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HOUSE OF REPRESENTATIVES - FLOOR VERSION
STATE OF OKLAHOMA
1st Session of the 60th Legislature (2025)
COMMITTEE SUBSTITUTE
FOR
HOUSE BILL NO. 1789 By: Kerbs of the House
and
Frix of the Senate
COMMITTEE SUBSTITUTE
An Act relating to motor vehicles; amending 47 O.S.
2021, Section 596.3, as amended by Section 23,
Chapter 29, O.S.L. 2023 (47 O.S. Supp. 2024, Section
596.3), which relates to dealer sales responsibility;
disallowing certain activity at private off -premises
sales events outside certain area; authorizing
certain sales at certain events under certain
conditions; detailing conditions for sales activity
or display at certain events; authorizing certain
activities at certain private events under certain
conditions; detailing c onditions for certain
activities; and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 47 O.S. 2021, Section 596.3, as
amended by Section 23, Chapter 29, O.S.L. 20 23 (47 O.S. Supp. 2024,
Section 596.3), is amended to read as follows:
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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 designate in the dealer agreement the
area of sales responsibility exclusively assigned to the dealer;
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 not be reviewed or
changed without the consent of both parties until one (1) year after
the execution of the dealer agreement.
B. A dealer promoting its own private off-premises sales event,
wherein that dealer is the sole participating dealer, shall not
conduct sales activity or display for sale recreational vehicles
outside of its manufacturer designated area of sales responsibility.
C. A dealer participating in a sponsored off -premise sales
event with other participating dealers, may sell off-premises within
conduct sales activity or display for sale recreational vehicles
inside or outside 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-premises 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 pa rticipate in the show. A
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sanctioned A sponsored recreational vehicle show may be held only
under the following conditions:
a. the sponsoring entity of the sales event shall obtain
a permit from the 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 sponsored recreational
vehicle show described in this paragraph shall be
obtained from the Commission at a ra te of Fifteen
Dollars ($15.00) for each motor home per sanctioned
recreational vehicle at the 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 a dealer
participating in a sponsored off premise sales show
shall not be denied a permit on the grounds that the
promotion is to be held within the relevant market
area of another dealer of the same -line make,
d. new recreational vehicle dealers shall obtain written
approval from the manufacturer or distributor to
participate in the sanctioned sponsored recreational
vehicle show, and
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e. the sanctioned sponsored recreational vehicle show
shall be conducted within municipa l, county, or state-
owned or controlled facilities or within the grounds
of any county, district, or state fair ; and.
2. At nonsanctioned A private recreational vehicle shows show
where only one or more dealers dealer may sell recreational vehicles
off-premises under the following conditions:
a. dealer permits for a nonsanctioned private
recreational vehicle show described in this paragraph
shall be obtained from the Commission at a rate of
Fifteen Dollars ($15.00) for each recreational vehicle
per nonsanctioned recreational vehicle at the show,
b. the location of the nonsanctioned private recreational
vehicle show shall be within the manufacturer -approved
area of responsibility,
c. the nonsanctioned private recreational vehicle show
shall occur no more tha n five (5) consecutive days per
event, excluding county, district, or state fairs,
d. each dealer may participate in no more than eight
nonsanctioned private recreational vehicle shows per
calendar year, and
e. nonsanctioned private recreational vehicle sh ows shall
be, if held on privately owned property , shall be no
closer than two and one -half (2 1/2) miles to any
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other nonparticipating recreational vehicle dealer;
provided, however, a nonsanctioned private
recreational vehicle show may be held on county or
municipally owned property with no mileage barrier
restriction,
f. a dealer shall obtain written approval from the
manufacturer or distributor to participate in a
private recreational vehicle show, and
g. the sponsoring entity of the private sales event must
provide written permission for the dealer to conduct
the event on the sponsor's property .
D. A dealer may display a recreational vehicle within the
designated area of responsibility of the dealer for promotional
purposes. At an off -premises 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 permitted to participate at an off -premises
display event. A permit for the off-premises display event shall
not be required.
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
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plan made in the dealer agreement by providing written notice to the
manufacturer.
SECTION 2. This act shall become effective November 1, 2025.
COMMITTEE REPORT BY: COMMITTEE ON COM MERCE AND ECONOMIC DEVELOPMENT
OVERSIGHT, dated 03/06/2025 - DO PASS, As Amended and Coauthored.