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ENGROSSED SENATE
BILL NO. 641 By: Paxton of the Senate
and
Tedford of the House
An Act relating to motor vehicle repair; creating the
Oklahoma Motor Vehicle Consumer Protection Act;
providing short title; defining terms; establishing
certain hourly market rate for labor ; directing
Insurance Department to adjust certain hourly market
rate for labor; prohibiting certain administrative
charges from exceeding certain amount; establishing
certain maximum daily storage rate s; authorizing
certain increase in certain maximum daily storage
rates; providing certain exceptions; requiring
certain written invoice; allowing adjustment of
certain maximum daily storage rates; providing for
codification; and providing an effective date .
BE IT ENACTED BY THE P EOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1271 of Title 36, unless there
is created a duplication in numbering, reads as follows:
This act shall be kno wn and may be cited as the “Oklahoma Motor
Vehicle Consumer Protection Act ”.
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1272 of Title 36, unless there
is created a duplication in numbe ring, reads as follows:
As used in this act:
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1. “Administrative charges ” shall include, but not be limited
to, the cost of:
a. file creation,
b. repair orders,
c. vehicle travel on a customary standard drivable
rolling vehicle,
d. vehicle identification,
e. software charges,
f. communication with vehicle owners and insurance
representatives and any other party involved in the
repair or total loss determination,
g. prewashes,
h. COVID-19 cleaning or bio-cleaning,
i. charges related to photographs and electronic
communications,
j. charges for work that is not for obtaining labor,
parts, and materials,
k. securing removed parts, and
l. relocating parts back in to a vehicle determined to be
a total loss;
2. “Auto body repair” means all auto body repair shop repairs,
maintenance, painting, exterior body work, part replacements,
assessment, and diagnostic testing provided to an insurance company
to determine a motor vehicle total loss;
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3. “Auto body repair shop ” means any commercial en tity engaged
in the business or occupation of performing auto body repairs on the
body of a motor vehicle;
4. “Insurance company” means the person or entity responsible
for charges incurred by the insured at an auto body repair shop as a
result of repairs or charges incurred in dete rmining a total loss of
a motor vehicle as provided for in Section 1250.8 of Title 36 of the
Oklahoma Statutes;
5. “Motor vehicle” means the same as defined in Section 1 -134
of Title 47 of the Oklahoma Statutes;
6. “Owner” means the owner of the vehicle; and
7. “Storage rates” means all charges and fees related to the
auto body repair shop retaining actual physical possession of a
motor vehicle during the time when the auto body repair shop
exercises control, supervision, care, security, protection, and
responsibility over the motor vehicle .
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 127 3 of Title 36, unless there
is created a duplication in numbering, read s as follows:
A. Upon the effective date of this act, the hourly market rate
for labor for administrative charges as defined in Section 2 of this
act, as the rate relates to total loss vehicles, shall be in
accordance with the prevailing market price determined pursuant to
subsection H of Section 1250.8 of Title 36 of the Oklahoma Statutes.
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The Insurance Commissioner may adjust the hourly market rate for
labor to account for inflation annually beginning on January 1,
2027. Such adjustment shall be made b ased on the market surveys
conducted pursuant to Section 365:15-1-26 of the Oklahoma
Administrative Code.
B. Administrative charges, as such charges relate to total loss
vehicles, shall not exceed the hourly market rate for labor pursuant
to this section and may only be billed up to four (4) hours.
SECTION 4. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 127 4 of Title 36, unless there
is created a duplication in numbering, reads as follows:
A. The maximum daily storage rate a llowed to be charged by an
auto body repair shop for a motor vehicle total loss for each
calendar day, for the first ten (10) calendar days the vehicle is in
the possession of the shop, shall be Thirty -nine Dollars ($39.00)
for all motor vehicles of any si ze, including marine vessels , and
Seventy-eight Dollars ($78.00) for vehicles with a lithium -ion
battery that have sustained damage to the battery pack or have
exhibited fire, smoke, or popping or hissing sounds.
B. On the eleventh calendar day, the maximum daily storage rate
may increase to Seventy-five Dollars ($75.00) per calendar day for
all motor vehicles of any size, include marine vessels, and to One
Hundred Fifty-six Dollars ($156.00) per calendar day for vehicles
with a lithium-ion battery that have sustained damage to the battery
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pack or have exhibited fire , smoke, or popping or hissing sounds , if
the estimate or supplement on total loss vehicles is not approved by
the insurance company within the first seven (7) days and the auto
body repair shop has a written record showing the date, time, and
type of communication made to the insurance company requesting such
supplementals. Requests for supplementals to determine a total loss
shall be made before the tenth day following the request .
C. The provisions of subsection s A and B of this section shall
not apply to vehicles in which the damage to the vehicle
necessitates indoor storage and the insurance company has approved
indoor storage of the vehicle in advance at an agre ed rate.
D. Each auto body repair shop shall provide written invoices
and respond to requests for invoices concerning the pickup, release,
or delivery of a motor vehicle on its premises to the insurance
company within eight (8) business hours.
E. The maximum daily storage rate set forth in this section
shall apply to direct repair programs.
F. The maximum daily storage rate may be increased . Such
adjustment shall be made based on the market surveys conducted
pursuant to Section 365:15-1-26 of the Oklahoma Administrative Code .
SECTION 5. This act shall become effective November 1, 2025.
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Passed the Senate the 27th 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