OklahomaHB 2160Oklahoma 2026 Regular SessionHouseWALLET

Motor vehicles; regulation; New Motor Vehicle Commission; approval of form; licensure; application; fees; certificates of registration; franchise; new vehicle dealers; effective date.

Sponsored By: Mike Dobrinski (Republican)

Became Law

Senate Committee

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Bill Overview

Analyzed Economic Effects

22 provisions identified: 14 benefits, 2 costs, 6 mixed.

Stronger safeguards for vehicle buyers

Dealers and salespeople face discipline for forcing unwanted extras on buyers, misleading ads, fraud, or breaking written sale agreements. Listed felony convictions and failures to meet dealer standards also support discipline. Dealers must maintain an established business, suitable repair facilities, an effective franchise, and required service and inventory practices. Salespeople must work for licensed dealers. The Oklahoma New Motor Vehicle Commission must approve dealer forms used to deliver vehicles while financing approval is pending.

Dealers gain fairer access to vehicles

Factories cannot use unfair allocation systems, unfair performance standards, or delayed shipments to pressure dealers into accepting unordered goods or changing conduct. Oklahoma same-brand dealers must receive a fair, proportional vehicle share and comparable vehicles on the same terms. Factories cannot unreasonably withhold a reasonable model supply or mix, impose specified unreasonable franchise fees or requirements, or tie new-vehicle allocation to used-vehicle purchases or sales. Exceptions cover limited-production models, vehicles not advertised in Oklahoma, specified environmentally regulated vehicles, and allocations responding to unforeseen events. Nondelivery is allowed when not arbitrary or caused by capacity limits, labor problems, shortages, freight embargoes, or other causes outside factory control; franchised dealers can request written allocation, scheduling, and delivery rules.

Dealers gain limits on repeat renovations

Factories generally cannot demand new buildings or major renovations unless current and reasonably expected market and industry conditions justify them. Dealers generally cannot be forced to redo areas substantially changed through a factory-approved upgrade program within the past 10 years. Promised program payments or benefits continue for the remaining 10-year period unless both sides agree in writing to a change. Exceptions cover health and safety laws, necessary technology or safety requirements, and voluntary agreements for money, credit, reimbursement, or extra vehicle allocation.

Dealers gain protection against payment reversals

Factories generally have one year after payment to audit paid warranty claims and incentive payments, unless fraud is suspected. Reasonable periodic audits remain allowed; a buyer’s title or registration failure cannot justify reversing a paid claim unless the dealer caused it. Audit-based repayment demands require written notice, audit results, and the proposed amount. Dealers have 30 days after receiving the notice or results, whichever is later, to protest. Unless the dealer agrees, collection or account debits must wait until that period ends or a final Commission decision, whichever is later; factories can require supporting documents within 30 days after notice of a repayment demand, withheld payment, or denied claim.

Dealers get timely service reimbursement

Manufacturers and distributors must fairly pay dealers for covered warranty and recall work, including diagnostics and help after factory-initiated remote changes. Delivery, preparation, warranty, and recall claims must be approved or denied within 30 days; approved claims must be paid within another 30 days, with written reasons for denial. Once per 12 months, dealers can establish retail labor and parts rates using 100 sequential qualifying consumer-paid repair orders or 90 consecutive days, whichever is less. Factories have 45 days to rebut rates and 30 days after rebuttal to request supplemental data; dealers have 30 days to protest, with factories bearing the burden of proving data inaccurate or incomplete and retaliation barred. Manufacturers must also reimburse required loaner or rental vehicles at substantially equivalent actual cost, measured using regional rental averages for similar vehicles.

Dealers receive payments for recalled inventory

Factories must compensate dealers for qualifying used vehicles under factory or government stop-sale or do-not-drive orders when remedies or parts remain unavailable after 30 days. Vehicles must match a make and model the dealer is franchised to sell or authorized to repair. They must be in inventory when ordered stopped, or arrive later through retail trade-ins or lease returns. Starting 30 days after the order, payments are at least 1% of average Black Book value monthly, prorated until repairs become available or the vehicle is disposed of, and capped at that value. Warranty-claim rules apply; national recall programs paying at least as much can control, and this provision supplies the exclusive remedy for these losses.

Annual license fees for vehicle businesses

Covered motor vehicle and powersports manufacturers, distributors, and branches pay $400 initially and $300 for annual license renewals. Factory and distributor representatives pay $100 annually. New vehicle dealers pay $300 initially and $100 annually for each franchise at each licensed location. Powersports dealers pay $300 initially and $100 annually for each manufacturer represented at each licensed location.

Dealership sellers gain factory buyout safeguards

Beginning November 1, 2025, manufacturers and distributors retain a first chance to buy new vehicle dealerships, but not powersports dealerships. This applies when the proposed transfer depends on a dealer agreement with the buyer, with written buyout notice due within 60 days of a completed proposal. The seller must receive at least the agreed consideration and matching real-estate terms; specified family, qualified-manager, and their controlled-entity transfers are exempt. The exercising party pays qualifying reasonable expenses and attorney fees unless a requested accounting is not provided within 30 days. In multi-dealership deals, sellers have 30 days after timely buyout notice to withdraw the whole deal or exclude the affected dealership.

Vehicle businesses face fines with hearings

The Commission can deny, suspend, or revoke licenses and impose fines up to $10,000 per occurrence for listed violations. Grounds include material misstatements, unfitness, failure to follow laws or rules, and loss of required qualifications. Beginning November 1, 2025, adverse licensing or registration actions and fines require a hearing and at least 10 days’ written notice. The notice must explain the reason or charges. For salespeople and factory or distributor representatives, the Commission must also notify the associated person or business.

Price protection for vehicle buyers

Beginning November 1, 2025, factories cannot raise prices on qualifying new vehicle or powersports orders placed for retail buyers. The dealer must report the order before receiving official written notice of the price increase. A sales contract and proof of order submission establish the order if the buyer takes delivery. Exceptions cover specified new-model price differences, legally required equipment, foreign currency changes, and higher carrier shipping charges.

Dealers gain control over facility choices

Factories generally cannot require exclusive facilities without reasonable business, market, and economic support, or force dealers into site-control agreements. Dealers can voluntarily accept either arrangement for something valuable beyond their right to sell and service the factory’s vehicles. Site-control agreements automatically end when a factory discontinues a product line and ends all its franchises at that location. Dealers can choose alternative facility vendors offering substantially similar quality and design that comply with law and do not use factory-owned intellectual property or trademarks. Factory approval is required but cannot be unreasonably refused; intellectual property, trademark, and brand-design protections remain intact.

Dealers gain data and lead protections

Factories cannot publicly disclose vehicle or powersports dealers’ proprietary information, including financial statements and profit information. They can share combined information with same-brand dealers or respond to Commission or court subpoenas and orders. Factories must distribute customer leads fairly and on time, while respecting a customer’s stated dealer preference. They cannot use dealer customer lists to compete unfairly with dealers.

Dealers gain freedom over sales choices

Beginning November 1, 2025, factories cannot block added brands at existing facilities meeting each factory’s reasonable written financial and facility standards. Those standards cannot require exclusivity or site control unless the dealer agreed. Dealer consent is required for factory advertising, contests, promotional materials, and decorations paid for by the dealer; consent cannot be unreasonably withheld. Factories cannot block lawful dealer associations except where the chapter permits a restriction. Factories also cannot use adverse actions, statements, or sales-based performance ratings to force dealers to offer or exclusively sell factory-backed extended service contracts, maintenance plans, or similar products.

Dealers get faster decisions on moves

Factories cannot block written relocation requests when the facility and proposed site meet reasonable written factory guidelines. The proposed site must be within the vehicle or powersports dealer’s assigned area. Guidelines cannot require exclusivity or site control unless separately agreed as the law permits. Beginning November 1, 2025, factories have 60 days after receiving a relocation request to approve or deny it. No decision within 60 days means approval.

Dealers keep incentives after buyer exports

Factories cannot deny or recover dealer incentives solely because a buyer exported or resold a vehicle against factory policy. The factory must show the dealer knew or reasonably should have known the buyer’s plan at the sale. Titling and registering the vehicle in any U.S. state creates a presumption that the dealer lacked that knowledge. The factory can present evidence to overturn that presumption.

Dealers keep terms after distribution changes

Manufacturers and distributors changing an established distribution system must offer affected dealers new agreements with substantially the same terms. They cannot receive a license under the changed system without making those offers. Ending a vehicle brand does not count as a distribution-system change. Creating a brand is also excluded when it does not shift the same or substantially similar vehicles away from formerly authorized dealers.

Rental businesses gain powersports sales permissions

Beginning November 1, 2025, powersports vehicles join the protections for businesses primarily renting vehicles or industrial and construction equipment. Rental periods cannot exceed 12 months. These businesses can sell used vehicles previously used exclusively and regularly by the business, or accepted as trade-ins on vehicles they sell. They can make warranty repairs on vehicles they own, previously owned, or take in trade. They can also finance used vehicles they sell to retail customers.

Vehicle businesses face annual licensing rules

Covered dealers, manufacturers, distributors, branches, and representatives need separate current licenses for each business role and location. Licenses are nontransferable; factory-affiliated businesses cannot hold new vehicle dealer licenses outside the stated factory-ownership exceptions. Applicants must disclose criminal convictions and criminal or civil court cases in applications or another required submission. Renewal applications are due June 1, licenses expire June 30, and renewed licenses are issued by July 1. Until an unlicensed dealer receives its renewal, Service Oklahoma and licensed operators cannot accept its manufacturers’ statements or certificates of origin.

Salesperson registration with one leadership exemption

New vehicle and powersports salespeople must register before working and renew each year. The employing business pays the $25 annual registration fee and any administrative fine, up to $500 for unregistered activity. A dealer’s license can cover one qualifying person without separate salesperson registration. That person must be an owner or franchise-designated principal, or, when no principal is named, the managing officer or one partner.

Factory sales stay within dealer networks

Factories generally cannot sell new vehicles or powersports vehicles directly or indirectly to Oklahoma retail buyers outside franchised dealer networks. This protects dealers’ sales channel but limits buyers’ direct factory purchasing options. Exceptions cover factory employees, retirees, specified family members, nonprofits, and federal, state, or local governments. Factories can still provide marketing information and offer sales programs through participating dealers within the law’s limits.

Dealership openings face notice and challenges

Beginning November 1, 2025, dealership opening and relocation notice-and-protest rules also cover powersports dealers. Factories generally must give the Commission and same-brand dealers in the 15-mile market area at least 60 days’ certified written notice. Distances use straight lines between nearest property boundaries; exceptions include specified moves within two miles or an existing market area, and sites near recently closed same-brand dealers. Eligible dealers have 30 days after notice or the end of a factory appeal, whichever is later, to protest. The Commission must hold a hearing within 120 days of a timely protest, and the applicant must prove good cause before proceeding.

Factory dealership ownership faces strict limits

Factories generally cannot own, control, operate, or act as new vehicle dealers, protecting independent dealers while limiting factory ownership. Dealer-development exceptions require a substantial investment at risk and expected full ownership within 10 years, with good-cause extensions allowed. Transition ownership lasts up to 12 months while offered to qualified independent buyers on reasonable terms, with good-cause extensions up to 12 months each. Dealerships operating before January 1, 2000, also qualify for an exception. A minority-interest exception requires specified same-brand exclusivity and territorial rights, at least 70 miles from an unaffiliated same-brand dealer, no more than three in-state franchise agreements during ownership, and specified pre-2000 offering-circular disclosures.

Sponsors & Cosponsors

Sponsor

Mike Dobrinski
Republican • House

Cosponsors

George Burns
Republican • Senate
Bill Coleman
Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 236 • No: 18

House vote • 5/21/2025

FOURTH READING

Yes: 84 • No: 4

Senate vote • 5/8/2025

THIRD READING

Yes: 42 • No: 2

Senate vote • 4/24/2025

Committee vote: Business & Insurance

Yes: 9 • No: 0

House vote • 3/26/2025