1 STATE OF OKLAHOMA
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2 1st Session of the 59th Legislature (2023)
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3 SENATE BILL 836 By: Hall
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6 AS INTRODUCED
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7 An Act relating to motor vehicle titles; amending 47
7 O.S. 2021, Sections 1105A, as last amended by Section
8 113, Chapter 282, O.S.L. 2022 and 1107, as last
8 amended by Section 115, Chapter 282, O.S.L. 2022 (47
9 O.S. Supp. 2022, Sections 1105A and 1107), which
9 relate to program to permit electronic filing,
10 storage, and delivery of certificates of titles and
10 sale or transfer of ownership of vehicle; clarifying
11 language; allowing certain methods of delivering
11 certificates of title; remove certain notarization;
12 assigning certain document retention; sunsetting
12 certain provision; updating statutory reference; and
13 declaring an emergency.
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15 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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16 SECTION 1. AMENDATORY 47 O.S. 2021, Section 1105A, as
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17 last amended by Section 113, Chapter 282, O.S.L. 2022 (47 O.S. Supp.
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18 2022, Section 1105A), is amended to read as follows:
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19 Section 1105A. A. On or before July 1, 2022 2023, the Oklahoma
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20 Tax Commission Service Oklahoma shall implement a program which will
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21 permit the electronic filing, storage and delivery of motor vehicle
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22 certificates of title and allow a lienholder to perfect, assign and
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23 release a lien on a motor vehicle in lieu of submission and
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24 maintenance of paper documents as otherwise provided in the
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 1 provisions of Section 1101 et seq. of this title. The Oklahoma Tax
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2 Commission Service Oklahoma shall may:
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3 1. Enter into a competitive contract with a qualified third-
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4 party service provider (System Developer), subject to the provisions
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5 of the Oklahoma Central Purchasing Act, Section 85.1 et seq. of
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6 Title 74 of the Oklahoma Statutes;
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7 2. Act as the service provider; or
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8 3. Authorize proprietary provider systems by Oklahoma financial
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9 institutions
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10 to provide necessary hardware, software and services
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11 facilitating the interconnection between licensed operators and
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12 electronic title service providers described in subsection B of this
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13 section for a certificate of title and for filing or releasing a
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14 lien pursuant to the procedures prescribed by the Oklahoma Tax
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15 Commission Service Oklahoma. The provisions of this section shall
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16 apply to applications for certificates of title and liens filed
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17 after June 30, 2022. The Tax Commission Service Oklahoma shall
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18 promulgate rules to implement the provisions of this section.
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19 B. The program authorized under subsection A of this section
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20 shall include, but not be limited to, procedures:
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21 1. For the delivery of a certificate of title, on a paper
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22 document or in an electronic format, to the secured party having the
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23 primary perfected security interest in a vehicle in lieu of delivery
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24 to the record owner, notwithstanding the provisions of Section 1101
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 1 et seq. of this title. When there is no security interest, lien, or
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2 other encumbrance on the vehicle, delivery of a certificate of
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3 title, on a paper document or in an electronic format, shall be made
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4 to the record owner. Provided, when electronic transmission of
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5 liens and lien satisfactions is used, a certificate of title need
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6 not be issued or printed until the last lien is satisfied and a
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7 clear certificate of title is issued to the owner of the vehicle at
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8 their request;
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9 2. Establishing qualifications for third-party electronic title
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10 service providers offering electronic lien services. The vendor
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11 selected in subsection A of this section shall not be considered an
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12 electronic title service provider and shall not operate or own an
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13 electronic title service provider;
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14 3. Establishing reasonable fees, if necessary, to be charged by
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15 service providers or contractors for the establishment, maintenance
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16 and operation of the electronic lien title program;
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17 4. Providing access to the electronic certificate of title
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18 records including liens on record, for licensed motor vehicle
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19 dealers and lienholders who participate in the program
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20 notwithstanding the provisions of Section 1109 of this title;
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21 5. Allowing licensed operators to participate in the electronic
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22 lien title program. Participating licensed operators shall receive
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23 all fees provided by the Oklahoma Vehicle License and Registration
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24 Act unless otherwise provided in Section 1132A of this title; and
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 1 6. For the acceptance and use of electronic or digital
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2 signatures.
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3 C. As used in this section and Section 1101 et seq. of this
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4 title:
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5 1. “Deliver” or “delivery” means, with respect to a certificate
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6 of title or lien, either the physical delivery of a paper document
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7 or the electronic delivery of a document in an electronic format;
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8 2. “Electronic format” means an electronic or digital format or
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9 medium of any document, record or other information; and
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10 3. “Possess” or “possession” means, with respect to a
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11 certificate of title or lien, to hold or otherwise exercise control
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12 over a document which is in either a physical or electronic format.
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13 D. Any documents created, stored or delivered under the
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14 electronic lien title program as provided in this section shall be
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15 considered valid including any signatures which are generated
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16 electronically or contained on a scanned copy. A certified copy of
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17 the Oklahoma Tax Commission’s Service Oklahoma’s electronic record
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18 of a motor vehicle certificate of title or lien is admissible in any
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19 civil, criminal or administrative proceeding in this state as
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20 evidence of the existence and contents of the certificate of title
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21 or lien.
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22 E. The Tax Commission is authorized to expend funds necessary
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23 for the implementation of the program provided in subsection A of
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24 this section from available monies in the Oklahoma Tax Commission
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 1 and Office of Management and Enterprise Services Joint Computer
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2 Enhancement Fund created pursuant to Section 265 of Title 68 of the
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3 Oklahoma Statutes.
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4 F. In the development of the program provided in subsection A
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5 of this section, the Oklahoma Tax Commission shall consult
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6 interested parties including, but not limited to, representatives of
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7 the Oklahoma Automobile Dealers Association, the Oklahoma Bankers
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8 Association, the Oklahoma Credit Union Association and the Oklahoma
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9 Tag Agent Coalition.
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10 G. All documents submitted electronically pursuant to the
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11 provisions of subsection A shall not require notarization.
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12 H. All documents submitted pursuant to the provisions of this
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13 section shall be retained pursuant to the provision of subsection A
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14 of this section.
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15 I. Submission and maintenance of paper documents as otherwise
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16 provided in this provisions of Section 1101 et seq. of this title
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17 shall be accepted through June 30, 2025.
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18 SECTION 2. AMENDATORY 47 O.S. 2021, Section 1107, as
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19 last amended by Section 115, Chapter 282, O.S.L. 2022 (47 O.S. Supp.
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20 2022, Section 1107), is amended to read as follows:
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21 Section 1107. A. In the event of the sale or transfer of the
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22 ownership of a vehicle for which a certificate of title has been
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23 issued as provided by Section 1105 of this title, the holder of such
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24 certificate shall endorse on the back of same a complete assignment
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 1 thereof with warranty of title in form printed thereon with a
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2 statement of all liens or encumbrances on the vehicle, sworn to
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3 before a notary public or some other person authorized by law to
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4 take acknowledgments, and deliver same to the purchaser or
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5 transferee at the time of delivery to the purchaser or transferee of
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6 the vehicle; provided, a transfer of the ownership of a vehicle to
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7 an insurer resulting from the settlement of a total loss claim shall
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8 not require a notarized signature on the certificate of title. The
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9 purchaser or transferee, unless such person is a bona fide used
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10 motor vehicle dealer licensed by this state, a retail implement
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11 dealer in connection with the purchase or transfer of off-road
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12 vehicles or a charitable organization shall, within thirty (30) days
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13 from the time of delivery to the purchaser or transferee of the
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14 vehicle, present the assigned certificate of title and the insurance
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15 security verification to the vehicle to Service Oklahoma, or one of
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16 its licensed operators, accompanied by a fee of Eleven Dollars
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17 ($11.00), together with any motor vehicle excise tax or license fee
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18 that may be due, whereupon a new certificate of title, shall be
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19 issued to the assignee. One Dollar ($1.00) of each fee shall be
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20 deposited in the Oklahoma Tax Commission Reimbursement Fund through
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21 December 31, 2022, and beginning January 1, 2023, this fee shall be
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22 deposited in the Service Oklahoma Reimbursement Fund. Any
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23 charitable organization utilizing the exemption authorized by this
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 1 subsection shall receive training as prescribed by the Oklahoma Used
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2 Motor Vehicle and Parts Commission.
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3 B. A licensed dealer, a retail implement dealer in connection
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4 with the sale or disposal of off-road vehicles or a charitable
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5 organization shall, on selling or otherwise disposing of a vehicle,
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6 execute and deliver to the purchaser thereof the certificate of
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7 title properly and completely reassigned. Thereupon, the purchaser
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8 of the vehicle shall present the reassigned certificate to Service
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9 Oklahoma, or a licensed operator, accompanied by a fee of Eleven
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10 Dollars ($11.00), and any motor vehicle excise tax or license fee
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11 that may be due, whereupon a new certificate of title will be issued
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12 to the purchaser. One Dollar ($1.00) of each fee shall be deposited
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13 in the Oklahoma Tax Commission Reimbursement Fund through December
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14 31, 2022, and beginning January 1, 2023, this fee shall be deposited
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15 in the Service Oklahoma Reimbursement Fund. The certificate, when
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16 so assigned and returned to the Commission Service Oklahoma,
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17 together with any subsequent assignment or reissue thereof, shall be
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18 appropriately filed and indexed so that at all times it will be
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19 possible to trace title to the vehicle designated therein.
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20 Provided, when the ownership of any motor vehicle shall pass by
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21 operation of law, the person owning the vehicle may, upon furnishing
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22 satisfactory proof to the Commission Service Oklahoma of ownership,
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23 procure a title to the motor vehicle, regardless of whether a
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24 certificate of title has ever been issued. The dealer shall execute
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 1 and deliver to the purchaser bills of sale on forms prescribed by
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2 the Commission Service Oklahoma for all new vehicles sold by the
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3 dealer. On presentation of a bill of sale executed on forms
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4 prescribed by the Commission Service Oklahoma, by a manufacturer or
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5 dealer for a new vehicle sold in this state, accompanied by
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6 remittance in the sum of Eleven Dollars ($11.00), together with any
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7 motor vehicle excise tax or license fee that may be due, a
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8 certificate of title shall be issued in accordance with the
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9 provisions of the Oklahoma Vehicle License and Registration Act.
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10 One Dollar ($1.00) of each fee shall be deposited in the Oklahoma
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11 Tax Commission Reimbursement Fund through December 31, 2022, and
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12 beginning January 1, 2023, this fee shall be deposited in the
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13 Service Oklahoma Reimbursement Fund. For purposes of this
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14 subsection, “charitable organization” shall mean any organization
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15 which is exempt from taxation pursuant to the provisions of the
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16 Internal Revenue Code, 26 U.S.C., Section 501(c)(3) and which is
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17 registered as a charitable organization with the Oklahoma Secretary
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18 of State and the Oklahoma Attorney General’s office; “off-road
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19 vehicles” means all-terrain vehicles, utility vehicles, and
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20 motorcycles used exclusively for off-road use; “retail implement
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21 dealer” means a business engaged primarily in the sale of farm
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22 tractors as defined in Section 1-118 of this title or implements of
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23 husbandry as defined in Section 1-125 of this title or a combination
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24 thereof.
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 1 C. Any person violating the provisions of this section shall be
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2 guilty of a misdemeanor and upon the first conviction thereof shall
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3 be punished by a fine not to exceed Five Hundred Dollars ($500.00),
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4 with impoundment of the vehicle until all taxes and fees are paid.
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5 A second or subsequent conviction shall be punished by a fine not to
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6 exceed One Thousand Dollars ($1,000.00), with impoundment of the
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7 vehicle until all taxes and fees are paid. If a vehicle is
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8 impounded pursuant to the provisions of this section, the vehicle
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9 shall not be released to the owner until the owner provides proof of
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10 security or an affidavit that the vehicle will not be used on public
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11 highways or public streets, as required pursuant to Section 7-600 et
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12 seq. of this title. Each vehicle involved in a violation of this
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13 section shall be considered a separate offense.
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14 SECTION 3. It being immediately necessary for the preservation
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15 of the public peace, health or safety, an emergency is hereby
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16 declared to exist, by reason whereof this act shall take effect and
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17 be in full force from and after its passage and approval.
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19 59-1-340 BG 1/19/2023 9:10:58 AM
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Statutes affected:
Introduced: 47-1105A, 47-1107
Floor (House): 47-1105A, 47-1107
Floor (Senate): 47-1105A, 47-1107
Engrossed: 47-1105A, 47-1107
Amended And Engrossed: 47-1105A, 47-1107
Enrolled (final version): 47-1105A, 47-1107