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An Act
ENROLLED SENATE
BILL NO. 641 By: Paxton of the Senate
and
Tedford and Hill of the
House
An Act relating to motor vehicle repair; creating the
Oklahoma Motor Vehicle Consumer Protection Act;
providing short title; defining terms; establishing
certain hourly market rate for labor; directing
Insurance Department to adjust certain hourly market
rate for labor; prohibiting certain administrative
charges from exceeding certain amount; establishing
certain maximum daily storage rates; authorizing
certain increase in certain maximum daily storage
rates; providing certain exceptions; requiring
certain written invoice; allowing adjustment of
certain maximum daily storage rates; providing for
codification; and providing an effective date.
SUBJECT: Motor vehicle repair costs
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1271 of Title 36, unless there
is created a duplication in numbering, reads as follows:
This act shall be known and may be cited as the "Oklahoma Motor
Vehicle Consumer Protection Act".
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1272 of Title 36, unless there
is created a duplication in numbering, reads as follows:
As used in this act:
ENR. S. B. NO. 641 Page 2
1. "Administrative charges" shall include, but not be limited
to, the cost of:
a. file creation,
b. repair orders,
c. vehicle travel on a customary standard drivable
rolling vehicle,
d. vehicle identification,
e. software charges,
f. communication with vehicle owners and insurance
representatives and any other party involved in the
repair or total loss determination,
g. prewashes,
h. COVID-19 cleaning or bio-cleaning,
i. charges related to photographs and electronic
communications,
j. charges for work that is not for obtaining labor,
parts, and materials,
k. securing removed parts, and
l. relocating parts back into a vehicle determined to be
a total loss;
2. "Auto body repair" means all auto body repair shop repairs,
maintenance, painting, exterior body work, part replacements,
assessment, and diagnostic testing provided to an insurance company
to determine a motor vehicle total loss;
3. "Auto body repair shop" means any commercial entity engaged
in the business or occupation of performing auto body repairs on the
body of a motor vehicle;
ENR. S. B. NO. 641 Page 3
4. "Insurance company" means the person or entity responsible
for charges incurred by the insured at an auto body repair shop as a
result of repairs or charges incurred in determining a total loss of
a motor vehicle as provided for in Section 1250.8 of Title 36 of the
Oklahoma Statutes;
5. "Motor vehicle" means the same as defined in Section 1-134
of Title 47 of the Oklahoma Statutes;
6. "Owner" means the owner of the vehicle; and
7. "Storage rates" means all charges and fees related to the
auto body repair shop retaining actual physical possession of a
motor vehicle during the time when the auto body repair shop
exercises control, supervision, care, security, protection, and
responsibility over the motor vehicle.
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1273 of Title 36, unless there
is created a duplication in numbering, reads as follows:
A. Upon the effective date of this act, the hourly market rate
for labor for administrative charges as defined in Section 2 of this
act, as the rate relates to total loss vehicles, shall be in
accordance with the prevailing market price determined pursuant to
subsection H of Section 1250.8 of Title 36 of the Oklahoma Statutes.
The Insurance Commissioner may adjust the hourly market rate for
labor to account for inflation annually beginning on January 1,
2027. Such adjustment shall be made based on the market surveys
conducted pursuant to Section 365:15-1-26 of the Oklahoma
Administrative Code.
B. Administrative charges, as such charges relate to total loss
vehicles, shall not exceed the hourly market rate for labor pursuant
to this section and may only be billed up to four (4) hours.
SECTION 4. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1274 of Title 36, unless there
is created a duplication in numbering, reads as follows:
ENR. S. B. NO. 641 Page 4
A. The maximum daily storage rate allowed to be charged by an
auto body repair shop and mandatory reimbursement rates for insurers
for a motor vehicle total loss for each calendar day, for the first
ten (10) calendar days the vehicle is in the possession of the shop,
shall be Thirty-nine Dollars ($39.00) for all motor vehicles of any
size, including marine vessels, and One Hundred Twenty-five Dollars
($125.00) for vehicles with lithium-ion batteries that have
sustained damage to the battery pack or have exhibited fire, smoke,
or popping or hissing sounds, if the vehicle is stored pursuant to
the original equipment manufacturer requirements.
B. On the eleventh calendar day, the maximum daily storage rate
may increase to Seventy-five Dollars ($75.00) per calendar day for
all motor vehicles of any size, include marine vessels, and to Two
Hundred Dollars ($200.00) per calendar day for vehicles with
lithium-ion batteries that have sustained damage to the battery pack
or have exhibited fire, smoke, or popping or hissing sounds, if the
vehicle is stored pursuant to the original equipment manufacturer
requirements, if the estimate or supplement on total loss vehicles
is not approved by the insurance company within the first seven (7)
days and the auto body repair shop has a written record showing the
date, time, and type of communication made to the insurance company
requesting such supplementals. Requests for supplementals to
determine a total loss shall be made before the tenth day following
the request.
C. The provisions of subsections A and B of this section shall
not apply to vehicles in which the damage to the vehicle
necessitates indoor storage and the insurance company has approved
indoor storage of the vehicle in advance at an agreed rate.
D. Each auto body repair shop shall provide written invoices
and respond to requests for invoices concerning the pickup, release,
or delivery of a motor vehicle on its premises to the insurance
company within eight (8) business hours.
E. The maximum daily storage rate set forth in this section
shall apply to direct repair programs.
F. The maximum daily storage rate may be increased upon
approval by the Oklahoma Insurance Department based on current
market conditions. Adjustments to the maximum daily storage rate
ENR. S. B. NO. 641 Page 5
shall be made annually based on bulletins issued by the Oklahoma
Insurance Department which shall be based on the Consumer Price
Index. The Oklahoma Insurance Department shall promulgate the rules
necessary to fulfill the requirements of this subsection.
SECTION 5. This act shall become effective November 1, 2025.
ENR. S. B. NO. 641 Page 6
Passed the Senate the 19th day of May, 2025.
Presiding Officer of the Senate
Passed the House of Representatives the 8th day of May, 2025.
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: _________________________________