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 1838
 
                         House Bill 3789
 
Sponsored by COMMITTEE ON SMART GROWTH AND COMMERCE (at the
  request of Oregon Independent Auto Dealers)
 
 
                             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.
 
  Changes education requirements for applicants for issuance or
renewal of vehicle dealer certificate.
  Changes approval mechanism for education programs and tests
developed for persons seeking vehicle dealer certificates.
  Creates civil penalties not to exceed $1,000 for operating
commercial driver training school without certificate and for
acting as driver training instructor without certificate.
 
                        A BILL FOR AN ACT
Relating to persons certified by Department of Transportation;
  creating new provisions; and amending ORS 822.027 and 822.040.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 822.027 is amended to read:
  822.027. (1) Except as provided in subsection (2) { +  or
(3) + } of this section, the following education requirements
apply to an applicant for a vehicle dealer certificate under ORS
822.020 or 822.040:
  (a) An applicant for a vehicle dealer certificate under ORS
822.020 must complete a minimum of eight hours of approved
education programs described in subsection   { - (3) - }  { +
(4) + } of this section and pass a test prior to submitting an
application for the certificate; and
  (b) An applicant for a renewal certificate under ORS 822.040
must complete a minimum of   { - five - }  { +  four + } hours
per year in a licensing period of approved continuing education
programs described in subsection   { - (3) - }  { +  (4) + } of
this section prior to submitting an application for the renewal
certificate.
  (2) The education requirements in subsection (1) of this
section do not apply to an applicant for a vehicle dealer
certificate under ORS 822.020   { - or 822.040 - }  if the
applicant  { + holds another certificate issued under ORS 822.020
or 822.040 that has been in continuous effect since January 1,
2000, or the applicant + } is:
  (a) A   { - franchised - }  dealer   { - of - }  { +  having a
franchise in this state for + } nationally advertised and
recognized motor vehicles;
  (b) A   { - franchised - }  dealer   { - of - }  { +  having a
franchise in this state for + } new recreational vehicles;
 
  (c) A nationally franchised or corporate-owned motor vehicle
rental company { +  operating offices in this state continuously
since January 1, 2000 + };
  (d)   { - A - }  { +  An Oregon + } dealer of manufactured
dwellings; or
  (e) A national auction company that holds a vehicle dealer
certificate and a wrecker certificate whose primary activity in
this state is the sale or disposition of totaled vehicles { + ,
if both certificates have been in continuous effect since January
1, 2000 + }.
   { +  (3) An applicant for renewal of a certificate under ORS
822.040 may fulfill the requirements of subsection (1)(b) of this
section by requiring a full-time management employee of the
dealership, rather than an owner or officer of the dealership, to
complete the continuing education program described in subsection
(4) of this section. An applicant that fulfills the requirement
by means of this subsection must, for the duration of the renewal
period, have at least one full-time management employee who has
completed the continuing education program. The Department of
Transportation, with the advice of the advisory committee
established under ORS 802.370, shall adopt rules to implement
this subsection. + }
    { - (3) - }  { +  (4) + }   { - The - }  Education programs
and { +  the + } test required in subsection (1) of this section
 { - shall - }  { +  may + } be developed by  { + a + } motor
vehicle industry   { - organizations - }  { +  organization + }
including, but not limited to, the Oregon Independent Auto
Dealers Association and shall be submitted to the Department of
Transportation for approval. The department { + , after
consultation with the advisory committee established pursuant to
ORS 802.370, + } shall approve a program or test   { - if it - }
 { +  that + } pertains to the motor vehicle industry and
includes, but is not limited to, state and federal law in the
following areas:
  (a) Motor vehicle advertising;
  (b) Odometer laws and regulations;
  (c) Vehicle licensing and registration;
  (d) Unlawful dealer activities;
  (e) Environmental rules and regulations;
  (f) Oregon and industry standard motor vehicle forms;
  (g) Truthful lending practices;
  (h) Motor vehicle financing;
  (i) Service and warranty contracts; and
  (j) Land use regulations governing motor vehicle dealers.
    { - (4) - }  { +  (5) + }   { - The - }  Education programs
and { +  the + } test { +  required in subsection (1) of this
section + } may be provided by accredited educational
institutions, private vocational schools, correspondence schools
or trade associations if the education programs and test have
been approved by the Department of Transportation  { + after
consultation with the advisory committee established pursuant to
ORS 802.370, + } as required in subsection
  { - (3) - }  { +  (4) + } of this section. { +  A provider must
offer both a program for persons seeking a certificate under ORS
822.020 and a program for persons seeking renewal of a
certificate under ORS 822.040. + }
  SECTION 2. 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 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 fee for renewal under ORS 822.700.
  (b) Delivers to the department a bond that meets the
requirements under ORS 822.030.
  (c) Delivers to the department a certificate of insurance that
meets the requirements under ORS 822.033.
  (d) Provides the names of all partners or corporate officers.
  (e) Certifies completion of the education requirements of ORS
822.027 (1)   { - if the person is a dealer subject to the
education requirements - } .
  (5) The department may adopt suitable rules for the issuance
and renewal of certificates under this section and ORS 822.020.
  SECTION 3.  { + Section 4 of this 2001 Act is added to and made
a part of ORS chapter 822. + }
  SECTION 4.  { + A person who violates ORS 822.500 or 822.525 is
subject to a civil penalty imposed by the Department of
Transportation, not to exceed $1,000. A civil penalty imposed
under this section is subject to ORS 183.090. + }
  SECTION 5.  { + The amendments to ORS 822.027 by section 1 of
this 2001 Act apply to persons applying for issuance or renewal
of vehicle dealer certificates on or after the effective date of
this 2001 Act. + }
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