SB 641 — Motor vehicle repair; creating the Oklahoma Motor Vehicle Consumer Protection Act; establishing certain hourly market rate for labor. Effective date.

ENGROSSEDAn Act ENROLLED SENATE BILL NO.

Paxton of the Senate and Tedford and Hill of the House 5 An Act relating to motor vehicle repair;

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

Motor vehicle repair costs BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:

This act shall be known and may be cited as the “Oklahoma"Oklahoma Motor Vehicle Consumer Protection Act”.Act".

ENGR.1.

S."Administrative charges" shall include, but not be limited to, the cost of:

B.

NO.

641 Page 1 1.

“Administrative charges” shall include, but not be limited to, the cost of:

“Auto"Auto body repair”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;

ENGR.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.

641 Page 2 3.4.

“Auto"Insurance bodycompany" repair shop” means anythe commercialperson or entity engagedresponsible infor thecharges businessincurred orby occupationthe ofinsured performingat an auto body repair shop as a result of repairs onor thecharges bodyincurred in determining a total loss of a motor vehicle;vehicle as provided for in Section 1250.8 of Title 36 of the Oklahoma Statutes;

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;

“Motor"Motor vehicle”vehicle" means the same as defined in Section 1-134 of Title 47 of the Oklahoma Statutes;

“Owner”"Owner" means the owner of the vehicle;

“Storage"Storage rates”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.

ENGR.The Insurance Commissioner may adjust the hourly market rate for labor to account for inflation annually beginning on January 1, 2027.

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NO.

641 Page 3 The Insurance Commissioner may adjust the hourly market rate for labor to account for inflation annually beginning on January 1, 2027.

A.ENR.

The maximum daily storage rate allowed to be charged by an auto body repair shop 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 Seventy-eight Dollars ($78.00) for vehicles with a lithium-ion battery that have sustained damage to the battery pack or have exhibited fire, smoke, or popping or hissing sounds.

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 One Hundred Fifty-six Dollars ($156.00) per calendar day for vehicles with a lithium-ion battery that have sustained damage to the battery ENGR.

641 Page 43 packA. or have exhibited fire, smoke, or popping or hissing sounds, 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.

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.

The maximum daily storage rate may be increased.increased upon approval by the Oklahoma Insurance Department based on current market conditions.

SuchAdjustments adjustmentto shall be made based on the marketmaximum surveysdaily conductedstorage pursuantrate toENR. Section 365:15-1-26 of the Oklahoma Administrative Code.

S.

B.

NO.