SB641 HFLR Page 1 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 HOUSE OF REPRESENTATIVES - FLOOR VERSION STATE OF OKLAHOMA 1st Session of the 60th Legislature (2025) COMMITTEE SUBSTITUTE FOR ENGROSSED SENATE BILL NO. 641 By: Paxton of the Senate and Tedford of the House COMMITTEE SUBSTITUTE 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 rates; authorizing certain increase in certain maximum daily storage rates; providing certain exceptions; requiring certain written invoic e; allowing adjustment of certain maximum daily storage rates; providing for codification; and providing an effective date. BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. NEW LAW A new section of law to be cod ified 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 known and may be cited as the “Oklahoma Motor Vehicle Consumer Protection Act”. SB641 HFLR Page 2 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 numbering, reads as follows: As used in this act: 1. “Administrative charges” shall include, but not be limit ed 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 par ty 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 into a vehicle determined to be a total loss; SB641 HFLR Page 3 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 2. “Auto body repair” means all auto body repair shop repairs, maintenance, painting, exterior body work, part replacements, assessment, and diagnostic testing pr ovided to an insurance company to determine a motor vehicle total loss; 3. “Auto body repair shop” means any commercial entity engaged in the business or occupation of performing auto body repairs on the body of a motor vehicle; 4. “Insurance company” me ans 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 determining 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 1273 of Title 36, unless there is created a duplication in numbering, reads as follows: SB641 HFLR Page 4 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 A. Upon the effective date of this act, the hourly market rate for labor for administrative charges as defined in Sect ion 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. 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 based 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 1274 of Title 36, unless there is created a duplication in numbering, reads as follows: A. The maximum daily storage rate allowed 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 size, including marine vessels, and Seventy-eight Dollars ($78.00) for fully electric vehicles with collision damages, if the vehicle is stored pursuant to the Original Equipment manufacturer requirements. SB641 HFLR Page 5 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 Two Hundred Dollars ($200.00) per calendar day for fully electric vehicles with collision damage, if the vehicle is stored pursuant to the Original Equipment manufacturer requirements, 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 subsections A and B of this section shall not apply to vehicles in which the damage to the vehicle necessitates indoor stor age and the insurance company has approved indoor storage of the vehicle in advance at an agreed 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. SB641 HFLR Page 6 BOLD FACE denotes Committee Amendments. 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 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. COMMITTEE REPORT BY: COMMITTEE ON COMMERCE AND ECONOMIC DEV ELOPMENT OVERSIGHT, dated 04/16/2025 - DO PASS, As Amended.