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 3719
House Bill 3786
Sponsored by COMMITTEE ON SMART GROWTH AND COMMERCE
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 as
introduced.
Increases required amount of vehicle dealer bond, effective
September 1, 2001.
Allows vehicle dealer to charge customer for collecting fees
and completing and submitting documents necessary for
transference of certificate of title and registration for
vehicle. Authorizes Department of Transportation to regulate
amount and disclosure of charge.
Declares emergency, effective on passage.
A BILL FOR AN ACT
Relating to vehicle dealers; creating new provisions; amending
ORS 822.030; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + (1) A vehicle dealer may charge a purchaser for
collecting fees and completing and submitting documents necessary
for the transference of a certificate of title and registration
for a vehicle. The vehicle dealer must state the amount
separately from the price for the vehicle in advertisements and
sales documents. A vehicle dealer must apply the charge uniformly
for each vehicle sold.
(2) The Department of Transportation shall adopt rules to limit
the amount that a vehicle dealer may charge a purchaser under
this section. In adopting a rule to limit the amount, the
department shall consult with any advisory committee established
by the department pursuant to ORS 802.370. The department shall
also adopt rules regulating placement, type size, distinguishing
characteristics and other features of the amount statement.
(3) If a vehicle dealer violates this section or a rule adopted
thereunder, the dealer is subject to the following penalties:
(a) For a first violation, the department shall issue a written
warning to the dealer.
(b) For a second violation, the department shall impose a civil
penalty not to exceed $100.
(c) For a third violation, the department shall impose a civil
penalty not to exceed $200.
(d) For a fourth or subsequent violation, the department shall
impose a civil penalty not to exceed $500. + }
SECTION 2. { + (1) Section 1 (1) and (3) of this 2001 Act
becomes operative January 1, 2002. However, a vehicle dealer may
charge a purchaser for collecting fees and completing and
submitting documents necessary for the transference of a
certificate of title and registration for a vehicle prior to
January 1, 2002, if the charge does not exceed $50 and, except
for the amount, the charge is authorized under a rule adopted by
any state agency. This subsection does not allow a state agency
other than the Department of Transportation to regulate charges
described in section 1 (1) of this 2001 Act on or after January
1, 2002.
(2) Notwithstanding subsection (1) of this section and section
1 (2) of this 2001 Act, for calendar year 2002 the maximum amount
that a vehicle dealer may charge a purchaser for collecting fees
and completing and submitting documents necessary for the
transference of a certificate of title and registration for a
vehicle is $50. + }
SECTION 3. ORS 822.030, as amended by section 5, chapter 593,
Oregon Laws 1999, 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.
(c) Except as otherwise provided in this paragraph, the bond or
letter of credit shall be in the following sum:
(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 { - $25,000 - } { +
$35,000 + } 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;
(c) The transfer or alteration of vehicles; or
(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 4. { + This 2001 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2001 Act takes effect on its
passage. + }
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