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STATE OF OKLAHOMA
1st Session of the 60th Legislature (2025)
HOUSE BILL 2882 By: Chapman
AS INTRODUCED
An Act relating to motor vehicles; amending 47 O.S.
2021, Section 1111, as amended by Section 123,
Chapter 282, O.S.L. 2022 (47 O.S. Supp. 2024, Section
1111), which relates to salvaged titles; requiring
submission and maintenance of certain vehicle damage
lists; requiring filing of certain affidavit;
requiring certain form be prescribed; requiring
collection of certain information; authorizing the
promulgation of certain rules; and providing an
effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 47 O.S. 2021, Section 1111, as
amended by Section 123, Chapter 282, O.S.L. 2022 (47 O.S. Supp.
2024, Section 1111), is amended to read as follows:
Section 1111. A. As used in this section:
1. "Loss" means the cost, in dollars, to repair or replace a
vehicle which has been damaged by collision or other occurrence.
The amount paid by an insurer to a holder of the certificate of
title for repair of a damaged vehicle shall be prima facie evidence
of the amount of the loss. The amount paid by an insurer to a
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holder of the certificate of title for replacement of a damaged
vehicle less the resale value of the damaged vehicle shall be prima
facie evidence of the amount of the loss;
2. "Fair market value" means the value of a vehicle as listed
in the current National Auto Dealers Association guidebook or other
similar guidebook or the actual cash value, whichever is greater;
3. "Resale value" means the amount, in dollars, paid to the
holder of a certificate of title by a willing buyer for a vehicle
damaged by collision or other occurrence or recovered from theft;
4. "Total loss" means a loss which is equal to the fair market
value of the vehicle immediately prior to the damage to or theft of
the vehicle; and
5. "Vehicle" means a vehicle, as defined in paragraph 40 of
Section 1102 of this title, manufactured within the last ten (10)
model years.
B. Any insurance company that pays a total loss on a claim for
any vehicle including, but not limited to, a flood-damaged vehicle
or recovered-theft vehicle, any junk dealer who receives a motor
vehicle which is to be used for junk or for parts, or any other
person permanently dismantling or junking a vehicle shall receive
the certificate of title from the current holder of the certificate
of title, shall detach the license plate from the vehicle, and shall
return the license plate and the certificate of title along with a
list of the total loss damages sustained to the vehicle to Service
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Oklahoma or a licensed operator within thirty (30) days from receipt
of the certificate, or insurance companies may provide alternate
documentation within thirty (30) days pursuant to subsection P of
Section 1105 of this title. Service Oklahoma shall cancel the
certificate of title to the vehicle used for junk or parts and shall
preserve the vehicle identification numbers on the certificate of
title and the list of the total loss damages in the computer files
for at least five (5) years. No certificate of title may be
reissued on a junked vehicle as defined in Section 1105 of this
title, unless reissued pursuant to paragraph 3 of subsection C of
this section. Service Oklahoma shall transfer ownership of a stolen
vehicle, not recovered from theft at the time of transfer, by
salvage or unrecovered-theft title to the insurer. Service Oklahoma
shall transfer ownership of a vehicle damaged by flooding or other
occurrence to the insurer by an original title, salvage title, or
junked title, as may be appropriate, based upon an estimate of the
amount of loss submitted by the insurer. All license plates
surrendered to Service Oklahoma shall be destroyed.
C. 1. If an insurance company pays a claim for a loss which is
less than a total loss but the cost of repairing the vehicle for
safe operation on the highway exceeds sixty percent (60%) of the
fair market value of the vehicle, or if any vehicle not insured is
damaged to the extent that the cost of repair for safe operation on
the highway exceeds sixty percent (60%) of the fair market value of
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the vehicle, any holder of the certificate of title for the vehicle
shall return the certificate of title along with a list of damages
to the vehicle to Service Oklahoma or a licensed operator within
thirty (30) days from receipt of payment for the loss.
2. Upon receipt of the certificate, Service Oklahoma or the
licensed operator shall issue a salvage title for the vehicle. The
title for any vehicle damaged by flooding shall be stamped with the
words "Flood Damaged", and for any such vehicle which was recovered
from a theft, the salvage title or rebuilt title shall be stamped
with the words "Recovered Theft". In addition, Service Oklahoma
shall maintain in its computer files a list of damages to the
salvage title vehicle. A licensed dealer subject to the provisions
of the Automotive Dismantlers and Parts Recycler Act, Section 591.1
et seq. of this title, shall not be required to pay registration
fees, excise taxes, back taxes, or penalties on a vehicle as a
prerequisite to obtaining a salvage title.
3. If the actual documented cost of repairing the vehicle for
safe operation on the highway does not exceed sixty percent (60%) of
the fair market value of the vehicle as defined in this section, the
certificate of title shall be reissued to the holder and the vehicle
shall not be subject to inspection as required under this section.
The actual documented cost of repairing the vehicle pursuant to this
paragraph shall be certified by the insurance company paying the
loss.
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D. If a motor vehicle with a salvage title is placed in
operative condition, application shall be made to Service Oklahoma
or a licensed operator for a rebuilt title. A visual inspection of
the vehicle and examination of the vehicle identification numbers
shall be conducted prior to the issuance of a rebuilt title. In
addition to a visual inspection of the vehicle, Service Oklahoma or
a licensed operator shall require the applicant for a rebuilt title
to present receipts and documents showing proof that appropriate
repairs of damage were performed that correspond to damage list data
maintained by Service Oklahoma for that vehicle. At the time of
issuance, the salvage title shall be returned to Service Oklahoma by
the owner, or by the licensed operator if the licensed operator
issues the rebuilt title. A visual inspection shall also be made of
any out-of-state vehicle to be registered and titled in this state
if the vehicle is within the class of vehicles for which a rebuilt
title is required and a similar inspection has not been conducted by
another state. The certificate of title for the rebuilt vehicle
shall be stamped with the words, "This Rebuilt Vehicle Has Been
Inspected by the Appropriate State Official."
E. 1. The visual inspections and examination of vehicle
identification numbers shall include, but not be limited to:
a. comparison of the vehicle identification numbers with
the number recorded on the ownership records,
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b. inspection of the vehicle identification numbers and
the VIN plate to detect possible alteration or other
fraud,
c. interpretation of the vehicle identification number
recorded on the ownership documents to assure that it
accurately describes the motor vehicle in question,
and
d. inspection of the odometer of the vehicle to detect
rollback or alteration.
2. All vehicle damage shall be repaired before the examination
is conducted. The following paperwork shall be presented to the
licensed operator: the salvage title and original receipts for all
parts placed on the vehicle. When applying for a rebuilt title, the
owner of such vehicle shall file an affidavit with Service Oklahoma
or the licensed operator stating that all repairs of damage have
been performed and provide corresponding receipts. The form of the
affidavit shall be prescribed by Service Oklahoma. The licensed
operator shall collect the affidavit and documentation and include
it in the documentation maintained by Service Oklahoma for the
vehicle to qualify for a rebuilt title. Components such as doors,
motor, and transmission shall indicate the serial number or the
vehicle identification number (VIN) of the auto the part was
purchased from or removed from. Service Oklahoma is authorized to
promulgate any necessary rules to develop training for its employees
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or licensed operators to ensure accurate interpretation of repair
documentation and appropriate comparisons between documented damages
and the repairs required to obtain a rebuilt title.
F. The visual inspection and vehicle identification numbers
examination shall be performed by a licensed operator at the
location designated by the licensed operator. If the location of
the inspection is not the place of business of the rebuilder, the
licensed operator shall issue a permit authorizing the applicant to
operate the vehicle upon the public streets, roads, and highways in
route to and from the designated location for the inspection. The
inspection and examination shall be performed within ten (10)
working days after the owner of the vehicle requests the inspection
and examination. Requests shall be made by completing the request
form prescribed and provided by Service Oklahoma.
G. Inspection and examination of a rebuilt vehicle shall be
performed by a person employed by a licensed operator.
H. The fee for the examination by the licensed operator shall
be Twenty-five Dollars ($25.00), which shall be paid at the time of
issuance of the certificate of title for the rebuilt vehicle. The
licensed operator shall retain Five Dollars ($5.00) and shall remit
Twenty Dollars ($20.00) to the Tax Commission which shall retain Ten
Dollars ($10.00) and transmit Ten Dollars ($10.00) to the State
Treasurer for deposit in the Department of Public Safety Revolving
Fund through December 31, 2022. Beginning January 1, 2023, the
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licensed operator shall retain Five Dollars ($5.00) and shall remit
Twenty Dollars ($20.00) to the Tax Commission which shall retain Ten
Dollars ($10.00) and transmit Ten Dollars ($10.00) to the State
Treasurer for deposit in the Service Oklahoma Revolving Fund. The
licensed operator and its employees and agents may not be sued for
and shall not be liable for any damages allegedly arising out of the
inspection of a vehicle or any acts or omissions in the performance
of the inspection. The licensed operator may be held liable for any
damages to the vehicle caused by the negligent acts or omissions in
the performance of the inspection. Any person may be liable for any
damages to a vehicle caused by the intentional acts or omissions in
the performance of the inspection.
I. The rebuilt title and any subsequent transfers of such title
shall also reflect that the vehicle was a salvage vehicle, flood-
damaged vehicle or recovered-theft vehicle, if applicable, and also
shall include the salvage date.
J. Any title for a motor vehicle issued pursuant to the laws of
any other state which reflects that such vehicle is a salvage
vehicle, a rebuilt vehicle or a junked vehicle or has any other
brand or classification notation by that state shall be retained on
the new title issued by Service Oklahoma unless the actual
documented cost of repairing the vehicle for safe operation on the
highway does not exceed sixty percent (60%) of the fair market value
of the vehicle as provided by this section.
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K. When the insurance company pays a loss on a vehicle which is
registered at the time of mishap, accident, burning, or flooding,
the appropriate certificate of title shall be issued without the
payment of additional registration fees or excise taxes, upon the
submission of a police report or insurance adjuster's report and a
declaration by the insurer that the vehicle is held for sale to a
dealer. If the owner of the vehicle or other insured retains
ownership of the damaged vehicle, Service Oklahoma shall notify the
owner or insured of the requirements of this section.
L. Any insurance company that pays a claim for a loss where the
cost of repairing the vehicle for safe operation on the highway
exceeds sixty percent (60%) of the market value of the vehicle or
pays a claim for a flood-damaged vehicle as defined in Section 1105
of this title shall notify, in writing, the holder of the
certificate of title of the requirements of this section and shall
notify Service Oklahoma of the payment of such claim. The notice
shall include the estimated total damage percentage determination of
the actual cash value made by the insurance company to repair the
vehicle for safe operation on the highway. The insurance company
shall also send a copy of the notification to the holder of the
title. Service Oklahoma shall provide notice to the owner of the
vehicle in writing requiring the owner to surrender the title along
with the fee to Service Oklahoma or one of its licensed operators
within thirty (30) days from the receipt of notice for the issuance
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of the appropriate title based on the amount of loss. Service
Oklahoma shall reissue the appropriate title with the words "Flood
Damaged" on the face of the title in the case of a flood-damaged
vehicle; provided, no insurance company shall pay a claim for less
than the amount to which the holder of the certificate of title is
rightfully entitled in order to avoid compliance with this section.
M. Except as provided for in subsection N of this section, any
person, firm, corporation, or other legal entity convicted of
violating any provision of this section shall be guilty of a
misdemeanor and shall be punished by a fine of not less than Three
Hundred Dollars ($300.00) or by incarceration in the county jail for
not more than six (6) months, or by both the fine and incarceration.
N. Any owner of a titled vehicle who has knowledge that the
title is not the proper type for the vehicle and, with intent to
misrepresent the vehicle, fails to make the appropriate title
changes, shall be guilty of a misdemeanor. Any person who has
knowledge that the title is not the proper type for the vehicle, and
with intent to misrepresent the vehicle, buys or receives any
vehicle for which the appropriate title changes have not been made
as required by this act shall be guilty of a misdemeanor. Any
person found guilty in accordance with the provisions of this
subsection shall be punished by a fine of not more than One Thousand
Dollars ($1,000.00) for the first offense or Five Thousand Dollars
($5,000.00) for the second or subsequent offense, or by imprisonment
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in the county jail for a term not exceeding six (6) months, or by
both such fine and imprisonment.
O. Any owner of a salvage or junked vehicle shall submit the
certificate of title to Service Oklahoma or the licensed operator
for issuance of an appropriate title. Any holder of a certificate
of title issued by this state, to a vehicle which no longer exists,
shall surrender the certificate of title to Service Oklahoma for
cancellation. The vehicle identification number on the canceled
certificate of title shall be preserved in the computer of Service
Oklahoma for at least five (5) years.
Nothing in this section shall be construed to prevent the
transfer of ownership of a vehicle by assignment of the title to a
used car dealer, wholesale used car dealer, or a licensed automotive
dismantler or parts recycler.
SECTION 2. This act shall become effective November 1, 2025.
60-1-11578 JBH 01/16/25