1 STATE OF OKLAHOMA
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2 1st Session of the 58th Legislature (2021)
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3 SENATE BILL 463 By: Hall
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6 AS INTRODUCED
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7 An Act relating to motor license agents; amending 47
7 O.S. 2011, Section 1140, as last amended by Section
8 2, Chapter 195, O.S.L. 2019 (47 O.S. Supp. 2020,
8 Section 1140), which relates to qualifications and
9 requirements; modifying basis for removal of motor
9 license agents; providing that motor license agents
10 are subject to removal for cause by the Oklahoma Tax
10 Commission; providing definition; prohibiting removal
11 for exercise of free speech; providing procedure for
11 removal; requiring that removal be reviewed by
12 Commissioners; requiring notice; authorizing hearing;
12 providing for presentation of evidence; creating
13 right to appeal; and providing an effective date.
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16 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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17 SECTION 1. AMENDATORY 47 O.S. 2011, Section 1140, as
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18 last amended by Section 2, Chapter 195, O.S.L. 2019 (47 O.S. Supp.
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19 2020, Section 1140), is amended to read as follows:
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20 Section 1140. A. The Oklahoma Tax Commission shall adopt rules
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21 prescribing minimum qualifications and requirements for locating
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22 motor license agencies and for persons applying for appointment as a
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23 motor license agent. Such qualifications and requirements shall
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24 include, but not be limited to, the following:
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 1 1. Necessary job skills and experience;
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2 2. Minimum office hours;
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3 3. Provision for sufficient staffing, equipment, office space
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4 and parking to provide maximum efficiency and maximum convenience to
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5 the public;
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6 4. Obtainment of a faithful performance surety bond as provided
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7 for by law;
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8 5. In counties with a population in excess of thirty thousand
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9 (30,000) persons according to the latest Federal Decennial Census, a
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10 requirement that operation of a motor license agency be the primary
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11 source of income for the agent;
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12 6. That the applicant has not been convicted of a felony and
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13 that no felony charges are pending against the applicant;
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14 7. That a complete financial statement be submitted by the
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15 applicant on forms provided by the Tax Commission;
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16 8. That a report of the applicant’s credit history be obtained
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17 through the appropriate credit bureau; and
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18 9. That the location specified in the application for
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19 appointment as a motor license agent not be owned by a member of the
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20 Oklahoma Tax Commission or an employee of the Oklahoma Tax
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21 Commission or any person related to a member of the Oklahoma Tax
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22 Commission or an employee of the Tax Commission within the third
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23 degree by consanguinity or affinity and that the location not be
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24 within a three-mile radius of an existing motor license agency
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 1 unless the applicant is assuming the location of an operating
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2 agency. If the applicant is assuming the location of an existing or
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3 operating agency, the current agent may submit a letter of
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4 resignation contingent upon the appointment of the applicant
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5 regardless of the population of the municipality in which the agency
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6 is located. The Tax Commission may, at its discretion, approve the
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7 relocation of an existing agency within a three-mile radius of
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8 another existing agency only if a naturally intervening geographic
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9 barrier within that radius causes the locations to be separated by
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10 not less than three (3) miles of roadway by the most direct route.
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11 B. After the necessary information has been forwarded to the
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12 Tax Commission, the Tax Commission or its designees may select
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13 applicants to be interviewed and each item of information shall be
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14 reviewed.
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15 Any person making application to the Tax Commission for the
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16 purpose of becoming a motor license agent shall pay when submitting
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17 the application, a nonrefundable application fee of One Hundred
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18 Dollars ($100.00). All such application fees shall be deposited in
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19 the Oklahoma Tax Commission Revolving Fund.
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20 C. Upon application by a person to serve as a motor license
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21 agent, in such counties, the Tax Commission is authorized to make a
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22 determination whether such person and such location meets the
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23 qualifications and requirements prescribed herein and, if such be
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24 the case, may appoint such person to serve as a motor license agent.
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 1 D. A motor license agent, appointed pursuant to this
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2 subsection, shall be permitted to operate a motor license agency at
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3 a single location and shall be prohibited from operating subagencies
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4 or branch agencies.
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5 Motor license agents appointed pursuant to this section shall be
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6 subject to all laws relating to motor license agents and shall be
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7 subject to removal at the will of for cause by the Tax Commission.
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8 For the purposes of this section, “for cause” shall be defined
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9 as follows:
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10 1. Repeated violations of written rules, regulations and
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11 statutes pertaining to motor license agents after written warning by
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12 the Tax Commission and an opportunity to correct such violations;
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13 2. Failure of the motor license agent to promptly remit funds
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14 owed to the Tax Commission upon written demand;
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15 3. Being charged with a felony crime involving dishonesty or
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16 moral turpitude;
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17 4. Failure to timely file state and federal income tax returns;
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18 and
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19 5. Any act of official misconduct as set forth in Section 93 of
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20 Title 51 of the Oklahoma Statutes.
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21 Under no circumstances shall a motor license agent be removed
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22 for exercising his or her right of free speech as guaranteed by
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23 Section 22 of Article II of the Oklahoma Constitution or the First
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24 Amendment of the United States Constitution.
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 1 The Tax Commission shall appoint as many motor license agents as
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2 it deems necessary to carry out the provisions of the Motor Vehicle
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3 License and Registration Act. Provided, that in counties with a
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4 population in excess of twenty-five thousand (25,000) persons,
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5 according to the latest Federal Decennial Census, having only one
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6 motor license agent serving the county, the Tax Commission shall
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7 establish at least one additional agency to serve the county.
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8 E. All motor license agents shall be self-employed independent
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9 contractors and shall be under the supervision of the Tax
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10 Commission; provided, any agent authorized to issue registrations
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11 pursuant to the International Registration Plan shall also be under
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12 the supervision of the Corporation Commission, subject to rules
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13 promulgated by the Corporation Commission pursuant to the provisions
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14 of subsection E of Section 1166 of this title. Any such agent, upon
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15 being appointed, shall furnish and file with the Tax Commission a
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16 bond in such amount as may be fixed by the Tax Commission. Such
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17 agent shall be removable at the will of the Tax Commission. Such
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18 agent shall perform all duties and do such things in the
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19 administration of the laws of this state as shall be enjoined upon
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20 and required by the Tax Commission or the Corporation Commission.
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21 Provided, the Tax Commission may operate a motor license agency in
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22 any county where a vacancy occurs.
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23 F. In the event of a vacancy existing by reason of resignation,
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24 removal, death or otherwise, in the position of any motor license
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 1 agent, the Tax Commission is hereby empowered and authorized to take
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2 any and all actions it deems appropriate in order to provide for the
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3 orderly transition and for the maintenance of operations of the
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4 motor license agency including but not limited to the designation of
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5 one of its regular employees to serve as “acting agent” without
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6 bond, and to receive and expend all fees or charges authorized or
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7 provided by law and exercise the same powers and authority as a
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8 regularly appointed motor license agent. An acting agent may be
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9 authorized by the Tax Commission equally as the preceding agent to
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10 make disbursements from any balances in the preceding motor license
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11 agent’s operating account and the agent’s operating funds for the
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12 payment of expenses of operations and salaries and other overhead.
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13 If such funds are insufficient, the Tax Commission is authorized to
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14 expend from funds appropriated for the operation of the Tax
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15 Commission such amounts as are necessary to maintain and continue
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16 the operation of any such motor license agency until a successor
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17 agent is appointed and qualified. The Tax Commission may require a
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18 blanket fiduciary bond of the agency employees.
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19 G. Any motor license agency operated by a motor license agent
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20 who has been charged with a felony shall be closed immediately. The
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21 Tax Commission shall determine whether the motor license agency
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22 shall be reopened and operated by the motor license agent. The
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23 determination shall be effected as soon as possible to prevent
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24 additional inconvenience to the public In the event that the Tax
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 1 Commission determines by a vote of the majority of the Commissioners
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2 that sufficient grounds exist to remove a motor license agent from
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3 his or her position, the Tax Commission shall cause written notice,
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4 stating with specificity upon which grounds the Tax Commission seeks
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5 removal, to be served upon the motor license agent by certified
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6 mail. The motor license agent may, within ten (10) days of the
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7 receipt of the notice, request a hearing before the Tax Commission
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8 to dispute the removal. Such hearing shall be held within thirty
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9 (30) days of the request by the motor license agent. The motor
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10 license agent shall be allowed to present evidence, call witnesses,
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11 and present testimony regarding the written allegations. Such
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12 hearing shall be conducted pursuant to the provisions of the
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13 Oklahoma Administrative Procedures Act. If, after the conclusion of
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14 the hearing, the Tax Commission determines that the motor license
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15 agent shall be removed, the Tax Commission shall make a written
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16 order to include the specific findings of fact and conclusions of
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17 law upon which the determination was based. This written order
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18 shall be provided to the motor license agent within ten (10) days of
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19 the conclusion of the hearing.
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20 The motor license agent shall have the right to judicial review
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21 of the order of the Tax Commission. Proceedings for review shall be
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22 instituted by filing a petition in the district court of the county
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23 in which the party seeking review resides or, at the option of such
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24 party, where the affected property interest is situated, within
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 1 thirty (30) days after the petitioner is notified of the final order
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2 as provided by Section 312 of Title 75 of the Oklahoma Statutes.
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3 The petition shall name as respondents the Tax Commission and any
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4 other parties as allowed by law. The district court shall review
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5 the final order of the Tax Commission de novo. In the event that
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6 the district court determines that the removal proceeding brought by
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7 the Tax Commission was frivolous, the court may order that the
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8 petitioner be entitled to recover any court costs, witness fees and
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9 reasonable attorney fees from the Tax Commission.
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10 H. When an application for registration is made with the Tax
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11 Commission, Corporation Commission or a motor license agent, a
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12 registration fee of One Dollar and seventy-five cents ($1.75) shall
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13 be collected for each license plate or decal issued. Such fees
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14 shall be in addition to the registration fees on motor vehicles and
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15 when an application for registration is made to the motor license
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16 agent such motor license agent shall retain a fee as provided in
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17 Section 1141.1 of this title. When the fee is paid by a person
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18 making application directly with the Tax Commission or Corporation
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19 Commission, as applicable, the registration fees shall be in the
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20 same amount as provided for motor license agents and the fee
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21 provided by Section 1141.1 of this title shall be deposited in the
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22 Oklahoma Tax Commission Revolving Fund or as provided in Section
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23 1167 of this title, as applicable. The Tax Commission shall prepare
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24 schedules of registration fees and charges for titles which shall
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 1 include the fees for such agents and all fees and charges paid by a
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2 person shall be listed separately on the application and
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3 registration and totaled on the application and registration. The
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4 motor license agents shall charge only such fees as are specifically
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5 provided for by law, and all such authorized fees shall be posted in
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6 such a manner that any person shall have notice of all fees that are
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7 imposed by law.
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8 I. No person shall be appointed as a motor license agent unless
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9 the person has attested under oath that the person is not related by
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10 affinity or consanguinity within the third degree to:
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11 1. Any member of the Oklahoma Tax Commission; or
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12 2. Any employee of the Tax Commission.
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13 J. Any motor license agent appointed under the provisions of
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14 this title shall be responsible for all costs incurred by the Tax
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15 Commission when relocating an existing motor license agency. The
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16 Tax Commission may waive payment of such costs in case of unforeseen
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17 business or emergency conditions beyond the control of the agent.
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18 SECTION 2. This act shall become effective November 1, 2021.
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20 58-1-884 QD 1/19/2021 12:18:04 PM
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Statutes affected:
Introduced: 47-1140
Senate Committee Substitute: 47-1140
Floor (House): 47-1140, 47-1142.1, 75-250.4
Floor (Senate): 47-1140, 75-250.4
Engrossed: 47-1140, 47-1142.1, 75-250.4
Amended And Engrossed: 47-1140, 47-1142.1, 75-250.4
Enrolled (final version): 47-1140, 47-607, 47-1st, 47-58th, 47-1142.1, 75-250.4