Chapter 593 Oregon Laws 1999

Session Law

AN ACT

HB 2739

Relating to vehicle dealer certificates; creating new provisions; and amending ORS 805.250, 822.025, 822.030, 822.040, 822.045, 822.700 and 822.705.

Be It Enacted by the People of the State of Oregon:

SECTION 1. ORS 822.025 is amended to read:

822.025. An application for a vehicle dealer certificate issued by the Department of Transportation under ORS 822.020 shall be in a form prescribed by the department and shall contain all of the following:

(1) The names and residence addresses of the persons applying:

(a) If the applicant is a firm or partnership, the name of the firm or partnership with the names and residence addresses of all members thereof.

(b) If the applicant is a corporation, the name of the corporation with the names of the principal officers and their residence addresses and the name of the state under whose laws the corporation is organized.

(2) The name under which the business will be conducted.

(3) The street address, including city and county in Oregon, where the business will be conducted.

(4) Whether or not used vehicles are handled.

(5) A certificate from the applicant showing that the applicant will act as a vehicle dealer and will conduct business at the location given on the application.

(6)(a) A certificate signed by a person authorized by the local governing body to do so, stating that the location of the business as given in the application for a certificate complies with any land use ordinances or business regulatory ordinances of the city or county. The provisions of this paragraph do not apply to renewal of a vehicle dealer certificate under ORS 822.040 unless the location of the business is being changed at the time of renewal.

(b) If the business will be located within a residential zone and the application indicates that the dealer will sell or display only manufactured homes, as defined in ORS 446.003, the local governing body may condition the approval of the application under this subsection by:

(A) Prohibiting sale or display of other types of vehicles at the location; or

(B) Requiring that the manufactured homes that are on display comply with architectural and aesthetic standards regulating permanent placement of manufactured homes in the residential zone.

(7) Any information required by the department to efficiently administer the registration of vehicles and regulation of dealers or other relevant information required by the department.

SECTION 2. ORS 822.030 is amended to read:

822.030. (1) A bond or letter of credit required to qualify for a vehicle dealer certificate under ORS 822.020 or to qualify for renewal of a certificate under ORS 822.040 must comply with all of the following:

(a) The bond shall have a corporate surety licensed to do business within this state. A letter of credit shall be an irrevocable letter of credit issued by an insured institution, as defined in ORS 706.008. The surety or institution shall notify the Department of Transportation if the bond or letter of credit is canceled for any reason. The surety or institution shall continue to be liable under the bond or letter of credit until the department receives the notice required by this paragraph, or until the cancellation date specified in the notice, whichever is later.

(b) The bond or letter of credit shall be executed to the State of Oregon.

(A) If the applicant is seeking a certificate to be a dealer exclusively in motorcycles, mopeds, Class I all-terrain vehicles or snowmobiles or any combination of those vehicles, the bond or letter of credit shall be for $2,000.

(B) Except as provided in subparagraph (A) of this paragraph, if the applicant is seeking a certificate to be a vehicle dealer, the bond or letter of credit shall be for [$15,000] $20,000 for each year the certificate is valid.

(d) The bond or letter of credit described in this subsection shall be approved as to form by the Attorney General.

(e) The bond or letter of credit must be conditioned that the person issued the certificate shall conduct business as a vehicle dealer without fraud or fraudulent representation and without violating any provisions of the vehicle code relating to vehicle registration, vehicle permits, the transfer or alteration of vehicles or the regulation of vehicle dealers.

(f) The bond or letter of credit must be filed and held in the office of the department.

(g) The vehicle dealer shall purchase a bond or letter of credit under this subsection annually on or before each anniversary of the issuance of the vehicle dealer's certificate.

(2) Any person shall have a right of action against a vehicle dealer, against the surety on the vehicle dealer's bond and against the letter of credit in the person's own name if the person suffers any loss or damage by reason of the vehicle dealer's fraud, fraudulent representations or violations of provisions of the vehicle code relating to:

(a) Vehicle registration;

(b) Vehicle permits;

(d) The regulation of vehicle dealers.

(3) If the certificate of a vehicle dealer is not renewed or is voluntarily or involuntarily canceled, the sureties on the bond and the issuer of the letter of credit are relieved from liability that accrues after the department cancels the certificate.

SECTION 3. ORS 822.040 is amended to read:

822.040. (1) The holder of a current, valid vehicle dealer certificate issued under ORS 822.020 may exercise the following privileges under the certificate:

(a) A dealer is authorized, without violating ORS 803.025 or 803.300, to use and operate over and along the highways of this state all vehicles displaying the dealer's plates whether registered or not or whether or not a title is issued for the vehicle subject to the following:

(A) This paragraph does not authorize dealers to use or operate vehicles under dealer plates unless the vehicles are actually owned or controlled by the dealer and in actual use by the dealer, members of the dealer's firm, any salesperson thereof or any person authorized by the dealer. Vehicles operated under dealer plates may be used for the same purposes as are any other vehicles registered in this state that are registered by payment of the fee under ORS 803.420. This paragraph is subject to the limitations under ORS 822.045.

(B) Nothing in this paragraph allows dealers to use or operate manufactured structures under dealer plates. All movement of manufactured structures by dealers shall be by trip permits issued under ORS 803.600 and 820.560.

(C) Vehicles registered or titled in another state, country, province, territory or the District of Columbia are subject to the provisions under ORS 803.300 and 803.305 applicable to such vehicles.

(b) A dealer is entitled to receive dealer plates or devices and replacement or additional dealer plates or devices. As many additional dealer plates as may be desired may be obtained upon the filing of a formal application for additional plates with the Department of Transportation. The plates issued to dealers shall require the payment of fees as provided under ORS 805.250.

(c) The person is not subject to the prohibitions and penalties under ORS 822.005 as long as the holder's vehicle dealer business is conducted in a location approved under the certificate.

(d) The dealer shall be considered the owner of vehicles manufactured or dealt in by the dealer, before delivery and sale of the vehicles, and of all vehicles in the dealer's possession and operated or driven by the dealer or the dealer's employees.

(2) The holder of a vehicle dealer certificate may open additional places of business under the same business name by obtaining a supplemental certificate from the department under this subsection. The following all apply to a supplemental certificate issued under this subsection:

(a) The department shall not issue a supplemental certificate under this subsection if the additional place of business opened will be operated under a different business name than that indicated on the current certificate. Any business that a vehicle dealer operates under a separate business name must be operated under a separate certificate and the dealer must apply for and pay the fees for a regular dealer certificate for the business.

(b) A supplemental certificate issued under this subsection is subject to the fee for supplemental certificate under ORS 822.700.

(3) The holder of a vehicle dealer certificate may move a place of business or change a business name by obtaining a corrected certificate from the department. The following apply to a corrected certificate issued under this subsection:

(a) The department shall prescribe the form for application for a corrected certificate.

(b) A person applying for a corrected certificate shall pay the fee for the corrected certificate established in ORS 822.700.

(4) A vehicle dealer certificate is valid for a [one-year] three-year period and may be renewed as provided by the department. The department shall only renew a certificate if the applicant for renewal does all of the following:

(a) Pays the required [annual] fee for renewal under ORS 822.700.

(b) Delivers to the department a bond that meets the requirements under ORS 822.030.

(d) Provides the names of all partners or corporate officers.

(5) The department may adopt suitable rules for the issuance and renewal of certificates under this section and ORS 822.020.

SECTION 4. ORS 822.045 is amended to read:

822.045. (1) A vehicle dealer improperly conducts a vehicle dealer business and is subject to the penalties under this section if the vehicle dealer commits any of the following offenses:

(a) A vehicle dealer commits the offense of failure to obtain a supplemental vehicle dealer certificate if the vehicle dealer opens any additional place of business using the same business name as a place of business approved under a vehicle dealer certificate without first obtaining a supplemental dealer certificate under ORS 822.040.

(b) A vehicle dealer commits the offense of failure to obtain a corrected vehicle dealer certificate if the dealer moves a place of business or changes the business name without first obtaining a corrected dealer certificate under ORS 822.040.

(c) A vehicle dealer commits the offense of failure to maintain proper vehicle dealer records if the dealer does not keep records or books with all of the following information concerning any used or secondhand vehicles or campers the dealer deals with:

(A) A record of the purchase, sale or exchange or of the dealer's receipt for purpose of sale.

(B) A description of the vehicle or camper.

(C) The name and address of the seller, the purchaser and the alleged owner or other person from whom the vehicle or camper was purchased or received or to whom it was sold or delivered.

(D) For motor vehicles, the vehicle identification number and any other numbers or identification marks as may be thereon and a statement that a number has been obliterated, defaced or changed, if such is a fact.

(E) For trailers and campers, the vehicle identification number and any other numbers or identification marks as may be thereon.

(F) A duly assigned certificate of title or other primary ownership record or a bill of sale from the registered owner of the vehicle or camper from the time of delivery to the dealer until the dealer disposes of the vehicle or camper. If title is issued for the vehicle in a form other than a certificate, or if the primary ownership record is in a form other than a document, a dealer shall keep records in accordance with rules adopted by the Department of Transportation for the purpose of complying with this subparagraph.

(d) A vehicle dealer commits the offense of failure to allow administrative inspection if the dealer refuses to allow the department to conduct an inspection under ORS 822.035 at any time during normal business hours.

(e) A vehicle dealer commits the offense of failure to allow police inspection if the dealer refuses to allow any police officer to conduct an inspection under ORS 810.480 at any time during normal business hours.

(f) A vehicle dealer commits the offense of improper dealer movement of a manufactured structure if the dealer moves a manufactured structure on the highways of this state without first obtaining a trip permit under ORS 803.600 and 820.560.

(g) A vehicle dealer commits the offense of illegal use of dealer vehicle for hire if the dealer allows any vehicle operated under vehicle dealer registration to be loaned or rented with or without driver for hire or direct compensation.

(h) A vehicle dealer commits the offense of improper use of dealer plates or devices if the dealer or employee of the dealer causes or permits the display or use of any special vehicle dealer registration plate or device on any vehicle not owned or controlled by the dealer.

(i) A person commits the offense of improper display of dealer plates if the person operates over and along the highways of this state any unregistered vehicle owned or controlled by the dealer and any dealer plates issued are not displayed in the manner provided in ORS 803.540 for the display of registration plates.

(j) A vehicle dealer commits the offense of failure to exhibit the dealer certificate if the dealer fails to permanently exhibit the certificate at the place of business of the person at all times while the certificate is in force.

(k) A vehicle dealer commits the offense of failure to provide clear title if, within 15 days of transfer of any interest in a vehicle or camper [by] to the dealer the dealer fails to satisfy:

(A) The interest of any person from whom the dealer purchased or obtained the vehicle or camper;

(B) The interest of any person from whom the person described in subparagraph (A) of this paragraph leased the vehicle or camper; and

(L) Except as provided in subsection (2) of this section, a vehicle dealer commits the offense of failure to furnish certificate of title or application for title if, within 90 calendar days of transfer of any interest in a vehicle or camper by the dealer, the dealer has failed to:

(A) Furnish the certificate of title or other primary ownership record for the vehicle or camper and any release thereon or, if title has been issued or is to be issued in a form other than a certificate, any information or documents required by rule of the department, to the security interest holder next named, if any, otherwise to the lessor or, if none, to the purchaser; or

(B) Submit to the department in a manner that complies with any applicable statutes and rules, an application for title on behalf of the person to whom the title is to be furnished or whose name is to be shown on the title record.

(m) A vehicle dealer commits the offense of failure to maintain bond or letter of credit coverage if the dealer permits a bond or letter of credit to lapse during the period that the bond or letter of credit is required under ORS 822.020 or 822.040 or if the dealer fails to purchase a bond or letter of credit required by ORS 822.030.

(n) A person commits the offense of acting as a vehicle dealer while under revocation, cancellation or suspension if the person conducts business as a vehicle dealer in this state and the person's vehicle dealer certificate is revoked, canceled or suspended, regardless of whether the person is licensed as a vehicle dealer in another jurisdiction. This paragraph does not apply if the person has other current, valid dealer certificates issued in this state.

(2) A dealer shall not be considered to have committed the offense described in subsection (1)(L) of this section if the dealer demonstrates that:

(a) The dealer has made a good faith effort to comply; and

(b) The dealer's inability to provide title is due to circumstances beyond the dealer's control.

(3) The offenses described in this section are subject to the following penalties:

(a) The offense described in this section, failure to obtain a supplemental vehicle dealer certificate, is a Class A misdemeanor.

(b) The offense described in this section, failure to obtain a corrected vehicle dealer certificate, is a Class A misdemeanor.

(d) The offense described in this section, failure to allow administrative inspection, is a Class A misdemeanor.

(e) The offense described in this section, failure to allow police inspection, is a Class A misdemeanor.

(f) The offense described in this section, improper dealer movement of a manufactured structure, is a Class B traffic infraction.

(g) The offense described in this section, illegal use of dealer vehicle for hire, is a Class B traffic infraction.

(h) The offense described in this section, improper use of dealer plates or devices, is a Class D traffic infraction.

(i) The offense described in this section, improper display of dealer plates, is a Class B traffic infraction.

(j) The offense described in this section, failure to exhibit the dealer certificate, is a Class A misdemeanor.

(k) The offense described in this section, failure to provide clear title, is a Class A misdemeanor.

(L) The offense described in this section, failure to furnish certificate of title or application for title, is a Class A misdemeanor.

(m) The offense described in this section, failure to maintain bond or letter of credit coverage, is a Class A misdemeanor.

(n) The offense described in this section, acting as a vehicle dealer while under revocation, cancellation or suspension, is a Class A misdemeanor.

SECTION 5. ORS 822.030, as amended by section 2 of this 1999 Act, is amended to read:

(b) The bond or letter of credit shall be executed to the State of Oregon.

(B) Except as provided in subparagraph (A) of this paragraph, if the applicant is seeking a certificate to be a vehicle dealer, the bond or letter of credit shall be for [$20,000] $25,000 for each year the certificate is valid.

(d) The bond or letter of credit described in this subsection shall be approved as to form by the Attorney General.

(f) The bond or letter of credit must be filed and held in the office of the department.

(g) The vehicle dealer shall purchase a bond or letter of credit under this subsection annually on or before each anniversary of the issuance of the vehicle dealer's certificate.

(a) Vehicle registration;

(b) Vehicle permits;

(d) The regulation of vehicle dealers.

SECTION 6. ORS 822.700 is amended to read:

822.700. (1) Fee for issuance of a wrecker certificate under ORS 822.110, $54.

(2) Fee for renewal of wrecker certificate under ORS 822.125, $54.

(3) Fee for original issuance of vehicle dealer certificate under ORS 822.020:

(a) [$95] $285, for a certificate covering a single place of business;

(b) [$30] $90, for each additional place of business to be covered by the certificate and operated under the same name; and

(4) Fee for renewal of vehicle dealer certificate under ORS 822.040:

(a) [$95] $285, for renewal of vehicle dealer certificate covering single place of business; and

(b) [$30] $90, for each additional place of business to be covered by the certificate and operated under the same name.

(5) Fee for issuance of towing business certificate under ORS 822.205, $17 for each vehicle used for towing or recovery purposes.

(6) Fee for renewal of towing business certificate under ORS 822.210, $17 for each vehicle used for towing or recovery purposes.

(7) Fee for issuance of vehicle transporter certificate under ORS 822.310, $25.

(8) Fee for renewal of vehicle transporter certificate under ORS 822.310, $25.

(9) Fee for issuance of driver training instructor certificate under ORS 822.530, $20.

(10) Fee for renewal of driver training certificate under ORS 822.530, $20.

(11) Fee for issuance of commercial driver training school certificate under ORS 822.515, $100.

(12) Fee for renewal of commercial driver training school certificate under ORS 822.515, $100.

(13) Fee for issuance of appraiser certificate under ORS 819.230, a reasonable fee to cover the cost of issuance established by the Department of Transportation by rule that shall not exceed $10.

(14) Fee for renewal of an appraiser certificate under ORS 819.230, a reasonable fee to cover the cost of renewal established by the department by rule that shall not exceed $10.

SECTION 7. ORS 822.705 is amended to read:

822.705. Each person holding or applying for a current vehicle dealer certificate shall pay [an annual] a fee of [$14] $42 to the Department of Transportation upon application for issuance or renewal of a certificate. Moneys from the fee are continuously appropriated to the department for the purpose of carrying out the provisions of ORS 822.007, 822.009, 822.075 and 822.080. The fee imposed under this section is in addition to fees under ORS 822.700 for issuance and renewal of a vehicle dealer certificate.

SECTION 8. ORS 805.250 is amended to read:

805.250. This section establishes fees for issuance of registration plates authorized under ORS 805.200. If a fee for plates authorized in ORS 805.200 is not established in this section, the fee is the same fee as established under ORS 803.570. Where a fee is established under this section, the fee is in addition to the fee established under ORS 803.570 unless otherwise provided in the following:

(1) Amateur radio operator registration plates issued under ORS 805.230, $5.

(2) Customized registration plates issued under ORS 805.240, $25 annual fee.

(3) Special interest registration plates approved under ORS 805.210 are approved without cost except as provided in this subsection, including without payment of the fee established under ORS 803.570. If identifying stickers are required, $1 per sticker or pair of stickers.

(4) Dealer plates issued under ORS 822.020 and 822.040 are as follows:

(a) For the original dealer plate, no fee except the fee established under ORS 803.570.

(b) For replacement [or additional] dealer plates, $10 for each plate except that persons dealing exclusively in motorcycles, mopeds, Class I all-terrain vehicles or snowmobiles or any combination of those vehicles shall pay only $3 for each replacement [or additional] plate.

(c) For additional plates, or for renewal of registration, $42, except that persons dealing exclusively in motorcycles, mopeds, Class I all-terrain vehicles or snowmobiles or any combination of those vehicles shall pay only $9 for each additional plate, or for renewal of registration.

(5) Special vehicle transporter plates or devices issued under ORS 822.310, $5 for each plate or device.

(6) Instructor plates issued under ORS 821.125, $10 for each plate.

SECTION 9. The Department of Transportation may adopt any rules the department determines necessary for an orderly transition to a three-year cycle for issuing and renewing vehicle dealer certificates. The rules may include but need not be limited to:

(1) Provisions for staggering renewal dates.

(2) Provisions for prorating fees for issuance or renewal of a certificate.

SECTION 10. The amendments to ORS 822.030 by section 5 of this 1999 Act become operative September 1, 2001. A vehicle dealer who had a certificate on September 1, 2001, need not increase the amount of the dealer's bond or letter of credit until the next time the dealer is required to renew the certificate under ORS 822.040.

SECTION 11. The amendments to ORS 805.250, 822.025, 822.030, 822.040, 822.045, 822.700 and 822.705 by sections 1 to 4 and 6 to 8 of this 1999 Act become operative on March 1, 2000.

Approved by the Governor July 12, 1999

Filed in the office of Secretary of State July 12, 1999

Effective date October 23, 1999

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