Bill Summary – FastDemocracy

                              STATE OF OKLAHOMA
                  1st Session of the 59th Legislature (2023)
  HOUSE BILL 1390                         By: Bashore
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                                AS INTRODUCED
         An Act relating to motor vehicles; amending 47 O.S.
            2021, Sections 1137.1, as amended by Section 170,
         Chapter 282, O.S.L. 2022 (47 O.S. Supp. 2022, Section
            1137.1) and 1137.3, as amended by Section 172,
         Chapter 282, O.S.L. 2022 (47 O.S. Supp. 2022, Section
            1137.3), which relate to motor vehicle registration
        and licensing after purchase; extending expiration
            date of temporary license plate; and providing an
        effective date.
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 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
     SECTION 1.       AMENDATORY     47 O.S. 2021, Section 1137.1, as
 amended by Section 170, Chapter 282, O.S.L. 2022 (47 O.S. Supp.
 2022, Section 1137.1), is amended to read as follows:
     Section 1137.1    A.   Except for vehicles, travel trailers or
 commercial trailers which display a current Oklahoma license tag,
 upon the purchase or transfer of ownership of a used motor vehicle,
 travel trailer or commercial trailer, including an out-of-state
 purchase or transfer of the same, to a licensed used motor vehicle
 dealer, wholesale used motor vehicle dealer, used travel trailer
 dealer or used commercial trailer dealer, subsequently referred to
     Req. No. 5453                                                     Page 1
  in this section as "dealer", the dealer shall affix a used dealer's
  plate visible from the rear of the vehicle, travel trailer or
  commercial trailer.    Such license plate shall expire on December 31
  of each year.    When the vehicle, travel trailer or commercial
  trailer is parked on the dealer's licensed place of business, it
  shall not be required to have a license plate of any kind affixed.
  A dealer shall obtain from Service Oklahoma at a cost of Ten Dollars
  ($10.00) a dealer license plate for demonstrating, transporting or
  any other normal business of a dealer including use by an individual
 holding a valid salesperson's license issued by the Oklahoma Used
 Motor Vehicle and Parts Commission.    Any dealer who operates a
 wrecker or towing service licensed pursuant to Sections 951 through
 957 of this title shall register each wrecker vehicle and display a
 wrecker license plate on each vehicle as required by Section 1134.3
 of this title.   A dealer may obtain as many additional license
 plates as may be desired upon the payment of Ten Dollars ($10.00)
 for each additional license plate.    Use of the used dealer license
 plate by a licensed dealer for other than the purposes as set forth
 herein shall constitute grounds for revocation of the dealer's
 license.   Service Oklahoma shall design the official used dealer
 license plate to include the used dealer's license number issued to
 him or her each year by Service Oklahoma or the Used Motor Vehicle
 and Parts Commission.
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     Req. No. 5453                                                      Page 2
      B.   Upon the purchase or transfer of ownership of an out-of-
  state used motor vehicle, travel trailer or commercial trailer to a
  licensed dealer, the dealer shall make application for an Oklahoma
  certificate of title pursuant to the Oklahoma Vehicle License and
  Registration Act, Section 1101 et seq. of this title.   Upon receipt
  of the Oklahoma certificate of title, the dealer shall follow the
  procedure as set forth in subsection A of this section.   Provided,
  nothing in this title shall be construed as requiring a dealer to
  register a used motor vehicle, travel trailer or commercial trailer
 purchased in another state which will not be operated or sold in
 this state.
     C.   Upon sale or transfer of ownership of the used motor vehicle
 or travel trailer, the dealer shall place upon the reassignment
 portion of the certificate of title a tax stamp issued by the county
 treasurer of the county in which the dealer has his or her primary
 place of business.   The tax stamp shall be issued upon payment of a
 fee of Three Dollars and fifty cents ($3.50) and shall be in lieu of
 the dealer's ad valorem tax on the inventories of used motor
 vehicles or travel trailers but shall not relieve any other property
 of the dealer from ad valorem taxation.
     D.   Upon sale of a used motor vehicle or travel trailer to
 another licensed dealer, the selling dealer shall place the tax
 stamp required in subsection C of this section upon the certificate
 of title.   The used dealer license plate or wholesale dealer license
     Req. No. 5453                                                     Page 3
  plate shall be removed by the selling dealer.   The purchasing dealer
  shall, at time of purchase, place his or her dealer license plate on
  the used motor vehicle, travel trailer or commercial trailer as
  provided in subsection A of this section; provided, for vehicles,
  travel trailers or commercial trailers purchased by a licensed used
  dealer at an auction, in lieu of such placement of the dealer
  license plate, the auction may provide temporary documentation as
  approved by the Director of the Motor Vehicle Division of Service
  Oklahoma for the purpose of transporting such vehicle to the
 purchaser's point of destination.   Such temporary documentation
 shall be valid for two (2) days following the date of sale.
    E.   The purchaser of every used motor vehicle, travel trailer or
 commercial trailer, except as otherwise provided by law, shall
 obtain registration and title for the vehicle or trailer within
 thirty (30) sixty (60) days from the date of purchase of same.     It
 shall be the responsibility of the selling dealer to place a
 temporary license plate, in size similar to the permanent Oklahoma
 license plate but of a weatherproof plastic-impregnated substance
 approved by the Used Motor Vehicle and Parts Commission, upon a used
 motor vehicle, travel trailer or commercial trailer when a
 transaction is completed for the sale of said vehicle.   The
 temporary license plate under this subsection shall be placed at the
 location provided for the permanent motor vehicle license plate.
 The temporary license plate shall show the license number which is
     Req. No. 5453                                                    Page 4
  issued to the dealer each year by Service Oklahoma or the Used Motor
  Vehicle and Parts Commission, the date the used motor vehicle,
  travel trailer or commercial trailer was purchased and the company
  name of the selling dealer.   The Used Motor Vehicle and Parts
  Commission is hereby directed to develop the temporary license plate
  design to incorporate these requirements in a manner that will
  permit law enforcement personnel to readily identify the dealer
  license number and date of the vehicle purchase.   The Used Motor
  Vehicle and Parts Commission is hereby authorized to develop
 additional requirements and parameters as deemed appropriate to
 discourage or prevent illegal duplication and use of the temporary
 license plate.   Such temporary license plate shall be valid for a
 period of thirty (30) sixty (60) days from the date of purchase.
 Use of the temporary license by a dealer for other than the purposes
 set forth herein shall constitute grounds for revocation of the
 dealer's license to conduct business.   Purchasers of a commercial
 trailer shall affix the temporary license plate to the rear of the
 commercial trailer.   The purchaser shall display the temporary
 license plate for a period not to exceed thirty (30) sixty (60) days
 or until registration and title are obtained as provided in this
 section.
     The provisions of this subsection on temporary licenses shall
 apply to nonresidents who purchase a used motor vehicle, travel
 trailer or commercial trailer within this state that is to be
     Req. No. 5453                                                     Page 5
  licensed in another state.   The nonresident purchaser shall be
  allowed to operate the vehicle or trailer within the state with a
  temporary license plate for a period not to exceed thirty (30) sixty
  (60) days from date of purchase.   Any nonresident purchaser found to
  be operating a used motor vehicle, travel trailer or commercial
  trailer within this state after thirty (30) sixty (60) days shall be
  subject to the registration fees of this state upon the same terms
  and conditions applying to residents of this state.
      F.   It shall be unlawful for any dealer to procure the
 registration and licensing of any used motor vehicle, travel trailer
 or commercial trailer sold by the dealer or to act as the agent for
 the purchaser in the procurement of the registration and licensing
 of the purchaser's used vehicle, travel trailer or commercial
 trailer.   A license of any dealer violating the provision of this
 section may be revoked.
     G.   Dealers following the procedure set forth herein shall not
 be required to register vehicles, travel trailers or commercial
 trailers to which this section applies, nor will the registration
 fee otherwise required be assessed.   Provided, dealers shall not
 purchase or trade for a used motor vehicle, travel trailer or
 commercial trailer on which the registration therefor has been
 expired for a period exceeding thirty (30) sixty (60) days without
 obtaining current registration therefor.
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     Req. No. 5453                                                     Page 6
      H.   A nonprofit charitable organization which is exempt from
  taxation pursuant to the provisions of the Internal Revenue Code, 26
  U.S.C., Section 501(c)(3), and which accepts donations of used motor
  vehicles previously titled in Oklahoma to be subsequently
  transferred to another owner, upon the qualifying organization
  providing sufficient documentation of its tax-exempt status, may
  obtain from Service Oklahoma charitable nonprofit organization
  license plates for demonstrating, transporting or test-driving
  donated vehicles, provided that no organization shall possess or use
 at any one time more than eight such plates.   Service Oklahoma shall
 design distinctive license plates for that purpose.     The cost for
 said plates shall be the same as provided in subsection A of this
 section for dealer plates.
     I.   The transfer of ownership from the vehicle donor to the
 qualifying nonprofit organization described in subsection H of this
 section shall be made without the payment of motor vehicle excise
 tax levied pursuant to Section 2103 of Title 68 of the Oklahoma
 Statutes.
     SECTION 2.       AMENDATORY    47 O.S. 2021, Section 1137.3, as
 amended by Section 172, Chapter 282, O.S.L. 2022 (47 O.S. Supp.
 2022, Section 1137.3), is amended to read as follows:
     Section 1137.3    The purchaser of every new motor vehicle, travel
 trailer or commercial trailer shall register or license the same
 within thirty (30) sixty (60) days from the date of purchase.     It
     Req. No. 5453                                                     Page 7
  shall be the responsibility of the selling dealer to place a
  temporary license plate, in size similar to the permanent Oklahoma
  license plate but of a weatherproof plastic-impregnated substance
  approved by the Oklahoma Motor Vehicle Commission, upon a new motor
  vehicle, travel trailer or commercial trailer when a transaction is
  completed for the sale of said vehicle or trailer.     Except for cab
  and chassis trucks, the temporary license plate under this section
  shall be placed at the location provided for the permanent motor
  vehicle license plate.     The purchaser of a new cab and chassis truck
 may place the temporary license plate under this section in the rear
 window.   Said temporary license plate shall show the dealer's
 license number which is issued to him or her each year by Service
 Oklahoma, the date the new motor vehicle, travel trailer or
 commercial trailer was purchased and the company name of the selling
 dealer.   The Oklahoma Motor Vehicle Commission is hereby directed to
 develop a temporary license plate design to incorporate these
 requirements in a manner that will permit law enforcement personnel
 to readily identify the dealer license number and date of the
 vehicle purchase.   The Motor Vehicle Commission is further
 authorized to develop additional requirements and parameters
 designed to discourage or prevent illegal duplication and use of the
 temporary license plate.    On or before thirty (30) sixty (60) days
 from the date of purchase of a new motor vehicle, travel trailer or
 commercial trailer, said temporary license plate shall be removed
     Req. No. 5453                                                     Page 8
  and replaced with a permanent, current Oklahoma license plate.    Use
  of said temporary license plate by a licensed dealer for other than
  the purpose of normally doing business shall constitute grounds for
  revocation of the dealer's license.
      It shall be unlawful for any licensed dealer of new motor
  vehicles, travel trailers or commercial trailers to procure the
  registration and licensing of any new motor vehicle, travel trailer
  or commercial trailer sold by such licensed dealer or to act as the
  agent for such purchaser in the procurement of said registration and
 licensing.   The license of any licensed dealer of new motor
 vehicles, travel trailers or commercial trailers violating the
 provisions of this section shall be revoked.
     SECTION 3.   This act shall become effective November 1, 2023.
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     59-1-5453      AQH     11/29/22
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     Req. No. 5453                                                    Page 9
Statutes affected: 
Introduced: 47-1137.1, 47-1137.3
Floor (House): 47-1137.1, 47-1137.3
Floor (Senate): 47-1137.1, 47-1137.3
Engrossed: 47-1137.1, 47-1137.3
Amended And Engrossed: 47-1137.1, 47-1137.3
Enrolled (final version): 47-1137.1, 47-1137.3