Senate Bill 387 Summary

• Amends Oklahoma motor vehicle franchise laws to establish procedures for fair compensation by manufacturers for dealer warranty work and parts, with compensation rates based on dealer submitting sequential nonwarranty customer-paid service repair orders covering warranty-like work.

• Requires manufacturers to provide written notice of proposed charge-backs resulting from audits, with dealers having 30 days to file a protest with the Oklahoma Motor Vehicle Commission; prohibits implementation of charge-backs until protest period expires or final adjudication is rendered unless dealer agrees.

• Restricts manufacturer requirements for dealer facility construction, renovation, or improvements by prohibiting requirements to use factory-selected vendors for goods or services unless such goods are not subject to factory intellectual property rights and factory approval is obtained.

• Prohibits manufacturers from requiring dealers to establish exclusive facilities or enter site-control agreements except when voluntarily entered with valuable consideration; automatically extinguishes site-control agreements if all franchises at that location are terminated due to product line discontinuance.

• Establishes procedures for dealer relocation requests with 60-day manufacturer approval window and automatic approval if deadline passes; clarifies that compensation for terminated franchises due to product line discontinuance includes fair market value of franchise or replacement franchise on substantially similar terms within 90 days.