§ 47-1140 — Qualifications to locate and operate Service Oklahoma

locations – Obtaining a license to operate locations – Sale or transfer of licenses - Revocation - Vacancy. A. The Service Oklahoma Operator Board shall adopt rules prescribing minimum qualifications and requirements for locating Service Oklahoma locations and for persons applying for a license to operate a designated Service Oklahoma location. Such qualifications and requirements shall include, but not be limited to, the following: 1. Necessary job skills and experience; 2. Minimum office hours; 3. Provision for sufficient staffing, equipment, office space and parking to provide maximum efficiency and maximum convenience to the public; 4. Obtainment of a faithful performance surety bond as provided for by law; 5. That the applicant has not been convicted of a felony and that no felony charges are pending against the applicant; 6. That the location specified in the individual’s application for a license to operate a designated Service Oklahoma location not be owned by a member of Service Oklahoma or an employee of Service Oklahoma or any person related to a member of Service Oklahoma or an employee of Service Oklahoma within the third degree by consanguinity, marriage, or adoption and that the location not be within a three-mile radius of an existing licensed operator unless the applicant is assuming the location of an operating licensed operator; 7. That a single website, designated by Service Oklahoma, will be used for the distribution of services provided by Service Oklahoma with motor vehicle services to be fulfilled by licensed operators; 8. That licensed operators will attend all required training provided by Service Oklahoma; and 9. That there should be at least one Service Oklahoma location in each county. B. 1. Any person making application to the Service Oklahoma Operator Board for the purpose of obtaining a license to operate a designated Service Oklahoma location shall pay, when submitting the application, a nonrefundable application fee of One Hundred Dollars ($100.00). All such application fees shall be deposited in the Oklahoma Tax Commission Fund. Beginning January 1, 2023, all such application fees shall be deposited in the Service Oklahoma Revolving Fund. 2. Any person making application to the Service Oklahoma Operator Board for the purpose of obtaining a license to operate a designated Service Oklahoma location must meet standardization and branding requirements established by the Service Oklahoma Operator Board, upon recommendations from Service Oklahoma. Upon approval, the person must either pay a fee to Service Oklahoma for all costs related to meeting the standardization and branding requirements or obtain approval from the Service Oklahoma Operator Board that the location meets all standardization and branding requirements. All such fees shall be deposited in the Service Oklahoma Revolving Fund. The amount of the license fee will be determined by the Service Oklahoma Operator Board. This provision shall not apply to any existing Service Oklahoma location. 3. Any person shall have been a resident of the State of Oklahoma for a period of six (6) months prior to submitting an application for a license to operate a designated Service Oklahoma location. If a licensed operator moves his or her residence to a place outside the State of Oklahoma, the licensed operator shall provide notice to the Service Oklahoma Operator Board and sell his or her license within ninety (90) days of such notice. C. Upon application by a person to serve as a licensed operator, the Service Oklahoma Operator Board is authorized to make a determination whether such person and such location meets the criteria and guidelines established by the Service Oklahoma Operator Board and, if such be the case, may issue a license to operate a designated Service Oklahoma location. D. 1. A licensed operator may be permitted, upon application, to sell or transfer an existing license to operate a designated Service Oklahoma location. Any sale or transfer of a license is subject to approval of the Service Oklahoma Operator Board. In order to sell or transfer an existing licensed operator license, the licensed operator shall meet the following guidelines and requirements: a. the licensed operator shall be in good standing with the Service Oklahoma Operator Board, b. the licensed operator shall have held a licensed operator license, issued by the Service Oklahoma Operator Board, for a minimum of five (5) years, and c. the licensed operator shall provide the Service Oklahoma Operator Board evidence that the proposed buyer or transferee of the licensed operator licensee meets the qualifications and requirements set forth in subsection A of this section, has the ability to meet all financial requirements and terms of any current existing contract between the licensed operator and Service Oklahoma, and agrees to the onboarding and training requirements of Service Oklahoma, as established by Service Oklahoma and the Service Oklahoma Operator Board. 2. The purchase price of a licensed operator license shall be agreed upon by the licensed operator and the individual purchasing the license to operate a designated Service Oklahoma location. However, the purchaser or transferee agrees to pay a transfer fee to Service Oklahoma in the amount of three percent (3%) of the last annual gross revenue from fees retained at the Service Oklahoma location to be purchased, not to exceed Fifteen Thousand Dollars ($15,000.00). The transfer fee shall be deposited in the Service Oklahoma Revolving Fund. 3. Upon receipt of the application to sell or transfer an existing licensed operator license, the Service Oklahoma Operator Board will determine whether the licensed operator license may be sold or transferred on the condition that the existing location is in good standing and the new licensee meets the requirements outlined in Section 1140 et seq. of this title. 4. The Service Oklahoma Operator Board may, at its discretion, buy back a licensed operator license from a licensed operator who desires to sell or transfer its licensed operator license but has held a licensed operator license issued by Service Oklahoma for less than five (5) years. The purchase price for such a license will be one-half (1/2) times the most recent annual gross revenue from fees retained of that Service Oklahoma location, not to exceed Two Hundred Thousand Dollars ($200,000.00). The purchase price shall be paid out of the excess funds available in the Licensed Operator Performance Fund, created in Section 3-106 of this title, after distribution to licensed operators, pursuant to Section 3-106 of this title. 5. Licensed operators issued a license to operate a designated Service Oklahoma location on January 1, 2023, may be permitted, upon application, to sell or transfer their existing license within the first five (5) years. Any sale or transfer of such license is subject to the approval of the Service Oklahoma Operator Board. a. In order to sell or transfer the existing license within the first five (5) years, the licensed operator shall meet the following guidelines and requirements: 1. the licensed operator shall be in good standing with the Service Oklahoma Operator Board, and 2. the licensed operator shall provide the Service Oklahoma Operator Board evidence that the proposed buyer or transferee of the licensed operator licensee meets the qualifications and requirements set forth in this section, has the ability to meet all financial requirements and terms of any current existing contract between the licensed operator and Service Oklahoma, and agrees to the onboarding and training requirements of Service Oklahoma, as established by Service Oklahoma and the Service Oklahoma Operator Board. b. The branding and physical standardization exemption specified in this section shall not transfer to the purchaser, unless: (1) the licensed operator submitted a contingent resignation and the purchaser submitted a relation application to the Oklahoma Tax Commission prior to May 19, 2022, or 2. the purchaser is related to the licensed operator within the third degree by consanguinity, marriage, or adoption. E. 1. Licensed operators shall be subject to all laws relating to licensed operators and shall be subject to removal for cause by the Service Oklahoma Operator Board. Any action taken by Service Oklahoma to revoke a license shall be pursuant to and in accordance with the provisions of the Administrative Procedures Act. For the purposes of this section, “for cause” shall be defined as follows: a. repeated violations of written contracts, rules, regulations and statutes pertaining to licensed operators after written warning by the Service Oklahoma Operator Board and an opportunity to correct such violations, b. failure of the licensed operator to promptly remit funds owed to Service Oklahoma upon written demand, c. being charged with a felony crime involving dishonesty or moral turpitude, d. failure to timely file state and federal income tax returns, or e. any act of official misconduct as set forth in Section 93 of Title 51 of the Oklahoma Statutes. In the event a license is revoked by the Service Oklahoma Operator Board for cause, the Service Oklahoma location operated by the licensed operator will be permanently closed and the licensed operator shall not be entitled to any compensation. Motor license agents and licensed operators in good standing as of November 1, 2022, shall be exempt from the branding and physical standardization requirements to be established by the Service Oklahoma Operator Board, with the recommendation of the Director of Service Oklahoma. 2. A license to operate a designated Service Oklahoma location may be revoked by the Service Oklahoma Operator Board for failure to meet the standards for customer satisfaction established by the Service Oklahoma Operator Board. In the event of revocation, the licensed operator shall sell his or her license to operate a Service Oklahoma location to Service Oklahoma at a rate of one-half (1/2) times the most recent annual gross revenue from fees retained of that Service Oklahoma location, not to exceed Two Hundred Thousand Dollars ($200,000.00). The purchase price shall be paid out of the excess funds available in the Licensed Operator Performance Fund, created in Section 3-106 of this title, after distribution to licensed operators, pursuant to Section 3-106 of this title. F. All licensed operators shall be licensed by and under the supervision of Service Oklahoma; provided, any agent authorized to issue registrations pursuant to the International Registration Plan shall also be under the supervision of the Corporation Commission, subject to rules promulgated by the Corporation Commission pursuant to the provisions of subsection E of Section 1166 of this title. Service Oklahoma shall be the holder of all licenses and has the right to approve and revoke such licenses. After obtaining a license, any such licensed operator shall furnish and file with Service Oklahoma a bond in such amount as may be fixed by Service Oklahoma. Such licensed operator shall be removable at the will of Service Oklahoma. Such licensed operator shall perform all duties and do such things in the administration of the laws of this state as shall be enjoined upon and required by the Service Oklahoma Operator Board. Provided, Service Oklahoma may operate a Service Oklahoma location in any county where a vacancy occurs, as determined by Service Oklahoma. G. In the event of a vacancy due to the death of a licensed operator, the licensed operator’s designee or a licensed operator location employee shall immediately notify Service Oklahoma. A licensed operator may designate an individual to continue to operate the Service Oklahoma location upon the death of the licensed operator. The designee shall apply to obtain a license to operate the vacant licensed operator location with the Service Oklahoma Operator Board within thirty (30) days of the licensed operator’s death. In the event that no designee is designated or that the designee fails to apply to be a licensed operator with Service Oklahoma within thirty (30) days, Service Oklahoma may take any and all action it deems appropriate in order to provide for the orderly transition and the maintenance of operations of the Service Oklahoma location, as permitted by law. H. When an application for registration is made with Service Oklahoma, the Corporation Commission or a licensed operator, a registration fee of One Dollar and seventy-five cents ($1.75) shall be collected for each license plate or decal issued. Such fees shall be in addition to the registration fees on motor vehicles and when an application for registration is made to the licensed operator, such licensed operator shall retain a fee as provided in Section 1141.1 of this title through June 30, 2023. Beginning July 1, 2023, the fee shall be retained by the licensed operator pursuant to subsection E of Section 1141.1 of this title. When the fee is paid by a person making application directly with Service Oklahoma or the Corporation Commission, as applicable, the registration fees shall be in the same amount as provided for licensed operators and the fee provided by Section 1141.1 of this title shall be deposited in the Oklahoma Tax Commission Fund or as provided in Section 1167 of this title, as applicable. Beginning January 1, 2023, the fee provided by Section 1141.1 of this title shall be deposited in the Service Oklahoma Revolving Fund or as provided in Section 1167 of this title, as applicable. Service Oklahoma shall prepare schedules of registration fees and charges for titles which shall include the fees for such licensed operators and all fees and charges paid by a person shall be listed separately on the application and registration and totaled on the application and registration. The licensed operators shall charge only such fees as are specifically provided for by law, and all such authorized fees shall be posted in such a manner that any person shall have notice of all fees that are imposed by law. I. Any licensed operator shall be responsible for all costs incurred by Service Oklahoma when relocating an existing Service Oklahoma location. The Service Oklahoma Operator Board may waive payment of such costs in case of unforeseen business or emergency conditions beyond the control of the licensed operator. J. Any existing contracts by or between any motor license agent and the Oklahoma Tax Commission shall be assigned to Service Oklahoma. All existing motor license agents in good standing with the Oklahoma Tax Commission will be offered a subsequent contract from Service Oklahoma to become a licensed operator to take effect on January 1, 2023. The contract between existing motor license agents and Service Oklahoma shall be agreed to no later than December 31, 2022. In the event an existing motor license agent declines to enter into the subsequent contract with Service Oklahoma to become a licensed operator, that motor license agent may continue to conduct business pursuant to the existing contract through December 31, 2025, so long as that motor license agent remains in good standing with Service Oklahoma in accordance with the terms of the existing contract.

Legislative History

Added by Laws 1985, c. 179, § 43, operative July 1, 1985. Amended by Laws 1985, c. 197, § 5, operative July 1, 1985; Laws 1987, c. 158, § 1, emerg. eff. June 25, 1987; Laws 2004, c. 534, § 10, eff. Nov. 1, 2004; Laws 2005, c. 1, § 77, emerg. eff. March 15, 2005; Laws 2008, c. 383, § 1, eff. Nov. 1, 2008; Laws 2009, c. 386, § 1, eff. July 1, 2009; Laws 2018, c. 174, § 1, eff. Nov. 1, 2018; Laws 2018, c. 289, § 1, eff. Nov. 1, 2018; Laws 2019, c. 195, § 2, eff. July 1, 2019; Laws 2021, c. 365, § 1, eff. Nov. 1, 2021; Laws 2021, c. 569, § 1, eff. Nov. 1, 2021; Laws 2022, c. 282, § 174, emerg. eff. May 19, 2022; Laws 2023, c. 310, § 33, eff. July 1, 2023; Laws 2024, c. 452, § 106, emerg. eff. June 14, 2024. NOTE: Laws 2004, c. 522, § 23 repealed by Laws 2005, c. 1, § 78, emerg. eff. March 15, 2005.