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

Floor (House) → Floor (Senate) · 9 edits

MAJOR

The bill was completely rewritten from the House version to the Senate version, changing its focus from creating a new consumer protection act for motor vehicle repairs to amending the existing Unfair Claims Settlement Practices Act. The Senate version removes all new definitions, storage rate caps, and labor rate provisions, instead focusing solely on clarifying that the Unfair Claims Settlement Practices Act applies to all insurance claims and defining specific unfair practices.

Scope change

The bill's scope shifted from establishing a new comprehensive consumer protection framework for auto repair shops to amending existing unfair claims settlement practices law.

SCOPE

Removed the creation of a new 'Oklahoma Motor Vehicle Consumer Protection Act' and replaced it with amendments to the Unfair Claims Settlement Practices Act.

Added language clarifying that Unfair Claims Settlement Practices Act applies to all claims arising under any insurance policy or contract.

DEFINITION

Deleted all new statutory definitions for terms like 'administrative charges', 'auto body repair shop', 'storage rates', and 'owner'.

REQUIREMENT

Removed provisions establishing maximum daily storage rates ($39 for standard vehicles, $78 for EVs for first 10 days, then $75 and $200 respectively) and hourly labor rate caps for administrative charges.

Removed requirements for Insurance Commissioner to adjust labor rates annually starting January 1, 2027 based on market surveys.

Added specific language defining when conduct constitutes an unfair claims settlement practice, including flagrant disregard of the act and general business practices indicating intentional misconduct.

Added provision stating that nothing in the act prevents insurers from offering incentives to use certain repair shops.

ENFORCEMENT

Changed the bill to focus on defining unfair claims settlement practices under existing law rather than creating new consumer protection regulations.

TIMELINE

Changed effective date from unspecified to November 1, 2025.

SB641 (3-26-25) (PAXTON) FS FA1.PDF → Floor (House) · 4 edits

MODERATE

The bill was amended to transition from a Senate Floor Substitute version to a House Floor version, incorporating committee amendments. Key substantive changes include updated storage fee amounts for electric vehicles, revised administrative charge definitions, and modified timelines for insurance company approval processes.

Scope change

The bill's scope remains focused on motor vehicle repair consumer protection, but specific fee structures and definitions were adjusted to better address electric vehicle storage concerns and clarify administrative charge categories.

DEFINITION

Administrative charges definition was expanded to include more specific items like file creation, repair orders, and software charges, while removing some ambiguous categories.

FISCAL

Maximum daily storage rates were increased from $78 to $200 for fully electric vehicles with collision damage, and from $75 to $200 for all motor vehicles on the eleventh calendar day.

REQUIREMENT

Requirements for insurance company approval of total loss estimates were clarified to include written records of communication and specific conditions for lithium-ion battery vehicles.

TECHNICAL

Document formatting and section numbering were updated to reflect House Floor version with committee amendments, including changes to page headers and bill title designations.

House Committee Substitute for Senate Bill → SB641 (3-26-25) (PAXTON) FS FA1.PDF · 4 edits

MODERATE

The bill was amended from a House Committee Substitute to a Floor Substitute version, primarily updating administrative reference numbers and adjusting specific monetary thresholds for vehicle storage and repair charges. The most significant substantive change involves lowering the maximum daily storage rate for vehicles with lithium-ion batteries from $200 to $156, while also clarifying the conditions under which these rates apply to battery-damaged vehicles.

Scope change

The bill's scope remains focused on motor vehicle repair and consumer protection, but the financial thresholds for storage fees were modified to reflect updated market rates.

REQUIREMENT

Maximum daily storage rate for vehicles with lithium-ion batteries that have sustained damage or exhibited fire/smoke sounds was reduced from $200 to $156 per calendar day.

TECHNICAL

Administrative reference numbers were updated from Req. No. 13545 to Req. No. 1968 throughout the document.

Document title changed from 'COMMITTEE SUBSTITUTE FOR ENGROSSED' to 'FLOOR SUBSTITUTE' indicating the bill's progression through the legislative process.

DEFINITION

Clarification added regarding the specific conditions (fire, smoke, popping or hissing sounds) that trigger special storage rate provisions for lithium-ion battery vehicles.

Enrolled (final version) → House Committee Substitute for Senate Bill · 4 edits

MODERATE

The bill was reformatted from an enrolled Senate version to a House Committee Substitute version, with substantive changes to storage rate pricing for electric vehicles and minor formatting adjustments throughout. The most significant policy change is the introduction of specific storage rates for fully electric vehicles with collision damage, which were not present in the original version.

Scope change

The bill's scope remains focused on motor vehicle repair consumer protection, but the applicability of storage rates now specifically includes fully electric vehicles with collision damage.

REQUIREMENT

Storage rates for vehicles with lithium-ion batteries were changed from a general category to specifically apply to 'fully electric vehicles with collision damages' for the first 10 days ($78.00/day) and 'fully electric vehicles with collision damage' for days 11+ ($200.00/day if supplemental not approved within 7 days).

The term 'lithium-ion batteries' was replaced with 'fully electric vehicles' in the storage rate provisions, narrowing the scope to electric vehicles rather than any vehicle with lithium-ion batteries.

TECHNICAL

Minor formatting changes including page number reorganization, line numbering, and spacing adjustments throughout the document.

DEFINITION

The definition of 'Storage rates' was reformatted with adjusted line breaks but the substantive definition remained unchanged.

Engrossed → Enrolled (final version) · 4 edits · May 20, 2025

MODERATE

The bill was finalized from its engrossed version to the enrolled version for signing into law. The most significant substantive change involves adjustments to maximum daily storage rates for vehicles with lithium-ion batteries, increasing the first 10-day rate from $78.00 to $125.00 and the extended rate from $156.00 to $200.00. The bill also clarifies that these higher rates apply when vehicles are stored according to original equipment manufacturer requirements. Additionally, the enrolled version includes formal passage dates for both the Senate and House, confirming the bill has completed the legislative process.

Scope change

The bill's scope remains focused on motor vehicle repair and consumer protection, but the financial thresholds for storage fees have increased, particularly for vehicles with lithium-ion batteries.

REQUIREMENT

Maximum daily storage rates for vehicles with lithium-ion batteries were increased from $78.00 to $125.00 for the first 10 days and from $156.00 to $200.00 for days 11 and beyond.

The higher storage rates now explicitly apply when vehicles are stored pursuant to original equipment manufacturer requirements.

TIMELINE

Formal passage dates were added showing the bill passed the Senate on May 19, 2025, and the House on May 8, 2025.

TECHNICAL

Minor formatting changes occurred, including updating the bill header from 'Engrossed' to 'Enrolled' and adding co-sponsor 'Hill' to the House sponsors.

Amended And Engrossed → Engrossed · 5 edits · May 19, 2025

MODERATE

The bill was renumbered and reformatted from House amendments to Senate version, with substantive changes to storage rate limits for total loss vehicles. The maximum daily storage fee for standard vehicles increased from $39 to $78 for the first 10 days, while lithium-ion battery damaged vehicles increased from $125 to $156. Administrative charges for total loss vehicles remain capped at four hours of labor.

Scope change

The bill's scope remains focused on motor vehicle repair consumer protection, but specific financial thresholds for storage fees were increased and inflation adjustment mechanisms were clarified.

REQUIREMENT

Maximum daily storage rates for total loss vehicles increased from $39 to $78 for standard vehicles and from $125 to $156 for lithium-ion battery damaged vehicles during the first 10 days.

Storage rates on day 11 increased from $75 to $75 for standard vehicles and from $200 to $156 for lithium-ion battery damaged vehicles.

DEFINITION

Clarified that administrative charges for total loss vehicles shall not exceed four hours of labor regardless of the hourly market rate.

TIMELINE

Effective date set to November 1, 2025, with annual inflation adjustments beginning January 1, 2027.

TECHNICAL

Bill renumbered from House amendments to Senate version with formatting corrections and section reorganization.

Introduced → Amended And Engrossed · 7 edits · May 19, 2025

MODERATE

The bill was completely rewritten from a minor amendment to the Unfair Claims Settlement Practices Act into a new Motor Vehicle Consumer Protection Act. This fundamentally changes the bill's purpose from clarifying existing unfair claims practices to establishing new consumer protections specifically for auto body repair shops, including new definitions, labor rate standards, and storage fee limits.

Scope change

The bill's scope expanded from amending one existing statute (36 O.S. 1250.3) to creating four entirely new sections of law (36 O.S. 1271-1274) focused on motor vehicle repair consumer protection.

SCOPE

Bill title and purpose changed from Unfair Claims Settlement Practices to Motor Vehicle Consumer Protection Act, shifting focus to auto repair consumer rights.

DEFINITION

New statutory definitions created for administrative charges, auto body repair, auto body repair shop, insurance company, motor vehicle, owner, and storage rates.

REQUIREMENT

Established new hourly market rate for labor on administrative charges for total loss vehicles, adjustable annually by Insurance Commissioner starting January 1, 2027.

Limited administrative charges for total loss vehicles to a maximum of four (4) hours at the prevailing market rate.

Set maximum daily storage rates at $39.00 for standard vehicles and $125.00 for vehicles with damaged lithium-ion batteries, with increases allowed after 10 days.

Removed original provisions about general applicability of Unfair Claims Settlement Practices Act and insurer incentives for repair shops.

TIMELINE

Effective date changed from November 1, 2025 to unspecified new date in the rewritten bill structure.

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

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