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SENATE FLOOR VERSION
February 8, 2023
SENATE BILL NO. 729 By: Rosino
An Act relating to motor vehicle delivery; am ending
47 O.S. 2021, Section 584, as last amended by Section
4, Chapter 192, O.S.L. 2022 (47 O.S. Supp. 2022,
Section 584), which relates to the basis for denial ,
revocation, or suspension of license; providing
certain exemption; and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 47 O.S. 2021, Section 584, as last
amended by Section 4, Chapter 192, O.S.L. 2022 (47 O.S. Supp. 2022,
Section 584), is amended to read as follows:
Section 584. A. The Oklahoma Used Motor Vehicle and Parts
Commission may deny an application for a license, impose a fine not
to exceed One Thousand Dollars ($1,000.00) per occurre nce and/or
revoke or suspend a license after it has been granted, when any
provision of Sections 581 through 588 of this title is violated or
for any of the following reasons:
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1. On satisfactory proof of unfitness of the applicant or the
licensee, as the case may be, under the standards established by
Sections 581 through 588 of this title;
2. For fraud practices or any material misstatement made by an
applicant in any application fo r license under the provisions of
Sections 581 through 588 of this title;
3. For any willful failure to comply with any provision of
Section 581 et seq. of this tit le or with any rule promulgated by
the Commission under authority vested in it by Sections 581 through
588 of this title;
4. Change of condition after license is g ranted resulting in
failure to maintain the qualifications for license;
5. Continued or fla grant violation of any of the rules of the
Commission;
6. Being a used motor vehicle deale r, a used motor vehicle
salesperson, a wholesale used motor vehicle deale r, or a
manufactured home dealer, a restricted manufactured home park
dealer, a manufactured home installer, a manufactured home
salesperson or a manufactured home manufacturer who:
a. resorts to or uses any false or misleading advertising
in connection with business as a used motor vehicle
dealer, wholesale used motor vehicle dealer or a
restricted manufactured home park dealer or
manufactured home dealer, installer or manufacturer,
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b. has committed any unlawful act which resulted in the
revocation of any similar license in another state,
c. has been convicted of a felony crime that
substantially relates to the occupation of a used
motor vehicle dealer, a wholesale used motor vehicle
dealer, a manufactured home dealer, a restricted
manufactured home park de aler, a manufactured home
installer or a manufactured home manufacturer an d
poses a reasonable threa t to public safety,
d. has committed a fraudulent act in selling, purchasing
or otherwise dealing in motor vehicles or manufactured
homes or has misrepresen ted the terms and conditions
of a sale, purchase or contract for sale or p urchase
of a motor vehicle or manufactured home or any
interest therein including an option to purchase such
motor vehicles or manufactured homes,
e. has engaged in business under a past or present
license issued pursuant to Sections 581 through 588 of
this title, in such a manner as to cause injury to the
public or to those with whom the licensee is dealing,
f. has failed to meet or maintain the conditions and
requirements necessary to qualify for the issuance of
a license,
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g. has failed or refused to furn ish and keep in force any
bond required under Sections 581 through 588 of this
title,
h. has installed or att empted to install a manufactured
home in an unworkmanlike manner, or
i. employs a person in connection with the sale of
manufactured homes without first obtaining a
certificate of registration for the person;
7. Being a used motor vehicle dealer who:
a. does not have an established place of business,
b. employs a person in con nection with the sale of used
vehicles without first obtaining a certifica te of
registration for the person,
c. fails or refuses to furnish or keep in force single
limit liability insurance on any vehicle offered for
sale and otherwise required under the f inancial
responsibility laws of this state, or
d. is not operating from th e address shown on the lic ense
if this change has not been reported to the
Commission; or
8. Being a manufactured home dealer or a restricted
manufactured home park dealer who:
a. does not have an established place of business,
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b. fails or refuses to furn ish or keep in force garag e
liability and completed operations insurance, or
c. is not operating from the add ress shown on the license
if this change has not been reported to the
Commission.
B. 1. The Commission shall deny an application for a license,
or revoke or suspend a lice nse after it has been granted, if a
manufactured home dealer does not meet the foll owing guidelines and
restrictions:
a. a display area for manufactured hom es which is easily
accessible, with sufficient parking for the public,
b. an office for conducting b usiness where the books,
records, and files are kept, with access to a restroom
for the public,
c. a place of business which meets all zoning, occupancy
and other requirements of the appropriate local
government and regular occupancy by a person, firm, or
corporation engaged in the b usiness of selling
manufactured homes, and
d. a place of business which is separate and apart from
any other dealer’s location.
2. The Commission shall deny an application for a res tricted
manufactured home park dealer license, or revoke or suspend a
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license after it has been granted, if a manufactured home p ark
dealer does not satisfy the following guidelines and restrictions:
a. only mobile or manufactured homes that are “ready for
occupancy” are sold or offered for sale,
b. maintains an office for conducting business where the
books, records, and files are kept, with access to a
restroom for the public,
c. maintains a place of b usiness which meets all zoning,
occupancy and other re quirements of the appropriate
local government and regular occupancy by a person,
firm or corporation engaged in the business of selling
manufactured homes inside a park, and
d. maintains a place of bus iness which is separate and
apart from any other deale r’s location.
C. The Commission shall deny an application for a license, or
revoke or suspend a license after it has been grante d, if a
manufactured home installer:
1. Installs or attempts to install a manufactured home in a
manner that is not in compliance with installation standards as set
by the Commission pursuant to rule; or
2. Violates or fails to comply with any applicable rule as
promulgated by the Commission concerning manufactured home
installers.
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D. The Commission shall deny an application for a license, or
revoke or suspend a license af ter it has been granted, if a
manufactured home manufacturer violates or fails to c omply with any
applicable rule as promulgated by the Commission concernin g
manufactured home manufacturers.
E. The Commission shall deny an application for a license by a
motor vehicle manufacturer or factory if the application is for the
purpose of selling used motor vehicles to any retail consumer in the
state, other than th rough its retail franchised dealers, or acting
as a broker between a seller and a retail buyer. Thi s subsection
does not prohibit a manufacturer from selling used motor vehicles
where the retail customer is a nonprofit organization or a federal,
state, or local government or agency. This subsection does not
prohibit a manufacturer from providing inform ation to a consumer for
the purpose of marketing or facilitating the sale of used m otor
vehicles or from establishing a program to sell or offer to sell
used motor vehicles through the manufacturer ’s retail franchised
dealers as provided for in Sections 56 1 through 580.2 of this title.
This subsection shall not prevent a factory from ob taining a
wholesale used motor vehicle dealer ’s license or the factory ’s
financing subsidiary from obtaining a wholesale used motor vehicle
dealer’s license.
F. If the Commission denies issuance of a license the
Commission shall provide the grounds for th e action to the applicant
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in writing and allow the applicant sixty (60) d ays to resolve any
issues that are the grounds for the action.
G. Each of the aforementioned ground s for suspension,
revocation, or denial of issuance or renewal of license shall als o
constitute a violation of Sections 581 through 588 of this title,
unless the person involved has been tried and acquitted of the
offense constituting such grounds.
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 whic h might be imposed upon any
licensee upon a conviction at law for any violation of Sections 581
through 588 of this title.
H. This section shall not be construed to prohibit a used m otor
vehicle dealer from delivering a motor vehicle off site or from
selling a motor vehicle to a customer at the home or place of
business of the customer.
H. I. As used in this section:
1. “Substantially relates ” means the nature of criminal conduct
for which the person was convicted has a direct bear ing on the
fitness or ability to perform one or more of the duties or
responsibilities necessarily related to the occupatio n; and
2. “Poses a reasonable threat ” means the nature of criminal
conduct for which the person was convicted involved an act or thr eat
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of harm against another and has a bearing on the fitness or ability
to serve the public or work with others in the occu pation.
SECTION 2. This act shall become effective November 1, 2023
COMMITTEE REPORT BY: COMMITTEE ON BUSINESS AND COMMERCE
February 8, 2023 - DO PASS