OklahomaHB 2158Oklahoma 2026 Regular SessionHouse

Motor vehicles; licensure; entities requiring licensure; prohibiting factory engagement; dealer management system providers; security standards; actions; revocation or suspense of license; effective date.

Sponsored By: Mike Dobrinski (Republican)

Became Law

Senate Committee

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Bill Overview

Analyzed Economic Effects

12 provisions identified: 9 benefits, 1 costs, 2 mixed.

Dealer contracts protected when distribution changes

Dealer franchise agreements stay in force when an established distribution system changes, including a new importer or distributor. Before receiving a distribution license under the changed plan, factories or distributors must offer affected dealers substantially the same terms. That licensing restriction does not apply to qualifying vehicle-line creation or discontinuation. A dealership site-control agreement ends when a factory terminates all covered franchises there as part of discontinuing a product line. Voluntary site-control agreements supported by separate payment or other value remain allowed.

Dealers face fewer forced factory purchases

Factories generally cannot force dealers to use chosen vendors when lawful alternatives offer substantially similar quality, function, and design. Factory approval cannot be unreasonably withheld; exceptions cover protected factory materials, warranty parts, and required repair tools or training. Factories cannot withhold eligible new-vehicle allocations to force those purchases or require dealers to buy or sell used or off-lease vehicles. The law also limits unreasonable supply restrictions, fees, purchases, separate agreements changing franchise rights, and facility work demanded for model access. Facility needs and causes outside factory control have statutory exceptions.

Dealers gain electric vehicle investment protections

Beginning November 1, 2025, factories cannot force dealer-paid chargers unless the franchise lists electric vehicles or the dealer plans to sell and service them. For franchises listing electric vehicles, or dealers selling or providing warranty service for them, charger requirements must match reasonable expected volume and cannot require public access. After a factory withdraws all or a material part of its electric-vehicle plan, dealers can request returns or full reimbursement for required returnable items, including chargers and tools. Dealers must show that expected sales or service no longer supports a positive return over the items’ useful life. Written requests are due within 24 months after receiving the items.

Dealers get paid for recall delays

Franchised dealers get compensation for qualifying used vehicles under stop-sale or do-not-drive orders when recall remedies or parts remain unavailable after 30 days. Payments start 30 days after the order and equal at least 1% of the vehicle’s average Black Book value monthly. Total payments cannot exceed that value and stop when repairs or parts become available or the dealer disposes of the vehicle. The dealer must be franchised to sell or authorized to repair the make and model. Eligible vehicles were already in inventory or arrived later through qualifying consumer trade-ins or lease returns; this compensation is the exclusive remedy.

Dealers protected from repeated facility costs

Factories generally cannot require new dealership buildings or major renovations unless market and industry conditions justify them. Health, safety, and necessary technology work are exceptions. Factories generally cannot require repeat work in areas substantially changed with factory approval during the prior 10 years. After qualifying work, dealers get 10 years of applicable program benefits and fair, proportional vehicle distributions on reasonable terms. This protection applies when no payment period was set or the factory cuts or ends it early; written agreements may change it.

Factories must buy unsold relocated dealerships

Factories or distributors requiring a dealer to leave a previously approved site must buy its unsold facility and real estate. The property must remain unsold after the later of 180 days after listing or 90 days after relocation. The dealer must request the purchase in writing.

Dealers can challenge factory payment clawbacks

Factories cannot deny claims or reclaim paid claims for buyers’ Oklahoma titling or registration failures that dealers did not cause. For audit-based clawbacks, factories must give written notice, audit results, and the proposed amount. Dealers have 30 days after receiving the notice or audit results, whichever is later, to protest to the Commission. Unless the dealer agrees, factories cannot take the money until the protest period ends or a final decision arrives, whichever is later.

Dealers gain fairer inventory performance reviews

Factories face license sanctions for unfair dealer-performance penalties that ignore offered vehicle allocations and relevant inventory. Factories must keep allocation methods and actual distribution records for three years. Dealers have 30 days after intended cancellation, termination, or corrective sales-performance notices to request allocation information in writing. Factories must disclose the prior three years’ model-level allocation basis for same-line dealers and existing information supporting current or planned allocations. Factories must also send customer leads fairly and promptly, while honoring customer preferences.

Factories must protect dealers’ private information

Factories and related businesses must cover dealers’ third-party claims or damages caused by specified unlawful disclosures of protected data. This applies to breaches involving manufacturers, distributors, or recipients they gave data to, violating law or dealer consent. Factories cannot publicly disclose dealer-supplied private business information, including monthly financial statements and individual dealer profits. Combined information may go to dealers of the same vehicle line, and disclosures required by Commission or court subpoenas or orders remain allowed. Factories also cannot use a dealer’s customer list to compete unfairly with dealers.

More vehicle businesses need dealer licenses

Beginning November 1, 2025, licensing rules cover partnerships, joint ventures, and related vehicle businesses. Businesses need separate licenses for each licensed activity and Oklahoma location. Deposit-taking businesses count as dealers when they hold a current manufacturer or distributor contract or franchise and meet the dealer definition. Related-business status generally requires more than 30% ownership or control tied to a factory or distributor. A distributor-related business is excluded if its distributor was licensed March 1, 2025, the business has no manufacturer or importer common-entity tie, and its distributor has never had such a tie.

Dealers gain data access with safeguards

Dealer data-system providers cannot add access fees beyond charges in the dealer’s signed contract, except where the law allows. Providers may require commercially reasonable security standards before dealers or authorized software connectors access protected data. Factories cannot block dealer-authorized connectors that meet those standards or impose unreasonable connection limits. Factories may charge only actual costs to modify their systems for a working, secure connection. Factories, their affiliates, and businesses acting for them do not count as authorized connectors or dealer data-system providers.

Factory sales and dealership ownership limited

Factories and covered related businesses generally cannot run, control, own, or get licensed as Oklahoma new-vehicle dealers. Factory sales to retail buyers must go through a dealer franchised for that vehicle line. Exceptions cover employees, retirees, their families, nonprofits, and governments; allowed marketing and participating-dealer programs continue. Ownership exceptions include dealer-development plans with substantial at-risk investment and expected full ownership within 10 years, subject to good-cause extensions. Temporary transition ownership lasts up to 12 months, with Commission extensions of up to 12 months each, and requires offering the dealership to a qualified independent buyer. Exceptions also cover dealerships operating before January 1, 2000, and minority interests subject to geographic, franchise-count, and disclosure limits, including a 70-mile distance rule and no more than three franchises.

Sponsors & Cosponsors

Sponsor

Mike Dobrinski
Republican • House

Cosponsors

Todd Gollihare
Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 164 • No: 2

Senate vote • 4/30/2025

THIRD READING

Yes: 44 • No: 0

Senate vote • 4/17/2025

Committee vote: Business & Insurance

Yes: 9 • No: 0

House vote • 3/25/2025

THIRD READING

Yes: 89 • No: 2

House vote • 3/6/2025

DO PASS

Yes: 15 • No: 0

House vote • 2/24/2025