1. A. Before April 1 of each year and as of the last day of operation of an agent, all motor license agents shall file with the State Auditor and Inspector and the Oklahoma Tax Commission a complete financial statement and inventory on a form prescribed by the State Auditor and Inspector covering all expenses and disbursements out of all taxes and fees collected by such agents during the preceding calendar year or during the current calendar year through the last day of operation of the agent. The Commission shall audit all motor license agents at least once during each calendar year and shall have the power to require any changes it deems necessary in the operation of motor license agents. The Commission shall issue such rules as it deems necessary for the proper control of all fiscal matters involving motor license agents.
2. B. No person employed in the office of a motor license agent performing duties imposed by law upon such office shall receive a salary that exceeds seventy percent (70%) of the maximum annual compensation designated by law for the motor license agent provided, however, any such employee who has been so employed in excess of five (5) years may be compensated by an additional five percent (5%) of such maximum annual compensation for each year in excess of five (5) years employment not exceeding a total of twenty-five percent (25%). The provisions of this subsection shall not apply to the Commission.
3. C. The allowable expenses of a motor license agency shall be the ordinary and necessary expenses allowed small businesses pursuant to the Federal Internal Revenue Code, 26 U.S.C., Section 1 et seq.
4. D. The State Auditor and Inspector, annually, shall analyze the financial statement and inventory filed by each motor license agent pursuant to subsection A of this section. After the analysis, the State Auditor and Inspector may, if deemed necessary or advisable, require a review of the taxes and fees received and expenditures made by an agency, which review shall be made in accordance with auditing guidelines prepared by the State Auditor and Inspector and the standards established by the American Institute of Certified Public Accountants by a licensed public accountant or a certified public accountant holding a permit to practice in this state. A copy of the review shall be forwarded to the State Auditor and Inspector and the Tax Commission. The State Auditor and Inspector and the Tax Commission shall evaluate the reviews and may conduct any further audits or examinations as deemed necessary. Any review or audit of a motor license agency performed by the Oklahoma Tax Commission, the State Auditor and Inspector, a licensed public accountant or a certified public accountant, pursuant to the provisions of Sections 1140 through 1147 of this title shall be an open record and shall be made available for public inspection at the Oklahoma Tax Commission, notwithstanding the provisions of Section 205 of Title 68 of the Oklahoma Statutes.
5. E. Any motor license agent whose budgeted compensation is the same as the maximum amount as provided for in this act, Section 1101 et seq. of this title, shall hold all real and personal property leased or purchased from the operating expense budget of the agency in trust as the property of the agency for use in the operation of the agency and for no other purpose and, upon the resignation, removal or death of such agent, such property shall be transferred to the successor agent. The Commission shall establish a beginning inventory and maintain records of all real and personal property leased or owned by each motor license agent and shall annually update its records as to any interest, whether partial or whole, held by the motor license agent in such real and personal property. Upon the appointment of a successor agent, the Commission shall have the power to provide for the equitable settlement of any issue arising from any partial interests involved in such real and personal property. Provided however, that the property may be transferred to the Commission to be held or used by the Commission until such time as a successor agent is appointed and qualified as provided in this act.

6. F. The following restrictions and requirements shall apply to all motor license agents:

   1. 1. All purchases in excess of One Thousand Dollars ($1,000.00) made by a motor license agent who collects fees in excess of Seventy-five Thousand Dollars ($75,000.00) per year shall be identified in each review and shall be accompanied by at least (3) quotes or bids showing that the purchase was at the lowest price available in the agent's local area;
   2. 2. No motor license agent shall enter into a lease or sublease, for use in a motor license agency or in the conduct of agency business for any furniture, equipment, machinery, vehicles or other items from any entity in which the agent or any person related to the agent within the third degree by consanguinity or affinity has a financial interest. Such motor license agent may, however, locate or continue to locate a motor license agency in a building owned by said agent or by a person related to the agent within the third degree by consanguinity or affinity. In such case, the motor license agent shall attach a copy of the lease agreement to his annual financial statement and inventory and such lease agreement shall become a part thereof; and
   3. 3. Any and all records, files, books or otherwise of a motor license agent relating to the operation of the motor license agency shall be public record which shall be open to public inspection at reasonable times, regardless of their location.

Laws 1985, c. 179, § 49, operative July 1, 1985; Amended by Laws 1987, c. 158, § 5, emerg. eff. June 25, 1987; Amended by Laws 1991, c. 261, § 4, eff. September 1, 1991; Amended by Laws 1993, c. 300, § 3, eff. September 1, 1993.