Shown verbatim: the complete text as captured from the official PDF posted by the Oklahoma Legislature, fetched 2026-07-23. Page and line markers are part of the official record; nothing is edited or removed. The official bill page.
1 STATE OF OKLAHOMA
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2 2nd Session of the 60th Legislature (2026)
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3 SENATE BILL 1920 By: Reinhardt
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6 AS INTRODUCED
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7 An Act relating to motor vehicle insurance; amending
7 47 O.S. 2021, Section 1111, as last amended by
8 Section 42, Chapter 171, O.S.L. 2025 (47 O.S. Supp.
8 2025, Section 1111), which relates to salvage;
9 increasing certain percent damage required for title
9 return; updating statutory language; updating
10 statutory reference; and providing an effective date.
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12 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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13 SECTION 1. AMENDATORY 47 O.S. 2021, Section 1111, as
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14 last amended by Section 42, Chapter 171, O.S.L. 2025 (47 O.S. Supp.
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15 2025, Section 1111), is amended to read as follows:
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16 Section 1111. A. As used in this section:
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17 1. "Loss" means the cost, in dollars, to repair or replace a
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18 vehicle which has been damaged by collision or other occurrence.
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19 The amount paid by an insurer to a holder of the certificate of
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20 title for repair of a damaged vehicle shall be prima facie evidence
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21 of the amount of the loss. The amount paid by an insurer to a
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22 holder of the certificate of title for replacement of a damaged
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23 vehicle less the resale value of the damaged vehicle shall be prima
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24 facie evidence of the amount of the loss;
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1 2. "Fair market value" means the value of a vehicle as listed
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2 in the current National Auto Automobile Dealers Association
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3 guidebook or other similar guidebook or the actual cash value,
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4 whichever is greater;
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5 3. "Resale value" means the amount, in dollars, paid to the
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6 holder of a certificate of title by a willing buyer for a vehicle
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7 damaged by collision or other occurrence or recovered from theft;
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8 4. "Total loss" means a loss which is equal to the fair market
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9 value of the vehicle immediately prior to the damage to or theft of
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10 the vehicle; and
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11 5. "Vehicle" means a vehicle, as defined in paragraph 40 41 of
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12 Section 1102 of this title, manufactured within the last ten (10)
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13 model years.
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14 B. Any insurance company that pays a total loss on a claim for
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15 any vehicle including, but not limited to, a flood-damaged vehicle
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16 or recovered-theft vehicle, any junk dealer who receives a motor
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17 vehicle which is to be used for junk or for parts, or any other
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18 person permanently dismantling or junking a vehicle shall receive
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19 the certificate of title from the current holder of the certificate
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20 of title, shall detach the license plate from the vehicle, and shall
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21 return the license plate and the certificate of title to Service
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22 Oklahoma or a licensed operator within thirty (30) days from receipt
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23 of the certificate, or insurance companies may provide alternate
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24 documentation within thirty (30) days pursuant to subsection P of
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1 Section 1105 of this title. Service Oklahoma shall cancel the
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2 certificate of title to the vehicle used for junk or parts and shall
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3 preserve the vehicle identification numbers (VINs) on the
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4 certificate of title in the computer files for at least five (5)
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5 years. No certificate of title may be reissued on a junked vehicle
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6 as defined in Section 1105 of this title, unless reissued pursuant
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7 to paragraph 3 of subsection C of this section. Service Oklahoma
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8 shall transfer ownership of a stolen vehicle, not recovered from
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9 theft at the time of transfer, by salvage or unrecovered-theft title
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10 to the insurer. Service Oklahoma shall transfer ownership of a
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11 vehicle damaged by flooding or other occurrence to the insurer by an
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12 original title, salvage title, or junked title, as may be
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13 appropriate, based upon an estimate of the amount of loss submitted
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14 by the insurer. All license plates surrendered to Service Oklahoma
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15 shall be destroyed.
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16 C. 1. If an insurance company pays a claim for a loss which is
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17 less than a total loss but the cost of repairing the vehicle for
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18 safe operation on the highway exceeds sixty percent (60%) seventy
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19 percent (70%) of the fair market value of the vehicle, or if any
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20 vehicle not insured is damaged to the extent that the cost of repair
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21 for safe operation on the highway exceeds sixty percent (60%)
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22 seventy percent (70%) of the fair market value of the vehicle, any
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23 holder of the certificate of title for the vehicle shall return the
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1 certificate of title to Service Oklahoma or a licensed operator
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2 within thirty (30) days from receipt of payment for the loss.
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3 2. Upon receipt of the certificate, Service Oklahoma or the
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4 licensed operator shall issue a salvage title for the vehicle. The
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5 title for any vehicle damaged by flooding shall be stamped with the
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6 words "Flood Damaged", and for any such vehicle which was recovered
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7 from a theft, the salvage title or rebuilt title shall be stamped
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8 with the words "Recovered Theft". A licensed dealer subject to the
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9 provisions of the Automotive Dismantlers and Parts Recycler Act,
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10 Section 591.1 et seq. of this title, shall not be required to pay
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11 registration fees, excise taxes, back taxes, or penalties on a
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12 vehicle as a prerequisite to obtaining a salvage title.
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13 3. If the actual documented cost of repairing the vehicle for
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14 safe operation on the highway does not exceed sixty percent (60%)
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15 seventy percent (70%) of the fair market value of the vehicle as
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16 defined in this section, the certificate of title shall be reissued
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17 to the holder and the vehicle shall not be subject to inspection as
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18 required under this section. The actual documented cost of
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19 repairing the vehicle pursuant to this paragraph shall be certified
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20 by the insurance company paying the loss.
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21 D. If a motor vehicle with a salvage title is placed in
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22 operative condition, application shall be made to Service Oklahoma
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23 or a licensed operator for a rebuilt title. A visual inspection of
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24 the vehicle and examination of the vehicle identification numbers
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1 shall be conducted prior to the issuance of a rebuilt title. At the
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2 time of issuance, the salvage title shall be returned to Service
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3 Oklahoma by the owner, or by the licensed operator if the licensed
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4 operator issues the rebuilt title. A visual inspection shall also
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5 be made of any out-of-state vehicle to be registered and titled in
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6 this state if the vehicle is within the class of vehicles for which
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7 a rebuilt title is required and a similar inspection has not been
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8 conducted by another state. The certificate of title for the
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9 rebuilt vehicle shall be stamped with the words, "This Rebuilt
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10 Vehicle Has Been Inspected by the Appropriate State Official."
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11 E. 1. The visual inspections and examination of vehicle
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12 identification numbers shall include, but not be limited to:
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13 a. comparison of the vehicle identification numbers with
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14 the number recorded on the ownership records,
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15 b. inspection of the vehicle identification numbers and
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16 the VIN plate to detect possible alteration or other
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17 fraud,
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18 c. interpretation of the vehicle identification number
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19 recorded on the ownership documents to assure that it
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20 accurately describes the motor vehicle in question,
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21 and
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22 d. inspection of the odometer of the vehicle to detect
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23 rollback or alteration.
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1 2. All vehicle damage shall be repaired before the examination
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2 is conducted. The following paperwork shall be presented to the
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3 licensed operator: the salvage title and original receipts for all
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4 parts placed on the vehicle. Components such as doors, motor, and
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5 transmission shall indicate the serial number or the vehicle
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6 identification number (VIN) of the auto the part was purchased from
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7 or removed from.
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8 F. The visual inspection and vehicle identification numbers
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9 examination shall be performed by a licensed operator at the
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10 location designated by the licensed operator. If the location of
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11 the inspection is not the place of business of the rebuilder, the
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12 licensed operator shall issue a permit authorizing the applicant to
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13 operate the vehicle upon the public streets, roads, and highways in
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14 route to and from the designated location for the inspection. The
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15 inspection and examination shall be performed within ten (10)
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16 working days after the owner of the vehicle requests the inspection
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17 and examination. Requests shall be made by completing the request
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18 form prescribed and provided by Service Oklahoma.
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19 G. Inspection and examination of a rebuilt vehicle shall be
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20 performed by a person employed by a licensed operator.
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21 H. The fee for the examination by the licensed operator shall
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22 be Twenty-five Dollars ($25.00), which shall be paid at the time of
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23 issuance of the certificate of title for the rebuilt vehicle. The
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24 licensed operator shall retain Five Dollars ($5.00) and shall remit
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1 Twenty Dollars ($20.00) to the Oklahoma Tax Commission which shall
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2 retain Ten Dollars ($10.00) and transmit Ten Dollars ($10.00) to the
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3 State Treasurer for deposit in the Department of Public Safety
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4 Revolving Fund through December 31, 2022. Beginning January 1,
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5 2023, through June 30, 2026, the licensed operator shall retain Five
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6 Dollars ($5.00) and shall remit Twenty Dollars ($20.00) to the Tax
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7 Commission which shall retain Ten Dollars ($10.00) and transmit Ten
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8 Dollars ($10.00) to the State Treasurer for deposit in the Service
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9 Oklahoma Revolving Fund. Beginning July 1, 2026, the licensed
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10 operator shall retain Five Dollars ($5.00) and shall remit Twenty
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11 Dollars ($20.00) to Service Oklahoma which shall retain Ten Dollars
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12 ($10.00) and transmit Ten Dollars ($10.00) to the State Treasurer
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13 for deposit in the Service Oklahoma Revolving Fund. The licensed
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14 operator and its employees and agents may not be sued for and shall
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15 not be liable for any damages allegedly arising out of the
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16 inspection of a vehicle or any acts or omissions in the performance
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17 of the inspection. The licensed operator may be held liable for any
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18 damages to the vehicle caused by the negligent acts or omissions in
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19 the performance of the inspection. Any person may be liable for any
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20 damages to a vehicle caused by the intentional acts or omissions in
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21 the performance of the inspection.
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22 I. The rebuilt title and any subsequent transfers of such title
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23 shall also reflect that the vehicle was a salvage vehicle, flood-
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1 damaged vehicle, or recovered-theft vehicle, if applicable, and also
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2 shall include the salvage date.
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3 J. Any title for a motor vehicle issued pursuant to the laws of
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4 any other state which reflects that such vehicle is a salvage
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5 vehicle, a rebuilt vehicle or a junked vehicle or has any other
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6 brand or classification notation by that state shall be retained on
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7 the new title issued by Service Oklahoma unless the actual
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8 documented cost of repairing the vehicle for safe operation on the
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9 highway does not exceed sixty percent (60%) seventy percent (70%) of
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10 the fair market value of the vehicle as provided by this section.
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11 K. When the insurance company pays a loss on a vehicle which is
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12 registered at the time of mishap, accident, burning, or flooding,
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13 the appropriate certificate of title shall be issued without the
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14 payment of additional registration fees or excise taxes, upon the
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15 submission of a police report or insurance adjuster's report and a
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16 declaration by the insurer that the vehicle is held for sale to a
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17 dealer. If the owner of the vehicle or other insured retains
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18 ownership of the damaged vehicle, Service Oklahoma shall notify the
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19 owner or insured of the requirements of this section.
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20 L. Any insurance company that pays a claim for a loss where the
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21 cost of repairing the vehicle for safe operation on the highway
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22 exceeds sixty percent (60%) seventy percent (70%) of the market
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23 value of the vehicle or pays a claim for a flood-damaged vehicle as
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24 defined in Section 1105 of this title shall notify, in writing, the
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Req. No. 3304 Page 8
1 holder of the certificate of title of the requirements of this
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2 section and shall notify Service Oklahoma of the payment of such
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3 claim. The notice shall include the estimated total damage
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4 percentage determination of the actual cash value made by the
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5 insurance company to repair the vehicle for safe operation on the
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6 highway. The insurance company shall also send a copy of the
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7 notification to the holder of the title. Service Oklahoma shall
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8 provide notice to the owner of the vehicle in writing requiring the
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9 owner to surrender the title along with the fee to Service Oklahoma
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10 or one of its licensed operators within thirty (30) days from the
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11 receipt of notice for the issuance of the appropriate title based on
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12 the amount of loss. Service Oklahoma shall reissue the appropriate
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13 title with the words "Flood Damaged" on the face of the title in the
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14 case of a flood-damaged vehicle; provided, no insurance company
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15 shall pay a claim for less than the amount to which the holder of
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16 the certificate of title is rightfully entitled in order to avoid
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17 compliance with this section.
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18 M. Except as provided for in subsection N of this section, any
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19 person, firm, corporation, or other legal entity convicted of
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20 violating any provision of this section shall be guilty of a
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21 misdemeanor and shall be punished by a fine of not less than Three
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22 Hundred Dollars ($300.00) or by incarceration imprisonment in the
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23 county jail for not more than six (6) months, or by both the fine
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24 and incarceration imprisonment.
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1 N. Any owner of a titled vehicle who has knowledge that the
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2 title is not the proper type for the vehicle and, with intent to
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3 misrepresent the vehicle, fails to make the appropriate title
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4 changes, shall be guilty of a misdemeanor. Any person who has
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5 knowledge that the title is not the proper type for the vehicle, and
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6 with intent to misrepresent the vehicle, buys or receives any
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7 vehicle for which the appropriate title changes have not been made
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8 as required by the Oklahoma Vehicle License and Registration Act
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9 shall be guilty of a misdemeanor. Any person found guilty in
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10 accordance with the provisions of this subsection shall be punished
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11 by a fine of not more than One Thousand Dollars ($1,000.00) for the
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12 first offense or Five Thousand Dollars ($5,000.00) for the second or
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13 subsequent offense, or by imprisonment in the county jail for a term
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14 not exceeding six (6) months, or by both such fine and imprisonment.
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15 O. Any owner of a salvage or junked vehicle shall submit the
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16 certificate of title to Service Oklahoma or the licensed operator
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17 for issuance of an appropriate title. Any holder of a certificate
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18 of title issued by this state, to a vehicle which no longer exists,
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19 shall surrender the certificate of title to Service Oklahoma for
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20 cancellation. The vehicle identification number on the canceled
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21 certificate of title shall be preserved in the computer of
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22 electronically by Service Oklahoma for at least five (5) years.
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23 Nothing in this section shall be construed to prevent the
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24 transfer of ownership of a vehicle by assignment of the title to a
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1 used car dealer, wholesale used car dealer, or a licensed automotive
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2 dismantler or parts recycler.
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3 SECTION 2. This act shall become effective November 1, 2026.
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Req. No. 3304 Page 11Every fact on this page links to its source, starting with the official bill record.