Service Oklahoma updates vehicle title transfer regulations for scrap dealers

On March 4, 2025, the Oklahoma State Legislature introduced House Bill 2111, aimed at reforming vehicle title management and ownership transfer processes. The bill seeks to address issues related to the cancellation of vehicle titles and the subsequent transfer of ownership, particularly for vehicles that are no longer roadworthy or are being sold to scrap metal dealers.

Key provisions of House Bill 2111 include the requirement for Service Oklahoma to preserve certificates of title in digital files for a minimum of five years following their cancellation. This measure is intended to enhance record-keeping and ensure that ownership history is accessible for verification purposes. Additionally, the bill mandates that an affidavit form be completed by vehicle owners when a title is canceled, establishing a formal process for documenting such actions.

Another significant aspect of the bill is the stipulation that vehicles not within the last ten model years, deemed not roadworthy, or sold to scrap dealers can only be transferred using a specific certificate of ownership prescribed by Service Oklahoma. This form must include detailed information about the buyer and seller, as well as the vehicle's identification details. In cases where the vehicle lacks a public vehicle identification number, an inspection by law enforcement is required to confirm its status.

The introduction of House Bill 2111 has sparked discussions among lawmakers and stakeholders regarding its implications for vehicle ownership transparency and the scrap metal industry. Proponents argue that the bill will help prevent fraud and ensure that ownership transfers are properly documented, while critics express concerns about the potential bureaucratic burden it may impose on vehicle owners and dealers.

As the bill progresses through the legislative process, its economic and social implications will be closely monitored. If passed, House Bill 2111 could significantly alter the landscape of vehicle title management in Oklahoma, potentially impacting both consumers and businesses involved in vehicle sales and scrap operations. The next steps will involve committee reviews and potential amendments as lawmakers weigh the benefits and challenges of the proposed legislation.