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SENATE FLOOR VERSION
February 7, 2023
SENATE BILL NO. 566 By: Newhouse of the Senate
and
Banning of the House
An Act relating to liens for service on per sonal
property; amending 42 O .S. 2021, Section 91A, which
relates to procedures for lien on certain personal
property; increasing allo wable fee for processing of
certain notice; clarifying date of applica bility; and
providing an effective date .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 42 O.S. 2021, Section 91A, is
amended to read as follows:
Section 91A. A. 1. a. This section applies to all types of
personal property other than:
(1) farm equipment as def ined in Section 91.2 of this
title, and
(2) “Section 91 Personal Property” as defined in
Section 91 of this title.
b. This section applies to any vehicle, all -terrain
vehicle, utility vehicle, manufactured home,
motorcycle, boat, outboard motor, or trailer that is
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excluded from coverage under subsection A of Sectio n
91 of this title because the personal property:
(1) does not have a certificate of title,
(2) has a certificate of title but does not have an
active lien recorded on the certificate of title,
(3) has a certificate of title that is not issued by
the Oklahoma Tax Commission or by a federally
recognized Indian tribe in the State of Oklahoma,
or
(4) is otherwise excluded by subparagraph b of
paragraph 1 of subsection A of Section 91 of this
title or subsection D of Secti on 91 of this
title.
c. If personal property has a certificate of title, or
would be required to have a certificate of title under
Oklahoma law, and is apparently covered both by this
section and by Sections 191 through 200 of this t itle,
the procedures set out in this section shall apply
instead of Sections 191 through 200 of this title. If
personal property without a certificate of title and
not required to be titled under Oklahoma law is
covered both by this section and Sections 1 91 through
200 of this title, the procedures set out in Sectio ns
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191 through 200 of this title shall apply instead of
this section.
2. a. Any person who, while lawfully in possession of an
article of personal property to which this section
applies, renders any service to the o wner thereof by
furnishing storage, ren tal space, material, labor or
skill for the protection, improveme nt, safekeeping,
towing, right to occupy space, storage or carriage
thereof, has a special lien thereon, dependent on
possession, for the compensation, if any, which is due
to such person from the owner for such service.
Charges owed under a contract prim arily for the
purpose of storage or rental of space shall be accrued
only at the regular periodic rate for storage or
rental as provided in the contract , adjusted for
partial periods of stora ge or rental.
b. Except for Class AA licensed wrecker towing char ges,
the special lien shall be subordinate to any perfected
security interest unless the claimant complies with
the requirements of this section. Failu re to comply
with any requirements of t his section shall result in
denial of any title application and c ause the special
lien to be subordinate to any perfected lien. Upon
such denial, the applicant shall be entitled to one
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resubmission of the title appli cation within thirty
(30) business days of receipt of the denial, and
proceed to comply with the require ments of this
section. “Failure to comply” includes, but is not
limited to:
(1) failure to timely provide additional
documentation supporting or verify ing any entry
on submitted forms as req uested by the Tax
Commission,
(2) failure to provide the document ation supporting
lawful possession as outlined in paragraph 3 of
subsection H of this section,
(3) claimant being other than the in dividual who
provided the service giving rise to the special
lien, as in subparagraph a of this paragraph,
(4) claimant not being in possession of the vehicle,
or
(5) notification and proceedings not accomplished in
accordance with subparagraph c of this p aragraph,
and paragraph 3 of this subsection.
c. Any person claiming a lien under this section shall
request, within five (5) business days of performing
any service or work on the property, the Tax
Commission or other appropriate license agency to
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furnish the name and address of the current owner of
and any lienholder upon the property. The Motor
Vehicle Division of the Tax Co mmission or appropriate
license agency shall respond in person or by mail to
the lien claimant within ten (10) business days of the
receipt of the reque st for information. The Tax
Commission shall render assistance to ascertain
ownership, if needed. The lien claimant shall send,
within seven (7) business days of receipt of the
requested information from the Oklahoma Tax Commission
or other license agenc y, a notice of the location of
the property by certified mail with return receipt
requested, postage pre paid, to the owner and any
lienholder of the vehicle at the addresses furnished.
The lien claimant may charge Twenty Dollars ($20. 00)
not more than Fifty Dollars ($50.00) for processing
plus the cost of postage if the notice is timely sent
pursuant to the requirements of this subparagraph in
addition to fees regulated by the Oklahoma Corporation
Commission for licensed wreckers. If the lien
claimant is unable to meet the time requirements du e
to a lack of or an altered vehicle identification
number on the property, the lien claimant shall
proceed diligently to obtain the proper vehicle
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identification number and shall meet the time
requirements on the notice once the vehicle
identification number is known. If the lien claimant
is required to send additional notices because of
change of ownership or lienholder after it has timely
complied with the requirements of this subparagraph,
the lien claimant shall remain in compliance if such
additional notices are sent within the required time
periods from the date of discovery of the new owners
or lienholders. The notice shall be in writing and
shall contain, but not be limited to, the following:
(1) a statement that the notice is a Notice of
Possessory Lien,
(2) the complete legal name, physical and mail ing
address, and telephone number of the claimant,
(3) the complete legal name, physical and mailing
address of the person who requested that the
claimant render service to the owner by
furnishing material, labor or skill, storage, or
rental space, or the date the property was
abandoned if the claimant did not render any
other service,
(4) a description of the article of personal
property, and the complet e physical and mailing
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address of the location of the article of
personal property,
(5) the nature of the work, labor or service
performed, material furnished, or the storage or
rental arrangement, and the date thereof, and
written proof of authority to pe rform the work,
labor or service provided that, i n the case of a
law enforcement directed tow, the logbo ok entry
prescribed in OAC 595:25 -5-5 or the tow ticket as
defined by the Corporation Commission shall serve
as written proof of authority,
(6) the signature of the claimant which shall be
notarized and, if applicable, the signature of
the claimant’s attorney. If the claimant is a
business, the name of the contact person
representing the business shall be shown. In
place of an original signature and not ary seal, a
digital or electronic signature or se al shall be
accepted, and
(7) an itemized statement des cribing the date or
dates the labor or services were performed and
material furnished and the charges claimed for
each item, the totals of which shall e qual the
total compensation claimed.
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The lien claimant shall not be required to send the
notice required in this subparagraph if the property
is released to an interested party before the notice
is mailed and no additional charges or fees continue
to accrue. If a law enforcement agency has the
property towed to a law enforcement facility, the
person claiming a lien under this section shall not be
required to send notice until the property is released
by law enforcement to the claimant or the date which
claimant starts charging storage, whichever is
earlier. A lien claimant shall have an extension of
ten (10) business days to send the notice required in
this subparagraph if a state of emergency has been
declared in the county in which the property is
located.
d. Subparagraphs b and c of this paragraph sha ll not
apply to salvage pools as defined in Section 591 .2 of
Title 47 of the Oklahoma Statutes.
3. The lien may be foreclosed by a sale of such personal
property upon the notice and in the manner following: The notice
shall be in writing and shall contai n, but not be limited to:
a. the names of the owner and any other known party or
parties who may claim any interest in the property,
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b. a description of the property to be sold, including a
visual inspection or a photograph if the property is a
motor vehicle, and the physical location of the
property,
c. the nature of the work, labor or service performed,
material furnished, or the storage or rental
arrangement, and the date thereof, and written proof
of authority to perform the work, labor or service
provided. In the case of a law enforcement directed
tow, the logbook entry prescribed in OAC 595:25 -5-5 or
the tow ticket as defined by the Corporation
Commission, shall serve as written proof of authority,
d. the time and place of sale,
e. the name, telephone number, physical address and
mailing address of the cl aimant, and agent or
attorney, if any, foreclosing such lien. If the
claimant is a business, then the name of the contact
person representing the busin ess must be shown. In
place of an original signa ture and notary seal, a
digital or electronic signature or seal shall be
accepted, and
f. itemized charges which shall equal the total
compensation claimed.
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4. a. Such Notice of Sale shall be posted in two public
places in the county where the property i s to be sold
at least ten (10) days before the time there in
specified for such sale, and a copy of the notice
shall be mailed to the owner and any other party
claiming any interest in the property, if known, at
their last-known post office address, by cert ified
mail, return receipt requested, at least ten (10) d ays
before the time therein specified for such sale. If
the item of personal property is a manufactured home,
notice shall also be sent by certified mail to the
county treasurer and to the county as sessor of the
county where the manufactured home is locat ed.
b. In the case of any item of personal property without a
certificate of title and not required to be titled
under Oklahoma law, a party who claim s any interest in
the property shall include all owners of the property;
any secured party who has an acti ve financing
statement on file with the county clerk of Oklahoma
County listing one or more owners of the property by
legal name as debtors and indica ting a collateral
description that would include the property; and any
other person having any interest in the personal
property, of whom the claimant has actual notice.
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c. In the case of personal property subject to this
section for which a certificate of title has been
issued by any jurisdiction, a par ty who claims any
interest in the property shall include all owners of
the article of personal property as indicated by the
certificate of title; lien debtors, if any, other than
the owners; any lienholder w hose lien is noted on the
face of the certificate of title; and any other person
having any interest in th e article of personal
property, of whom the claimant has actual notice.
d. When the jurisdiction of titling for a vehicle, all -
terrain vehicle, motorc ycle, boat, outboard motor, or
trailer that is five (5) model years old or newer, or
a manufactured home t hat is fifteen (15) model years
old or newer, cannot be determined by ordinary means,
the claimant, the agent of the claimant, or the
attorney of the claimant, shall request, in writing,
that the Oklahoma Tax Commission Motor Vehicle
Division ascertain the jurisdiction where the vehicle
or manufactured home is titled. The Oklahoma Tax
Commission Motor Vehicle Division shall, within
fourteen (14) days f rom the date the request is
received, provide inf ormation as to the jurisdiction
where the personal proper ty is titled. If the
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Oklahoma Tax Commission Motor Vehicle Division is
unable to provide the information, it shall provide
notice that the record is not available.
e. When personal property is of a type that Oklahoma law
requires to be titled, the owner o f record of that
property is unknown, and the jurisdiction of titling
and owner of record cannot be determined by ordinary
means and also, if applicab le, cannot be determined in
accordance with the p receding subparagraph, then the
special lien may be forec losed by publication of a
legal notice in a legal newspaper in the county where
the personal property is located, as defined in
Section 106 of Title 2 5 of the Oklahoma Statutes.
Such notice shall in clude the description of the
property by year, make, vehi cle identification number
if available from the property, the name of the
individual who may be contacted for information, and
the telephone number of that person or the address
where the vehicle is located. The legal notice shall
be published once per we ek for three (3) consecutive
weeks. As soon as circumstances exist as described in
the first sentence of this subparagraph, the first
date of publication may occur even if the special lien
has not accrued for over thirty (30) days. The first
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date available for public sale of the vehicle is the
day following publication of the final notice, but no
fewer than thirty (30) days after the lien has
accrued. When the owner of record is unknown, the
Notice of Sale nevertheless must be completed and
mailed to any known interested party by certified
mail. For purposes of this paragraph, interested
parties shall include all persons described in
subparagraph b or subparagraph c of this paragraph,
whichever is applicable, with the exception of any
owner who is unknown. Except in circumstances
described in paragraph 7 of this subsection that
provide for a shorter time period, the Notice of Sale
shall be posted in two public places in the county
where the property is to be sold at least ten (10)
days before the time th erein specified for such sale,
and the Notice of Sale shall not be mailed until at
least thirty (30) days after the lien has accrued.
5. The lienor or any other person may in good faith become a
purchaser of the property sold.
6. Proceedings for foreclos ure under this act shall not be
commenced until thirty (30) days after the lien has accrued, except
as provided elsewhere in Oklahoma law.
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7. Notwithstanding any other provision of law, proceedings for
foreclosures for the storage of junk vehicles towed a nd stored
pursuant to Section 955 of Title 47 of the Oklahoma Statutes by
Class AA wreckers listed with the Motor Vehicle Division of the
Department of Public Safety, may be commenced five (5) days a fter
the lien has accrued. For purposes of this paragrap h, “junk
vehicles” means any vehicle that is more than ten (10) years old if
the cost of a comparable vehicle would be less than Three Hundred
Dollars ($300.00) as quoted in the latest edition of the National
Automobile Dealers Association Official Used Ca r Guide or latest
monthly edition of any other nationally recognized published
guidebook, adjusting to the condition of the vehicle.
B. 1. a. Any person who is induced by means of a check or other
form of written order for immediate payment of money
to deliver up possession of an article of personal
property on which the person has a special lien
created by subsection A of this section, which check
or other written order is dishonored, or is not paid
when presented, shall have a lien for the amount
thereof upon the personal property.
b. The person claiming such lien shall, within thirty
(30) days from the date of dishonor of the check or
other written order for payment of money, file in the
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office of the county clerk of the county in which the
property is situated a sworn statement that:
(1) the check or other written order for immediate
payment of money, copy thereof being attached,
was received for labo r, material or supplies for
producing or repairin g an article of personal
property, or for other specific property-related
services covered by this section,
(2) the check or other written order was not paid,
and
(3) the uttering of the check or other writt en order
constituted the means for inducing the p erson,
one possessed of a special lien created by
subsection A of this section upon the described
article of personal property, to deliver up the
article of personal property.
2. a. Any person who renders service to the owner of an
article of personal property by furnishing storage,
rental space, material, labor , or skill for the
protection, improvement, safekeeping, towing, right to
occupy space, storage, or carriage thereof shall have
a special lien on su ch property pursuant to this
section if such property is removed from the person’s
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possession, without such person’s written consent or
without payment for such service.
b. The person claiming such lien shall, within five (5)
days of such nonauthorized rem oval, file in the office
of the county clerk of the county in which the
property is located, a sworn stateme nt including:
(1) that services were rendered on or in relation to
the article of personal property by the person
claiming such lien,
(2) that the property was in the possession of the
person claiming the lien but such property was
removed without his or h er written consent,
(3) an identifying description of the article of
personal property on or in relation to which the
service was rendered, and
(4) that the debt for the services rendered on or in
relation to the article of personal property was
not paid. Provided, if the unpaid total amount
of the debt for services rendered on or in
relation to the article of personal property is
unknown, an approximated amount of the debt due
and owing shall be included in the sworn
statement but such approximated debt m ay be
amended within thirty (30) days of such filing to
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reflect the actual amount of the debt due and
owing.
3. The enforcement of the lien shall b e within sixty (60) days
after filing the lien in the manner provided by law for enforcing
the lien of a security agreement and provided that the lien shall
not affect the rights of innocent, intervening purchasers without
notice.
C. If the person who ren ders service to the owner of a n article
of personal property to which this section applies relinquishes or
loses possession of the article due to circumstances described in
subparagraph a of paragraph 1 or subparagraph a of paragraph 2 of
subsection B of this section, the person claimi ng the lien shall be
entitled to possession of the article until the amount du e is paid,
unless the article is possessed by a person who became a bona fide
purchaser. Entitlement to possession shall be in accordance with
the following:
1. The claimant may take possession of an article pursuant to
this subsection only if the person obligated under the contract for
services has signed an acknowledgment of receipt of a notice that
the article may be subject to repossession. The notice and
acknowledgment pursuant to this subsection shall be:
a. in writing and separate from the written contract for
services, or
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b. printed on the written contract for services, credit
agreement or other document which displays the notice
in bold-faced, capitalized and underlined type, or is
separated from surrounding written material so as to
be conspicuous with a separate signature line;
2. The claimant may require the person obligated under the
contract for services to pay the costs of repossessio n as a
condition for reclaimin g the article only to the extent of the
reasonable fair market value of the se rvices required to take
possession of the article;
3. The claimant shall not transfer to a third party or to a
person who performs repossession ser vices, a check, money order, o r
credit card transaction that is received as payment for services
with respect to an article and that is returned to the claimant
because of insufficient funds or no funds, because the person
writing the check, issuing the mo ney order, or credit cardholder has
no account or because the check, money order, or credit card account
has been closed. A person violating this paragraph shall be guilty
of a misdemeanor; and
4. An article that is repossessed pursuant to this subsectio n
shall be promptly delivered to the location where the services were
performed. The article shall remain a t the services location at all
times until the article is lawfully returned to the record owner or
a lienholder or is disposed of pursuant to this s ection.
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D. 1. This section applies if a vehicle, all-terrain vehicle,
manufactured home, motorcycle, boat, outboard motor, or trailer has
a certificate of title issued by the Tax Commission or by a
federally recognized Indian tribe in Oklahoma, but there is no
active lien recorded on the certificate of title.
2. This section applies if a vehicle, all -terrain vehicle,
utility vehicle, motorcycle, boat, outboard motor or trailer has a
certificate of title issued by the Tax Commission or by a federally
recognized Indian tribe in Oklahom a, and there is an active lien
recorded on the certificate of title, but the l ien is over fifteen
(15) years old.
3. This section applies if personal property to which Section
91 of this title otherwise would apply has been r egistered by the
Tax Commission or by a federally recognized Indian tribe in the
State of Oklahoma, and ther e is a lien of record but no certificate
of title has been issued.
4. This section applies if personal property to which Section
91 of this title otherwise would apply has not b een registered by
either the Tax Commission or a federally recognized Indian t ribe in
the State of Oklahoma, and no certificate of title has been issued,
but there is a lien of record.
5. This section applies to personal prop erty that otherwise
would be covered by Section 91 of this title, except that the
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services were rendered or the property was abandoned prior to
November 1, 2005.
6. This section applies to a vehicle, all -terrain vehicle,
utility vehicle, manufactured home , motorcycle, boat, outboard
motor, or trailer for which ownership cannot be determined by
ordinary means or by the Oklahoma Tax Commission Motor Vehicle
Division, as provided in subparagraphs d and e of paragraph 4 of
subsection A of this section, as appl icable.
7. This section applies to items of personal property that are
not required by Oklahoma law to be t itled, and that do not have a
certificate of title.
8. This section applies to salvage pools as defined in Section
591.2 of Title 47 of the Oklahom a Statutes.
9. This section applies to class AA licensed wrecker services
taking possession of a vehicle pu rsuant to an agreement with, or at
the direction of, or dispatched by a state or local law enforcement
or government agency, or pursuant to the aban doned vehicle removal
provisions of Section 954A of Title 47 of the Oklahoma Statutes with
respect to all types of personal property, regardless of whether
that personal property has a certificate of title.
10. For a vehicle abandoned at a salvage pool, i f the cost of
repairing the vehicle for safe operation on the highway does not
exceed sixty percent (60%) of the fair market value of the vehicle
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as defined in Section 1111 of Title 47 of the Oklahoma Statutes, a
salvage title shall not be required.
E. A person who knowingly makes a false statement of a material
fact regarding the furnishing of storage, rental space, material,
labor or skill for the protection, improvement, safekeeping, towing,
right to occupy space, storage or carriage thereof in a procee ding
under this section, or attempts to use or uses the provisions of
this section to foreclose an owner or lienholder’s interest in a
vehicle knowing that any of the statements made in the proceeding
are false, upon conviction, shall be guilty of a felony .
F. Upon receipt of notice of legal proceedings, the Tax
Commission shall cause the sale process to be put on hold until
notice of resolution of court proceedings is received from the
court. If such notice of commencement of court proceedings is not
filed with the Tax Commission, th e possessory lien sale process may
continue.
G. No possessory lien sale shall be held on a Sunday.
H. For purposes of this section:
1. “Possession” includes actual possession and constructive
possession;
2. “Constructive possession” means possession by a person who,
although not in actual possession, does not have an intention t o
abandon property, knowingly has both power and the intention at a
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given time to exercise dominion or control over the property, and
who holds claim to such thing by virtue of s ome legal right;
3. “Lawfully in possession” means a person has documentation
from the owner or the owner ’s authorized agent, or an insurance
company or its authorized agent, authorizing the furnishing of
material, labor or s torage, or that the property was authorized to
be towed to a repair facility.
Class AA wrecker services taki ng possession of a vehicle
pursuant to an agreement with, or at the direction of, or dispatched
by, a state or local law enforcement or government a gency, or
pursuant to the aban doned vehicle removal provisions of Section 954A
of Title 47 of the Oklahoma S tatutes, shall be considered lawfully
in possession of the vehicle. If the person lacks such
documentation, the procedures established by this sect ion shall not
apply; and
4. “Itemized charges” means total parts, total labor, total
towing fees, total sto rage fees, total processing fees and totals of
any other fee groups, the sum total of which shall equal the
compensation claimed.
I. For purposes of this section, the United Sta tes Postal
Service approved electronic equivalent of proof of return receipt
requested Form 3811 shall satisfy return receipt requested
documentation requirements.
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J. If a person claiming a special lien pursuant to this secti on
fails to comply with any of the requirements of this section, any
interested party may proceed against th e person claiming such lien
for all damages arising therefrom, including conversion, if the
article of personal property has been sold. If the noti ce or
notices required by this section shall be shown to be knowingly
false or fraudulent, the interested pa rty shall be entitled to
treble damages. The prevailing party shall be entitled to all
costs, including reasonable attorney fees.
K. Any interested party shall be permitted to visually inspect
and verify the services rendered by the claimant prior to the sale
of the article of property during normal business hours. If the
claimant fails to allow any interested party to inspect the
property, the interested party shall mail a req uest for inspection
by certified mail, return receipt requested, to the claima nt.
Within three (3) business days of receipt of the request for
inspection, the claimant shall mail a photograph of the property, by
certified mail, return receipt requested, a nd a date of inspection
within five (5) business days from the date of the not ice to
inspect. The lienholder shall be allowed to retrieve the property
without being required to bring the title into the lienholder ’s
name, if the lienholder provides proof i t is a lienholder and any
payment due the claimant for lawful charges where th e claimant has
complied with this section. Upon the release of personal property
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to an insurer or representative of the insurer, wrecker operators
shall be exempt from all liabi lity and shall be held harmless for
any losses or claims of loss. In the even t any law enforcement
agency places a hold on the property, the party wanting to inspect
or photograph the property shall obtain permission from the law
enforcement agency that p laced the hold on the property before
inspecting or photographing.
L. This section shall apply to all actions or proceedings that
commence on or after the effective date of this act August 22, 2014.
SECTION 2. This act shall become effective November 1, 2023.
COMMITTEE REPORT BY: COMMITTEE ON JUDICIARY
February 7, 2023 - DO PASS