates to the sale, barter or excha nge of
motor vehicles on Sunday prohibited; modifying nam e
of certain entity; amending 47 O.S. 2021, Section
562, which relates to definitions; modifying
definitions; defining terms; amending 47 O.S. 2021,
Section 563, which relates to Oklahoma Motor Vehicle
Commission; modifying name of certain entity;
requiring certain delivery agreement forms for
certain deliveries; amending 47 O.S. 2021, Section
564, which relates to licenses; requiring powersports
dealers obtain certai n license; disallowing certain
authorization; making certain exception; amending 47
O.S. 2021, Section 564.1, which relates to off -
premises displays of new motor vehicles; modifying
name of certain entity; making certain authorization;
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removing certain req uest for variance; amending 47
O.S. 2021, Section 564.2, which relates to
certificates of registration for new motor vehicle
salesperson; modifying name of certain enti ty;
amending 47 O.S. 2021, Section 565, as amended by
Section 3, Chapter 192, O.S.L . 2022 (47 O.S. Supp.
2022, Section 565), which re lates to denial,
revocation, or suspensio n of license; modifying name
of certain entity; modifying entity subject to
license denial, revocation, suspension, or fine;
modifying reasons for license denial, re vocation,
suspension, or punishment by fine; prohi biting
certain standards to measure perfo rmance; requiring
certain vehicles be offered at same price; requiring
certain reimbursement for rental cars; making certain
exception; requiring new vehicles be dis tributed in
certain manner; limiting dealers to on e part or labor
rate request per year; modifying certain time frame
for rebuttal; providing for certain calculation;
providing for exclusions for certain rate
calculation; modifying reasons for certain rebu ttal;
allowing certain written request; allowing c ertain
adjustments; requiring certain wri tten notice;
prohibiting certain recove ry of costs; allowing for
certain price increases and charges; prohibiting
factory denial of certain claims and implementation
of certain charge-backs; requiring certain
documentation and written attestation; providin g for
certain compensation calculation; requiring certain
method for used vehicle calculations; allowing
factory to direct dea ler in certain manner and
method; requiring certain reimbursement claims be
subject to certain limitations and requirements;
placing certain limit on total compensation;
disallowing certain remedy combinations; disallowing
the use of certain agreements; ma king certain
exception; providing for c ertain violation; making
certain exceptions; allowing for certain construction
or renovation; providing certain rebuttable
presumption; prohibiting factories from changing
certain plans or systems; limiting license for
distribution; allowing manufacturer or distributor to
require certain dealer compliance; amending 47 O.S.
2021, Section 565.1, w hich relates to succession
dealerships; defining term; clarifying language;
requiring adherence to certain agreement; requiring
certain changes be in compliance with existing law;
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amending 47 O.S. 2021, Section 565. 2, which relates
to termination, cancella tion, or nonrenewal of
franchise; modifying terms; requiring certain hearing
be held within certain time frame; allowin g for
certain extension; requiring certain com pensation;
amending 47 O.S. 2021, Section 565.3, w hich relates
to notice of proposed sale; requiring use of certain
standards; requiring certain changes be in compliance
with existing law; limiting certain evaluations;
deleting certain protest right; requiring the
submission of certain agreement; amending 47 O.S.
2021, Sections 566, 566.1, 567, and 576, which relate
to procedure for denial, suspension, or revocation of
license, application of the Administrative Procedures
Act, injunctions, and petty cash fund; modifying name
of certain entity; amending 47 O.S. 2021, Section
578.1, which relates to procedures for relocation or
establishment; modifying definition; making certain
exceptions; amending 47 O.S. 2021, Section 579, which
relates to relocation or establishment of franchises;
modifying name of cer tain entity; amending 47 O.S.
2021, Section 580.2, which relates to in surance
coverage on loan vehicles; defining term; making
certain liability policy coverage distinction;
amending 47 O.S. 2021, Section 583, a s amended by
Section 3, Chapter 107, O.S.L. 2022 (47 O.S. Supp.
2022, Section 583), which relates to license
required; modifying name of certain entity; amending
47 O.S. 2021, Section 583.1, as amended by Section 4,
Chapter 107, O.S.L. 2022 (47 O.S. Supp. 2022, Section
583.1), which relates to certifica te of registration
for used motor vehicle o r manufactured home
salespersons; modifying name of certain entity;
amending 47 O.S. 2021, Section s 596.1, 596.2, 596.3,
596.5, 596.7, 596.8, 596.14, 596.15, 596.16, and
1116.1, which relate to definitions, new recreational
vehicle dealer, dealer sales responsibility,
manufacturer termination of dealer agreement, sale of
inventory after termination of dealer agreement , sale
of business assets, denial of application fo r
license, cause of action, remedies, new vehicles;
modifying definitions; defining terms; modifying name
of certain entity; updating statutory references;
amending 47 O.S. 2021, Section 1128, as am ended by
Section 142, Chapter 282, O.S.L. 2022 (47 O.S. Su pp.
2022, Section 1128), which relates to manufa cturer's
or dealer's license; modifying nam e of certain
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entities; amending 47 O.S. 2021, Section 1137.3, as
amended by Section 172, Chapter 282, O.S.L. 20 22 (47
O.S. Supp. 2022, Section 1137.3), which relates to
registration and licensing of new motor vehi cle,
trailer or commercial trai ler; modifying name of
certain entity; amending 62 O.S. 2021, Section 155,
which relates to state boards, commissions and
departments; modifying name of certain entity ;
amending 74 O.S. 2021, Section 3601.1, as amended by
Section 24, Chapter 107, O.S.L. 2022 (74 O.S. Supp.
2022, Section 3601.1), which relates to employee
defined; modifying name of certain entity; repealing
47 O.S. 2021, Section 1128, as amended by Section 21,
Chapter 107, O.S.L. 2022 (47 O.S. Supp. 2022, Secti on
1128), which relates to manufacturer's or dealer's
license; providing for codification; and providing an
effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law t o be codified
in the Oklahoma Statutes as Section 564.3 of Title 47, unless there
is created a duplication in numbering, reads as follows:
A. As used in this section:
1. "Access fee" means a requirement to pay money for access to
protected dealer data ;
2. "Authorized integrator" means a person who a dealer has a
contractual relationship with or the dealer otherwise gives express
written authorization to have access to prote cted dealer data stored
on a dealer data system or to write protected dealer data to the
dealer data system for the purpose of performing a specific function
for the dealer;
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3. "Dealer data system" means software, hardware or firmware
that a dealer leases or rents from a dealer management system
provider for the purpose of storing prot ected dealer data;
4. "Dealer management system provider" means a person who, for
compensation, maintains and provides access to a dealer data system
in which a dealer stores protected dealer data;
5. "Protected dealer data" means:
a. consumer data that a dealer generated or that the
consumer provided to the dealer that is not otherwise
publicly available and the consumer has not otherwise
provided consent or acknowledgment to share the
information, and
b. any other dealer data in connection with the dea ler's
daily business operations in which a dealer has rights
in a dealer data system ; and
6. Authorized integrator and dealer management system provider
do not include:
a. a manufacturer, distr ibutor or importer or any entity
that is a subsidiary or affil iate of, or acts on
behalf of, a manufacturer, distr ibutor or importer, or
b. a governmental body or other person that is acting in
accordance with federal, state , or local law or a
valid court order.
B. A dealer management system provider may:
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1. Condition access and ability of a dealer or authorized
integrator to receive, share, copy, use, write , or transmit
protected dealer data from or to a dealer data system on the
dealer's or authorized integrator's compliance with security
standards;
2. Require an authorized integrator to have express written
authorization from a dealer before allowing the aut horized
integrator to gain access to, receive, share, copy, use , or transmit
protected dealer data ; and
3. Deny access to a dealer data system to a dealer if the
dealer fails to pay an amount due to the dealer management system
provider under a lease, cont ract, or other agreement concerning the
dealer's access to or use of the dealer data system.
C. Except as provided in subsection B of this section, a dealer
management system provider shall not take any actio n that would
limit or prohibit the ability of a dealer or an authorized
integrator to receive, protect, store, copy, share , or use protected
dealer data, using means that include, but are not limited to:
1. Imposing an access fee on a dealer or authorized integrator;
and
2. Restricting a dealer or an autho rized integrator from
sharing protected dealer data or writing data or having access to a
dealer data system. Prohibited restrictions pursuant to this
paragraph include, but are not limited to:
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a. limits on the scope or nature of protected dealer dat a
to which a dealer or authorized integrator has access
or may share or write to a dealer data sy stem, and
b. a requirement for a dealer or authorized integrator to
provide sensitive or confidential business information
or information that a dealer or auth orized integrator
uses for competitive purposes in return for access to
protected dealer data or an authorization to share or
write protected dealer data to a dealer data system.
D. Except as otherwise provi ded in this section, any term or
condition of a contract with a dealer management system provider
that conflicts with the requirements set forth in subsection C of
this section is void and unenforceable to the extent of the
conflict.
E. An authorized integrator shall:
1. Obtain express written auth orization from a dealer before
gaining access to, receiving, sharing, copying, using, writing , or
transmitting protected dealer data;
2. Comply with security standards in gaining access to,
receiving, sharing, copying, using, writing , or transmitting
protected dealer data; and
3. Allow a dealer to withdraw, revoke , or amend any express
written authorization the dealer provides under paragraph 1 of this
subsection:
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a. at the sole discretion of the dealer, if the dealer
gives a thirty-day prior notice to an authorized
integrator, or
b. immediately, for good cause.
F. 1. This section does not pre vent a dealer, a dealer
management system provider, or an authorized integrator from
discharging the obligations of a dealer, dealer management system
provider, or an authorized integrator under federal, state , or local
law to secure and prevent unauthorized ac cess to protected dealer
data, or from limiting the scope of the obligations, in accordance
with federal, state, or local law.
2. A dealer management system pr ovider is not liable for any
action that a dealer takes directly with respect to securing or
preventing unauthorized access to protected dealer data, or for
actions that an authorized integrator takes in approp riately
following the written instructions of the dealer for securing or
preventing unauthorized access to protected dealer data, to the
extent that the actions prevent the dealer management system
provider from meeting a legal obligation to secure or prev ent
unauthorized access to protected dealer data.
3. A dealer is not liable for any action that an authorized
integrator takes directly with respec t to securing or preventing
unauthorized access to protected dealer data, or for actions that
the authorized integrator takes in appropriately following the
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written instructions of the dealer for securing or preventing
unauthorized access to protected dealer da ta, to the extent that the
actions prevent the dea ler from meeting a legal obligation to secure
or prevent unauthorized access to protected dealer data.
4. An authorized integrator is not liable for any action that a
dealer takes directly with respect to securing or preventing
unauthorized access to prote cted dealer data, or for actions that
the dealer takes in appropriately following the written instructions
of the authorized integrat or for securing or preventing unauthorized
access to protected dealer dat a, to the extent that the actions
prevent the authorized integrator from meeting a legal obligation to
secure or prevent unauthorized access to protected dealer da ta.
5. A manufacturer, distributor, importer, or any entity that is
a subsidiary or affiliat e of, or acts on behalf of, a manufacturer,
distributor, or importer is not liable for any action that a dealer,
dealer management system provider, authorized inte grator, or other
third party, except for a third party who the manufacturer has
provided the data to as provided for in paragraph 7 of this
subsection, takes directly with respect to securing or preventing
unauthorized access to protected dealer data, or for actions that an
authorized integrator, dealer management system provider, or other
third party takes in appropriately following the written
instructions of the dealer for securing or preventin g unauthorized
access to protected dealer data.
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6. Notwithstanding any other agre ement, an authorized
integrator shall indemnify and hold the new motor v ehicle dealer
harmless from any thi rd-party claims asserted against or damages
incurred by the new mot or vehicle dealer to the exten t caused by
access to, use of, or disclosure of cons umer data in violation of
this section.
7. Notwithstanding any other ag reement, a manufacturer,
distributor, importer, or any entity that is a subsidiary or
affiliate of, or acts on behalf of, a manufac turer, distributor, or
importer shall indemnify the d ealer for any third-party claims
asserted against or damages incurred by the dealer to the extent the
claims or damages are caused by the access to and unlawful
disclosure of protected dealer data resulti ng from a breach caused
by the manufacturer or distr ibutor or a third party to which the
manufacturer or distributor has pro vided the protected dealer data
in violation of this section, the written consent granted by the
dealer, or other applicable state o r federal law.
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 564.4 of Title 47, unless there
is created a duplication in numbering, reads as follows:
Any manufacturer or distributor who has new motor vehicle sales
and service agreements with new motor vehicle dealers in the state
shall allow its new motor vehicle dealers to offer consumers any
remote software upgrade or change to vehicle functions and features
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to a new motor vehicle which is of a line-make the new motor vehicle
dealer holds an active sales and service agreement for, as any
offered to consumers in the state by the manufacturer or
distributor, and such upgrade or change shall be available for an
authorized new motor vehicle de aler to offer to consumers at any
time during the life cycle of the vehicle, and subject to the
manufacturer or distributor ’s requirements, provided the same
continues to be made available and offered to consumers in the state
by the manufacturer or distributor. This section does no t apply to
remote software upgrades or changes administered at no cost to the
consumer, or related solely to the safety, regulatory requirements,
cybersecurity, recall of a motor vehicle, state or federal statutes,
regulations, or orders. Nothing in this section shall be construed
to limit or impair a manufacturer or distributor’s intellectual
property rights nor to grant a new m otor vehicle dealer authority to
sell, copy, modify, or use the manufacturer or distributor’s
intellectual property in a manner that has not been authorized by
the manufacturer or distributor. Nothing in this section shall
obligate a manufacturer, distrib utor, or other person to support or
maintain any software or change to vehicle functions and features .
SECTION 3. 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
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keeping open or operating any place or premi ses or residences
whether open or closed, for the purpose of selling, barterin g, or
exchanging, or offering for sale, barter, or exchange, any motor
vehicle or motor vehicles, whether new, used or se cond hand, on the
first day of the week, commonly called Sunday, except as otherwise
provided in this section; and provided, however, t hat this act shall
not apply to the opening of an establishment or pla ce of business on
the first day of the week for oth er purposes, such as the sale of
petroleum products, tire s, automobile accessories, or for the
purpose of operating and conducting a mo tor vehicle repair shop, or
for the purpose of supplying such services as towing or wrecking.
Antique, classic, or speci al interest automobiles sold, bartered,
auctioned, or exchanged by any person, firm, or corporation are
exempt from the provisions of t his section, as well as off-premise
off-premises sales of new motorize d recreational vehicles approved
by the Oklahoma New Motor Vehicle Commission pursuant to the
provisions of the Recreational Vehicle Franchise Act .
SECTION 4. AMENDATORY 47 O.S. 2021, Section 562, is
amended to read as fol lows:
Section 562. The following words, t erms and phrases, when used
in Sections 561 through 567, 572, 578.1, 579 and 579.1 of this
title, shall have the meanings respectively ascribed to them in this
section, except where the context clearly indicates a different
meaning:
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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, as 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, fir m,
association, corporation or trust not e xcluded by this paragraph who
sells, offers for sale, advertises to sell, leases or displays new
motor 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 adjustments 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 de livery to the purchaser.
"Performance of authorized post-sale work pursuant to the warranty",
as used herein, means the rendition of services which are required
by the terms of the warranty that stands extended to the vehicle at
the time of its sale and a re to be made in accordance with the
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safety standards prescribed by the manufacturer. The term includes
premises or facilities at which a person engages only in the repair
of motor vehicles if repairs are performed pursuant to the terms of
a franchise and motor vehicle manufacturer's warranty. However, the
term shall not include premises or facilitie s at which a new motor
vehicle dealer or deale rs within the area of responsibility of such
dealer or dealers as defined in the manufact urer'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 t erms "new motor
vehicle dealer" and "new motor vehicle dealership" shall be
synonymous. The term "new motor vehicle deal er" 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 operation of
their duties, or
c. employees of persons , corporations or associations
enumerated in subparagraph a of this paragraph when
engaged in the specific performance of their duties as
such employees, or
d. a powersports vehicle dealer;
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3. "Motor vehicle salesperson" means any person who, for gain
or compensation of any kind, either dire ctly or indirectly,
regularly or occasionally, by any form of agreement or arrangement,
sells or negotiates for the sale, lease, or conveyance or arranges
the financing of any new motor vehicle for as an employee of any new
motor vehicle dealer to any one or more third parties;
4. "Commission" means the Oklahoma New Motor Vehicle
Commission;
5. "Manufacturer" means any person, firm, association,
corporation or trust, resident or nonresident, who that manufactures
or assembles new and unused motor vehicles or who that engages in
the fabrication or assembly of motorized vehicles of a type required
to be registered in the State of Oklahoma this state;
6. "Distributor" means any person, firm, association,
corporation or trust, resident or nonresident, who that, being
authorized by the original manufacturer, in whole or in part, sells
or distributes new and unused mo tor vehicles to new motor vehicle
dealers, or who that maintains distributor representatives;
7. "Factory branch" means any branch office maintained by a
person, firm, association, corporation or trust who that
manufactures or assembles motor vehicles for the sale of motor
vehicles to distributors, or for the sale of motor vehicles to new
motor vehicle dealers, or for directing or supervising, in whole or
in part, its representatives;
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8. "Distributor branch" means any branch office similarly
maintained by a distr ibutor for the same purposes a factory branch
is maintained;
9. "Factory representative" means any officer or agent e ngaged
as a representative of a manufacturer of motor vehicles or by a
factory branch, for the purpose of making or promoting the sale of
its motor vehicles, or for supervising or contacting its dealers or
prospective dealers;
10. "Distributor representat ive" means any person, firm,
association, corporation or trust and each officer and employee
thereof engaged as a representative of a dist ributor or distributor
branch of motor vehicles, for the purpose of making or promoting the
sale of its motor vehicles , or for supervising or contacting its
dealers or prospective dealers;
11. "Franchise" means any contract or agreement between a new
motor vehicle dealer and a manufacturer of a new motor vehicle or
its distributor or factory branch by which the new motor vehicle
dealer is authorized to engage in the business of selling any
specified make or makes of new motor vehicles activities of a new
motor vehicle dealer as defined by this section;
12. "New or unused motor vehicle" means a vehicle which is i n
the possession of the manufacturer or distributor or has been sold
only to the holder of a valid selling agreement, franchise or
contract, granted by the manufacturer or distributor for the sale of
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that make of new vehicle so long as the manufacturer '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 rendering
of service for the make of motor vehicle for which the new motor
vehicle dealer holds a franchise or selling agreement;
14. "Off premises" means at a location other than the address
designated on the new motor vehicle dealer's license;
15. "Sponsoring entity" means any person, firm, association,
corporation or trust which ha s control, either permanently or
temporarily, over the real property upon which t he off-premise off-
premises sale or display is conducted;
16. "Product" means new motor vehicles and new motor vehicle
parts;
17. "Service" means motor vehicle warranty repa irs including
both parts and labor;
18. "Lead" means a consumer contact in respo nse to a factory
program designed to generate interest in purchasing or leasing a new
motor vehicle;
19. "Sell" or "sale" means to sell or lease;
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20. "Factory" means a manufacturer, distributor, factory
branch, distributor branch, factory representative or distributor
representative, which manufactures or distributes vehicle products;
21. "Powersports vehicle" means motorcycles, scooters, mopeds,
all-terrain vehicles, and utility vehicles;
22. "Powersports vehicle dealer" means any person, firm, or
corporation who that is in the business of selling any new
powersports vehicles except for retail implement dealers; and
23. "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;
24. "Consumer data" means nonpublic personal information
defined in 15 U.S.C., Section 6809(4) as it existed on January 1,
2023, that is:
a. collected by a new motor vehicle dealer, and
b. provided by the new motor vehicle dealer directly to a
manufacturer or third party acting on behalf of a
manufacturer.
The term shall not include the same or similar data obtained by
a manufacturer from any source other than the new motor vehicle
dealer or new motor vehicle dealer's data management system; and
25. "Fleet vehicle" means a new motor vehicle sold and titled
or registered to a business and used for business purposes only.
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SECTION 5. AMENDATORY 47 O.S. 2021, Sec tion 563, is
amended to read as follows:
Section 563. A. There is hereby created the Oklahoma New Motor
Vehicle Commission, to be composed of nine (9) members. Seven of
the members shall have been engaged in the manufacture, distribution
or sale of new motor vehicles 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 Senate. Such appointments shall
be made within thirty (30) days after the effective date of this
section. Each of the Commissioners thus appoi nted shall, at the
time of the appointment, be a resident in good faith of the State of
Oklahoma, shall be of good moral character, and each of the industry
related Commissioners shall have been actually engaged in the
manufacture, distribution or sale of such new motor vehicles for not
less than ten (10) years next preceding such appointment. The
members of the Commission shall serve at the pleasure of the
Governor.
B. 1. The Commissioners shall elect a Chair man 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 Commission.
Six members of the Commission shall be appointed from the following
geographical areas with a t least one member from each area:
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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 Oklahoma County and
Tulsa County.
There shall not be more than two members of the Commission from any
one area.
C. The terms of office of the members first appointed to the
Commission shall be as follows:
1. The members appointed from the northwest, northeast and
southwest areas shall serve until June 30, 1987;
2. The members appointed from the southeast area and Oklahoma
County and Tulsa Cou nty shall serve until June 30, 1989; and
3. The members appointed at large shall serve u ntil June 30,
1991.
Each member shall serve until a successor is appointed and
qualifies. Thereafter, the term of 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. In event of
death, resignation, removal, or term automatically expiring, of any
person serving on the Commission, the vacancy shall be fi lled by
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appointment as provided for the unexp ired portion of the term. The
Commission shall meet at Oklahoma City and complete its organization
immediately after the membership thereof has been appointed and has
qualified. The Chairman and each member of the Commission shall
take and subscribe to t he oath of office required of public
officers.
D. The members of the Commission shall receive reimbursement
for subsistence and traveling expenses necessarily incurre d in the
performance of their duties as prov ided by the State Travel
Reimbursement Act.
E. The Commission shall appoint a qualified person to serve as
Executive Director thereof, which person shall have had not less
than ten (10) years of experience in th e motor vehicle industry.
The Executive Director shall be appointed for a term of six (6 )
years, and shall not be subject 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 office.
The Executive Director may employ such clerical, technical and other
help and legal services and incur such expenses as may be n ecessary
for the proper discharge of the duti es 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
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adopt and use a seal. The Executive Director is hereby authorized
to hire, retain or otherwise acqui re the services of an attorney to
represent the Commission in any and all state and federal courts,
and assist the Commission in any and all business or legal matters
that may come before it. The attorney so re presenting the
Commission shall discharge the duties under the direction of the
Executive Director.
F. The Commission is hereby vested with the powers necessary to
enable it to fully and effectively carry out th e provisions and
objects of this act, and is hereby authorized and empowered to make
and enforce all reasonable rules and to adopt and prescribe all
forms necessary to accomplish such purpose. All forms 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 installm ent contracts executed by the purchasing
and selling parties.
G. All fees, charges and f ines collected under the provisions
of this act shall be deposited by the Executive 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, and except as hereinafter
provided the monies in the fund shall be used by the Commission for
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the purpose of carrying out and enforcing the provision s of this
act. Expenditures fro m the fund shall be made upon vouchers
approved by the Commission or its authorized officers.
At the close of each fiscal year, the Commission shall file with
the Governor and the State Auditor and Inspector a true and corre ct
report of all fees, fines and charges collected and received by it
during the preceding fiscal year and shall at the same time pay into
the General Revenue Fund of the state a sum equal to ten percent
(10%) of the fees, fines and charges so collected an d 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, postage, 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 paid into the General Revenue Fund as
above set out. In no event shall liability ever accrue he reunder
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, fines and charges deposited therein.
SECTION 6. AMENDATORY 47 O.S. 2021, Section 564, is
amended to read as follows:
Section 564. A. It shall be unlawful for any person, firm,
association, corporation or trust to engage in business as, or serve
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in the capacity of, or act as a new motor vehicle dealer or,
powersports vehicle dealer, manufacturer or distributor of new motor
vehicles or powersports vehicles , or factory branch, distributor
branch or factory representative or distributor repr esentative, as
such defined in Section 562 of this title, in this state without
first 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 than one place where such
business is carried on or 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 designated as principal in the dealer's franchise or the
managing officer or one partner if no principal person is named in
the franchise. It is further provided that a factory or an entity
affiliated by any owner ship or control by the factory shall not be
permitted to be licensed as a new motor vehicle dealer in this
state, except as provided by subparagraph b o f paragraph 12 of
Section 565 of this title.
B. Applications for licenses required to be obtained under
provisions of Section 561 et seq. of this title shall be verified 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 the applicants, and shall contain such information
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as the Commission deems necessary to enable it to fully determine
the qualifications and eligibility 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 th e pursuit, avocation or
business for which a license, or licenses, are applied for, and
whether the applicant is able to properly conduct the business for
which a license, or licenses, are applied for, and such other
pertinent information consistent with t he safeguarding of the public
interest and the public welfare. All such applications for license
or licenses shall be accompanied by the appropriate fee or fees
therefor in accordance with the schedule thereof hereinafter set
out. In the event any such a pplication is denied and the license
applied for is not issued, the entire license fee shall be returned
to the applicant. All licenses issued under 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 been made for renewal of licenses at the times described in this
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subsection, it shall be illegal for any person to represent himself
or herself and act as a dealer, manufacturer, distribut or or
manufacturer's or distributor's representative. Motor license
agents will be notified not to accept such dealers' titles until
such time as licenses have been issued by the Commission.
C. The schedule of license fees to be charged and received by
the Commission for th e licenses issued hereunder shall be as
follows:
1. For each factory branch or distributor branch, Four Hundred
Dollars ($400.00) initial fee with annual renewal fee of Three
Hundred Dollars ($300.00);
2. For each manufacturer or dist ributor of new motor vehicles,
Four Hundred Dollars ($400.00) initial fee with annual renewal fee
of Three Hundred Dollars ($300.00);
3. For each factory representative or distributor
representative, One Hundred Dollars ($100.00) annually;
4. For each new motor vehicle deal er, except powersports
vehicle dealers, initial fee of Three Hundred Dollars ($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, with an annual renewal fee of One Hundred
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Dollars ($100.00) per manufacturer represented by the dealer at each
location licensed per year.
D. The licenses issued to each new motor vehicle dealer,
manufacturer, distributor , factory branch, distrib utor branch or
representative, if a corporation, shall specify the location of the
factory, office or branch thereof. In case such location is
changed, the Commission may endorse the change of location on the
license without charg e unless the change of ad dress triggers a
relocation of a new motor vehicle dealer pursuant to the provisions
of Section 578.1 of this title. The license of each new motor
vehicle dealer shall be posted in a conspicuous place in the new
motor vehicle dealer's place or places of b usiness.
Every motor vehicle facto ry representative or distributor
representative if an individual shall physically possess the license
when engaged in business, and shall display same such upon request.
The name of the employer of such fac tory representative or
distributor representative shal l be stated on the license and, in
case of a change of employer, the holder of such license shall
immediately mail same such to the Commission for its endorsement of
such change thereon. The Commission shal l 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 powersports dealer.
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SECTION 7. 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:
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 con ducted;
3. The display is in dealer's factory-approved area of sales
and service responsibility;
4. The dealer must obtain written approval from 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 Vehicle Commission is authorized to
provide a variance to the distance requirements and the area of
sales and service responsibility requirements specified in this
section, for any off -premise display event if:
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1. The the off-premise display is conducted within 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 writing to the
Commission no less than thirty (30) days prior to the off-premise
display event.
SECTION 8. AMENDATORY 47 O.S. 2021, Section 564.2, is
amended to read as follows:
Section 564.2 It shall be punishable by an administrative fine
not to exceed Five Hundred Dollars ($500.00) for any person, firm,
association, corporation or trust to engage in busin ess as, or serve
in the capacity of, a new motor vehic le salesperson in this state
without first obtaining a certificate of registration 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 employing entity of the
new salesperson. The Commission shall promulgate rules and
procedures necessary for the implementation and cre ation of the
registry and the issuance of certific ates of registration.
SECTION 9. AMENDATORY 47 O.S. 2021, Section 565, as
amended by Section 3, Chapter 192, O.S.L. 2022 (47 O.S. Supp. 2022,
Section 565), is amended to read as follows:
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Section 565. A. The Oklahoma New Motor Vehicle Commission may
deny an application for a license, or revoke or suspend a license,
or impose a fine against any person or entity, not to exceed Ten
Thousand Dollars ($10,000.00) against a manufacturer or distributor
or a fine not to exceed On e 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 u nder the provisions of Section 561 et
seq. of this title;
2. For any material misstatement made by an applicant in any
application for any licens e under the provisions of Section 561 et
seq. of this title;
3. For any failure to comply with any provision of Section 561
et seq. of this title or any 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 g ranted resulting in
failure to maintain the qualifications for lic ense;
5. Being a new motor vehicl e dealer who:
a. has required a purchaser of a new motor vehicle, as a
condition of sale and delivery thereof, t o also
purchase special features, appliances , accessories or
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equipment not desired or requested by the purchas er
and installed by the new motor vehicle dealer,
b. uses any false or misleading advertising in connection
with business as a new motor vehicle d ealer,
c. has committed any unlawful act whi ch resulted in the
revocation of any similar license in another st ate,
d. has failed or refused to p erform any written agreement
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 new motor
vehicle dealer and poses a reasonabl e threat to public
safety,
f. has committed a fraudulent act in selling, purchasing
or otherwise dealing in new motor vehicles or has
misrepresented the terms and 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 vehicle,
g. has failed to meet or maintain the conditions and
requirements necessary to qualify for the issuance of
a license, or
h. completes any sale or transaction of an extended
service contract, extended maintenance plan, or
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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 vehicl e 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, an d
which is staffed with properly trained and qualified
repair technicians and is equipped with such parts,
tools and equipment as may be requi site for the
servicing of motor vehicles in such a manner as to
make them comply with the safety laws of this stat e
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 mot or
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
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work pursuant to the manufacturer's or distributor's
warranty,
d. employs a person without obtaining a certificate of
registration for the person, o r utilizes the services
of used motor vehicle lo ts or dealers or other
unlicensed persons in connection with the sale of new
motor vehicles,
e. does not properly service a new motor vehicle before
delivery of same to the origi nal purchaser thereof, or
f. fails to order and stock a reasonable number of n ew
motor vehicles necessary to meet customer consumer
demand for each of the new motor vehicles included in
the new motor vehicle dealer 's franchise agreement,
unless the 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 attempted to induce by means of
coercion or intimidation, any new motor vehicle
dealer:
(1) to accept delivery of any motor vehicle o r
vehicles, parts or accessories therefor, or an y
other commodities including advertising material
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which shall not have been ordered by the new
motor vehicle dealer,
(2) to order or accept delivery of any motor vehicle
with special features, appliances, ac cessories 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 delive ry of any parts,
accessories, equipment, machinery, tools,
appliances or any commodity whatsoeve r, or
b. induced under threat or discrimination by the
withholding from delivery to a new motor vehicle
dealer certain models of motor vehicles, changing or
amending unilaterally the new motor vehicle dealer's
allotment of motor vehicles and/or withholding and
delaying delivery of such the vehicles out of the
ordinary course of business, in order to indu ce by
such coercion any such new motor vehicle dealer to
participate or contribute to any local or national
advertising fund contr olled directly or indirectly b y
the factory or for any other purposes such as contest,
"give-aways" "giveaways" or other so-called sales
promotional devices and/or change of quotas in any
sales contest; or has required new motor vehicle
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dealers, as a condition to receiving their vehicl e
allotment, to order a certain percentage o f 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 all new motor
vehicle dealers on the same basis ;,
c. used a performance standard, sales objective or
program for measuring dealer performance that may have
a material effect on a right of the dealer to vehicle
allocation; or payment under any incentive or
reimbursement program that is unfair, unreasonable,
inequitable, and not based on accurate information,
d. used a performance standard for measuring sales or
service performance of any new motor vehicle dealer
under the terms of the franchise agr eement which:
(1) is unfair, unreasonable, arbitrary or
inequitable, and
(2) does not consider the relevant and material loca l
and state or regional criteria, including
prevailing economic conditions affecting the
sales or service performance of a vehicle dealer
or any relevant and mat erial data and facts
presented by the dealer in writing within thirty
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(30) days of the written notice of the
manufacturer to the dealer of its intention to
cancel, terminate, or not renew the dealer 's
franchise agreement,
e. failed or refused to sell, or offer for sale, new
motor vehicles to all of its authorized same line -make
franchised new motor vehic le dealers at the same price
for a comparably equipped motor vehicle, on the same
terms, with no differential in functionally avail able
discount, allowance, cred it or bonus, except as
provided in subparagraph e of paragraph 9 of this
subsection,
f. failed to provide reasonable compensation to a new
motor vehicle dealer substantially equivalent to the
actual cost of providing a manufac turer-required
loaner or rental vehicle to any consumer who is having
a vehicle serviced at the dealership. For purposes of
this paragraph, actual cost is the average cost in the
new motor vehicle dealer 's region for the rental of a
substantially similar m ake and model as the vehicle
being serviced, or
g. failed to make available to its new motor vehicle
dealers a fair and pro portional share of all new
vehicles distributed to same line -make dealers in this
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state, subject to the same reasonable terms, including
any vehicles distributed f rom a common new vehicle
inventory pool outside of the factory 's ordinary
allocation process such as any vehicles the factory
reserves to distribute on a discretionary basis ;
9. Being a factory that:
a. has attempted to coer ce or has coerced any new moto r
vehicle dealer to enter into any agreement or to
cancel any agreement , or fails; has failed to act in
good faith and in a fair, equitable and
nondiscriminatory manner; or has directly or
indirectly coerced, intimidated, threatened or
restrained any new motor vehicle dealer; or has acted
dishonestly, or has failed to act in accordance with
the reasonable standar ds of fair dealing,
b. has failed to compensate its dealers 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 fo und by the Commission to be
reasonable, or fail has failed to adequately and
fairly compensate its dealers for labor, parts and
other expenses incurred by such the dealer to perform
under and comply with manufacturer 's warranty
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agreements and recall repairs w hich shall include
diagnostic work as applicable and assistance requested
by a consumer whose vehicle was subjected to an over -
the-air or remote change, repair , or update to any
part, system, accessory, or function by the
manufacturer and performed by the dealer in order to
satisfy the consumer. Time allowances for the
diagnosis and performance of repair work shall be
reasonable and adequate for the work to be performed.
Adequate and fair compensation, which under this
provision shall be no less than the ra tes customarily
charged for retail consumer repairs as calculated
herein, for parts and/or labor for warranty and recall
repairs shall, at the option of the new motor vehicle
dealer, be established by the new motor vehicle dealer
submitting to the manufact urer or distributor one
hundred sequential nonwarranty customer-paid consumer-
paid service repair orders which contain warranty -like
parts repairs, or ninety (90) consecutive days of
nonwarranty customer-paid consumer-paid service repair
orders which contain warranty -like parts repairs,
whichever is less, covering repairs made no more than
one hundred eighty (180) days before the subm ission
and declaring the average percentage labor rate and/or
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markup rate. Adequate and fair compensation for labor
shall be established by the dealer submitting to the
manufacturer or distributor one hundred sequential
customer-paid service repair orders which contain
labor charges, or ninety (90) consecutive days of
customer-paid service repair orders which contain
labor charges, whicheve r is less. A new motor vehicle
dealer may not submit a request to establish its
retail rates more than once in a twel ve-month period.
That request may establish a parts mark-up rate, labor
rate, or both. The new motor vehicle dealer shall
calculate its retail parts rate by determining the
total charges for parts from the qualified repair
orders submitted, dividing that amount by the new
motor vehicle dealer's total cost of the purchase of
those parts, subtracti ng one (1), and multiplying by
one hundred (100) to produce a percentage. The new
motor vehicle dealer shall calculate its retail labor
rate by dividing the amou nt of the new motor vehicl e
dealer's total labor sales from the qualified repair
orders by the total labor hours charged for those
sales. When submitting repair orders to calculate
establish a retail parts and labor rate, a new motor
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vehicle dealer need not include repair orders repairs
for:
(1) routine maintenance including, but not limited
to, the replacement of bulbs, fluids, filters,
batteries, and belts that are not provided in the
course of and related to a repair,
(2) factory special events, spec ials, or promotional
discounts for retail consumer repairs,
(3) parts sold or repairs performe d at wholesale,
(4) factory-approved goodwill or policy repairs or
replacements,
(5) repairs with aftermarket parts, when calculating
the retail parts rate but no t the retail labor
rate,
(6) repairs on aftermarket parts,
(7) replacement of or work on t ires including front -
end alignments and wheel or tire rotations,
(8) repairs of motor vehicles owned by the new motor
vehicle dealer or employee thereof at the time of
the repair,
(9) vehicle reconditioning, or
(10) items that do not have individual par t numbers
including, but not limited to, nuts, bolt s and
fasteners.
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A manufacturer or distributor may, not later than thirty
(30) forty-five (45) days after submission, rebut that
declared retail parts and labor rate in writing by
reasonably substantiating that the r ate is inaccurate or
unreasonable in light of the pra ctices of all other
franchised motor vehicle dealers in an economically similar
part of the state offering the same line-make vehicles not
accurate or is incomplete pursuant to the provisions of
this section. If the manufacturer or distributor
determines the set of repair orders submitted by the new
motor vehicle dealer pursuant to this section for a retail
labor rate or retail parts markup rate is substantially
higher than the new motor vehicle dealer 's current warranty
rates, the manufacturer or distributor may request, in
writing, within forty-five (45) days after the
manufacturer's or distributor's receipt of the new motor
vehicle dealer's initial submission, all repair orders
closed within the period of thirty (30) days immediately
preceding, or thirty (30) days immediately following, the
set of repair orders initially submitted by the new motor
vehicle dealer. All time periods under this secti on shall
be suspended until the supplemental repair orders are
provided. If the manufacturer or distributor requests
supplemental repair orders, the manufacturer or distributor
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may, within thirty (30) days after r eceiving the
supplemental repair orders an d in accordance with the
formula described in this subsection, calculate a proposed
adjusted retail labor rate or retail parts markup rate, as
applicable, based upon any set of the qualified re pair
orders submitted by t he franchisee and following the
formula set forth herein to establish the rate . The retail
rate labor and parts rates 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 decl ared rate as described above or
distributor. If the declared rate is rebutte d, the
manufacturer or distributor shall provide written notice
stating the reasons for the rebuttal, an explanation of the
reasons for the rebuttal, and a copy of all calculation s
used by the franchisor in determining the manufacturer or
distributor's position and propose an adjustment in writing
of the average percentage markup or labor rate based on
that rebuttal not later than thirty (30) da ys after
submission. If the new motor vehicle dealer does not agree
with the proposed average percentage markup or labor rate,
the new motor vehicle dealer may file a protest with the
Commission not later than thirty (30) days af ter receipt of
that proposal by the manufacturer or distributor . In the
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event a protest is filed, the manufacturer or distributor
shall have the burden of proof to establish the new motor
vehicle dealer's submitted parts markup rate or labor rate
was inaccurate or unreasonable in light of the practices of
all other franchised motor vehicle dealers in an
economically similar part of the state not complete
pursuant to the provisions of this section . A manufacturer
or distributor may not retaliate against any new motor
vehicle dealer seeking to exercise its rights under this
provision section. A manufacturer or distributor may
require a dealer to submit repair orders in accordance with
this section in order to validate the reasonableness of a
dealer's retail rate for parts or labo r not more often than
once every twelve (12) months. A manufacturer or
distributor may not otherwise recover its costs from new
motor vehicle dealers within this state including a
surcharge imposed on a new motor vehicle dealer s olely
intended to recover the cost of reimbursing a new motor
vehicle dealer for parts and labor pursuant to this
section; provided, a manuf acturer or distributor shall not
be prohibited from increasing prices for vehicles or parts
in the normal course of business or from auditing and
charging back claims in accordance w ith this section. All
claims made by dealers for compensation for delivery,
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preparation and, warranty, or recall repair 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 notified in writing of the grounds for disappro val. The
dealer's delivery, preparation and warra nty obligations as
filed with the Commission shall constitute the dealer 's
sole responsibility for product l iability as between the
dealer and manufacturer. A factory may reasonably and
periodically audit a new motor vehicle dealer to determine
the validity of paid claims for new motor vehicle dealer
compensation or any charge -backs for warranty parts or
service compensation. Except in cases o f suspected fraud,
audits of warranty payments shall only be for the one-year
period immediately following the dat e of the payment. A
manufacturer shall reserve the right to reasonable,
periodic audits to determine the va lidity 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 cha rge a new motor
vehicle dealer back subsequent to the payment of the claim
unless the factory can show that the cl aim was false or
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fraudulent or that the new motor vehicle dealer failed to
reasonably substantiate the claim by the written reasonable
procedures of the factory. A factory shall not deny a
claim or implement a charge-back against a new motor
vehicle dealer after payment of a claim in the event a
purchaser of a new vehicle that is the subject of a claim
fails to comply with titling or registrati on laws of this
state and is not prevented from compliance by an y action of
the new motor vehicle dealer; provided , that the factory
may require the new motor vehicle dealer to provide, within
thirty (30) days of notice of chargeback, withholding of
payment, or denial of claim, the documentation to
demonstrate the vehicle sale , delivery and customer
qualification for an incentive as reported, including
consumer name and address, and written attestation signed
by the dealer operator or general manager stating the
consumer was not on the export control list and the de aler
did not know or have reason to know the vehicle was being
exported or resold.
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 notice of a proposed
charge-back pursuant to a factory's audit has the right to
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file a protest with the Commission within thirty (30) days
after receipt of the notice of the charge-back or audit
results, whichever is later. The factory is prohibited
from implementing the charge -back or debiting the dealer's
account until either the time frame for filing a protest
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. fails to compensate the new motor v ehicle dealer for a
used motor vehicle:
(1) that is of the same make and model manufa ctured,
imported or distributed by the factory and is a
line-make that the new motor vehicle dealer is
franchised to sell or on which the new motor
vehicle dealer is autho rized to perform recall
repairs,
(2) that is subject to a stop-sale or do-not-drive
order issued by the factory or an authorized
governmental agency,
(3) that is held by the new motor vehicle dealer in
the dealer's inventory at the time the stop -sale
or do-not-drive order is issued or that is ta ken
by the new motor vehicle dealer into the dealer's
inventory after the recall notice as a result of
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a retail consumer trade-in or a lease return to
the dealer inventory in accordance with an
applicable lease con tract,
(4) that cannot be repaired due to the
unavailability, within thirty (30) days a fter
issuance of the stop-sale or do-not-drive order,
of a remedy or parts necessary for the new motor
vehicle dealer to make the recall repair, and
(5) that is not at least in the prorated amount of
one percent (1.00%) of the value of the vehicle
per month beginning on the date that is thirty
(30) days after the date on which the stop-sale
order was provided to the new motor vehicle
dealer until the earlier of either of the
following:
(a) the date the recall remedy or parts are made
available, or
(b) the date the new motor vehicle dealer sells,
trades, or otherwise disposes of the
affected used motor vehicle.
For the purposes of division (5) of this subparagraph, the val ue
of a used vehicle shall be the average Black Book value for the
year, make, and model of the recalled vehicle.
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A factory may direct the ma nner and method in which a new motor
vehicle dealer must demonstrate the inventory status of an affected
used motor vehicle to determine eligibility under this subparagraph;
provided, that the manner and method may not be unduly burdensome
and may not require information that is unduly burdensome to
provide.
All reimbursement claims made by new motor vehicle dealers
pursuant to this section for recall remedies or repairs, or for
compensation where no part or repair is reasonably available and the
vehicle is subject to a stop-sale or do-not-drive order, shall be
subject to the same limitations and requirements as a warra nty
reimbursement claim made under subparagraph b of this paragraph. In
the alternative, a manufacturer may compensate its franchised new
motor vehicle dealers under a national recall compensation program;
provided, the compensation under the program is e qual to or greater
than that provided under division (5) of this subparagraph, or as
the manufacturer and new motor vehicle dealer otherwise agree.
Nothing in this section shall require a factory to provide total
compensation to a new motor vehicle dealer which would exceed the
total average Black Book value of the affected used motor vehicle as
originally determined under division (5) of this subparagraph.
Any remedy provided to a new motor vehicle dealer under this
subparagraph is exclusive and may not be combined with any other
state or federal compensation remedy.
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d. unreasonably fails or refuses to offer to its same
line-make franchised dealers a reasonable supply and
mix of all models manufactured for that line -make, or
unreasonably requires a dealer t o pay any extra fee,
purchase unreasonable advertising displays or other
materials, or enter into a separate agreement which
adversely alters the rights or obligations contained
within the new motor vehicle dealer 's existing
franchise agreement or which wa ives any right of the
new motor vehicle dealer as protected by Section 561
et seq. of this title, or remodel, renovate, or
recondition the new motor vehicle dealer's existing
facilities as a prerequisite to receiving a model or
series of vehicles, except as may be necessary to sell
or service the model or series of vehicles as provided
by subparagraph e of this paragraph. It shall be a
violation of this section for new vehicle allocation
to be withheld subject to any requirement to purchase
or sell any number of used or off-lease vehicles. The
failure to deliver any such new motor vehicle sh all
not be considered a violation of the section if the
failure is not arbitrary or is due to lack of
manufacturing capacity or to a strike or labor
difficulty, a shortage of materials, a freight embargo
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or other cause over which the manufacturer has no
control. However, this subparagraph shall not apply
to recreational vehicles, or limited production model
vehicles, a vehicle not advertised by the factory for
sale in this state, vehicles that are subject to
allocation affected by federal or state environmental
laws, or to vehicles allocated in response to an
unforeseen event or circumstance ,
d.
e. except as necessary to comply with a health or safety
law, or to comply with a technology requirem ent which
is necessary to sell or service a motor vehicle that
the franchised new motor vehicle dealer is authorized
or licensed by the franc hisor to sell or service,
requires a new motor vehicle dealer to construct a new
facility or substantially renovate the new motor
vehicle dealer's existing facility unless the fa cility
construction or renovation is justified by the
economic conditions exis ting at the time, as well as
the reasonably foreseeable projections, in the new
motor vehicle dealer 's market and in the automotive
industry. However, this subparagraph shall no t apply
if the factory provides new motor vehicle dealer
voluntarily agrees to facility construction or
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renovation in exchange for money, credit, allowance,
reimbursement, or additional vehicle all ocation to a
new motor vehicle dealer from the factory to
compensate the new motor vehicle dealer for the cost
of, or a portion of the co st of, the facility
construction or renovation. Except as necessary to
comply with a health or safety law, or to compl y with
a technology or safety requirement which is necessar y
to sell or service a motor vehicle that the franchised
new motor vehicle dea ler is authorized or licensed by
the franchisor to sell or service, a new motor vehicle
dealer which completes a facili ty construction or
renovation pursuant to factory requireme nts shall not
be required to construct a new facility or renovate
the existing facility if the same area of the facility
or premises has been constructed or substantially
altered within the last te n (10) years and the
construction or alteration was approve d by the
manufacturer as a part of a facility upgrade program,
standard, or policy. For purposes of this
subparagraph, "substantially altered" means to perform
an alteration that substantially im pacts the
architectural features, characteristics, or integrity
of a structure or lot. The term shall not include
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routine maintenance reaso nably necessary to maintain a
dealership in attractive condition. If a facility
upgrade program, standard, or policy under which the
dealer completed a facility construction or
substantial alteration does not contain a specific
time period during which th e manufacturer or
distributor shall provide pa yments or benefits to a
participating dealer, or the time frame specifie d
under the program is reduced or canceled prematurely
in the unilateral discretion of the manufacturer or
distributor, the manufacturer or distributor shall not
deny the participatin g dealer any payment or benefit
under the terms of the program, standard , or policy as
it existed when the dealer began to perform under the
program, standard, or policy for the balance of the
ten-year period, regardless of whether the
manufacturer's or distributor's program, standard, or
policy has been changed or canceled, unless the
manufacturer and dealer agree, in writing, to the
change in payment or benefit,
e.
f. requires a new motor vehicle dealer to es tablish an
exclusive facility, unless supporte d by reasonable
business, market and economic considerations;
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provided, that this provision section shall not
restrict the terms of any agreement for such exclusive
facility voluntarily entered into and support ed by
valuable consideration separate from the new motor
vehicle dealer's right to sell and service motor
vehicles for the franchisor,
f.
g. requires a new motor vehicle 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 section 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 extinguishes 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 product line, or
g.
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h. refuses to pay, or claims reimbursement from, a new
motor vehicle dealer for sales, incentives or other
payments related to a mot or vehicle sold by the new
motor vehicle dealer because the purchaser of the
motor vehicle exported or resold the moto r vehicle in
violation of the policy of the factory unless the
factory can show that, at the time of the sale, the
new motor vehicle deale r knew or reasonably should
have known of the pu rchaser's intention to export or
resell the motor vehicle. There is a rebuttable
presumption that the new motor vehicle dealer did not
know or could not have known that the vehicle would be
exported if the vehicle is titled and registered in
any state of the United States, or
i. requires a new motor vehicle dealer to purcha se goods
or services for the construction, renovation, or
improvement of the dealer's facility from a vendor
chosen by the factory if good s or services available
from other sources are o f substantially similar
quality and design and comply with all applica ble
laws; provided, however, that such goods 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
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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 righ ts or trade dress
usage guidelines. Nothing in this section prohibits
the enforcement of a voluntary agreement betwee n the
factory and the new motor vehicle dealer where
separate and valuable consideration has been offered
and accepted;
10. Being a factory that:
a. establishes a system of motor vehic le allocation or
distribution which is unfair, inequitable or
unreasonably discriminatory. Upon the request of any
new motor vehicle dealer franchised by it, a factory
shall disclose in writing to the new motor vehicle
dealer the basis upon which new moto r vehicles are
allocated, scheduled and delivered among the new motor
vehicle dealers of the same line-make for that
factory, or
b. changes an established plan or system of motor vehicle
distribution. A new motor vehicle dealer franchise
agreement shall continue in full force and operation
notwithstanding a change, in whole or in part, of an
established plan or system of distributi on of the
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motor vehicles offered or previously offered for sale
under such franchise agreement. The appointment of a
new importer or distributor for motor vehicles offered
for sale under such fran chise agreement shall be
deemed to be a change of an established plan or system
of distribution. The discontinuation of a line -make
shall not be deemed to be a change of an established
plan or system of motor vehicle distribution. The
creation of a line-make shall not be deemed to be a
change of an established plan or system of motor
vehicle distribution as long as the new line -make is
not selling the same, or substantially the same ,
vehicle or vehicles previously sold through another
line-make by new motor vehicle dealers with an active
franchise agreement for th e other line-make in the
state if such new motor vehicle dealers are no longer
authorized to sell the comparable vehicle previously
sold through their line -make. Changing a vehicle 's
powertrain is not sufficient to show it is
substantially different. Upon the occurrence of such
change, the manufacturer or distributor shall be
prohibited from obtaining a license to distribute
vehicles under the new plan or system of distribution
unless the manufacturer or distributor offers to each
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new motor vehicle dealer who is a party to the
franchise agreement a new franchise agreement
containing substantially the same provisions which
were contained in the previous franchise agreement ;
11. Being a factory that sells directly or indirectly new motor
vehicles to any retail consumer in the state except thr ough a new
motor vehicle dealer holding a f ranchise for the line-make that
includes the new motor vehicle. This paragraph does not apply to
factory sales of new motor vehicles to its employees, family members
of employees, retirees and family members of r etirees, not-for-
profit organizations , or the federal, state, or local governments.
The provisions of this paragraph shall not preclude a factory from
providing information to a consumer for the purpose of marketing or
facilitating a sale of a new motor veh icle or from establishing a
program to sell or offer to sell new motor vehicles through
participating dealers subject to the limitations provided in
paragraph 2 of Section 562 of this title;
12. a. Being a factory which directly 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 pursuant to
the public terms of the franchise agreement,
(2) operates or controls a new motor vehicle dealer,
or
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(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 franchise and whose
initial investment is subject to potential loss.
The dealer development candidate can reasonably
expect to acquire full ownership of a new motor
vehicle dealer within a reasonable period of time
not to exceed ten (10) years a nd on reasonable
terms and conditions. Th e ten-year acquisition
period may be expanded for good cause shown.
(2) This paragraph does not prohibit a factory fro m
owning, operating, controlling or acting in the
capacity of a new motor vehicle dealer for a
period not to exceed twelve (12) months dur ing
the transition from one independent dealer to
another independent 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 Oklahoma New Motor Vehicle Commission may
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extend 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 factory from
owning, operating or controlling or acting in the
capacity of a new motor vehicle dealer which was
in operation prior to January 1, 2000.
(4) This paragraph does not prohibit a fac tory from
owning, directly or indirectly, a minority
interest in an entity that owns, operates or
controls new motor vehicle dealerships of the
same line-make franchised by the manufacturer,
provided that each of the following conditions
are met:
(a) all of the new motor vehicle dealerships
selling the motor vehicles of that
manufacturer in this state trade exclusively
in the line-make of that manufacturer,
(b) all of the franchise agreements 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 ag ree are appropriate,
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(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 new 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
franchise agreements with new motor vehicle
dealers licensed by the Oklahoma 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 new motor vehicle dealers an
offering-circular offering circular in
accordance with the Trade Regulation Rule on
Franchising of the Fe deral Trade Commission,
and any guidelines and exemptions issued
thereunder, which disclose the possibility
that the factory may fro m time to time seek
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to own or acquire, directly or indirectly,
ownership interests in retail dealerships;
13. Being a factory which directly or indirectly makes
available for public disclosure any proprietary information provided
to the factory by a new m otor vehicle dealer, other than in
composite form to new motor vehicle dealers in the same line -make or
in response to a sub poena or order of the Commission or a court.
Proprietary information includes, but is not limited to,
information:
a. derived from monthly financial statements provided to
the factory, and
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 timely manner. Nothing in this paragraph shall
be construed to require a factory to disregard the preference of a
consumer in providing or directing a lead;
15. Being a factory which used the customer consumer list of a
new motor vehicle dealer for the purpose of unfairly competi ng 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:
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a. the facility and the proposed new location satisfies
or meets the written reasonable guidelines of the
factory. Reasonable guidelines do not include
exclusivity or site control unless agreed to as set
forth in subparagraphs e f and f g of paragraph 9 of
this subsection,
b. the proposed new location is within the area of
responsibility of the new mo tor vehicle dealer
pursuant to Section 578.1 of this title, and
c. the factory has sixty (60) days from receipt of 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;
17. Being a factory which prohibits a new motor vehicle 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 guidelines do not in clude a
requirement to maintain exclusivity or site control unless agreed to
by the dealer as set forth in subparagraphs e f and f g of paragraph
9 of this subsection;
18. Being a factory that increases prices of new motor vehicles
which the new motor veh icle dealer had ordered for retail consumers
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and notified the factory pr ior to the new motor vehicle dealer's
receipt of the written official price increa se notification. A
sales contract signed by a retail consumer accompanied with proof of
order submission to the factory shall constitute evidence of each
such order, provided that the vehicle is in fact delivered to the
customer consumer. Price differences applicable to new models or
series motor vehicles at the time of the introduction of new models
or series shall not b e considered a price increase for purposes of
this paragraph. Price cha nges caused by any of the following shall
not be subject to the provisions of this paragraph:
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
c. an increase in transpo rtation charges due to increased
rates imposed by common or contract carriers;
19. Being a factory that requires a new motor vehicle dealer to
participate monetarily in an advertising campaig n 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 new motor vehicle dealer, which
consent shall not be unreasonably withheld;
20. Being a factory that denies any new motor vehicle dealer
the right of free association with any other new motor vehicle
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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 exclusively an extended service
contract, extended maintenance plan or similar 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 impact the new motor vehicle
dealer,
b. by measuring the new motor vehicle dealer's
performance under the franchise based on the sale of
extended service contracts, exte nded maintenance plans
or similar products offered, endorsed or sponsore d by
the manufacturer or distributor.
B. Notwithstanding the terms of any franchise agreement, in th e
event of a proposed sale or transfer of a dealership, the
manufacturer or distrib utor shall be permitted to exercise a right
of first refusal to acquire the assets or ownership interest of the
dealer of the new motor vehicle dealership, if such sale or transfe r
is conditioned upon the manufacturer or dealer entering into a
dealer agreement with the proposed new owner or transferee, only if
all the following requ irements are met:
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1. To exercise its ri ght of first refusal, the factory must
notify the new motor vehicle dealer in writing within sixty (60)
days of receipt of the completed proposal for the pr oposed sale
transfer;
2. The exercise of the right of first refusal will resu lt in
the new motor vehicle dealer and the owner of the dealership
receiving the same or greater consideration as they have contracted
to receive in connection with the proposed change of ownershi p or
transfer;
3. The proposed sale or transfer of the assets of the
dealership does not involve the transfer or sale to a member or
members of the family of one or more dealer o wners, or to a
qualified manager or a partnership or corporation controlled b y such
persons; and
4. The factory agrees to pay the reasonable expenses, inc luding
attorney fees which do not exceed the usual, customary a nd
reasonable fees charged for similar work done for other clients
incurred by the proposed new owner and transfere e prior to the
exercise by the factory of its right of first refusal in negoti ating
and implementing the contract for the proposed sale or tr ansfer 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 transferee has not submit ted or caused to be
submitted an accounting of those expenses w ithin thirty (30) days of
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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 first refusal.
C. Nothing in this section shall prohibit, limit, restrict or
impose conditions on:
1. Business activiti es, including without limitation the
dealings with motor vehicle manufacturer s and the representatives
and affiliates of motor vehicle manufacturers, of an y person that is
primarily engaged in the business of short -term, not to exceed
twelve (12) months, r ental of motor vehicles and industrial and
construction equipment and activit ies incidental to that business,
provided that:
a. any motor vehicle sold by t hat person is limited to
used motor vehicles that have been pre viously 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,
b. warranty repairs performed by that p erson on motor
vehicles are limited to those motor vehicles tha t it
the person owns, previously owned or takes i n trade,
and
c. motor vehicle financing provided by that person to
retail consumers for motor vehicles is limited to used
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vehicles sold by that pers on in the conduct of
business; or
2. The direct or indirect ownership , 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 necessarily related to the occupation; and
2. "Poses a reasonable threat" means the nature of criminal
conduct for which the p erson was convicted involved an act or threat
of harm against another and has a bearing on the fitness or ab ility
to serve the public or work with others in the occupation.
E. Nothing in this section shall prohibit a manuf acturer or
distributor from requiring a dealer to be in compliance with the
franchise agreement and authorized to sell a make and model based on
applicable reasonable standards and requirements that include, but
are not limited to, any facility, technology , or training
requirements necessary to sell or service such vehicle, in order to
be eligible for delivery or allotment o f a make or model of a new
motor vehicle or an incentive.
SECTION 10. AMENDATORY 47 O.S. 2021, Section 565.1, is
amended to read as follows:
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Section 565.1 A. For the purposes of this section, "designated
successor" means a person who the new motor vehicle dealer has
designated to take over operation of the dealership or a legal heir
or devisee under the will of a new motor vehicle dealer or und er the
laws of descent and distribution of this state .
B. Notwithstanding the terms of any franchise agreement, and
subject to the following conditions contained in paragraphs 1
through 5 of this section subsection, any manufacturer or
distributor who prevents or refuses to honor the succession to the
operation of a 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 a designated successor, without good
cause or good faith, as defined in this section, shall be subject to
the following procedure:
1. Within one hundr ed twenty (120) days after the death or
departure of the new motor vehicle dealer, the manufacturer shall
receive a written notice from any legal heir or devisee the
dealership of the designated successor who intends to establish a
become the successor dealership operator. If timely notice 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 dealership's timely written notice , the manufacturer may
request, and the legal heir or devisee designated successor shall,
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within a reasonable time, provide any information which is
reasonably necessary for the manufacturer to evaluate the proposed
designated 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 proposed designated
successor dealership dealer, and in case of disapproval shall
communicate in writing such disapproval and grounds for disapproval
to the legal heir or devisee dealership;
4. Failure of the manufacturer to act in a timely manner with
respect to any time period described above shall constitute a wai ver
of the manufacturer's right to disapprove the proposed succession;
and
5. Within ten (10) days of its the dealership's receipt of the
manufacturer's notice of disapproval, the legal heir or devisee
dealership 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 ) days 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
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heir or devisee's controlling executive management, designated
successor 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 designated
successor who is a family member and who is of good moral character
in accordance with the factory's reasonable factory qualifications
and meets the factory's financial qualifications may rely on
controlling executive manage ment that is of good moral character and
meets the factory's qualifications for general business experience
and other requirements relating to prospective franchi ses. Any
denial of the designated successor based upon a failure to agree to
terms other than those contained in the existing franchise
agreement, related addendums and agreements, and any writ ten notice
provided to the existing de aler prior to the manufacturer's or
distributor's receipt of any written notice from the existing dealer
of the proposed transfer shall not be considered good cause for such
denial. However, any proposed change to the franchise pursuant to
written notice from the manufacturer or distributor, to be valid,
shall be in compliance with existing law. The disapproval by the
manufacturer shall be final if the legal heir or devisee dealership
fails to file a timely protest of such the disapproval. In the
event that the Commission finds that the manufacturer's disapproval
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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 dealership.
Notwithstanding anything to the contrary in this 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 franchise shall govern the dealership
succession.
The suspension, revocation or refusal to issue or renew a
license or the imposition of any other penalty by the Commission
shall be in addition to any penalty wh ich 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 11. 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 shall terminate, cancel or fail to renew any
franchise with a licensed new motor vehicle dealer unless the
manufacturer has satisfied the notice requirements as provided in
this section and has good cause for cancellation, termination or
nonrenewal. The manufacturer shall not attempt to cancel or fail to
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renew the franchise agreement of a new motor vehicle 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, provisions 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 franchise, which provision is both reasonable and
of material significance to the franchise relationship, or the new
motor vehicle dealer has failed to comply with reasonable
performance criteria for sales or service established by the
manufacturer, and the new motor vehicle dealer has been notified by
written notice from th e manufacturer; and
2. The new motor vehicle dealer has received written
notification of failure to comply with the manufacturer's reasonable
sales performance standards, capita lization requirements, facility
commitments, business-related equipment acquis itions or other such
remediable failings exclusive of those reasons enumerated in
paragraph 1 of subsection C of this section, and the new motor
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vehicle dealer has been afforded a reasonable opportunity of not
less than six (6) months to comply with such a provision or
criteria.
C. Irrespective of the 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 the termination, cancellation or nonrenewal unless for a
cause described in paragraph 2 o f this subsection;
2. Not less than fifteen (15) days prior to the effective date
of such the 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 agai nst the new motor
vehicle dealer under any bankruptcy or receivership
law,
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 th at such failure to conduct
business shall not be due to an act of God or
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circumstances beyond the direct control of the new
motor vehicle dealer, or
c. conviction of the new moto r vehicle dealer of any
felony which is punishable by imprisonment 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 the termination or cancellation where the
manufacturer or distributor is discontinuing the sale of the product
line.
The notification requi red by this subsection shall be by
certified mail, return receipt requested, and shall contain a
statement of intent to terminate, to cancel or to not renew the
franchise, a statement of the reasons for the termination,
cancellation or nonrenewal and the d ate 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 with the
Commission within thirty (30) days and request a hearing. Such
hearing shall be held within one hundred eighty (180) days of the
date of the dealer's timely protest in accordance with the
provisions of the Ad ministrative Procedures Act, Sections 301 250
through 326 323 of Title 75 of the Oklahoma Statutes, to determine
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if the threatened cancellation, 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 sh all have the burden of proof. Either
party may request an additional one-hundred-eighty-day extension
from the Commission. Approval of the requested extension may not be
unreasonably withheld or delayed. If the Commission finds that the
threatened cancellation, termination or nonrenewal of the franchise
has not been for good cause or violates subsec tion A, B or C of this
section, then it shall issue a final order stating that the
threatened termination is wrongful. A factory shall have the right
to appeal such order. During the pendency of the hearing and after
the decision, the franchise shall rem ain in full force and effect,
including the right to transfer the franchise. If the Commission
finds that the threatened cancellation, termination or nonrenewal is
for good cause and does not violate subsection A, B or C of this
section, the new motor veh icle dealer shall have the right to an
appeal. During the pendency of the act ion, including the 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 prevails in the threatened termination action,
the Commission shall award to t he new motor vehicle dealer the
attorney fees and costs incurred to defend the action.
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E. If the factory prevails in an action to terminate, cancel or
not renew any franchise, t he new motor vehicle dealer shall be
allowed fair and reasonable compensation by the manufacturer 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 altered while in the new motor vehicle dealer's
possession;
2. Supplies and parts which have be en acquired from the
manufacturer, for the purpose of this section, limited to any and
all supplies and parts that are listed on the current parts price
sheet available to the new motor vehicle dealer;
3. Equipment and furnishings, provided 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) day s of the effective
date of the termination, cancellation or nonrenewal, provid ed 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 of this subsection,
fair and reasonable compensation 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 sha ll be
the net acquisition price paid by the new motor
vehicle dealer less a tw enty-percent (20%) straight-
line depreciation for each year following the dealer's
acquisition of the supplies, parts, equipment,
furnishings and/or special tools.
F. If a factory prevails in an action to terminate, cancel or
not renew any franchise and t he new motor vehicle 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 this section shall be
construed to relieve a new motor vehicle 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 performance in accordance with the
franchise. If the facility 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 bei ng terminated, canceled
or nonrenewed, and
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b. not substantially in excess of f acilities recommended
by the manufacturer.
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 manufacturer will
either:
a. locate a qualified purchaser who will offer to
purchase the dealership facilities at a reasonable
price,
b. locate a qualified lessee who will offer to lease the
premises for the remaining leas e term at the rent set
forth in the lease, or
c. failing the foregoing, lease the dealership facilities
at a reasonable rental value for the portion of the
facility that is recognized in the franchise agreement
for one (1) year.
3. If the facilities are l eased by the new motor vehicle
dealer, within ninety (90) days following the e ffective 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 balance of the lease,
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b. arrange with the lessor for the cancellation of the
lease without penalty to the new motor vehicle dealer,
or
c. failing the foregoing, lease the dealership facilities
at a reasonable rent for the portion of the facility
that is recognized in the f ranchise agreement for one
(1) year.
4. The manufacturer shall not be obligat ed to provide
assistance under this section if the new motor vehicle dealer:
a. fails to accept a bona fide offer from a prospective
purchaser, subleases sublessee or assignee,
b. refuses to execute a settlement agreement with the
lessor if such agreement with the l essor would be
without cost to the new motor vehicle dealer, or
c. fails to make written request for assistance under
this section within ninety (90) days after the
effective date of the terminati on, cancellation or
nonrenewal.
5. The manufacturer shall be entitled to occu py and use any
space for which it pays rent required by this section.
H. In addition to the repurchase requirements set forth in
subsections E and G of this section, in the even t the termination or
cancellation is the result of a discontinuance of a produ ct line,
the manufacturer or distributor shall compensate the new motor
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vehicle dealer in an amount equivalent to the fair market value of
the terminated franchise as of the date of immediately preceding the
manufacturer's or distributor's announcement or provide the new
motor vehicle dealer with a replacement franchise on substantially
similar terms and conditions as those offered to other same line-
make dealers. The new motor vehicle dealer may immediately request
payment under this provision section following the announcement in
exchange for cancelling canceling any further franchise rights,
except payments owed to the new motor vehicle dealer in the ordinary
course of business, or may request payment under this provision
section upon the final termination, cancellation or nonrenewal of
the franchise. In either case, payment under this provision section
shall be made not later than ninety (90) days after the fair market
value is determined. If the factory and new motor vehicle dealer
cannot agree on the fair market value of the terminated franchise or
agree to a process to determine the fair market value, then the
factory and new motor vehicle dealer shall utilize a neutral third
party third-party mediator to resolve the disagreement.
SECTION 12. 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 agreement or the business and
assets of a dealership or an interes t in a dealership to another
person, hereinafter transferee, shall notify the manufacturer or
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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 proposed transferee to submit completed
application forms and related information generall y utilized by a
manufacturer to evaluate such a proposal and a copy of all
agreements related to the proposed sale, transfer, or assignment.
B. The approval by the manufacturer or distributor of the sale,
transfer, or assignment shall not be unreasonably withheld unless
the proposed transferee is not of good moral character or fails to
meet the written, reasonable, and uniformly applied requirements of
the manufacturer or distributor relating to prospective franchisees.
Approval of the transfer shall not be made contingent upon the
transferee meeting unreasonable facility requirements or performance
standards, but may be made contingent upon the transferee meeting
reasonable written requirements different than those contained in
the transferor's franchise agreement and related addendum a nd
agreements, and any written notices provided to the existing dealer
prior to the manufacturer's or distributor's receipt of any written
notice from the existing dealer of the proposed t ransfer. However,
to be valid, any proposed change to the franchise pursuant to
written notice from the manufacturer or distributor shall be in
compliance with existing law. The burden of proof shall be upon the
manufacturer or distributor to show good cause existed to withhold
approval. The manufacturer or distributor that has made such a
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determination shall send a letter by certified mail to the dealer
and 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 or distributor of the notice of
the proposed sale, transfer, or assignment; or
2. Receipt by the manufacturer or distributor of the
information requested from the proposed transferee pursuant to
subsection A of this sectio n if the manufacturer or distributor has
requested such information within fifteen (15) days of receipt of
written notice of the proposed sale, transfer, or assignment.
C. Failure of the manufacturer or distributor to send its
notice of refusal pursuant t o subsection B of this section shall
mean that the application for the proposed sale, transfer, or
assignment is approved.
D. If the proposed sale, transfer, or assignment is to an
existing owner's family member or other existing owner, the
manufacturer or distributor's evaluation of the proposal is limited
to the written, reasonable, and uniformly applied requirements of
the manufacturer or distributor relating to good moral character and
financial qualifications. Notwithstanding the foregoing, a change
in dealer operator shall be addressed pursuant to the provisions of
Section 565.1 of this title.
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E. A dealer dealership or dealershi p owner receiving notice of
refusal of the sale, transfer, or assignment shall have the right to
file a protest with the Oklahoma New Motor Vehicle Commission within
thirty (30) days of receipt of the refusal. A dealer receiving
notice that the sale, transfer or assignment is contingent 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 the burden of proof to
establish the proposed transferee or the proposed transferee'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
prospective 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 different than those
contained in the transferor's franchise agreement.
F. Notwithstanding any other provision of this sec tion, the
dealer shall submit a signed copy of the Deale r Sales and Service
Agreement resulting from any completed sale, transfer, or assignment
of a franchise to the Oklahoma New Motor Vehicle Commission within
fifteen (15) business days.
SECTION 13. AMENDATORY 47 O.S. 20 21, 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 revoke a lic ense issued
or impose a fine, only after a hearing of which the applicant, or
licensee affected, shall be given at least ten (10) da ys' written
notice specifying the reas on for denying the applicant a license,
or, in the case of a revocation or suspension or imposition of a
fine, the offenses of which the licensee is charged. Such notices
may be served as provided by law for the servi ce of notices, or
mailing a copy by re gistered mail to the last -known residence or
business address of such applicant or lic ensee. The hearing on such
charges shall be at such time and place as the Commission may
prescribe and the aforementioned notice sh all further specify the
time and place. If such applicant or licensee is a motor vehicl e
salesperson, factory representativ e or distributor representative,
the Commission shall in like manner also notify the perso n, firm,
association, corporation or trust with 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 ha ve the power to
subpoena and bring before it any p erson, 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 he aring shall have the right to
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the attendance of wi tnesses in his or her behalf upon designati ng to
the Commission the person or persons sought to be subpoenaed.
SECTION 14. AMENDATORY 47 O.S. 2021, Section 566.1, is
amended to read as follows:
Section 566.1 All rulings, orders, decision s, 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 15. AMENDATORY 47 O.S. 2021, Section 567, is
amended to read as follows:
Section 567. The Oklahoma New Motor Vehicle Commission is
hereby authorized, without cost bond or deposit, to institute
injunctive actions in courts of competent jurisd iction, in the name
of the State of Oklahoma on the relation of the C ommission, to
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 provision of this chapter or rule
promulgated thereunder or order of the Commi ssion may be enjoined
from so doing.
SECTION 16. AMENDATORY 47 O.S. 2021, 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 the Okla homa New Motor
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Vehicle Commission, which may be expended for small authorized
expenses of the Commission.
SECTION 17. 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, i f a factory intends or
proposes to enter into a franchise to establish an additional new
motor vehicle dealer or to relocate an existing new motor vehicle
dealer within or into a relevant 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 factory to
establish an additional ne w motor vehicle dealer or to relocate 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) miles of around the
site of the proposed new motor vehicle dealership measured from the
property boundary of the primary deale rship property. The notice
shall be sent by certified mail to each party and shall include the
following information:
1. The specific location at which the additional or relocated
new motor vehicle dealer will be established;
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2. The date on or after which the additional or relocated new
motor vehicle dealer intends to commence business at the proposed
location;
3. The identity of all new motor vehicle dealers who are
franchised to sell the same line-make vehicles as the proposed new
motor vehicle dealer and who have licensed locations within the
relevant market area;
4. The names and addresses of the person intended to be
franchised as the proposed additional or relocated new motor vehicle
dealership, the principal investors in the propos ed additional or
relocated new motor vehicle dealership, and the proposed dealer
operator of the proposed additional or relocated new motor vehicle
dealership; and
5. The specific grounds or reasons for the proposed
establishment of an additional new motor vehicle dealer or
relocation of an existing new motor vehicle 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 existing new motor vehicle dealer
within the relevant market area of that dealer; provided, 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;
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2. To a proposed additional new motor vehicle dealer which is
to be established at or within two (2) miles of a location at which
a former licensed new motor vehicle dealer for the same line-make of
new motor vehicle had ceased operating within the previous two (2)
years;
3. To the relocation of an existing new motor vehicle dealer
within two (2) miles of the existing 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 dealership 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 procedure
provided by the factory, whichever is greater, a new motor vehicle
dealer so notified or entitled to notice may file a petition with
the Commission protesting the proposed establishment or relocation.
The petition shall contain a short statement setting forth the
reasons for the objection of the new motor vehicle dealer to the
proposed establishment or relocation. Upon filing 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
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vehicle dealer until the Commission has held a hearing and has
determined that there is good cause for permitting the proposed
establishment or relocation. When more than one protest is filed
against the establishment or relocation of the same dealer, the
Commission shall consolidate the hearings to expedite disposition of
the matter.
D. The burden of proof to establish that good cause exists for
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 existing new motor vehicle dealership.
SECTION 18. AMENDATORY 47 O.S. 2021, Secti on 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 not limited to:
1. Permanency of the investment of the proposed dealership ;
2. Effect on the retail new motor vehicle business and the
consuming public in the relevant market area;
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3. Whether it is injurious to the public welfare for an
additional new motor vehicle dealersh ip to be established;
4. Whether the new motor vehicl e 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
facilities, equipment, supply of moto r vehicle parts, and qualified
service personnel; and
5. Whether the establishment of an additional new motor vehicle
dealership would increase competition, and therefore be in the
public interest.
SECTION 19. AMENDATORY 47 O.S. 2021, Section 580.2, is
amended to read as follows:
Section 580.2 During the time a person is operating a motor
vehicle with the express or implied permission of an authorized a
new motor vehicle dealer, as defined in Section 562 of this title,
such person's motor vehicle liability policy shall have primary
coverage with the motor vehicle liability policy of the new motor
vehicle dealer having secondary coverage until the vehicle is
returned. As used herein, "motor vehicle liability policy" means
motor vehicle insurance against legal liability for the death,
injury, or disability of any human being, or for damage to real or
personal property. The motor vehicle liability policy of any person
who has been loaned a vehicle by a new motor vehicle dealer pursuant
to the terms of this section shall provide primary coverage for any
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death or injury of any h uman being or for any real or personal
property damage, including damage to the loaned vehicle, with the
motor vehicle insurance policy of the new motor vehicle dealer
having secondary coverage for any death or injury of any human being
or for any real or personal property damage, including damage to the
loaned vehicle. The change in financial responsibility shall be
evidenced by a release signed by the person operating the vehicle
with the express or implied pe rmission of the new motor vehicle
dealer with the release to be returned to the person upon the return
of the motor vehicle to the new motor vehicle dealer. The motor
vehicle liability policy of such person shall meet the minimum
financial responsibility requirements found in Section 7-324 of this
title.
This section shall apply only to the loan of a motor vehicle by
an authorized a new motor vehicle dealer which loan occurs without
financial remuneration in the form of a fee or lease charge.
SECTION 20. AMENDATORY 47 O.S. 2021, Section 583, as
amended by Section 3, Chapter 107, O.S.L. 2022 (47 O .S. Supp. 2022,
Section 583), is amended to read as follo ws:
Section 583. A. 1. It shall be unlawful and constitute a
misdemeanor for any p erson to engage in business as, or serve in the
capacity of, or act as a used motor vehicle dealer, wholesale used
motor vehicle dealer, manufactured home dealer, restricted
manufactured home park dealer, manufactured home installer, or
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manufactured home manufacturer selling directly to a licensed
manufactured home dealer in this state without first obtaining a
license or following other requirements theref or as provided in this
section.
2. a. Any person engaging, acting, or serving in the
capacity of a used motor vehicle dealer, a
manufactured home dealer, r estricted manufactured home
park dealer, a manufactured home installer, or a
manufactured home manufa cturer, or having more than
one place where any suc h business, or combination of
businesses, is carri ed on or conducted shall be
required to obtain and hol d a current license for each
such business, in which engaged.
b. If after a hearing in accordance wit h the provisions
of Section 585 of this title, the Oklahoma Used Motor
Vehicle, Dismantler, and Manufactured Housing
Commission shall find any person installing a mobile
or manufactured home to be in violation of any of the
provisions of this act, such person may be subject to
an administrative fine of not more than Five Hundred
Dollars ($500.00) for each violation. Each day a
person is in violati on of this act may constitute a
separate violation. All administrative fines
collected pursuant to th e provisions of this
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subparagraph shall be deposited in the fund
established in Section 582 of this title.
Administrative fines imposed pursuant to this
subparagraph may be enforceable in the district courts
of this state.
3. Any person, except persons penalized by administrative fine,
violating the provisions of this section shall, upon conviction, be
punished by a fine not to exceed Five Hundred Dollars ($500.00). A
second or subsequent conviction shall be punished by a fine not to
exceed One Thousand Dollars ($1,000.00); provi ded that each day such
unlicensed person violates this section shall constitute a separate
offense, and any vehicle involved in a violation of this subsection
shall be considered a separate offense.
B. 1. Applications for licens es required to be obtained under
the provisions of the Oklahoma Used Motor Vehicle, Dismantler, and
Manufactured Housing Commission shall be verified by the oath or
affirmation of the applicant and shall be on forms prescribed by the
Commission and furnished to the applicants, and shall contain such
information as the Commission deems necessary to enable it to fully
determine the qualifications an d eligibility of the several
applicants to receive the license or licenses applied for . The
Commission shall require in the application, or otherwise,
information relating to:
a. the applicant's financial standing,
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b. the applicant's business integrity,
c. whether the applicant has an established place of
business and is engaged in the pursuit, avocation, or
business for which a license, or licenses, is applied
for,
d. whether the applicant is able to properly conduct the
business for which a license, or l icenses, is applied
for, and
e. such other pertinent information consistent with the
safeguarding of the public interest and the public
welfare.
2. All applications for license or licenses shall be
accompanied by the appropriate fee or fees in accordance with the
schedule hereinafter provided. In the event any application is
denied and the license applied for is not issued, the entire lice nse
fee shall be returned to the applicant.
3. All bonds and licenses issued under the prov isions of this
act shall expire on December 31, following the date of issue and
shall be nontransferable . All applications for r enewal of licenses
shall be submitted by November 1 of each ye ar of expiration, and
licenses for completed renewals received by November 1 shall be
issued by January 10. If applications have not been made for
renewal of licenses, such licenses shall expir e on December 31 and
it shall be illegal for any person to rep resent himself or herself
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and act as a dealer thereafter . Tag agents shall be notified not to
accept dealers' titles until such time as licenses have been issued.
Beginning January 1, 2016, al l licenses shall be issued for a pe riod
of two (2) years and t he appropriate fees shall be assessed. The
Commission shall adop t rules necessary to imple ment the two-year
licensing provisions.
4. A certificate of registration shall permit the registered
person to engage in the activities of a used motor vehicle
salesperson. A salesperson shall be deemed to be temporarily
approved and allowed to sell vehi cles when applications and fees are
on file with the Commission.
C. The schedule of license and inspection fees to be charged
and received by the Commission for the licenses and inspections
issued hereunder shall be as follows:
1. For each used motor veh icle dealer's license and each
wholesale used motor vehicle dealer's license, Six Hundred Dollars
($600.00). If a used motor vehicle d ealer or a wholesale used motor
vehicle dealer has once been licensed by the Commission in the
classification for which h e or she applies for a renewal of the
license, the fee for each subsequent renewal shall be Three Hundr ed
Dollars ($300.00); provided, if an applicant holds a license to
conduct business as an automotive dismantler and parts recyc ler
issued pursuant to Sec tion 591.1 et seq. of this title, the initial
fee shall be Two Hundred Dollars ($200.00) and the renewa l fee shall
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be Two Hundred Dolla rs ($200.00). If an applicant is applying
simultaneously for a license under this paragraph an d a license
under paragraph 1 of Section 591.5 of this title, the initial
application fee shall be Four Hundred Dollars ($400.00) . For the
reinstatement of a us ed motor vehicle dealer's license after
revocation for cancellation or expiration of insurance pursuant to
subsection F of this section, the fee shall be Two Hundred Dollars
($200.00);
2. For a used motor vehicle dealer 's license, for each place of
business in addition to the principal place of business, Two Hundred
Dollars ($200.00);
3. For each holder who possesses a valid new motor vehicle
dealer's license from the Oklahoma New Motor Vehicle Commission, Two
Hundred Dollars ($200.00) shall be the initial fee for a used motor
vehicle license and the fee for each subsequent renewal shall be Two
Hundred Dollars ($200.00);
4. a. For each manufactured home dealer's license or a
restricted manufactured home park dealer 's license,
Six Hundred Dollars ($600.00), and for each place of
business in addition to the principal place of
business, Four Hundred Do llars ($400.00), and
b. For each renewal of a manufactured home dealer's
license or a restricted manufactured home park
dealer's license, and renewal for each pl ace of
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business in addition to the principal place of
business, Three Hundred Dollars ($300.00) ;
5. a. For each manufactured home installer's license, Four
Hundred Dollars ($400.00), and
b. For each renewal of a manufactured hom e installer's
license, Four Hundred Dollars ($400.00);
6. a. For each manufactured home manufacturer selling
directly to a licensed manufactured home dea ler in
this state, One Thousand Five Hundred Dollars
($1,500.00), and
b. For each renewal of a manufactured home manufacturer 's
license, One Thousand Five Hundred Dollars
($1,500.00);
7. Any manufactured home manufacturer who sells a new
manufactured home to be shipped to or sited in the State of Oklahoma
shall pay an installation inspection fee of Seventy -five Dollars
($75.00) for each new single-wide manufactured home and One Hundred
Twenty-five Dollars ($125.00) for each ne w multi-floor manufactured
home; and
8. A used manufactured home inspection fee of Seventy-five
Dollars ($75.00) shall be paid by th e installer at or befo re the
time of installation of any used manufactured home sited and
installed in the State of Oklahom a.
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D. 1. The license issued to each used motor vehicle dealer,
each wholesale used motor vehicle dealer, each restricted
manufactured home park dealer a nd each manufactured home dealer
shall specify the location of the place of business . If the
business location is changed, the Oklahoma Used Motor Vehicle,
Dismantler, and Manufactured Housing Commission shall be notified
immediately of the change and the Commiss ion may endorse the change
of location on the license. The fee for a change of location shall
be One Hundred Dollars ($100.00), and the fee for a change of name,
Twenty-five Dollars ($25.00). The license of each lice nsee shall be
posted in a conspicuous place in the place or places of business of
the licensee.
2. The license issued to each manuf actured home install er and
each manufactured home manufacturer shall specify the location of
the place of business . If the business location is changed, the
Oklahoma Used Motor Vehicle, Dismantler, and Manufactured Housing
Commission shall be notified imm ediately of the change and the
Commission may endorse the change of location on the license without
charge. The license of each licensee shall be posted in a
conspicuous place in the place or places of business of the
licensee.
3. Every manufactured home installer shall have the license
available for inspection at the primary place of business of the
licensee. This license shall be valid for the licensee and all o f
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the employees of the licensee. Any person who is not an employee of
the licensee must obt ain a separate manufactured home installer
license regardless of whether such person is acting in the capacity
of a contractor or subcontractor.
E. 1. a. Each applicant for a used motor vehicle dealer's
license shall procure and file with the Commission a
good and sufficient bond in the amount of Twenty-five
Thousand Dollars ($25,000.00). Each new applicant for
a used motor vehicle dealer's license for the purpose
of conducting a used motor vehicle auction shall
procure and file with the Commission a good and
sufficient bond in the amount of Fifty Thousand
Dollars ($50,000.00). An applicant who intends to
conduct a used motor vehicle auction who provides
proof that the applicant has check and title insurance
in an amount not less than Fifty Thousand Dollar s
($50,000.00) shall only be required to have a bond in
the amount of Twenty-five Thousand Dollars
($25,000.00).
b. Each new applicant for a used motor vehicle dea ler
license for the purpose of conducting a used motor
vehicle business which will consist pr imarily of non-
auction consignment sales which are projected to equal
Five Hundred Thousand Dollars ($500,000.00) o r more in
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gross annual sales shall procure and f ile with the
Commission a good and sufficient bond in the amount of
Fifty Thousand Dollars ($ 50,000.00). The Commission
shall prescribe by rule the method of operation of the
non-auction consignment dealer i n order to properly
protect the interests of all parties to the
transaction and to provide sanctions against dealers
who fail to comply with the rules.
c. Each applicant for a wholesale used motor vehicle
dealer's license shall procure and file with the
Commission a good and sufficient bond in the amoun t of
Twenty-five Thousand Dollars ($25,000.00).
d. Any used motor vehicle dealer who, for the purpose of
being a rebuilder, applies for a rebuilder
certificate, as provided in Section 591.5 of this
title, whether as a new application or renewal, shall
procure and file with the Commission a good and
sufficient bond in the amount of Fifteen Thousand
Dollars ($15,000.00), in addition to any other bonds
required.
e. Each applicant for a manufactured home dealer 's
license or a restricted manufactured home park
dealer's license shall procure and file with the
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Commission a good and sufficient bond in the amount of
Thirty Thousand Dollars ($30,000.00).
f. Each manufactured home manufacturing facility selling
directly to a licensed manufactured home dealer or
restricted manufactured home park dealer in this state
shall procure and file with the Commission a good and
sufficient bond in the amount of Thirty Thousand
Dollars ($30,000.00). In addition to all other
conditions and requirements set forth herein, the bond
shall require the availability of prompt and full
warranty service by the manufacturer to compl y with
all warranties expressed or implied in connection with
each manufactured home which is manufactured for
resale or use in this state. A manufacturer may not
sell, exchange, or lease-purchase with an option to
own in any form a manufactured home to a person in
this state directly or indirectly through a
distributor or third party who is not a licensed
manufactured home dealer or a restricted manufactured
home park dealer.
g. The bond shall be approved as to form by the Attorney
General and conditioned that the applicant shall not
practice fraud, make any fraudulent representation, or
violate any of the provisions of this act in the
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conduct of the business for w hich the applicant is
licensed. One of the purposes of the bond is to
provide reimbursement for any loss or damage suffered
by any person by reason of issuance of a certificate
of title by a used motor vehic le dealer, a wholesale
used motor vehicle dealer , a restricted manufactured
home park dealer or a manufactured home dealer.
2. The bonds as required by this section shall be maintained
throughout the period of licensure. Should the bond be canceled for
any reason, the license shall be revoked as of th e date of
cancellation unless a new bond is furnished prior to such date.
F. Any used motor vehicle dealer or wholesale used motor
vehicle dealer is required to furnish and keep in force a minimum of
Twenty-five Thousand Dollars ($25,000.00) of single lia bility
insurance coverage on all vehicles offered for sale or used in any
other capacity in demonstrating or utilizing the streets and
roadways in accordance with the financial responsibility laws of
this state.
G. Any manufactured home dealer or restrict ed manufactured home
park dealer is required to furnish and keep in force a minimum of
One Hundred Thousand Dollars ($100,000.00) of garage liability or
general liability with products and completed operation s insurance
coverage.
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H. Any manufactured home installer is required to furnish and
keep in force a minimum of Twenty-five Thousand Dollars ($25,000.00)
of general liability with products and completed operations
insurance coverage.
SECTION 21. AMENDATORY 47 O.S. 2021, Section 583.1, as
amended by Section 4, Ch apter 107, O.S.L. 2022 (47 O.S. Supp. 2022,
Section 583.1), is amended to read as follows:
Section 583.1 A. It shall be punishable by an administrative
fine not to exceed Five Hundred Dollars ($500.00) for any person,
firm, association, corporation or trust to engage in business as, or
serve in the capacity of, a used motor vehicle salesperson in this
state without first obtaining a certificate of registrat ion with the
Oklahoma Used Motor Vehicle, Dismantler, and Manufactured Housing
Commission. However, a person may sell used motor vehicles without
obtaining a separate used motor vehicle salesperson 's certificate of
registration if the person has a certificate of registration from
the Oklahoma New Motor Vehicle Commission to sell new or unused
motor vehicles at a new motor vehicle dealer's licensed franchise
location which also sells used vehicles; provided, such a person
shall only be authorized to s ell used motor vehicles for the dealer
at the new motor vehicle dealer's licensed franchise location and to
represent the new motor vehicle dealer at used motor ve hicle
auctions. The cost of the registration for each salesperson shall
be Fifty Dollars ($5 0.00) to be renewed biennially and, for a
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transfer, Twenty-five Dollars ($25.00). The cost of registration is
to be borne by the employing entity of the salesperson. The
Oklahoma Used Motor Vehicle , Dismantler, and Manufactured Housing
Commission shall promulgate rules and procedures necessary for the
implementation and creation of a registry of salespersons and the
issuance of certificates of registrati on.
B. It shall be punishable by an administrative fi ne not to
exceed Five Hundred Dollars ( $500.00) for any person, firm,
association, corpora tion or trust to engage in business as, or serve
in the capacity of, a manufactured home salesperson in this st ate
without first obtaining a certificate of registrati on with the
Oklahoma Used Motor Vehicle , Dismantler, and Manufactured Housing
Commission. The cost of the registration for each salesperson shall
be Fifty Dollars ($50.00) to be renewed biennially and, for a
transfer, Twenty-five Dollars ($25.00). The cost of registration is
to be borne by the employing entity of the salesperson. The
Commission shall promul gate rules and procedures necessary for the
implementation and creation of a registry of salespersons and the
issuance of certificates of registration.
SECTION 22. AMENDATORY 47 O.S. 2021, Section 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
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which the dealer has the exclusive right to display or sell the new
recreational vehicles of a manufac turer of a particular line -make to
the public;
2. "Camping trailer" means a vehicular unit that is mounted on
wheels and constructed with collapsible partial side walls that fold
for towing by another vehicle and unfold at the campsi te to provide
temporary living quarters for recreational , camping or travel use;
3. "Commission" means the Okla homa New Motor 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 recreatio nal vehicles;
4. 5. "Dealer agreement" means a written agreemen t or contract
entered into between a manufacturer and a dealer that establishes
the legal rights and obligations of the parties to that agreement or
contract and pursuant to which the dealer i s authorized to sell new
recreational vehicles manufactured or d istributed 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 cus tomer parking and for the
showing and storage of vehicles. Estab lished place of business
shall not mean tents, temporary stands, lots, or other temporary
quarters. The established place of business shall have a sign
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visible from the outside of the busine ss which identifies the
recreational vehicle dealership. The est ablished 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 es tablished place of business shall
include a service and parts are a, 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 recrea tional 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
vehicles or a factory branch for the purpose of making or promoting
the sale of recreational vehicles of the manufacturer or for
supervising or contacting dealers or p rospective 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;
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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 such size and weight as to
not require a special highw ay movement permit and is designed 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,
c. have dimensions and interior floor plans that
distinguish the recreational vehi cles 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 construc tion
of the chassis, frame, and body, and
e. are authorized for sale b y the dealer in the dealer
agreement;
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11. 12. "Manufacturer" means a person that manufactures or
wholesales recreational vehicles or that distributes o r wholesales
recreational vehicles to dealers;
12. 13. "Motor home" means a motorized, vehicular unit des igned
to provide temporary living quarters for recreational, camping or
travel use;
13. "OMVC" means the Oklahoma Motor Vehicle Commission;
14. "Person" means an individual, partners hip, corporation,
limited liability company, association, trust, estate, 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 vehic le" means a vehicle that:
a. is primarily designed as a vehicle that als o provides
temporary living quarters for noncommercial,
recreational or camping use,
b. is built to the standards of the National Fire
Protection Association for recreational vehicles,
c. has its own motive power or is mounted on or towed by
another vehicle,
d. is regulated by the National Highway Traffic Safety
Administration as a vehicle or vehicle equipment,
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e. does not require a special highway use permit for
operation on the highwa ys, and
f. an individual can easily transport and set up on a
daily basis.
Recreational vehicles includes motor homes, travel trailers, fifth
wheel travel trailers, folding camping trailers and truck campers;
17. "Recreational vehicle salesperson" means a ny person who,
for gain or compensation of 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 dealer to any one or more third
parties;
18. "Transient customer" means a person who:
a. owns a recreational vehicle,
b. is temporarily traveling through the area of sales
responsibility of a dealer,
c. engages the dealer to pe rform service work on that
recreational vehicle, and
d. requires repairs that relate to the safe operation s of
that recreational vehicle or, if not undertaken, are
of a nature that would render that recreational
vehicle unusable;
19. "Travel trailer" mean s a vehicular unit mounted on whee ls
that is designed to provide temporary living quarters for
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recreational, camping or travel use of such size and weight as to
not require a special highway movement permit when towed by a
motorized vehicle;
20. "Truck camper" means a portable unit that i s constructed to
provide temporary living quarters for recreational, cam ping or
travel use and consists of a roof, floor and sides and is designed
to be loaded onto and unloaded from the back of a pickup truck; and
21. "Warrantor" means a manufacturer or any other person that
provides a warranty to the consumer in connection 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 or other insurance, or an
extended warranty sold for separate consideration by a dealer or
other person not controlled by a warrantor.
SECTION 23. AMENDATORY 47 O.S. 2021, Section 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.
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B. The Oklahoma New Motor Vehicle Commission (OMVC) shall issue
new recreational vehicle dealer, manufac turer and factory
representative licenses and recreational vehicle salesperson
registrations upon application . The Commission shall promulgate
rules and forms to implement and enforce t he provisions of this
section.
C. The schedule of license fees and salesperson registration
fees to be charged and received by th e Oklahoma Motor Vehicle
Commission for the licenses issued hereunder shall be as follows:
1. For each manufacturer or distri butor of new recreational
vehicles, an initial fee of Four Hundred Dol lars ($400.00) with an
annual renewal fee of Three Hundred Dollars ($300.00);
2. For each factory representative, an initial fee of One
Hundred Dollars ($100.00) with an annual renewal fee of One Hundred
Dollars ($100.00);
3. For each new motor home deal er, an initial fee of Three
Hundred Dollars ($300.00) per franchise sold at each licensed
location with an annual renewal fee of One Hundred Dollars ($100.00)
per franchise sold at each licensed location;
4. For each fifth wheel trailer, travel trailer, c amping
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 fee of One Hundred Dollars ($100.00)
per manufacturer represented at each location; and
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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 dis play for sale a
recreational vehicle in this state except to a dealer 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 th e dealer that meets the
requirements of the Recreational Vehicle Franc hise Act and is signed
by both parties.
E. A dealer shall not sell or display for sale a new
recreational vehicle in this state unless the deale r is licensed by
the Commission to sell recreational vehicles in the State of
Oklahoma. The dealer shall also be required to have a dealer
agreement with the manufacturer of the recreational vehicle that
meets the requirements of this act and is signed by both parties.
SECTION 24. 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 manufacturer and a dealer:
1. The manufacturer shall desi gnate in the dealer agreement the
area of sales responsibility exclusively ass igned to the dealer;
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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 the dealer agreement; and
3. The area of sales responsibility may no t 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 displa y 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 circumstances:
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
sanctioned recreational vehicle show m ay be held only under the
following conditions:
a. the sponsoring entity of th e 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 re creational vehicle
show described in this paragraph shall be obtained
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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 manufacturer-
approved area of responsibility includes the event
location shall be eligible to participate in the
sanctioned recreational vehicle show,
d. new recreational vehicle dealers shall obta in written
approval from the manuf acturer 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 wit hin the grounds of any
county, district, or state fair; and
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 recreatio nal
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,
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b. the location of the nonsanctioned recreational vehic le
show shall be within the manufa cturer-approved area of
responsibility,
c. the nonsanctioned recreational vehicle show shall
occur no more than five (5) consecutive days per
event, excluding county, district, or state fairs,
d. each dealer may participat e in no more 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, h owever a
nonsanctioned recreational vehicle show may be held on
county or municipally owned property with no mileage
barrier restriction.
D. A dealer may display a recreational vehicle within the
designated area of respon sibility of the dealer for promoti onal
purposes. At an off-premise display event, no sales activities
shall be conducted including, but not limited to, negotiations,
financing and accepting credit applications. Sales or finance
personnel shall not be per mitted to participate at an off -premise
display event. A permit for the off -premise display event shall not
be required.
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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 25. AMENDATORY 47 O.S. 2021, Section 596.5, is
amended to read as follows:
Section 596.5 A. A manufacturer, directly or through any
officer, agent, or employee, may terminate or n ot renew a dealer
agreement without good cause. If the ma nufacturer terminates or
does not renew the dealer agreement without good cause, the
manufacturer shall comply with the provisions of subsections D and E
of this section. If the manufacturer termin ates or does not renew
the dealer agreement with good caus e, the provisions of subsections
D and E of this section shal l not apply.
B. A manufacturer has the burden of showing good cause for
terminating or not renewin g a dealer agreement. All of the
following factors shall be considered in determining whether t here
is good cause for a pro posed termination or nonrenewal o f a dealer
agreement by a manufacturer:
1. The extent of the penetration of the dealer in the rele vant
market area;
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2. The extent and q uality of the service of the dealer under
recreational vehicle warranties;
3. The nature and extent of the investment of the dealer in
business of the dealer;
4. The adequacy of the service facilities, equipment, par ts,
supplies, and personnel of the dea ler;
5. The effect of the proposed action on the communit y;
6. Whether the dealer fa ils 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 following conditions
apply to a notice described in this subsection:
1. Except as provided in paragraph 4 or 5 of this subsection,
the manufacturer shall provid e written notice at least ninety (90)
days before the effective date of the termination or nonrenewal of
the dealer agreement;
2. The notice shall state all of the reaso ns for the
termination or nonrenewal of the dealer agreeme nt;
3. The notice shall sta te that if the dealer provides to the
manufacturer a written notification of the intent of the dealer to
cure all claimed deficienci es within thirty (30) days after the
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dealer receives the notice, the dealer shall have one hundr ed twenty
(120) days after the date of the notice to correct the claimed
deficiencies. If all of the deficiencies are corrected within the
one-hundred-twenty-day time period, the notice shall be de emed void
and the manufacturer shall not terminate or not renew the dealer
agreement because of the claimed deficiencie s stated in the notice.
If the dealer does not provide a notification of intent to cure
deficiencies within the thirty -day time period, the termination or
nonrenewal of the dealer agreement shal l take effect sixty (60) day s
after the dealer received the n otice from the manufacturer;
4. A manufacturer may reduce the notice period described in
paragraph 1 of this subsection from ninety (90) days to thirty (30)
days and shall not be required to all ow the dealer an opportunity to
correct the deficiencies if t he grounds for termination or
nonrenewal of the dealer agreement by the manufacturer are any of
the specific categories of good cause des cribed in subsection F of
this section; and
5. A manufacturer shall not be required t o 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 insol vent,
b. the dealer is bankrupt, or
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c. the dealer makes an as signment for the benefit of
creditors.
D. If a manufacturer terminates or does not renew a dealer
agreement for good cause under this se ction the dealer, at its
option, may require the manufactu rer 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 the dealer agreement
that have not been used, except for demonstration purposes and have
not been altered or damaged, may be repurchased at one hundred
percent (100%) of the net invoice cos t of the recreational vehicles,
including transportation, less applicable 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 dea ler agreement
that are accompanied by the original invoice may be repurchased at
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 diagnostic equipment, special
tools, current signage, and other equipment and machinery, p urchased
by the dealer within the five (5) years prior to the effective date
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of the termination of the dealer agreement at the request of the
manufacturer, if such equipment or machinery cannot b e used in the
normal course of the ongoing business of the de aler, may be
repurchased at one hundred percent (100%) of the net cost of the
dealer, plus freight, destination, delivery, and distributi on
charges and sales taxes.
E. The dealer shall promptly return or arrange for the re turn
of all of the items the manu facturer is required to repurchase under
subsection D of this section at the expense of the manufac turer.
F. As used in this section, "good cause" includes, but is not
limited to, any of the fol lowing:
1. A conviction of a felony or a plea of guilty or n olo
contendere to a felony by a dealer or an owner of a dealership of a
crime that was committed du ring the time frame of the current dea ler
agreement; provided, there is full disclosure, in writ ing, of any
felony conviction or plea of guilty or nolo conte ndere to any such
felony crime that occurred within ten (10) years of entering into
such dealer agreement;
2. Abandonment or permanent c losing of the business operations
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;
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3. A material misrepresentation to a manu facturer by a dealer
that severely affects the business relat ionship between the dealer
and the manufacturer;
4. Suspension or revocation of the license of a d ealer or
refusal to renew the license of the dealer by the OMVC Oklahoma New
Motor Vehicle Commission;
5. A material violat ion of any of the provisions of t he
Recreational Vehicle Franchise Act by a dealer; or
6. The dealer becomes insolvent, is bankrupt , or makes an
assignment for the benef it of creditors.
SECTION 26. AMENDATORY 47 O.S. 2021, Section 596.7, is
amended to read as fo llows:
Section 596.7 The OMVC Oklahoma New Motor V ehicle 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 renew ed pursuant to the provisions 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
that were subject to the dealer agreement and are currently in stock
until those line-makes are no longer in the dealer inventory.
SECTION 27. AMENDATORY 47 O.S. 2021, Sectio n 596.8, is
amended to read as follows:
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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 that will result in a change of o wnership of a
dealer, except a transa ction described in subsection B of this
section:
1. The dealer shall provide written notice to th e manufacturer
at least ninety (90) days prior to the proposed closing of the
transaction;
2. If the dealer is not in br each of the dealer agreement or in
violation of the provisions of this act at the time the dealer
provides the notice described in para graph 1 of this subsection, the
manufacturer shall not object to the proposed transaction, unless
the prospective transfe ree meets one or more of the followin g:
a. the prospective transferee was previously a party to a
dealer agreement with the manufacture r that the
manufacturer terminated,
b. in the preceding ten (10) years, the prospective
transferee was convicted of a fel ony crime or any
crime of fraud, dece it or moral turpitude,
c. the prospective transferee does not have an
application for a recreation al vehicle dealer license
pending with the OMVC Oklahoma New Motor V ehicle
Commission or a tentative dealer agreement wit h a
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recreational vehicle manufacturer to conduct business
as a dealer in this state,
d. the prospective transferee does not have an act ive
line of credit sufficient to purchase recreational
vehicles from the manufacturer according to the terms
of the dealer agreement, or
e. in the preceding ten (10) years, the prospective
transferee was bankrupt or insolven t, made a general
assignment for the benefit of creditors, or a
receiver, trustee, or conservator was appointed to
take possession of the business or pro perty of the
prospective transferee;
3. If the manufacturer objects to the proposed transaction, the
manufacturer shall give written n otice of an objection, including
the reasons by the manufacturer for objecting, to the dealer within
thirty (30) days aft er receiving the notice described in p aragraph 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 manufacturer; and
4. For purposes of paragraph 3 of this subsection, t he
manufacturer has the burden of dem onstrating why the manufactu rer
objects to the proposed tran saction.
B. All of the following conditions apply concerning the death,
incapacity, or retirement of the designated prin cipal of a dealer:
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1. The manufacturer shall provide the dealer an opportu nity to
designate, in writin g, a family member as a successo r to the dealer
in the event of the death, incapacity, or retirement of the
designated principal;
2. The manufacturer s hall not prevent or refuse to honor th e
succession to a dealership by a fam ily member of the deceased,
incapacitated, or retired design ated principal of that dealer unless
the manufacturer previously provided written notice to the dealer of
any objections to the succession plan of the dealer w ithin thirty
(30) days after receivin g 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 breac h of the dealer agreement, a manufactu rer
shall not object to the successio n to a dealership by a famil y
member of the deceased, incapa citated, or retired designated
principal, unless the successor meets one or more of the following:
a. in the preceding ten (10) years, the successor was
convicted of a felony crime or any crime of fraud,
deceit or moral turp itude,
b. in the preceding ten ( 10) years, the successor was
bankrupt, insolvent, or made an assignment for the
benefit of creditors,
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c. the successor was previously a party to a dealer
agreement with the manufacturer that the manufacturer
terminated for a breach of a dealer agreement,
d. the successor does not have an active line of credit
sufficient to purchase recreational vehicles from the
manufacturer according to the terms of the deale r
agreement, or
e. the successor does not have an application for a
recreational vehicle dealer li cense pending with the
OMVC 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 dealership 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 designated principal if the succession
involves a relocation of the business or an alteration of the terms
and conditions of the dealer agree ment.
SECTION 28. 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,
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impose a fine against a manufacturer or distributor in an amount not
to exceed Ten Thousand Dollars ( $10,000.00) per occurrence, 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 Ac t 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 the provisions 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 mai ntain the qualifications for a license;
5. Being a new recreational vehicle dealer who:
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,
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b. uses any false or misleading advertising in connection
with business as a new recre ational vehicle dealer or
vehicle salesperson,
c. has committed any unlawful act which res ulted in the
revocation of any similar license in another state,
d. has failed or refused to perform any written 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 o f a new
recreational vehicle or any interest therein 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
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 business,
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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 for 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 de aler or manufacturer,
c. does not hold a dealer agreeme nt in effect with a
manufacturer or distributor of new or unused
recreational vehicles for the sale of the sam e and is
not authorized by the manufac turer or distributor to
render predelivery preparatio n of such vehicles sold
to purchasers and perform autho rized postsale work
pursuant to the warranty of the manufacturer or
distributor,
d. employs unregistered salespersons or employs or
utilizes the services of used recreational vehicle
lots, dealers or other unregistered persons in
connection with the sale of new recreational vehicles;
7. Being a factory that has:
a. induced or attempted to induce by means of coer cion or
intimidation any new recreatio nal vehicle dealer:
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(1) to accept delivery of any rec reational vehicle or
vehicles, parts or accessories for recreational
vehicles, or any other commodities including
advertising material which shall not have been
ordered by the new recreational vehicle de aler,
(2) to order or accept delivery of any recreati onal
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 whatsoever,
b. induced under threat or discrimination by the
withholding from delivery to a recre ational vehicle
dealer certain models of recreational vehicles,
changing or amending unilat erally the allotment of
recreational vehicles of a dealer or withholding and
delaying delivery of such vehicles out of the ordinary
course of business, in order to i nduce a dealer by
such coercion to par ticipate or contribute to any
local or national adver tising fund controlled directly
or indirectly by the factory or for any other purposes
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including contests, giveaways, 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 after a hearing
for which the applicant or licensee affected shall be given at least
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 which the licensee is alleged
to have committed. The notice may be served as provided by law for
the service of notices or mailing a copy by registered mail to the
last-known residence or business address of the applicant or
licensee. The hearing on alleged v iolations 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 salesper son, factory representative
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or distributor representa tive, the Commission shall in like manner
additionally notify the person, firm, 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 relevant to the proceeding bearing upon the
complaints. The Commission shall have the power t o subpoena and
bring before it any per son, or take testimony of any person by
deposition, with the same fees and mileage and in the same manner as
prescribed in the proceedings before courts of the state in civil
cases. Any party to the hearing shall have the right to the
attendance of witnes ses on his or her behalf upon designating to the
Commission the person or persons sought to be sub poenaed.
SECTION 29. AMENDATORY 47 O.S. 2021, Section 596.15 , is
amended to read as follows:
Section 596.15 A. A dealer, manufactur er, or warrantor injured
by another party who has violated a provision of this act may bring
a civil action in court for the recovery of actua l damages. The
court shall award att orney fees and costs to the prevailing party in
a civil action under this sec tion.
B. Venue for a civil action filed pursuant to this section
shall be the county in which the busin ess of the dealer is located.
In an action involving more than one dealer, any county in which the
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business of any dealer that is party to the action i s 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 m ail to one
of the following addresses:
1. In an action between a dealer and a manufacturer, the
address stated in the dealer agreement between 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 two 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
mutually select an independent me diator 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
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meeting for good cause shown by e ither party or if the parties agree
to the extension.
E. The service of a demand for mediation under su bsection C of
this section tolls the t ime for the filing of any complaint,
petition, protest, or other action under this a ct until
representatives of bo th 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, th e court
shall enter an order s uspending the proceeding or action until the
mediation meeting has occurred and may, if all of the parti es to the
proceeding or action stipula te in writing that they wish to continue
to mediate under this section, enter an ord er suspending the
proceeding or action for as long a period as the court considers
appropriate. The court may modify, extend, or revo ke a suspension
order issued under thi s subsection if it considers that action
appropriate.
F. Each of the parties to the mediation under this section is
responsible for its own attorney fees. The parties shall equally
divide the cost of the mediator.
SECTION 30. AMENDATORY 47 O.S. 2021, Section 596.16, is
amended to read as follows:
Section 596.16 A. In addition to any remed y available under
the provisions of this act or otherwise avail able by law, a
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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 equitable relief res training 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 this
act. A single violation of the provisio ns of this act shall be a
sufficient basis for the c ourt 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 un der this section.
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
the requirements of the definition of established place of business
as defined in Section 3 of this act 596.1 of this title.
SECTION 31. AMENDATORY 47 O.S. 2021, Section 1116.1, is
amended to read as follows:
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Section 1116.1 A license plate or decal bearing an expiration
date of four (4) months from the date of registration shall b e
issued for a vehicle regis tered in the name of a manufacturer or
dealer of new motor vehicles. Such license plate or decal shall be
issued if the vehicle so registe red 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 than a manufacturer, licensed dealer,
person contemplating p urchase of the vehicle or person holdi ng a
valid salesman's license issued by the Oklaho ma New Motor Vehicle
Commission to operate the vehicle after the expiration of the
four-month registration period.
SECTION 32. AMENDATORY 47 O.S. 2021, Section 1128, as
amended by Section 142, Chapter 282, O.S.L. 2022 (47 O.S. Supp .
2022, Section 1128), is am ended 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 di stinctive 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
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
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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
valid salesman's license issued by the Oklahoma New Motor Vehicle
Commission shall not be subject to this limitation. If such person
also buys and sells used vehicles, he or she shall, after obtaining
his or her new motor vehicle dealer's license from the Oklahoma New
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Motor Vehicle Commission, also obtain a used motor vehicle dealer's
license, from the Oklahoma Used Motor Vehicle and Parts, Dismantler,
and Manufactured Housing 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 or she 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 nonassignable;
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 license . 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 vehicle registrations,
and after a period of thirty (30) days such penalty shall be equal
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 or her title requirements and payment of any taxes
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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 highways 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 fee 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 desired 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, shall be exempt from makin g application
for an in-transit license plate. Provided further, only a person
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
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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 Thou sand 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 i n this section shall expire on
December 31 of each year.
SECTION 33. AMENDATORY 47 O.S. 2021, Section 1137.3, as
amended by Section 172, Chapter 282, O.S.L. 20 22 (47 O.S. Supp.
2022, Section 1137.3), is amend ed 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 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,
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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
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.
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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 34. AMENDATORY 6 2 O.S. 2021, Section 15 5, is
amended to read as follows:
Section 155. A. There is hereby created in the State Treasury
a revolving fund for each of the following state boards, commissions
and departments:
1. The Board of Governors of the Licens ed Architects, Landscape
Architects and Registered Interi or Designers of Oklahoma;
2. Oklahoma Funeral Board;
3. Board of Podiatric Medical Examine rs;
4. Board of Chiropractic Examiners;
5. State Board of Registration for Foresters;
6. State Board of Medical Licensure and Supervisio n;
7. Oklahoma Board of Nursing;
8. State Board of Osteopathic Examiners;
9. State Board of Pharmacy;
10. State Board of Licensed Social Workers;
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11. Oklahoma New Motor Vehicle Commission;
12. Oklahoma Peanut Commission;
13. Oklahoma Real Estate Com mission; and
14. Santa Claus Commission.
B. Each revolving fund shall consist of all monies received by
the boards, commissions and departments, pursuant to statutory
authority, but not including appropriated funds. These rev olving
funds shall be contin uing funds, not subject t o fiscal year
limitations and shall be under the contr ol and management of the
administrative authorities of the respective boards, commissions or
departments.
C. Expenditures from the revolving funds s hall be made pursuant
to the laws of the state and th e statutes relating to said boards,
commissions and departments, and without legislative app ropriation.
Warrants for expenditures from said revolving funds shall be drawn
by the State Treasurer, based o n claims signed by an author ized
employee or employee s of the respective boards, commissions or
departments and approved for payment by the Direc tor of the Office
of Management and Enterprise Services.
SECTION 35. AMENDATORY 74 O.S. 202 1, Section 3601.1, as
amended by Section 24, Chapter 107, O.S.L. 2022 (74 O.S. Supp. 2022,
Section 3601.1), is amended to read as follows:
Section 3601.1 A. For purposes of Sections 3601.1 through 3603
of this title, the term "employee" means a full-time employee or any
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number of part-time employees whose combined weekly hours of
employment equal those of a full-time employee, but shall not
include temporary employees wo rking on a seasonal basis between May
1 and October 31.
B. Beginning July 1, 2008, the maximum number of full-time-
equivalent employees for each of the following agencies, boards,
commissions, departments, or programs shall not exceed the numbers
specified in this section, except as may be authorized pursuant to
the provisions of Section 3603 of this title.
MAXIMUM NUMBER OF
FULL-TIME-EQUIVALENT
EMPLOYEES
Oklahoma Employment Security Com mission 1150
Oklahoma Accountancy Bo ard 11
Board of Governors of the Licensed Architects,
Landscape Architects and Registered Interior
Designers of Oklahoma 4
Board of Chiropractic Examiners 3
State Board of Cosmetology and Barbering 16
Board of Dentistry 10
Oklahoma State Board of Embalmers and Funeral
Directors 5
State Board of Licensure for Professional
Engineers and Land Surveyors 10
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State Board of Medical Licensure and Supervision/
Board of Podiatric Medical Examiners/State
Board of Examiners of Perfus ionists 29
Oklahoma Energy Resources Board 5
Oklahoma New Motor Vehicle Commission 6
Oklahoma Board of Nursing 35
Oklahoma State Board of Examiners for Long-Term
Care Administrators 4
Board of Examiners in Optometry 3
State Board of Osteopathic Examiners 7
Oklahoma State Board of Pharmacy 15
State Board of Examiners of Psychologists 2
Oklahoma Real Estate Commission 26
Board of Examiners f or Speech-Language Pathology
and Audiology 2
Oklahoma Used Motor Vehicle, Dismantler, and
Manufactured Housing Commission 15
State Board of Veterin ary Medical Examiners 6
Oklahoma Firefighters Pension and Retirement
System 13
Oklahoma Police Pension and R etirement System 12
Teachers' Retirement System of Oklahoma 52
Oklahoma Public Employees Retirement System 63
Oklahoma Student Loan Authority 85
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Oklahoma Industrial Finance Author ity/Oklahoma
Development Finance A uthority 10
State and Education Employees G roup Insurance
Board 178
Oklahoma Capital Investment Board 4
State Board of Licensed Social Workers 1
Oklahoma State Employees Benefits Council 38
Oklahoma State Banking Departmen t 46
Liquefied Petroleum Gas Administration 10
C. The duties and compensatio n of employees, not otherwise
prescribed by law, necessary to pe rform the duties imposed upon the
Oklahoma Public Employees Retirement System Board of Trustees by law
shall be set by the Board of Trustees.
D. Temporary employees of the Oklahoma Used Motor Vehicle,
Dismantler, and Manufactured Housing Commission between the dates of
November 1 and January 31 annually shall not be counted toward the
maximum number of full-time-equivalent employees provided for in
this section.
SECTION 36. REPEALER 47 O.S. 2021, Section 1128, as
amended by Section 21, Chapter 107, O.S.L. 2022 (47 O.S. Supp. 2022,
Section 1128), is hereby repealed.
SECTION 37. This act shall become effective November 1, 2023.
COMMITTEE REPORT BY: COMMITTEE ON BUSINESS AND COMMERCE
April 10, 2023 - DO PASS