Back to Oklahoma

SB604 • 2026

Motor vehicles; definitions; merging multiple versions of statues; termination, cancellation, or nonrenewal of a franchise; repealer. Effective date.

Motor vehicles; definitions; merging multiple versions of statues; termination, cancellation, or nonrenewal of a franchise; repealer. Effective date.

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Gollihare
Last action
2026-05-29
Official status
Approved by Governor 05/20/2026
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Motor vehicles; definitions; merging multiple versions of statues; termination, cancellation, or nonrenewal of a franchise; repealer. Effective date.

Motor vehicles; definitions; merging multiple versions of statues; termination, cancellation, or nonrenewal of a franchise; repealer.

What This Bill Does

  • Motor vehicles; definitions; merging multiple versions of statues; termination, cancellation, or nonrenewal of a franchise; repealer.
  • Effective date.
  • Bill Summaries/Fiscal Impact for SB 604 (House): Engrossed (5/1/2025) Bill Summaries/Fiscal Impact for SB 604 (House): Floor Amendment 1 (4/22/2026) Bill Summaries/Fiscal Impact for SB 604 (Senate): Introduced (1/14/2025) Bill Summaries/Fiscal Impact for SB 604 (Senate): Committee Substitute (2/27/2025) Bill Summaries/Fiscal Impact for SB 604 (Senate): Floor Amendment 1 (3/24/2025) Bill Summaries/Fiscal Impact for SB 604 (Senate): House Amendment to Senate Bill (4/29/2026)

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

Plain English: SB604 FA1 DobrinskiMi-JBH(Untimely Filed) 4/16/2026 10:18:18 am AMEND TITLE TO CONFORM TO AMENDMENTS Amendment submitted by: Mike Dobrinski Adopted: _____________________________ ______________________________________ Reading Clerk FLOOR AMENDMENT HOUSE OF REPRESENTATIVES State of Oklahoma SPEAKER: CHAIR: I move to amend SB604 Of the printed Bill Page Section Lines Of the Engrossed Bill By deleting the content of the entire measure, and by inserting in lieu thereof the following language: Req.

  • SB604 FA1 DobrinskiMi-JBH(Untimely Filed) 4/16/2026 10:18:18 am AMEND TITLE TO CONFORM TO AMENDMENTS Amendment submitted by: Mike Dobrinski Adopted: _____________________________ ______________________________________ Reading Clerk FLOOR AMENDMENT HOUSE OF REPRESENTATIVES State of Oklahoma SPEAKER: CHAIR: I move to amend SB604 Of the printed Bill Page Section Lines Of the Engrossed Bill By deleting the content of the entire measure, and by inserting in lieu thereof the following language: Req.
  • No.
  • 17177 Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 STATE OF OKLAHOMA 2nd Session of the 60th Legislature (2026) FLOOR SUBSTITUTE FOR ENGROSSED SENATE BILL NO.
  • 604 By: Gollihare of the Senate and Dobrinski of the House FLOOR SUBSTITUTE An Act relating to motor vehicles; amending 47 O.S.
Filed

Plain English: Req.

  • Req.
  • No.
  • 1702 Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 STATE OF OKLAHOMA 1st Session of the 60th Legislature (2025) COMMITTEE SUBSTITUTE FOR SENATE BILL NO.
  • 604 By: Gollihare COMMITTEE SUBSTITUTE An Act relating to motor vehicles; amending 47 O.S.

Plain English: Req.

  • Req.
  • No.
  • 1879 Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 STATE OF OKLAHOMA 1st Session of the 60th Legislature (2025) FLOOR SUBSTITUTE FOR SENATE BILL NO.
  • 604 By: Gollihare of the Senate and Dobrinski of the House FLOOR SUBSTITUTE An Act relating to motor vehicles; amending 47 O.S.

Bill History

  1. 2026-05-29 Senate

    Approved by Governor 05/20/2026

  2. 2026-05-14 Senate

    HAs adopted

  3. 2026-05-14 Senate

    Measure passed: Ayes: 47 Nays: 0

  4. 2026-05-14 Senate

    Referred for enrollment

  5. 2026-05-14 Senate

    Enrolled, to House

  6. 2026-05-14 House

    Signed, returned to Senate

  7. 2026-05-14 Senate

    Sent to Governor

  8. 2026-04-29 House

    Engrossed, signed, to Senate

  9. 2026-04-29 Senate

    HAs read

  10. 2026-04-28 House

    General Order

  11. 2026-04-28 House

    Amended by floor substitute

  12. 2026-04-28 House

    Third Reading, Measure passed: Ayes: 90 Nays: 0

  13. 2026-04-28 House

    Referred for engrossment

  14. 2025-04-17 House

    CR; Do Pass Judiciary and Public Safety Oversight Committee

  15. 2025-04-09 House

    Policy recommendation to the Judiciary and Public Safety Oversight committee; Do Pass Public Safety

  16. 2025-04-01 House

    Second Reading referred to Judiciary and Public Safety Oversight

  17. 2025-04-01 House

    Referred to Public Safety

  18. 2025-03-27 Senate

    Engrossed to House

  19. 2025-03-27 House

    First Reading

  20. 2025-03-26 Senate

    General Order, Amended by Floor Substitute

  21. 2025-03-26 Senate

    Measure passed: Ayes: 42 Nays: 2

  22. 2025-03-26 Senate

    Referred for engrossment

  23. 2025-03-11 Senate

    Placed on General Order

  24. 2025-03-06 Senate

    Reported Do Pass, amended by committee substitute Technology and Telecommunications committee; CR filed

  25. 2025-02-25 Senate

    Coauthored by Representative Dobrinski (principal House author)

  26. 2025-02-04 Senate

    Second Reading referred to Technology and Telecommunications

  27. 2025-02-03 Senate

    First Reading

  28. 2025-02-03 Senate

    Authored by Senator Gollihare

Official Summary Text

Motor vehicles; definitions; merging multiple versions of statues; termination, cancellation, or nonrenewal of a franchise; repealer. Effective date.
Bill Summaries/Fiscal Impact for SB 604 (House): Engrossed (5/1/2025)
Bill Summaries/Fiscal Impact for SB 604 (House): Floor Amendment 1 (4/22/2026)
Bill Summaries/Fiscal Impact for SB 604 (Senate): Introduced (1/14/2025)
Bill Summaries/Fiscal Impact for SB 604 (Senate): Committee Substitute (2/27/2025)
Bill Summaries/Fiscal Impact for SB 604 (Senate): Floor Amendment 1 (3/24/2025)
Bill Summaries/Fiscal Impact for SB 604 (Senate): House Amendment to Senate Bill (4/29/2026)

Current Bill Text

Read the full stored bill text
An Act
ENROLLED SENATE
BILL NO. 604 By: Gollihare of the Senate

and

Dobrinski of the House

An Act relating to motor vehicles; amending 47 O.S.
2021, Section 562, as last amended by Section 1,
Chapter 119, O.S.L. 2025 (47 O.S. Supp. 2025, Section
562), which relates to definitions; merging multiple
versions of statutes; modifying statutory reference;
amending 47 O.S. 2021, Section 565.2, as last amended
by Section 2, Chapter 145, O.S.L. 2024 (47 O.S. Supp.
2025, Section 565.2), which relates to termination,
cancellation, or nonrenewal of a franchise; merging
multiple versions of statutes; repealing 47 O.S.
2021, Section 562, as last amended by Section 2,
Chapter 448, O.S.L. 2025 (47 O.S. Supp. 2025, Section
562), which relates to definitions; repealing 47 O.S.
2021, Section 565.2, as last amended by Section 9,
Chapter 240, O.S.L. 2024 (47 O.S. Supp. 2025, Section
565.2), which relates to termination, cancellation,
or nonrenewal of a franchise; and providing an
effective date.

SUBJECT: Motor vehicles

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:

SECTION 1. AMENDATORY 47 O.S. 2021, Section 562, as last
amended by Section 1, Chapter 119, O.S.L. 2025 (47 O.S. Supp. 2025,
Section 562), is amended to read as follows:

ENR. S. B. NO. 604 Page 2
Section 562. The following words, terms, and phrases, when used
in Sections 561 through 567, 572, 578.1, 579, and 579.1 of this
title, shall have the meanings respectively ascribed to them in this
section, except where the context clearly indicates a different
meaning:

1. "Motor vehicle" means any motor-driven vehicle required to
be registered under the Oklahoma Vehicle License and Registration
Act. The term motor vehicle does not include:

a. recreational vehicles, as defined in the Recreational
Vehicle Franchise Act, or

b. powersport vehicles;

2. "New motor vehicle dealer" means any person, firm,
association, corporation, or trust not excluded by this paragraph
who sells, offers for sale, advertises to sell, receives deposits
for vehicles, leases, or displays new motor vehicles and holds a
bona fide contract or franchise in effect with a manufacturer or
distributor authorized by the manufacturer to make predelivery
preparation of such vehicles sold to purchasers and to perform post-
sale work pursuant to the manufacturer's or distributor's warranty.
As used herein, "authorized predelivery preparation" means the
rendition by the dealer of services and safety adjustments on each
new motor vehicle in accordance with the procedure and safety
standards required by the manufacturer of the vehicle to be made
before its delivery to the purchaser. "Performance of authorized
post-sale work pursuant to the warranty", as used herein, means the
rendition of services which are required by the terms of the
warranty that stands extended to the vehicle at the time of its sale
and are to be made in accordance with the safety standards
prescribed by the manufacturer. The term includes premises or
facilities at which a person engages only in the repair of motor
vehicles if repairs are performed pursuant to the terms of a
franchise and motor vehicle manufacturer's warranty. For the
purpose of Sections 561 through 567, 572, 578.1, 579, and 579.1 of
this title, the terms new motor vehicle dealer and "new motor
vehicle dealership" shall be synonymous. The term new motor vehicle
dealer does not include:

ENR. S. B. NO. 604 Page 3
a. receivers, trustees, administrators, executors,
guardians, or other persons appointed by or acting
under judgment or order of any court,

b. public officers while performing or in operation of
their duties,

c. employees of persons, corporations, or associations
enumerated in subparagraph a of this paragraph when
engaged in the specific performance of their duties as
such employees, or

d. a powersports vehicle dealer;

3. "Motor vehicle salesperson" "Salesperson" means any person,
resident or nonresident, who, for gain or compensation of any kind,
either directly or indirectly, regularly or occasionally, by any
form of agreement or arrangement, sells or negotiates for the sale,
lease, or conveyance or arranges the financing of any new motor
vehicle or powersports vehicle as an employee for any new motor
vehicle dealer or powersports vehicle dealer to any one or more
third parties;

4. "Commission" means the Oklahoma New Motor Vehicle
Commission;

5. "Manufacturer" means any person, firm, association,
corporation, partnership, trust, joint venture, or common entity
thereof, resident or nonresident, that manufactures or assembles new
and unused motor vehicles or new and unused powersport vehicles or
that engages in the fabrication or assembly of motorized vehicles of
a type required to be registered in this state;

6. "Distributor" means any person, firm, association,
corporation, partnership, trust, joint venture, or common entity
thereof, resident or nonresident, that, being authorized by the
original manufacturer, in whole or in part sells or distributes new
and unused motor vehicles to new motor vehicle dealers or new and
unused powersport vehicles to powersport vehicle dealers, or that
maintains distributor representatives;

ENR. S. B. NO. 604 Page 4
7. "Factory branch" means any branch office maintained by a
person, firm, association, corporation, partnership, trust, joint
venture, or common entity thereof that manufactures or assembles
motor vehicles or powersport vehicles for the sale of motor vehicles
or powersport vehicles to distributors, or for the sale of motor
vehicles to new motor vehicle dealers, or for the sale of powersport
vehicles to new powersport vehicle dealers, or for directing or
supervising, in whole or in part, its representatives;

8. "Distributor branch" means any branch office similarly
maintained by a distributor for the same purposes a factory branch
is maintained;

9. "Factory representative" means any officer or, agent,
employee or person engaged as a representative of a manufacturer of
motor vehicles or powersport vehicles or by a factory branch, for
the purpose of making or promoting the sale of its motor vehicles or
powersport vehicles, or for supervising or contacting its dealers or
prospective dealers;

10. "Distributor representative" means any person, firm,
association, corporation, partnership, trust, joint venture, or
common entity thereof, and each officer and, agent, or employee
thereof engaged as a representative of a distributor or distributor
branch of motor vehicles or powersport vehicles, for the purpose of
making or promoting the sale of its motor vehicles or powersport
vehicles, or for supervising or contacting its dealers or
prospective dealers;

11. "Franchise" means any contract or agreement between a new
motor vehicle dealer or a powersports vehicle dealer and a
manufacturer of a new motor vehicle or powersports vehicle or its
distributor or factory branch by which the new motor vehicle dealer
or new powersports vehicle dealer is authorized to engage in the
activities of a new motor vehicle dealer or new powersports vehicle
dealer as defined by this section;

12. "New or unused motor vehicle" means a vehicle which is in
the possession of the manufacturer or distributor or has been sold
only to the holder of a valid franchise granted by the manufacturer
or distributor for the sale of that make of new vehicle so long as
the manufacturer's statement of origin has not been assigned to

ENR. S. B. NO. 604 Page 5
anyone other than a licensed franchised new motor vehicle dealer of
the same line-make;

13. "Area of responsibility" means the geographical area, as
designated by the manufacturer, factory branch, factory
representative, distributor, distributor branch, or distributor
representative, in which the new motor vehicle dealer or powersports
dealer is held responsible for the promotion and development of
sales and rendering of service for the make of motor vehicle or
powersports vehicle for which the new motor vehicle dealer or new
powersports vehicle dealer holds a franchise or selling agreement;

14. "Off premises" means at a location other than the address
designated on the new motor vehicle dealer's or new powersports
vehicle dealer's license;

15. "Sponsoring entity" means any person, firm, association,
corporation, or trust which has control, either permanently or
temporarily, over the real property upon which the off-premises sale
or display is conducted;

16. "Product" means new motor vehicles and new motor vehicle
parts or new powersports vehicle and new powersports vehicle parts;

17. "Service" means motor vehicle or powersports vehicle
warranty repairs including both parts and labor;

18. "Lead" means a consumer contact in response to a factory
program designed to generate interest in purchasing or leasing a new
motor vehicle or new powersports vehicle;

19. "Sell" or "sale" means to sell or lease;

20. "Factory" means a manufacturer, distributor, factory
branch, distributor branch; or any common entity of a manufacturer,
distributor, factory branch or distributor branch; or factory
representative, or distributor representative, which manufactures or
distributes vehicle products, motor vehicles or powersports
vehicles, or that maintains factory representatives;

21. "Powersports vehicle" means any new or unused motorcycles,
scooters, mopeds, all-terrain vehicles, and utility vehicles

ENR. S. B. NO. 604 Page 6
required to be registered under the Oklahoma Vehicle License and
Registration Act, with the exception of all-terrain vehicles,
utility vehicles, and motorcycles used exclusively for off-road use
which are sold by a retail implement dealer;

22. "Powersports vehicle dealer" means any person, firm, or
corporation, resident or nonresident, that is in the business of
selling any new powersports vehicles except for retail implement
dealers;

23. "Retail implement dealer" means a business engaged
primarily in the sale of farm tractors as defined in Section 1-118
of this title or implements of husbandry as defined in Section 1-125
of this title or a combination thereof and is exempt from licensing
by the Commission for the sale of all-terrain vehicles, utility
vehicles, and motorcycles used exclusively for off-road use;

24. "Consumer data" means nonpublic personal information as
defined in 15 U.S.C., Section 6809(4) as it existed on January 1,
2023, that is:

a. collected by a new motor vehicle dealer, and

b. provided by the new motor vehicle dealer directly to a
manufacturer or third party acting on behalf of a
manufacturer.

The term shall not include the same or similar data obtained by
a manufacturer from any source other than the new motor vehicle
dealer or new motor vehicle dealer's data management system;

25. "Fleet vehicle" means a new motor vehicle sold and titled
or registered to a business and used for business purposes only; and

26. a. "Common entity" means any person, firm, association,
corporation, partnership, trust, or joint venture
acting as a new motor vehicle dealer as defined by
paragraph 20 2 of this section:

(1) which is directly or indirectly controlled by or
has more than thirty percent (30%) of its equity
interest directly or indirectly owned,

ENR. S. B. NO. 604 Page 7
beneficially or of record, through any form of
ownership structure, by a factory, manufacturer,
manufacturer branch, distributor, or distributor
branch, or

(2) which has more than thirty percent (30%) of its
equity interest directly or indirectly controlled
or owned, beneficially or of record, through any
form of ownership structure, by one or more
persons who also directly or indirectly control
or own, beneficially or of record, more than
thirty percent (30%) of the equity interests of a
factory, manufacturer, manufacturer branch,
distributor, or distributor branch.

b. Notwithstanding subdivision (1) or (2) of subparagraph
a of this paragraph, an entity that would otherwise be
considered a common entity of a distributor under
subdivision (1) or (2) of subparagraph a of this
paragraph because of its relation to a distributor is
not considered a common entity of that distributor if:

(1) the distributor to which the entity is related
was a licensed distributor on March 1, 2025,

(2) the entity is not a common entity of a
manufacturer or an importer, and

(3) the distributor to which the entity is related is
not, and has never been, a common entity of a
manufacturer or an importer.

SECTION 2. AMENDATORY 47 O.S. 2021, Section 565.2, as
last amended by Section 2, Chapter 145, O.S.L. 2024 (47 O.S. Supp.
2025, Section 565.2), is amended to read as follows:

Section 565.2. A. Irrespective of the terms, provisions, or
conditions of any franchise, or the terms or provisions of any
waiver, no manufacturer shall terminate, cancel, or fail to renew
any franchise with a licensed new motor vehicle dealer or new
powersports vehicle dealer unless the manufacturer has satisfied the
notice requirements as provided in this section and has good cause

ENR. S. B. NO. 604 Page 8
for cancellation, termination, or nonrenewal. The manufacturer
shall not attempt to cancel or fail to renew the franchise agreement
of a new motor vehicle dealer in this state unfairly and without
just provocation or without due regard to the equities of the dealer
or without good faith as defined herein. As used herein, "good
faith" means the duty of each party to any franchise agreement to
act in a fair and equitable manner toward each other, with freedom
from coercion or intimidation or threats thereof from each other.

B. Irrespective of the terms, provisions, or conditions of any
franchise, or the terms or provisions of any waiver, good cause
shall exist for the purpose of a termination, cancellation, or
nonrenewal when:

1. The new motor vehicle dealer or new powersports vehicle
dealer has failed to comply with a provision of the franchise, which
provision is both reasonable and of material significance to the
franchise relationship, or the new motor vehicle dealer or new
powersports vehicle dealer has failed to comply with reasonable
performance criteria for sales or service established by the
manufacturer, and the new motor vehicle dealer or new powersports
vehicle dealer has been notified by written notice from the
manufacturer; and

2. The new motor vehicle dealer or new powersports vehicle
dealer has received written notification of failure to comply with
the manufacturer's reasonable sales performance standards,
capitalization requirements, facility commitments, business-related
equipment acquisitions, or other such remediable failings exclusive
of those reasons enumerated in paragraph 1 of subsection C of this
section, and the new motor vehicle dealer or new powersports vehicle
dealer has been afforded a reasonable opportunity of not less than
six (6) months to comply with such a provision or criteria.

C. Irrespective of the terms, provisions, or conditions of any
franchise agreement prior to the termination, cancellation, or
nonrenewal of any franchise, the manufacturer shall furnish
notification of such termination, cancellation, or nonrenewal to the
new motor vehicle dealer or new powersports vehicle dealer and the
Oklahoma New Motor Vehicle Commission as follows:

ENR. S. B. NO. 604 Page 9
1. Not less than ninety (90) days prior to the effective date
of the termination, cancellation, or nonrenewal unless for a cause
described in paragraph 2 of this subsection;

2. Not less than fifteen (15) days prior to the effective date
of the termination, cancellation, or nonrenewal with respect to any
of the following:

a. insolvency of the new motor vehicle dealer or new
powersports vehicle dealer, or the filing of any
petition by or against the new motor vehicle dealer or
new powersports vehicle dealer under any bankruptcy or
receivership law,

b. failure of the new motor vehicle dealer or new
powersports vehicle dealer to conduct its customary
sales and service operations during its customary
business hours for seven (7) consecutive business
days, provided that such failure to conduct business
shall not be due to an act of God or circumstances
beyond the direct control of the new motor vehicle
dealer, or

c. conviction of the new motor vehicle dealer or new
powersports vehicle dealer of any felony which is
punishable by imprisonment or a violation of the
Federal Odometer Act; and

3. Not less than one hundred eighty (180) days prior to the
effective date of the termination or cancellation where the
manufacturer or distributor is discontinuing the sale of the product
line.

The notification required by this subsection shall be by
certified mail, return receipt requested, and shall contain a
statement of intent to terminate, to cancel, or to not renew the
franchise, a statement of the reasons for the termination,
cancellation, or nonrenewal and the date the termination shall take
effect.

D. Upon the affected new motor vehicle or new powersports
vehicle dealer's receipt of the aforementioned notice of

ENR. S. B. NO. 604 Page 10
termination, cancellation, or nonrenewal, the new motor vehicle
dealer shall have the right to file a protest of such threatened
termination, cancellation, or nonrenewal with the Commission within
thirty (30) days and request a hearing. The hearing shall be held
within one hundred eighty (180) days of the date of the timely
protest by the dealer and in accordance with the provisions of the
Administrative Procedures Act, Sections 250 through 323 of Title 75
of the Oklahoma Statutes, to determine if the threatened
cancellation, termination, or nonrenewal of the franchise has been
for good cause and if the factory has complied with its obligations
pursuant to subsections A, B, and C of this section and the factory
shall have the burden of proof. Either party may request an
additional one-hundred-eighty-day extension of the hearing date from
the Commission. Approval of the requested extension may not be
unreasonably withheld or delayed. If the Commission finds that the
threatened cancellation, termination, or nonrenewal of the franchise
has not been for good cause or violates subsection A, B, or C of
this section, then it shall issue a final order stating that the
threatened termination is wrongful. A factory shall have the right
to appeal such order. During the pendency of the hearing and after
the decision, through any appeal, the franchise shall remain in full
force and effect, including the right to transfer the franchise. If
the Commission finds that the threatened cancellation, termination,
or nonrenewal is for good cause and does not violate subsection A,
B, or C of this section, the new motor vehicle or new powersports
vehicle dealer shall have the right to an appeal. During the
pendency of the action, including the final decision or appeal, the
franchise shall remain in full force and effect, including the right
to transfer the franchise. If the new motor vehicle dealer prevails
in the threatened termination action, the Commission shall award to
the new motor vehicle dealer the attorney fees and costs incurred to
defend the action.

E. If the factory prevails in an action to terminate, cancel,
or not renew any franchise, the new motor vehicle or new powersports
vehicle dealer shall be allowed fair and reasonable compensation by
the manufacturer for:

1. New, current, and previous model year vehicle inventory
which has been acquired from the manufacturer, and which is unused
and has not been damaged or altered while in the new motor vehicle
dealer's possession;

ENR. S. B. NO. 604 Page 11

2. Supplies and parts which have been acquired from the
manufacturer, for the purpose of this section, limited to any and
all supplies and parts that are listed on the current parts price
sheet available to the new motor vehicle dealer;

3. Equipment and furnishings, provided the new motor vehicle
dealer purchased them from the manufacturer or its approved sources;
and

4. Special tools, with such fair and reasonable compensation to
be paid by the manufacturer within ninety (90) days of the effective
date of the termination, cancellation, or nonrenewal, provided the
new motor vehicle dealer has clear title to the inventory and other
items and is in a position to convey that title to the manufacturer.

a. For the purposes of paragraph 1 of this subsection,
fair and reasonable compensation shall be no less than
the net acquisition price of the vehicle paid by the
new motor vehicle dealer.

b. For the purposes of paragraphs 2, 3, and 4 of this
subsection, fair and reasonable compensation shall be
the net acquisition price paid by the new motor
vehicle dealer less a twenty-percent (20%) straight-
line depreciation for each year following the dealer's
acquisition of the supplies, parts, equipment,
furnishings, and/or special tools.

F. 1. If a factory prevails in an action to terminate, cancel,
or not renew any franchise and the new motor vehicle or new
powersports vehicle dealer is leasing the dealership facilities, the
manufacturer shall pay a reasonable rent to the lessor in accordance
with and subject to the provisions of this subsection. Nothing in
this section shall be construed to relieve a new motor vehicle or
new powersports vehicle dealer of its duty to mitigate damages.

Such reasonable rental value shall be paid only to the extent
the dealership premises are recognized in the franchise and only if
they are:

ENR. S. B. NO. 604 Page 12
a. used solely for performance in accordance with the
franchise. If the facility is used for the operation
of more than one franchise, the reasonable rent shall
be paid based upon the portion of the facility
utilized by the franchise being terminated, canceled,
or nonrenewed, and

b. not substantially in excess of facilities recommended
by the manufacturer.

2. If the facilities are owned by the new motor vehicle or new
powersports vehicle dealer, or a related entity as defined in 26
U.S.C.A., Section 267(b), or a member, partner or shareholder of the
dealership, within ninety (90) days following the effective date of
the termination, cancellation, or nonrenewal, except a termination,
cancellation, or nonrenewal for a cause listed in paragraph 2 of
subsection C of this section, at the dealer or related entity's
written request, the manufacturer shall either:

a. locate a qualified purchaser who will offer to
purchase the dealership facilities at a reasonable
price,

b. locate a qualified lessee who will offer to lease the
premises for the remaining lease term at the rent set
forth in the lease, or

c. lease the dealership facilities at a reasonable rental
value for the portion of the facility that is
recognized in the franchise agreement for one and one-
half (1.5) years, or

d. purchase the dealer's existing dealership facility and
real estate at its fair market value. If the factory
and dealer cannot agree on the fair market value of
the terminated franchise or agree to a process to
determine the fair market value, then the factory and
dealer shall utilize the process described in
paragraph 6 of subsection G of this section. If a
manufacturer or distributor purchases a dealership
facility and real estate, then it shall be entitled to
sole ownership, possession, use, and control of any

ENR. S. B. NO. 604 Page 13
items, buildings, or property that were included in
the contract to purchase.

3. If the facilities are leased by the new motor vehicle or new
powersports vehicle dealer from an entity other than a related
entity as defined in 26 U.S.C.A., Section 267(b), or a member,
partner, or shareholder of the dealership, within ninety (90) days
following the effective date of the termination, cancellation, or
nonrenewal the manufacturer will either:

a. locate a tenant or tenants satisfactory to the lessor,
who will sublet or assume the balance of the lease,

b. arrange with the lessor for the cancellation of the
lease without penalty to the new motor vehicle dealer,
or

c. failing the foregoing, lease the dealership facilities
at a reasonable rent for the portion of the facility
that is recognized in the franchise agreement for one
(1) year or the remainder of the lease, whichever is
less.

4. The manufacturer shall not be obligated to provide
assistance under this section if the new motor vehicle or new
powersports vehicle dealer:

a. fails to accept a bona fide offer from a prospective
purchaser, sublessee, or assignee,

b. refuses to execute a settlement agreement with the
manufacturer or lessor if such agreement with the
manufacturer or lessor would be without cost to the
new motor vehicle dealer, or

c. fails to make written request for assistance under
this section within ninety (90) days after the
effective date of the termination, cancellation, or
nonrenewal.

5. The manufacturer shall be entitled to occupy and use any
space for which it pays rent required by this section.

ENR. S. B. NO. 604 Page 14

G. In addition to the repurchase requirements set forth in
subsections E and F of this section, in the event the termination,
cancellation, or nonrenewal is the result of a discontinuance of a
product line, the manufacturer or distributor shall compensate the
new motor vehicle or new powersports vehicle dealer as follows:

1. In an amount equivalent to the fair market value of the
terminated franchise as of the date immediately preceding the
manufacturer's or distributor's announcement or provide the new
motor vehicle dealer with a replacement franchise on substantially
similar terms and conditions as those offered to other same line-
make dealers;

2. If the facilities are owned by the new motor vehicle or new
powersports vehicle dealer or a related entity as defined in 26
U.S.C.A., Section 267(b), or a member, partner, or shareholder of
the dealership, and the owner has not sold the existing dealership
facility and real estate within the later of one hundred eighty
(180) days of listing the property for sale or ninety (90) days
after the effective date of the termination, then, upon the written
request of the dealer, the manufacturer or distributor shall
purchase the dealer's existing dealership facility and real estate.
The facility and real estate shall be valued as if a new motor
vehicle or new powersports vehicle dealership continues to operate
on the property. If the factory and dealer cannot agree on the
value of the terminated franchise or agree to a process to determine
the value, then the factory and dealer shall utilize the process
described in paragraph 6 of this subsection. If a manufacturer or
distributor purchases a dealership facility and real estate, then it
shall be entitled to sole ownership, possession, use, and control of
any items, buildings, or property that were included in the contract
to purchase;

3. If the facilities are leased by the new motor vehicle or new
powersports vehicle dealer from an entity other than a related
entity as defined in 26 U.S.C.A., Section 267(b), or a member,
partner or shareholder of the dealership, lease the dealership
facilities at a reasonable rent for the remainder of the lease;

4. Any amount of pecuniary loss to the new motor vehicle or new
powersports vehicle dealership proximately caused by the

ENR. S. B. NO. 604 Page 15
discontinuation of a product line, including, but not limited to,
the cost of terminating services such as the dealership management
system contract;

5. The new motor vehicle or new powersports vehicle dealer may
immediately request payment under this section following the
announcement in exchange for canceling any further franchise rights,
except payments owed to the new motor vehicle or new powersports
vehicle dealer in the ordinary course of business, or may request
payment under this section upon the final termination, cancellation,
or nonrenewal of the franchise. In either case, payment under this
section shall be made not later than ninety (90) days after the fair
market value is determined, or the lease agreement is provided and
other reasonable documentation is provided to the manufacturer or
distributor sufficient to establish other pecuniary losses,
whichever is later; and

6. If the factory and new motor vehicle or new powersports
vehicle dealer cannot agree on the value of the terminated franchise
or real estate, or agree to a process to determine the value, then,
within thirty (30) days of a written request by dealer, the factory
shall select one appraiser, and the dealer shall select one
appraiser who shall make an independent appraisal. The appraisers
will be state-certified general real estate appraisers and be in
good standing with the Oklahoma Real Estate Appraisal Board. Before
entering upon their duties, such appraisers shall take and subscribe
an oath, before a notary public or some other person authorized to
administer oaths, that they will perform their duties faithfully and
impartially to the best of their ability. If the appraisals are
within ten percent (10%) of each other, the average of the two
appraisals shall constitute the value. If the two appraisals differ
by more than ten percent (10%), the two appraisers may appoint a
third appraiser who shall review the two appraisals. The third
appraisal, when taken with the first two appraisals and averaged
among the three, shall establish the value. The cost of the third
appraiser shall be shared equally by the factory and dealer. The
appraisers shall make a valuation and determine the amount of
compensation to be paid by the factory to the dealer. The factory
will then have ninety (90) days to complete the transaction, unless
otherwise agreed to by the parties. The factory and the dealer
shall each be responsible for the appraiser it retains.

ENR. S. B. NO. 604 Page 16
SECTION 3. REPEALER 47 O.S. 2021, Section 562, as last
amended by Section 2, Chapter 448, O.S.L. 2025 (47 O.S. Supp. 2025,
Section 562), is hereby repealed.

SECTION 4. REPEALER 47 O.S. 2021, Section 565.2, as last
amended by Section 9, Chapter 240, O.S.L. 2024 (47 O.S. Supp. 2025,
Section 565.2), is hereby repealed.

SECTION 5. This act shall become effective November 1, 2026.

ENR. S. B. NO. 604 Page 17
Passed the Senate the 14th day of May, 2026.

Presiding Officer of the Senate

Passed the House of Representatives the 28th day of April, 2026.

Presiding Officer of the House
of Representatives

OFFICE OF THE GOVERNOR
Received by the Office of the Governor this ____________________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________
Approved by the Governor of the State of Oklahoma this _________
day of ___________________, 20_______, at _______ o'clock _______ M.

_________________________________
Governor of the State of Oklahoma

OFFICE OF THE SECRETARY OF STATE
Received by the Office of the Secretary of State this __________
day of __________________, 20 _______, at _______ o'clock _______ M.
By: _________________________________