SECTION 260:75-1-5. Rates

(a)   Fleet operation funding. The Department shall fund all operation, repair, insurance, and maintenance expenses for vehicles issued.

(b)   Rates. A lease or rental, service, and system maintenance, rates shall be set by the Department and charged to each agency to recover the costs listed in (a) of this section. A copy of these rates shall be furnished to all agencies upon request.

(c)   Notice of rate change. If the Fleet Manager determines it is in the best interest of the State to change the lease or rental rate to ensure the recovery of expenses listed in (a) of this section, the Administrator will send written notice to the chief administrative officer of each agency or department of the new rate at least thirty (30) days prior to its effective date.

(d)   Payment due date. Payment for Department services as authorized by 74 O.S., Section 78c. shall be paid no less than monthly to the Office.

(e)   Delinquent accounts. State agencies that are delinquent thirty (30) calendar days or more with payment to the Office shall be considered in arrears. Written notice of the delinquency and outstanding balance may be sent to the agency.

(1)   Accounts delinquent for more than forty five (45) calendar days shall be subject to suspension by the Fleet Manager. Suspension of an account bars the agency from use of Department services until payment is received and the account is no longer in arrears.

(2)   The Administrator may waive suspension if it is determined that the suspension will disrupt vital services to the public, cause undue hardship, or is otherwise in the best interest of the agency and/or the state.

(f)   Other agency expenses. An agency that leases or rents Department vehicles is responsible for and shall pay the Department for any expenses related to the replacement, recondition, repair, or loss of value at the time of sale, of a leased or rented vehicle due to an accident or incident when the agency is found to be at fault.

(1)   Unless a third party is determined to be responsible for the damage, an agency shall be responsible for up to the Department's deductible under the Physical Damage Insurance Policy through the state Risk Management Department. If the loss is not recoverable from the third party, the leasing or renting agency shall be responsible for the Department's deductible.

(2)   An agency shall be considered "at fault" and responsible for full cost of replacement, recondition, repair, or the loss of value at the time of sale, of a leased or rented vehicle, if it is determined that certain conditions contributed to the replacement or repair which include, but are not limited to, the following:

(A)   failure to comply with Department's care and preventative maintenance standards established in 260:75-1-10;

(B)   operation of a vehicle in unsafe conditions such as continuing to operate a vehicle after serious warnings were indicated, e.g. caution light has engaged, smoke coming from under the hood, blown tire, etc.;

(C)   use of a vehicle inconsistent with the performance of work related activities;

(D)   failure to comply with state traffic statutes, and regulations.

[Source: Added at 31 Ok Reg 1478, eff 9-12-14; Amended at 32 Ok Reg 1772, eff 9-11-15]