ENGR. S. B. NO. 638 Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 ENGROSSED SENATE BILL NO. 638 By: Daniels of the Senate and Bashore of the House An Act relating to the Unfair Sales Act; amending 15 O.S. 2021, Section 598.2, which relates to definitions; modifying definitions; updating statutory language and references; and providing an effective date. BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. AMENDATORY 15 O.S. 2021, Section 598.2, is amended to read as follows: Section 598.2. For the purposes of the Unfa ir Sales Act: (a) The term “cost 1. “Cost to the retailer” means the invoice cost of the merchandise to the retailer or the replacement cost of the merchandise to the retailer, whichever is the lower; less all trade discounts except customary discounts f or cash; to which shall be added (1) (a) freight charges not otherwise included in the invoice cost or the replacement cost of the merchandise as herein set forth, and (2) (b) cartage to the retail outlet if done or paid for the retailer, which cartage cos t, in the absence of proof of a lesser cost, shall be deemed to be three -fourths of one percent (3/4 of 1%) of the cost to the retailer as herein defined after adding ENGR. S. B. NO. 638 Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 thereto freight charges but before adding thereto cartage, and taxes, (3) and (c) all state and federal taxes not heretofore added to the cost as such, and (4) a markup to cover a proportionate part of the cost of doing business, which markup, in the absence of proof of a lesser cost, shall be six percent (6%) of the cost of the retailer as herein set forth after adding thereto freight charges and cartage but before adding thereto a markup ; (b) The term “cost 2. “Cost to the wholesaler” means the invoice cost of the merchandise to the wholesaler, or the replacement cost of the merchandise to the wholesaler, whichever is the lower; less all trade discounts except customary discounts for cash; to which shall be added, (1) (a) freight charges, not otherwise included in the invoice cost or the replacement cost of the merchandise as herein set fort h, and (2) (b) cartage to the retail outlet if done or paid for by the wholesaler, which cartage cost, in the absence of proof of a lesser cost, shall be deemed to be three-fourths of one percent (3/4 of 1%) of the cost to the wholesaler as herein set fort h after adding thereto freight charges but before adding thereto cartage, and taxes, and (3) (c) all state and federal taxes not heretofore added to the cost as such; (c) The term “replacement 3. “Replacement costs” means the cost per unit at which the m erchandise sold or offered for sale could have been bought by the seller at any time within thirty (30) days prior to the date of sale or the date upon which it is offered ENGR. S. B. NO. 638 Page 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 for sale by the seller if bought in the same quantity or quantities as the seller’s last purchase of said merchandise ;. (d) When one or more items advertised, offered for sale, or sold with one or more other items at a combined price, or advertised, offered as a gift, or given with the sale of one or more other items, each and all of the items shall be deemed to be advertised, offered for sale, or sold, and the price of each item named shall be governed by the provisions of paragraphs (a) or (b) 1 or 2 of this section, respectively; (e) The terms “sell 4. “Retailer” means and includes e very person, partnership, corporation or ass ociation engaged in the business of making sales at retail within this state; provided, that, in the case of a person, partnership, corporation or association engaged in the business of making both sales at retai l and sales at wholesale, such term shall be applied only to the retail portion of such business; 5. “Sell at retail”, “sales at retail”, and “retail sale” mean and include any transfer for valuable consideration made in the ordinary course of trade or in the usual prosecution of the seller ’s business of title to tangible personal property to the purchaser for consumption or use other than resale or further processing or manufacturing. The above Such terms shall include any transfer of such property where title is retained by the seller as security for the payment of the purchase price; ENGR. S. B. NO. 638 Page 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 (f) The terms “sell 6. “Sell at wholesale”, “sales at wholesale”, and “wholesale sales” mean and include any transfer for a valuable consideration made in the ordinary co urse of trade or the usual conduct of the se ller’s business, of title to tangible personal property to the purchaser for purposes of resale or further processing or manufacturing. The above Such terms shall include any transfer of such property where titl e is retained by the seller as security for the payment of the purchase price; and (g) The term “retailer” means and includes every person, partnership, corporation or association engaged in the business of making sales at retail within this state; provid ed that, in the case of a person, partnershi p, corporation or association engaged in the business of making both sales at retail and sales at wholesale, such term shall be applied only to the retail portion of such business; (h) The term “wholesaler” 7. “Wholesaler” means and includes every person, partnership, corporation, or association engaged in the business of making sales at wholesale within this state; provided, that, in the case of a person, partnership, corporation or association engaged in the b usiness of making both sales at wholesale and sales at retail, such term shall be applied only to the wholesale portion of such business. SECTION 2. This act shall become effective November 1, 2025. ENGR. S. B. NO. 638 Page 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Passed the Senate the 25th day of March, 2025. Presiding Officer of the Senate Passed the House of Representatives the ____ day of __________, 2025. Presiding Officer of the House of Representatives