71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 3692
 
                           B-Engrossed
 
                         House Bill 3684
                  Ordered by the Senate June 25
 Including House Amendments dated April 27 and Senate Amendments
                          dated June 25
 
Sponsored by Representative MERKLEY; Representative LEE (at the
  request of Attorney General's Manufactured Housing Task Force)
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
 
  Requires certain manufactured dwelling dealers to use purchase
agreement form for sale of manufactured dwelling.  Specifies
content of purchase agreement form. Adds failure to comply with
requirement to unlawful practices law.
 
                        A BILL FOR AN ACT
Relating to manufactured dwellings; creating new provisions; and
  amending ORS 646.608 and section 2, chapter 282, Oregon Laws
  2001 (Enrolled House Bill 2702).
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + As used in this section and section 2 of this
2001 Act:
  (1) 'Base price' means the total retail cost of the following
unless separately disclosed as described in section 2 (2) of this
2001 Act:
  (a) The manufactured dwelling as provided by the manufacturer;
  (b) Features added by the dealer, if any;
  (c) Freight; and
  (d) Delivery and installation as stated in the purchase
agreement.
  (2) 'Buyer' means a person who buys or agrees to buy a
manufactured dwelling.
  (3) 'Improvements' means goods and services not included in the
base price that are, in general, needed to prepare a site and
complete the setup of a manufactured dwelling. 'Improvements '
includes, but is not limited to, permits, site preparation,
sidewalks, concrete, utility connections, skirting, steps,
railings, decks, awnings, carports, garages, sheds, gutters,
downspouts, rain drains, heat pumps, air conditioning, basements,
plants and landscaping, installation fees and systems development
charges.
  (4) 'Manufactured dwelling' has the meaning given that term in
ORS 446.003.
  (5) 'Manufactured dwelling dealer' or 'dealer' means a person
selling a manufactured dwelling while acting as a dealer
regulated under ORS chapter 822.
  (6) 'Purchase agreement' means the written contract between the
manufactured dwelling dealer and the buyer for the purchase of a
manufactured dwelling. 'Purchase agreement' does not include
documents of a retail installment contract or loan agreement
entered into as part of the purchase transaction. + }
  SECTION 2.  { + (1) A manufactured dwelling dealer who sells a
manufactured dwelling shall use a purchase agreement form that
complies with this section and rules adopted in accordance with
section 3 of this 2001 Act.
  (2) The purchase agreement shall include the base price and a
written itemization that clearly and conspicuously discloses the
retail prices of the following, if not included in the base
price:
  (a) Manufactured dwelling options that are ordered by the
buyer.
  (b) The amount of any refundable or nonrefundable
administrative or processing fees paid to or collected by the
dealer and the circumstances under which the fees may be returned
to the buyer.
  (c) The amount of any earnest money paid and the circumstances
under which the earnest money may be returned to the buyer.
  (d) Improvements provided by the dealer, or by a third party at
the request of the dealer, to the extent known to the dealer at
the time of sale. The written itemization of improvements under
this paragraph excuses the provider making the improvements from
compliance with section 4 (1), chapter 282, Oregon Laws 2001
(Enrolled House Bill 2702).
  (e) All loan fees and credit report fees paid to or collected
by the dealer to obtain financing for the buyer's purchase of the
manufactured dwelling and the circumstances under which the fees
may be returned to the buyer.
  (f) Alterations and upgrades to the manufactured dwelling made
by the dealer or by a third party at the request of the dealer.
  (g) Goods and services provided by the dealer, or by a third
party at the request of the dealer, that are not otherwise
disclosed pursuant to this section.
  (h) Registration and other charges for transferring title to
the manufactured dwelling.
  (i) The extended warranty contract, if any.
  (j) Delivery, installation or site access costs that are not
otherwise disclosed pursuant to this section, if any.
  (3) The purchase agreement form must be accompanied by a list,
provided by the Department of Justice, of governmental consumer
protection agencies having jurisdiction over manufactured
dwelling issues.
  (4) Failure of a manufactured dwelling dealer to use a purchase
agreement form that complies with this section and rules adopted
in accordance with section 3 of this 2001 Act is an unlawful
practice under ORS 646.608.
  (5) Except as provided in ORS 41.740, a purchase agreement is
considered to contain all of the terms of the contract between
the buyer and the manufactured dwelling dealer. No evidence of
the terms of the contract may be presented other than the
contents of the purchase agreement. As used in this subsection,
'contract ' does not include a retail installment contract or
loan agreement entered into as part of a purchase
transaction. + }
  SECTION 3.  { + The Department of Justice may adopt rules
necessary and proper for the administration and enforcement of
section 2 of this 2001 Act. + }
  SECTION 4. Section 2, chapter 282, Oregon Laws 2001 (Enrolled
House Bill 2702), is amended to read:
   { +  Sec. 2. + } As used in sections 3 and 4   { - of this
2001 Act - }  { + , chapter 282, Oregon Laws 2001 (Enrolled House
Bill 2702) + }:
  (1) 'Buyer' has the meaning given that term in ORS 72.1030.
  (2) 'Improvements'   { - means installations or other changes
that a tenant makes to a rental space. 'Improvements' includes,
but is not limited to, plants and landscaping, sidewalks and
other concrete work, skirting, decks, railings, awnings, gutters,
carports, garages, sheds, installation charges imposed by the
landlord, installation fees imposed by government agencies and
system development charges to be paid by the tenant - }  { +  has
the meaning given that term in section 1 of this 2001 Act + }.
  (3) 'Provider' means a contractor licensed under ORS chapter
701 who adds improvements to a manufactured dwelling park.
  (4) 'Statement of estimated costs' means a written list of the
charges, fees, services, goods and accessories that a provider
knows or should know are associated with the making of an
improvement contracted by the provider and the total estimated
cost to the buyer for the improvement.
  SECTION 5. ORS 646.608 is amended to read:
  646.608. (1) A person engages in an unlawful practice when in
the course of the person's business, vocation or occupation the
person does any of the following:
  (a) Passes off real estate, goods or services as those of
another.
  (b) Causes likelihood of confusion or of misunderstanding as to
the source, sponsorship, approval, or certification of real
estate, goods or services.
  (c) Causes likelihood of confusion or of misunderstanding as to
affiliation, connection, or association with, or certification
by, another.
  (d) Uses deceptive representations or designations of
geographic origin in connection with real estate, goods or
services.
  (e) Represents that real estate, goods or services have
sponsorship, approval, characteristics, ingredients, uses,
benefits, quantities or qualities that they do not have or that a
person has a sponsorship, approval, status, qualification,
affiliation, or connection that the person does not have.
  (f) Represents that real estate or goods are original or new if
they are deteriorated, altered, reconditioned, reclaimed, used or
secondhand.
  (g) Represents that real estate, goods or services are of a
particular standard, quality, or grade, or that real estate or
goods are of a particular style or model, if they are of another.
  (h) Disparages the real estate, goods, services, property or
business of a customer or another by false or misleading
representations of fact.
  (i) Advertises real estate, goods or services with intent not
to provide them as advertised, or with intent not to supply
reasonably expectable public demand, unless the advertisement
discloses a limitation of quantity.
  (j) Makes false or misleading representations of fact
concerning the reasons for, existence of, or amounts of price
reductions.
  (k) Makes false or misleading representations concerning credit
availability or the nature of the transaction or obligation
incurred.
  (L) Makes false or misleading representations relating to
commissions or other compensation to be paid in exchange for
permitting real estate, goods or services to be used for model or
demonstration purposes or in exchange for submitting names of
potential customers.
  (m) Performs service on or dismantles any goods or real estate
when not authorized by the owner or apparent owner thereof.
  (n) Solicits potential customers by telephone or door to door
as a seller unless the person provides the information required
under ORS 646.611.
  (o) In a sale, rental or other disposition of real estate,
goods or services, gives or offers to give a rebate or discount
or otherwise pays or offers to pay value to the customer in
consideration of the customer giving to the person the names of
prospective purchasers, lessees, or borrowers, or otherwise
aiding the person in making a sale, lease, or loan to another
person, if earning the rebate, discount or other value is
contingent upon occurrence of an event subsequent to the time the
customer enters into the transaction.
  (p) Makes any false or misleading statement about a prize,
contest or promotion used to publicize a product, business or
service.
  (q) Promises to deliver real estate, goods or services within a
certain period of time with intent not to deliver them as
promised.
  (r) Organizes or induces or attempts to induce membership in a
pyramid club.
  (s) Makes false or misleading representations of fact
concerning the offering price of, or the person's cost for real
estate, goods or services.
  (t) Concurrent with tender or delivery of any real estate,
goods or services fails to disclose any known material defect or
material nonconformity.
  (u) Engages in any other unfair or deceptive conduct in trade
or commerce.
  (v) Violates any of the provisions relating to auction sales,
auctioneers or auction marts under ORS 698.640, whether in a
commercial or noncommercial situation.
  (w) Violates the provisions of ORS 803.375, 803.385 or 815.410
to 815.430.
  (x) Violates ORS 646.850 (1).
  (y) Violates any requirement of ORS 646.661 to 646.686.
  (z) Violates the provisions of ORS 128.801 to 128.898.
  (aa) Violates ORS 646.883 or 646.885.
  (bb) Violates any provision of ORS 646.195.
  (cc) Violates ORS 646.569.
  (dd) Violates the provisions of ORS 646.859.
  (ee) Violates ORS 759.290.
  (ff) Violates ORS 646.872.
  (gg) Violates ORS 646.553 or 646.557 or any rule adopted
pursuant thereto.
  (hh) Violates ORS 646.563.
  (ii) Violates ORS 759.690 or any rule adopted pursuant thereto.
  (jj) Violates the provisions of ORS 759.705, 759.710 and
759.720 or any rule adopted pursuant thereto.
  (kk) Violates ORS 646.892 or 646.894.
  (LL) Violates any provision of ORS 646.249 to 646.259.
  (mm) Violates ORS 646.384.
  (nn) Violates ORS 646.871.
  (oo) Violates ORS 822.046.
  (pp) Violates ORS 128.001.
  (qq) Violates ORS 646.649 (2) to (4).
  (rr) Violates ORS 646.877 (2) to (5).
  (ss) Violates ORS 87.686.
  (tt) Violates ORS 646.651.
  (uu) Violates ORS 646.879.
   { +  (vv) Violates section 2 of this 2001 Act or any rule
adopted under section 2 or 3 of this 2001 Act. + }
  (2) A representation under subsection (1) of this section or
ORS 646.607 may be any manifestation of any assertion by words or
conduct, including, but not limited to, a failure to disclose a
fact.
  (3) In order to prevail in an action or suit under ORS 646.605
to 646.652, a prosecuting attorney need not prove competition
between the parties or actual confusion or misunderstanding.
  (4) No action or suit shall be brought under subsection (1)(u)
of this section unless the Attorney General has first established
a rule in accordance with the provisions of ORS 183.310 to
183.550 declaring the conduct to be unfair or deceptive in trade
or commerce.
  SECTION 6.  { + Sections 1 to 3 of this 2001 Act apply to
manufactured dwelling sales for which the buyer signs a purchase
agreement on or after the effective date of this 2001 Act. + }
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